The futures & options (F&O) segment of the BSE has witnessed a remarkable growth of 1,539 percent in its average daily premium turnover over the past two years, despite the industry navigating several restrictive regulations imposed by the Securities & Exchange Board of India (SEBI).
As of last Tuesday, BSE’s average daily premium turnover stood at Rs 15,325 crore, marking a 112 percent increase from the end of 2024. By comparison, the figure at the end of 2023 was Rs 935 crore. Experts attribute this surge to Sensex contracts emerging as a key trading arena and the exchange attracting more institutional clients.
Meanwhile, the National Stock Exchange (NSE) saw a 24.3 percent decline in its daily average premium turnover from the 2024 peak of Rs 68,280 crore. Across both exchanges, turnover fell 11.2 percent, reflecting market adjustments after previous growth.
Drivers of BSE growth
Notional F&O turnover, however, fell for the first time in 2025, declining 16 percent to Rs 389.56 lakh crore, following a 58 percent growth in 2024 and 134.8 percent in 2023. NSE’s notional turnover dropped 35.3 percent, while BSE’s rose 51 percent.
An industry insider explained that Sensex contracts gained prominence after SEBI mandated exchanges to maintain only one index with weekly expiry contracts, which led to the discontinuation of Nifty Bank weekly contracts, previously the most traded segment.
A BSE spokesperson added, “BSE is a relatively new entrant in the active derivatives space, with Sensex derivatives relaunched less than three years ago. The growth we are witnessing today is largely catch-up in nature, reflecting clear market demand.”
Financial performance
BSE reported total revenue of Rs 1,139 crore in the September quarter, up 40 percent year-on-year, driven by transaction-related income, listing-related fees supported by record fundraising activity in Q2, and co-location services. CEO Sundararaman Ramamurthy highlighted that the increase in derivatives market share was fueled by higher institutional participation in options and expansion in participants, members, and FPIs.
In the cash market, average daily turnover declined 14.6 percent for NSE to Rs 99,502 crore, while BSE fell 20.3 percent to Rs 7,056 crore.
