4 hrs ago
NSE official highlights retail growth, diversification and commodity opportunities
Sriram Krishnan said more people in India are investing through the stock market.
He said millions of new demat accounts are being created every month.
Regular investments through mutual funds are also bringing money into the market.
Krishnan believes India’s growth could help the National Stock Exchange expand for many years.
He said NSE wants to offer more kinds of products instead of relying mainly on weekly index options.
Commodity products, such as crude oil and natural gas contracts, are gaining interest.
NSE has also launched electronic gold receipts, which let people trade gold in electronic form.
The exchange is waiting for approval to start corporate bond index derivatives.
Some market participants have questioned how prices are calculated when index options expire.
NSE CBDO Sriram Krishnan said growing retail participation could expand India’s capital markets.
He said 20-30 lakh demat accounts are being opened monthly, alongside steady mutual fund SIP flows.
Krishnan identified commodities, electronic gold receipts and corporate bond index derivatives as growth opportunities.
NSE’s crude oil contract reached more than Rs 3,000 crore in premium at its latest expiry.
He said market participants have raised concerns about index-option expiry settlement prices under a Sebi consultation.
- Who
- Sriram Krishnan, NSE’s chief business development officer, discussed the exchange’s outlook.
- What
- He outlined retail participation, product diversification, commodity growth, electronic gold receipts and regulatory issues.
- Where
- The discussion concerned India’s capital markets and the National Stock Exchange.
- When
- The article does not specify when the remarks were made; it mentions EGR trading began on May 18.
- Why
- NSE is seeking to benefit from rising retail participation and broaden its products and revenues.
NSE’s growth and regulatory outlook
Market participants’ concerns
Product and market expansion
NSE’s growth and regulatory outlook
Krishnan said retail participation, India’s economic growth and new products could support NSE’s expansion over the next 10-20 years.
Market participants’ concerns
The article does not present a direct opposing forecast, but it notes that current activity remains heavily focused on index options, particularly weekly index options.
Index-option expiry settlement prices
NSE’s growth and regulatory outlook
Krishnan said regulatory changes would ultimately help market growth and that a clear implementation path would follow Sebi’s consultation and circular.
Market participants’ concerns
Market participants expressed concerns about the method used to determine settlement prices for index-option expiries.
Key facts
- Retail account growth
- About 20-30 lakh demat accounts are being opened each month.
- Mutual fund flows
- SIP flows were described as steady at roughly $3-4 billion.
- Crude oil contract
- The latest expiry recorded more than Rs 3,000 crore in premium.
- Electronic gold receipts
- NSE launched EGR on May 4, with trading beginning on May 18.
- Corporate bond derivatives
- NSE has applied for regulatory approval to launch corporate bond index derivatives.
- Closing auction session
- NSE said CAS was introduced to help passive fund managers achieve zero tracking error.
- Regulatory consultation
- Market participants have raised concerns about the method for determining index-option expiry settlement prices.
Quotes
Sriram Krishnan
NSE chief business development officer discussing retail participation and market growth
“The size of the market will grow because more and more retail participants are coming to the market with each passing month. We can see 20-30 lakh demat accounts being set up every single month. We can also see SIP flows coming through mutual funds on a steady-state basis, $3-4 billion or so”
businesstoday.in
“There'll also be a lot of product diversification, which automatically will make sure that revenue also gets diversified and the current obsession or focus on index options and particularly within that, the weekly index options, will probably get diluted as we go along”
businesstoday.in
Sources
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