Millennium Post

Total capital market turnover soars to record `7 trillion

The Indian capital markets' turnover on Thursday rose to a record high level of more than Rs 7 lakh crore, as leading bourse NSE witnessed a sharp surge in its trade volumes while BSE also
recorded huge volumes. Both the exchanges recorded huge volumes of futures and option (F&O) trades on Friday on the day of expiry of current month derivative contracts.

The total F&O turnover at BSE rose to Rs 2,31,391 crore, up from about Rs 1.71 lakh crore on Thursday. Earlier on Tuesday, BSE had witnessed a sudden surge in its F&O volumes and had also overtaken its larger rival NSE which traditionally commands over 80 per cent share in derivatives market.

With a sudden spike in trade volume of three Sensex option contracts, BSE on 24 June had recorded Futures & Options (F&O) turnover of Rs 3.36 lakh crore — higher than that of its bigger rival NSE (Rs 3.29 lakh crore) on that day. At the end of Thursday’s trading, the total F&O turnover on NSE stood at Rs 4.29 lakh crore — as against BSE's Rs 2.31 lakh crore. The NSE also recorded equity market turnover of over Rs 20,000 crore, as against about Rs 3,300 crore of BSE in this segment.
Along with other market segments, BSE recorded total daily turnover of over Rs 2.40 lakh crore, while that of NSE exceeded Rs 4.60 lakh crore — taking the combined total for the entire Indian capital markets to over Rs 7 lakh crore.

In the equity market, the BSE benchmark Sensex as well as NSE's Nifty closed with fall of about one per cent each. After registering a record high turnover of equity derivatives, BSE Ltd, the premier stock exchange, said its BSE StAR MF distribution platform has become the largest distribution framework for Indian mutual fund. BSE StAR MF on Thursday crossed turnover of Rs 282 crore on a single day, exchange said in a statement here.

Commenting on the development, Ashishkumar Chauhan, MD & CEO, BSE said, ‘We have reached this milestone and we believe BSE StAR MF has the potential to completely change the distribution framework of Indian MF industry by reducing the cost and increasing the predictability of processes. Due to the same, almost the entire MF industry has supported the BSE StAR MF platform.’
BSE StAR MF is a web-based transaction processing, fully automated online MF collection and settlement system.

Sebi Chief Sinha backs concept of self-regulation for MF sector

Mumbai: Market regulator Sebi on Thursday said it was keen to implement self-regulation in the Rs 10 trillion mutual fund industry at the earliest and said it will soon come out with new rules for distributors and advisors.

‘There is a demand for self-regulatory organisations (SROs) in the MF sector and we are very keen on that and are also hopeful of implementing the same soon,’ Securities & Exchange Board of India (Sebi) Chairman UK Sinha told reporters on the sidelines of a mutual fund summit here.
Sinha also said the regulator is finalising norms for distributors and investor advisors and they will be issued shortly. The Sebi chief said that although the idea of an SRO has been challenged in court, he is hopeful of its implementation.

The Financial Planning Supervisory Foundation (FPSF), where retired Supreme Court Justice
 BN Srikrishna is a director, has taken Sebi to court over the SRO matter. It contends a possible conflict of interest if an industry group that has been protecting the interests of MFs appoints a company as an SRO to regulate its distributors and agents.

Srikrishna chaired the Financial Sector Legislative Reforms Commission, which recommended sweeping changes in financial sector regulations.

Sinha also said pension funds should come into the mutual funds sector and tax benefits should be offered for investors in real estate investment trusts and infrastructure. The size of the pension market, estimated at over Rs 1.5 trillion in 2010, is expected to rise to over Rs 2 trillion in 2015 and over Rs 4 trillion by 2025.

Sinha said that Sebi had asked the government to provide clarity on tax benefits for new products like REITs (real estate investment trusts) as also for infrastructure investment trusts
and debt securities.
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