BSE derivative turnover doubles to Rs 14.4 lakh crore in July

Equity derivatives turnover on the leading bourse, Bombay Stock Exchange (BSE), witnessed an over two-fold jump to Rs 14.40 lakh crore in July whereas the turnover on National Stock Exchange (NSE), a much preferred stock exchange for futures and options trading, declined for a second month.

"Monthly turnover in equity derivative segment of BSE increased by 113.8 per cent from Rs 6,73,225 crore in June 2013 to Rs 14,39,535 crore in July 2013," market regulator Securities and Exchange Board of India (Sebi) said in its monthly report.

The volumes of equity derivative contracts traded on BSE's platform more than doubled to 4.82 crore in July from 2.31 crore in the preceding month.

In comparison, the equity derivative turnover on NSE decreased marginally to Rs 31.80 lakh crore in July from Rs 31.90 lakh crore in June.

The derivative turnover on the NSE stood at Rs 35 lakh crore in May, before plunging 9 per cent in June. The volumes of contracts traded on the exchange declined 2.3 per cent to 10.8 crore, in July.

"During July 2013, equity derivatives turnover at BSE constituted 30.9 per cent of total equity derivatives turnover in India, MCX-SX constituted 0.7 per cent whereas that of NSE represented 68.4 per cent," the capital market regulator said.

On the BSE, the turnover of index futures increased by 54 per cent while stock futures rose by 80.2 per cent in July.

Besides, put options on index increased by substantially from Rs 1.89 lakh crore in June to Rs 6.16 lakh crore in the month.

Further, the monthly turnover of call options on index increased by 70.1 per cent.

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.