NSE regaining market share in equity options, commodities pick up: Ashish Chauhan 

The National Stock Exchange of India Ltd (NSE) expects the period of regulatory tightening in the country’s derivatives market to have largely run its course, with traders gradually adapting to the stricter rules and the exchange beginning to regain market share in equity options.

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NSE Managing Director and CEO Ashishkumar Chauhan said the exchange is also witnessing an increase in commodities trading activity, as it looks to diversify its revenue base beyond equity derivatives.

“The cycle of derivatives tightening is broadly done,” Chauhan told Bloomberg TV, signalling what could be a potential turning point for NSE as it begins its life as a publicly traded company. Chauhan's comments come a day after NSE shares made their trading debut.

NSE made its much-awaited market debut on BSE on Thursday.
 
India’s derivatives market has undergone significant changes following regulatory measures aimed at curbing excessive speculation. SEBI’s action against Jane Street Group last year, along with other measures introduced to reduce speculative activity, resulted in a slowdown in the options market and altered the economics of a segment that has historically been a major contributor to NSE’s profitability.

The impact of the regulatory changes was visible in trading volumes in August. Average daily notional turnover across futures and options on NSE declined 10% month-on-month to Rs 193 lakh crore ($2 trillion), the lowest level since February 2025. At BSE Ltd, the decline was sharper, with average daily turnover falling 34% to Rs 154 lakh crore during the same period.

Despite the slowdown, weekly equity options remain a key contributor to NSE’s business and account for around 40% of the exchange’s revenue, Chauhan said. The exchange is now looking towards commodities as an important avenue for future growth.

NSE already offers commodity contracts linked to crude oil and natural gas and is working with the regulator on products such as bond-index futures and options. Recent regulatory changes could further expand the addressable market for its commodity derivatives business.

Chauhan said he hopes foreign investors will choose NSE as their preferred platform for trading commodity derivatives as the market expands.

For NSE, the shift towards commodities comes at an important juncture. With regulatory changes reshaping the once rapidly expanding equity derivatives business, the exchange is increasingly looking to diversify its product mix while retaining its dominant position in India’s capital markets.