NSE's equity options market share declines over 22 pc between FY24 and FY26
New Delhi, July 23
The dominance of the National Stock Exchange in the equity options segment has decreased over the past three financial years, with its market share shrinking by more than 22 per cent, according to data from the exchange's annual reports and Red Herring Prospectus.
The data showed that NSE's market share in the equity options (premium value) segment stood at 96.9 per cent in FY24. It declined to 87.4 per cent in FY25 and further dropped to 74.71 per cent in FY26.
This translates into a decline of 22.2 per cent over the three-year period, indicating rising competition in the derivatives market.
However, the exchange continues to maintain a dominant position in other key segments.
In the equity cash segment, NSE's market share was at 92.7 per cent in FY24, 93.6 per cent in FY25 and 92.99 per cent in FY26.
Similarly, in the equity futures segment, the exchange's market share was at 99.9 per cent in FY24 and FY25, before marginally easing to 99.79 per cent in FY26.
Additionally, the data also pointed to a weakening operational performance ahead of the exchange's proposed initial public offering (IPO).
According to figures disclosed in the RHP, NSE's total revenue from operations declined to Rs 16,601.30 crore in FY26 from Rs 17,140.67 crore in FY25, a year-on-year decline of more than 3 per cent.
Its largest revenue source -- transaction charges -- also fell to Rs 13,057.01 crore from Rs 13,635.76 crore a year earlier, a decline of about 4 per cent.
Revenue from clearing and settlement services dropped 21.8 per cent year-on-year to Rs 251.45 crore in FY26, compared with Rs 321.34 crore in FY25.
However, no response was received from the NSE to the queries sent regarding its performance.
— IANS
Reader Comments
Interesting data, but worried about the IPO. Revenue dropping just before listing? That's not a good sign for retail investors like us. Also, transaction charges falling suggests lower volumes, maybe due to new SEBI regulations.
Finally, some competition in derivatives! BSE is making moves. But NSE's cash and futures share is still massive. IPO timing seems off though — why go public when revenues are declining? 🤔
Drop in clearing and settlement revenue by 21.8% is huge! Wonder if that's because of new competition or changes in fee structure. NSE should have responded to queries — transparency matters, especially before IPO.
My father trades options and says BSE is becoming more popular among retail. This data confirms it. But NSE dropping from 97% to 75% in 3 years is a big shift. Regulatory changes have definitely played a role.
Competition is always good for the market, bhai. But NSE still has 93% in cash and 99% in futures — that's pretty much a monopoly. The IPO will be interesting; hope they price it fairly. Also, clearing revenue drop is concerning for the ecosystem.
The revenue decline is worrying
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