BSE sees revival in derivative trade turnover soars 35%

In volume terms, bourse witnessed a rise of 29.4%

Leading stock exchange BSE has seen a strong revival in its derivative trading segment, with total turnover surging nearly 35% to about Rs four lakh crore in the month of October.

The uptrend follows a sharp plunge of nearly 65% in the value of equity derivative trading on the BSE to Rs 3.04 lakh crore during the preceding month, September 2012, as per market regulator Sebi's latest monthly bulletin.

However, BSE's equity derivatives turnover rose sharply by 34.6% to Rs 4.10 lakh crore in October.

In terms of volumes too, the bourse witnessed an increase of 29.7% with 1.44 crore contracts traded on its platform in October, as compared to 1.11 crore in September.

On the other hand, the National Stock Exchange (NSE) recorded an increase of 4.7% in equity derivative turnover from Rs 25.91 lakh crore in September to Rs 27.14 lakh crore in October.

Collectively, the value of equity derivatives on BSE and NSE touched Rs 31.25 lakh crore in the month.

The equity derivatives turnover at NSE represented 86.9%, while BSE comprised 13.1% of total value in October, Sebi said.

On the BSE, the monthly turnover of put options on index surged by 88.3% to Rs 2.09 lakh crore in October 2012.

Besides, call options on index recorded an increase of about 4% while call options on stock climbed by 25% on the bourse.

However, the segment noticed a decline in stock futures and index futures which declined 13.4% and 19.5% respectively.

Index and stock futures are generally contracts based on a particular stock or index.

Generally, put and call option contracts provide the holders the right to sell or buy securities, respectively, at a specific price and a specified time. However, the holder is not obliged to execute the contract.