Mumbai, Aug 9: Marking a decline for the first time in the current fiscal, equity derivatives turnover on the National Stock Exchange (NSE) fell nearly 9 per cent to Rs 32 lakh crore in June.
“The monthly turnover in equity derivatives market on the NSE decreased 8.9 per cent from Rs 35,03,801 crore in May 2013 to Rs 31,90,887 crore in June 2013,” the Securities and Exchange Board of India (SEBI) said in its latest monthly report.
The exchange had recorded a derivatives turnover of about Rs 30 lakh crore in April 2013.
In terms of volume, equity derivatives contracts traded on the NSE platform declined 4.16 per cent to 11 crore compared to the previous month.
Turnover on BSE
On the other hand, BSE continued its uphill movement with Rs 6.73 lakh crore monthly turnover in equity derivatives market in June — a rise of 7.5 per cent compared to the preceding month.
BSE's monthly turnover in derivatives market had nearly doubled to Rs 6.26 lakh crore in May — marking the strongest recovery for the bourse in three months.
Over 2.3 crore contracts were traded on the BSE in June against 2 crore trades in the preceding month.
During June, equity derivatives turnover on the NSE comprised 82.2 per cent, while BSE represented 17.4 per cent of the total equity derivatives turnover in India.
Call & put options
NSE had registered a significant plunge in its call and put options on stocks in June. “...the monthly turnover of put options on stock decreased by 29.9 percent from Rs 81,537 crore in May 2013 to Rs 57,156 crore in June 2013, ” SEBI said.
“The monthly turnover of call options on stock also decreased by 26.9 per cent from Rs 1,44,984 crore in May 2013 to Rs 1,05,949 crore in June 2013,” it added.
Generally, put and call option contracts provide the holders the right to sell or buy securities, respectively, at a specific price and a specified time. However, the holder is not obliged to execute the contract.