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Derivative Exchanges in India – BSE & NSE

In India, we have two giants.


1. National Stock Exchange (NSE)

  • Launch: Started Index Futures in June 2000.
  • Dominance: NSE is the world's largest exchange by number of contracts traded.
  • Key Product: Nifty 50 Futures & Options (The "King" of Indian derivatives).

2. Bombay Stock Exchange (BSE)

  • Launch: Started Index Futures in June 2000 (Same month as NSE).
  • Status: Asia's oldest exchange (1875).
  • Key Product: Sensex Futures & Options.
  • Recent Growth: BSE has gained huge traction recently with its "Bankex" expiry.

3. Comparison

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4. Exam Notes: Writing the Answer

Question: "Discuss the development of Derivative Exchanges in India." (5 Marks)

Answering Strategy:

  1. Year 2000: Critical date. Both started then.
  2. SEBI: Mention that SEBI regulates both.
  3. Volume: Mention NSE's global dominance in volume.

Summary

  • Success Story: India is a global leader in derivatives trading volume, thanks to NSE's robust technology.

Quiz Time! 🎯

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