Does India need one more VIBRANT EXCHANGE ?
A stock exchange is a marketplace where buying and selling of securities take place. Whenever we talk about the stock exchanges of India, the most popular ones are the National Stock Exchange and Bombay Stock Exchange of India.
The Bombay Stock Exchange (BSE) is in India’s Business Capital Mumbai, one of the two principal large stock exchanges of India. It has a big market cap of $3.3 trillion and National Stock Exchange of India (NSE) in Mumbai, one of the two principal large stock exchanges of India. With a Market cap of 3.27 trillion dollars.
Apart, from the above two most popular stock exchanges in India, we have few other major exchanges in India, including Calcutta Stock Exchange (CSE) , India's oldest and one of the biggest stock exchange, with market cap of $720 million; India International Exchange (India INX) in the Gift City in Gujarat, Metropolitan Stock Exchange of India Ltd. (MSE) in Mumbai, National Commodity & Derivatives Exchange Ltd. (NCDEX) in Mumbai and Multi Commodity Exchange of India Ltd. (MCX) in Mumbai.
A recent news sparked a new wave among the industry, India is considering to come up with one more active exchange, and hence the need to make the BSE more vibrant. Experts are trying to differentiate by tweaking the product offerings. With an objective to encourage technology providers, brokers and end users to actively participate in the BSE.
"India requires more than one active exchange, and hence the need to make the BSE more vibrant. We are trying to differentiate by tweaking our product offerings,” Sundararaman Ramamurthy, Managing Director and Chief Executive Officer of BSE said.
There are initiatives like, re-launching Sensex and Bankex derivatives with lower lot sizes and a new expiry cycle of Friday from May 15. The launch of Sensex 30 and Bankex derivatives will provide investors an opportunity to trade these popular and well-tracked indices.
Going forward, BSE will also be approaching the regulator for introducing weekly options expiries on multiple days of the week, similar to what it is in the US. Besides, the BSE will continue to strengthen the StAR MF, India INX, and SME platforms.
The new contracts aim at deepening the market, providing greater flexibility to investors with lower capital to hedge their risk with differential settlement day of Friday and smaller lot sizes.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
