The National Stock Exchange has solidified its market leadership in equity options, with its market share jumping by 10 percentage points to 87% following a change in expiry days. Chief Business Development Officer Sriram Krishnan stated that the exchange's highly anticipated IPO awaits regulatory clearance from SEBI.
Sriram Krishnan, Chief Business Development Officer at the National Stock Exchange (NSE), provided updates on the bourse's much-anticipated initial public offering (IPO), market share performance, and future product strategy in an interview on CNBC TV18. While market participants eagerly await the NSE's public listing, Krishnan maintained that the timeline is contingent on regulatory approvals.
NSE IPO: SEBI approval awaited
Addressing the IPO, Krishnan stated, "As far as NSE's IPO is concerned, that's dependent upon the regulatory clearances and it will happen when it has to happen." He specified that the Securities and Exchange Board of India (SEBI), which serves as both the industry and capital markets regulator for the exchange, is the key authority whose approval is awaited.
Krishnan redirected focus to the exchange's primary objective of facilitating capital raising for other companies, highlighting that 268 firms listed on the NSE in calendar year 2024, raising approximately $20 billion.
On the business front, Krishnan confirmed the NSE's continued dominance. "In the cash market, our market share continues to be about 93-94%," he said. More notably, he detailed a significant gain in the highly competitive equity options segment. Krishnan explained that a strategic shift in the index options expiry day from Thursday to Tuesday proved effective.
"If you look at August, our market share was 76.9%… if you look at November, for example, our market share in equity options has gone up about 10 (percentage points) to 87%," he revealed, indicating strong acceptance of the change by market participants. He also pointed to the success of electricity futures, where the NSE holds a consistent market share of 75-80%.
Weekly expiries for Bank Nifty derivatives
Regarding the regulatory environment for weekly derivatives expiries, Krishnan referred to the SEBI Chairperson's public statements, noting that any potential changes would be preceded by a formal consultation paper, which has not yet been issued.
He also acknowledged that broker associations have made representations to the regulator, requesting that Bank Nifty's expiry be permitted on Thursdays as an additional weekly option, given its past status as one of the most traded products globally. Krishnan added that brokerage revenues have fallen by 50-60 percent in recent years and remarked that the industry “needs to recoup and recharge a bit.”
Looking ahead, Krishnan outlined a robust pipeline of new products and infrastructure enhancements. A major focus is the expansion of co-location facilities, with the NSE converting office space into a full data centre to meet the high demand for server racks from technology-oriented trading firms.
On the product side, he confirmed the exchange has received regulatory approval to launch a 10-gram gold futures contract and an Indian natural gas contract based on domestic prices, with announcements expected soon. Furthermore, the NSE has applied for approvals to introduce contracts for Brent crude oil, corporate bonds, and government bonds, which could see significant interest with the launch of the new specialised investment fund framework.
