BENGALURU (Reuters) – India’s National Stock Exchange (NSE) said on Wednesday that its volume of futures contracts doubled in the first quarter, while options grew 33%, amid a surge in derivatives trading in the country.
Average daily traded volumes for equity futures doubled to 2.09 trillion rupees ($24.90 billion) for the quarter ended June 30, while that for the equity options grew 33% to 719.57 billion rupees.
The rise in volumes comes amid a surge in derivates trading in the country, especially among retail investors, sparking concerns about broader financial stability risks and depletion of household savings.
Last month, the country’s markets regulator proposed a series of measures to curb a trading frenzy in options, including raising the minimum trading amount by over three times, reducing the number of contracts expiring each week and hiking trading margins.
The NSE paid a securities transaction tax (STT) of 120.54 billion rupees during the quarter. STT is a direct tax charged on every sale and purchase of securities that are listed on Indian stock exchanges.
The NSE’s consolidated operating revenue for the quarter grew 51% year-on-year, while its profit rose 39%.
India’s equity market hit multiple record highs in the April to June quarter on strong economic outlook and foreign fund inflows, boosting its stock exchanges.
($1 = 83.9190 Indian rupees)
(Reporting by Nishit Navin in Bengaluru; Editing by Sonia Cheema)
