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NSE’s options dependence draws scrutiny ahead of listing
NSE makes much of its money when people trade options.
Options contributed about 60% of its operating revenue in FY26.
New rules and higher taxes on derivatives trading reduced some trading activity.
NSE’s revenue and profit both fell during the year.
Its share of the options market also declined as BSE became more popular.
However, NSE remains very strong in cash-equity and equity-futures trading.
It is also earning more from services such as data feeds, connectivity and index licensing.
Investors are watching whether NSE can keep growing despite regulation and stronger competition.
Options generated about 60.22% of NSE’s operating revenue in FY26, while transaction charges contributed 78.65%.
NSE’s operating revenue fell 3.15% year-on-year and profit declined 15.47% in FY26.
NSE’s options premium turnover market share fell from 96.86% in FY24 to 68.48% in the June quarter.
BSE gained traction in options, while NSE retained about 93% of cash-equity and nearly 100% of equity-futures market share in FY26.
The ₹22,569-crore IPO valued NSE at about ₹4.42 lakh crore at the upper price-band limit, with listing scheduled for September 24.
- Who
- The National Stock Exchange of India, Securities and Exchange Board of India, BSE and investors are involved in the issue.
- What
- NSE’s heavy reliance on options revenue is under scrutiny ahead of its initial public offering listing.
- Where
- The developments concern India’s securities markets.
- When
- The article was published on September 21, 2026; NSE shares were scheduled to list on September 24, 2026.
- Why
- Regulatory changes, higher securities transaction tax, lower derivatives volumes and rising competition from BSE could affect NSE’s revenue and earnings.
Reasons for caution
Factors supporting NSE
Options dependence
Reasons for caution
Analysts warn that reliance on options and transaction charges makes NSE sensitive to regulatory changes, trading volumes and market participation.
Factors supporting NSE
Options remain a major earnings engine, and NSE’s dominance in other market segments partly cushions that concentration.
Competitive pressure
Reasons for caution
BSE’s gains in options could weigh on NSE’s transaction-revenue growth and warrant a cautious near-term outlook.
Factors supporting NSE
NSE still held about 93% of the cash-equity market and nearly 100% of the equity-futures market in FY26.
Revenue diversification
Reasons for caution
Non-transaction businesses remain considerably smaller than options, limiting their ability to offset a major decline in derivatives activity.
Factors supporting NSE
Non-transaction revenue rose to 21.35% of operating revenue in FY26, supported by data centres, connectivity, data feeds and index licensing.
Key facts
- IPO size
- ₹22,569 crore
- Valuation at upper price band
- About ₹4.42 lakh crore
- IPO price band
- ₹1,700–₹1,785 per share
- Options share of FY26 operating revenue
- 60.22%
- FY26 operating revenue change
- Down 3.15% year-on-year
- FY26 profit change
- Down 15.47%
- Options premium market share
- Declined to 68.48% in the June quarter
- Listing date
- Scheduled for September 24, 2026
Quotes
Nirmal Bang Research
Research firm assessing BSE’s growing options-market competition
“Its high dependence on transaction charges, particularly from the options business, increases sensitivity to trading activity,”
thehindubusinessline.com
“This competitive shift could weigh on NSE’s transaction revenue growth and warrants a cautious near-term view,”
thehindubusinessline.com
Sources
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