Marking a decline for the first time in the current fiscal, equity derivative turnover on premiere bourse National Stock Exchange (NSE) fell by nearly 9 percent to about Rs 32 lakh crore in June. "The monthly turnover in equity derivative market at NSE decreased by 8.9 percent from Rs 35,03,801 crore in May 2013 to Rs 31,90,887 crore in June 2013," Securities and Exchange Board of India (Sebi) said in its latest monthly report.
The exchange had recorded a derivative turnover of about Rs 30 lakh crore in April 2013. In terms of volumes, equity derivative contracts traded on NSE platform declined by 4.16 per cent to 11 crore compared to the previous month. In comparison, BSE which is generally a lesser preferred bourse for derivative trading compared to NSE, continued its uphill movement with Rs 6.73 lakh crore monthly turnover in equity derivative market in June -- a rise of 7.5 per cent compared to the preceding month.
BSE's monthly turnover in derivative 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 as against 2 crore trades in the preceding month. During June, equity derivatives turnover at NSE comprised 82.2 per cent, while BSE represented 17.4 percent of total equity derivatives turnover in India.
NSE registered a significant plunge in its call and put options on stocks in June. The call and put options on index also marked a decline. " 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 percent from Rs 1,44,984 crore in May 2013 to Rs 1,05,949 crore in May 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.