Fast expanding economy needs world-class bourses, says Ramamurthy
The 150-year-old BSE has invested nearly Rs.500 crore on modern trading infrastructure including heavy-duty technology in its journey towards charting a new path towards occupying significant presence in the Indian marketplace as the country’s fast expanding economy and prosperity demand world class bourses https://www.investindia.gov.in/.
In an update on progress of rejuvenating over the past 15 months, Managing Director and Chief Executive Officer Sundararaman Ramamurthy said the upscale and upgrade of the Mumbai-based bourse infrastructure including technological advancements has shown impressive results https://www.bseindia.com/.
Speaking on the sidelines at the Futures Industry Association (FIA) Asia conference, he highlighted that BSE has regained its stature as one of the leading bourses in the country and stands ready to be a global player as foreign investors continue to trade in the multi-trillion-dollar Indian equity market https://www.nseindia.com/.
The FIA Asia conference was attended by global equity investment and management community 4-6 Dec 2024.
Ramamurthy pointed out that the fast-expanding Indian economy needs an equally fast-paced equity market and its operators such as those in London, New York, and Frankfurt that are global trade dominators and price-discover hubs related to equities, derivatives and commodities. To meet this growing global and domestic demand, BSE has invested nearly Rs 500 crore on physical and technology infrastructure and is now poised for accommodating an “international level needs of the market,” Press Trust of India cited Ramamurthy as saying at the annual Singapore conference https://www.fia.org/fia.
Elaborating on BSE progress, he said the exchange, rated as Asia’s oldest, processes 12 billion orders per day these days (Dec 2024), compared with just about 100 million orders in 2022.
Ramamurthy was appointed Managing Director and Chief Executive Officer on 4 January 2023 with a task to rebuild the exchange has overseen muti-fold growth in the exchange numbers since he took over the helm.
Facing keen competition for volumes from the multiple exchanges in the country, BSE had to be rejuvenated from a meagre volume of 5 percent of the total equity market and without any equity derivative product of significance despite the segment being present in the country since 2000, conceded Ramamurthy https://sbi.com.in/.
He took feedback from BSE’s 350 members and launched Sensex 30 as an equity derivative to reboot trading volume and value.
Sensex 30 is an industry barometer and has helped in building a BSE trading community. “Today, we have 463 brokers, and 1.6 million clients are registered for trading Sensex 30 derivative, with 800,000 regular traders,” he said.
“Furthermore, there are 120 Foreign Portfolio Investors (FPIs) trading BSE Sensex 30 derivatives. More than 50 FPIs are in the pipeline or lined up for joining the Sensex 30 trade. The volume has gone past Rs 500 trillion. Put it as US$7 trillion as notional and US$6 billion as premium at the peak of volume https://www.sgx.com/,” he said.
Market share in terms of derivatives in terms of notional has crossed 20 per cent in this short time and the bourse’s premium contribution has already cross a market share of 13%. “We are hovering towards 15%,” he told PTI.
“While Sensex 30 equity derivative trade has picked up well to emerge as the fastest growing derivative contract in the world, our plans are to have more participants and deepen and broaden the Sensex scope in the market,” said Ramamurthy https://www.jpx.co.jp/english/.
More data centres are part of the continuing upgrade and expansion plans at BSE, said Ramamurthy, noting that delegates and participants at the conference were abuzz with the potential of Indian equity market http://deutsche-boerse.com.
Overall, the conference discussed about increasing participation in the Indian equity trading network by mobile-app savvy young Indian traders from tier-2, 3 and 4 cities http://cmegroup.com.
Ramamurthy expects to reach out to youths across the country through mobile apps, given the agility and talent of younger Indians to work out sums and numbers through fingertips https://www.londonstockexchange.com/.
“One of the fastest ways to penetrate young investors in Tier-2, 3 and 4 cities are mobile-apps. In this direction to enhance awareness amongst youngsters, BSE too is in advanced stage of launching its simulation-based app,” he said. fiinews.com
