The Bombay Stock Exchange (BSE) has set ambitious goals for the success of its derivatives segment in Gujarat. The exchange officials expect Gujarat to generate about 30 per cent of the average total daily turnover of the derivatives contracts of Sensex's 30 scrips.
According to the exchange officials, the derivatives segment of Sensex and its 30 stocks, which currently has a daily volume of less than Rs 50 crore, would reach in the range of Rs 2,000-3,000 crore by the time of Diwali this year. Gujarat is expected to contribute about 25-30 per cent to the total volumes of the derivatives contract.
"We have increased our efforts to popularise derivatives contracts on Sensex and its 30 underlying stocks. On a conservative estimate, we expect to post a daily volume of Rs 2000-3000 crore. And Gujarat would be a major contributor to that. We expect at least 25-30 per cent of the total daily volumes to come from Gujarat," said Ashishkumar Chauhan, deputy chief executive officer, BSE.
On cash segment, Chauhan mentioned that nearly 30-40 per cent of the total volumes come from Gujarat, of which retail investors control nearly 90 per cent. "Ours is a retail-oriented exchange and we expect the same to continue for the derivatives contracts too. In order to popularise our derivatives contracts, we have designed a liquidity enhancement incentive programme for all our members by paying them as much as Rs 107 crore over the duration of six months," said Chauhan, who was in town to promote the LEIPS in Gujarat.
The exchange would offer incentives to brokers and the market makers for options and futures segments. Starting from September 28, Rs 5 crore of a total Rs 107 crore would be distributed among the brokers as part of incentives. After October 28, every month the amount of incentives would be Rs 17 crore, which will be distributed among brokers, who would thereby pass-on the incentives to their customers on the base of their preference.
