Mumbai: Stock Exchange Ltd (NSE) CEO Ashishkumar Chauhan said on Wednesday that the loss of market share of smaller rival BSE Ltd may have reached its limit and is unlikely to cause further losses unless new regulations specifically target the exchange are introduced.
“Given that everything that has to happen has happened, the market loss is almost running now,” Qiao Han said in an investor call. “Unless new measures specifically targeting NSE are introduced, we think it's almost market share (loss).
Chauhan refers to regulatory changes implemented in October under the Securities and India Director Madhabi Puri Buch, which included restrictions on exchanges’ only one index option contract per week. As a result, NSE was asked to transfer its popular bank Nifty option contract from weekly to monthly frequency, keeping only beautiful options contracts.
Nifty Bank Nifty previously accounted for about 55% of the total index options turnover, while Nifty's 45% accounted for the total index options, according to Chauhan.
NSE's data shows its market share in stock options (index and stocks), which fell from 96.9% in FY24 to 87.4% in FY25 based on premium turnover, while BSE captured the rest of the share.
BSE has only one liquidity expiration contract per week – from regulatory rules that give regulatory rules to curb retail investor activities in an expiration date in options trading.
Loss of market share in index options leads to a 13% year-on-year decline in total NSE revenue ₹43.97 million in Q4FY25. Other factors include lower cash market volume and reduced liquidation activities and lower treasury revenue. The exchange's net profit was 7% of fiscal 25 years, reaching ₹26.5 billion.
By comparison, BSE reported a 70% year-on-year increase in total revenue ₹Q4FY25's 9.26 million is driven by the growth of Sensex options trading. Its consolidated net profit soared more than four times ₹4.94 million in the same period.
Meanwhile, Chauhan said that NSE has obtained SEBI's principled approval to launch power-derived products and is working to complete detailed information including contract term. He also noted that SEBI has not yet provided a certificate of no objection for NSE's initial public offering.
