India’s Leading BFSI Companies 2020

XXXV Equity derivatives turnover Proprietary 38% FPIs 14% Mutual Funds 0% Others 48% NSE Banks, 2.0% Others, 98.0% BSE Currency Derivatives Market Through trading in currency derivatives, the stakeholders can hedge against foreign exchange risk and benefit from the Rupee’s movements against major foreign currencies. There has been significant increase in volumes of trading in currency derivatives over the years. The Euro, Japanese Yen, British Pound and US Dollar are the major currencies for which currency derivatives are paired with the Rupee. Also, cross currency pairs are now allowed to be traded. Presently in Indian markets, currency derivatives are traded on BSE, NSE, and MSEI. The aggregate turnover in the currency derivatives segment at the exchanges increased by 66.1% to ` 159.2 lakh cr during fiscal 2019 from ` 95.8 lakh cr in the previous year. The turnover of BSE and NSE grew by 65.7% and 69.4%, respectively during fiscal 2019, while that of MSEI declined by 59.2%. During fiscal 2019, the total turnover was the highest at NSE ( ` 85.2 lakh cr), followed by BSE ( ` 73.5 lakh cr) and MSEI ( ` 0.47 lakh cr). NSE accounted for 53.5% of the total turnover in the currency segment followed by BSE (46.2%) and MSEI (0.3%) Trends in interest rate derivatives Interest-rate derivatives are often used to hedge risk by institutional investors, banks, companies and individuals to protect themselves against changes in interest rates and they can also be used to increase or refine the holder’s risk profile. During fiscal 2019, the aggregate turnover in the interest rate derivatives (IRD) segment across all exchanges declined by 34.6%. Gross turnover in IRD segment of BSE declined by 50.3%, to ` 1,11,222 cr in fiscal 2019 as compared to ` 2,23,881 cr in fiscal 2018. Gross turnover in IRD segment of NSE also fell by 23.6%. However, there was no trading activity reported in the IRD segment of MSEI during fiscal 2019. Regulatory development Primary Security Market • New buy-back regulations: The relevant provisions outlined under Sections 68 and 70 of the Companies Act, 2013 have been incorporated in the Buyback Regulations to make it self-contained. • CIRP: Facilitating compliance with securities law by listed entities undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC) • Amendments in SEBI (ICDR) Regulations: A need was felt to review and realign the ICDR Regulations to ensure that they reflect the best practices adopted globally. The ICDR Regulations have been thoroughly revamped with policy changes. • Other regulatory changes include: o Transfer of shares only in dematerialized form o Re-classification of promoter / public Dun & Bradstr et