1 day ago
NSE Predicts Investors Will Shift Toward Institutional F&O Products
The NSE is a major marketplace where people buy and sell financial products.
Its executive said many investors may eventually stop trading complex futures and options directly.
Instead, they may use special funds called Systematic Investment Funds, or SIFs.
These funds have a minimum investment requirement of ₹10 lakh.
The idea is that trained fund managers could help provide more protection and guidance.
The government and SEBI are trying to reduce risky, speculative retail trading.
NSE also plans to create more products so it does not depend so heavily on index options.
The exchange is preparing to sell shares in an IPO and expects its listed companies to nearly double within ten years.
NSE executive Sriram Krishnan said investors may gradually shift from direct F&O trading to institutional products.
Systematic Investment Funds allow investors to access derivatives and require a minimum investment of ₹10 lakh.
The government and SEBI are taking steps to reduce speculative retail participation in F&O markets.
NSE is preparing for a ₹22,569 crore upper-band IPO structured as a pure Offer for Sale.
NSE expects companies listed on its platform to nearly double to about 6,000 over the next decade.
- Who
- Sriram Krishnan, NSE's Chief Business Development Officer, and the National Stock Exchange of India.
- What
- NSE said investors may shift from direct retail F&O trading toward institutional products such as Systematic Investment Funds.
- Where
- The comments were made at a press event in Mumbai.
- When
- The comments were reported on September 13, 2026; NSE's IPO is planned for the following week.
- Why
- SEBI and the Indian government are seeking to reduce speculative retail F&O trading, while NSE aims to diversify its revenue.
Direct Retail F&O Trading
Institutional F&O Products
Investor access
Direct Retail F&O Trading
Investors can trade futures and options directly, but the article describes this activity as potentially speculative and risky.
Institutional F&O Products
SIFs could give investors access to derivatives through specialised institutional products with greater guidance and protection.
Market direction
Direct Retail F&O Trading
Direct retail F&O trading currently contributes substantially to NSE's revenue, with the segment generating roughly two-thirds of it.
Institutional F&O Products
NSE expects investors may gradually move toward institutional products and says its revenue will diversify over the longer term.
Key facts
- NSE F&O revenue share
- Roughly two-thirds of NSE's revenue comes from the F&O segment.
- Systematic Investment Fund minimum
- SIFs require a minimum investment of ₹10 lakh.
- Planned IPO size
- The IPO has an upper-band value of ₹22,569 crore.
- IPO structure
- The offering is a pure Offer for Sale.
- Earlier proposed issue size
- NSE initially proposed an issue of around ₹30,000 crore before reducing it by 15%.
- Expected listed companies
- NSE expects the number of companies on its platform to reach about 6,000 over the next decade.
- Planned product diversification
- NSE cited Electronic Gold Receipts and electricity futures as examples of new products.
Quotes
Sriram Krishnan
Chief Business Development Officer at the National Stock Exchange
“However, some of the shareholders feel that the NSE stock price is much more than what we are proposing to do the IPO at. So some of them have backed out of the OFS saying that they don’t want to tender their shares anymore.”
thehindubusinessline.com
“In the longer term, there will be so much diversification of revenue as a natural consequence. People will forget this current focus on index options.”
thehindubusinessline.com
Sources
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