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
NSE (National Stock Exchange)
- Founded: 1992 (Derivatives 2000).
- Benchmark: Nifty 50.
- Market Share: ~90% of Volume.
- Tech: Fully Electronic (NEAT).
VS
BSE (Bombay Stock Exchange)
- Founded: 1875 (Derivatives 2000).
- Benchmark: Sensex.
- Market Share: Growing rapidly.
- Tech: BOLT (BSE Online Trading).
4. Exam Notes: Writing the Answer
Question: "Discuss the development of Derivative Exchanges in India." (5 Marks)
Answering Strategy:
- Year 2000: Critical date. Both started then.
- SEBI: Mention that SEBI regulates both.
- 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! 🎯
Test Your Knowledge
Question 1 of 4
1. Which Indian exchange is the world's largest by number of derivative contracts?