The shares of BSE and Angel One saw a major decline on 21 August. This is because a statement of SEBI chairman Tuhin Kant Pandey is being considered. BSE stock fell 5.16 per cent to Rs 2,392.80 at 1 pm. Angel One’s stock was 5.51 per cent to Rs 2,567. Pandey made this statement on 21 August about the period of equity derivatives. He said at the Industry Chamber FICCI Anuel Capital Market Conference that it is necessary to extend the duration of equity derivatives.
SEBI will release consultation paper
Sebi Chairman of Tuhin kanta pandey Said that equity derivatives (Equity derivatives) A consultation paper will be released to increase the duration of. He said that the regulator is thinking about the period of equity derivative contracts and methods of improvement in maturity. Also, ways to increase volume in the cash market are also being considered. On August 12, BSE MD and CEO S Ramamurthy said in a conversation with CNBC-TV18 that the regulatory policy in India continues to grow towards betterment. He had said that he is waiting for the ideas of the regulator on reports related to the removal of Weekly expiry.
Quality and balance is necessary in F&O segment
The SEBI chairman said that it is necessary to maintain quality and balance in the F&O segment. He said, “Equity derivatives have a big role in the capital formation. But, we have to ensure quality and balance. We will interact with stakeholders about this. Derivatives will talk about increasing the duration and maturity of products. This will make it so much better use for hedging and long term investing.”
BSE focus on diversification of revenue sources
He also said that on the basis of data, it cannot be said that the volume of options in India has reached peak. The focus of BSE is currently on diversification of sources of revenue instead of increasing margin. Angel One CEO Dinesh Thakkar said on July 22 that 45 % of the brokerage firm’s revenue comes from the F&O broking segment.
Excessive share of derivatives in exchanges’ revenue
Rajesh Baheti of Crosses Capital Services said that 85 % of discount brokers and exchanges come from revenue derivatives. He had estimated 35-40 percent reduction in NSE revenue and 50-60 percent in BSE revenue. He believed that the revenue of full services brokerage firms could fall by 10-15 percent.