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32 Price to Book Value Ratio The price to book (P/B) ratio is a financial ratio that is used to compare market value of a stock to its book value. As on March 31, 2020, Sensex and NIFTY’s P/B ratios were 2.3 and 2.5, respectively as compared to 3.2 and 3.7, respectively as on March 31, 2019. Year S&P BSE Sensex S&P BSE 100 S&P BSE IT S&P BSE Bankex Nifty 50 Nifty 100 Nifty IT Nifty Bank FY19 3.2 3.0 4.8 2.6 3.7 3.8 5.6 3.4 FY20 2.3 2.1 3.8 1.6 2.5 2.5 4.1 1.8 Source: SEBI Derivatives Segment The equity derivatives segment in India has grown exponentially over the years and has continued its momentum in FY20 as well. In FY20, the total turnover in equity derivatives segment enhanced by 45.1% compared with a year ago. The ratio of turnover in equity derivatives to that in cash segment has increased to 35.7 times in FY20 from 27.2 times in FY19. Almost all the trading in the F&O segment, during FY20, happened on NSE, which dominated the F&O market and BSE’s share was insignificant. During FY20, the number of equity derivatives contracts traded at NSE increased by 61.9% to 5.1 bn contracts traded from 3.2 bn contracts traded in FY19. The turnover of NSE also increased by 45% to ` 3,448 trillion in FY20 from ` 2,376 trillion in FY19. Further, during the same period, the turnover at BSE also increased significantly to ` 2,622 bn from ` 22.5 bn. Participant-Wise Share Year No of Contracts Traded Turnover ( ` crore) Open Interest at the end of the year No. of Contracts Value ( ` crore) NSE BSE NSE BSE NSE BSE NSE BSE FY19 3,16,48,02,420 31,167 23,76,00,705 2,250 40,38,916 9 2,86,403 1 FY20 5,12,53,21,877 26,81,883 34,45,32,892 2,62,269 31,62,958 515 1,63,122 38 Participant-wise share in NSE F&O’s turnover for fiscal 2020 shows that proprietary trades accounted for a 33.1% (37.8% in FY19) share in the annual turnover. While FPIs had a share of 19.3% (13.6% in FY19) in the total turnover, the ‘others’ category (comprising retail, HNIs and private and public companies) had an average share of 47.2% (48.2% in FY19) in the total turnover; mutual funds constituted a minuscule share of 0.3%. In BSE F&O’s turnover, proprietary trades had a share of 85.5% (2% in FY19) and the ‘others’ category had a share of 14.4% (98% in 2018-19). Proprietary trades, 85.5 Others, 14.4 BSE Proprietary trades, 33.1 FPIs, 19.3 MFs, 0.3 Others, 47.2 NSE Dun & Bradstreet