KSEBOA - KSEB Officers' Association

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The Bombay Stock Exchange (BSE) is working to transform its business model.  It may be India's oldest stock exchange, but with a brand new management team, the BSE is looking to revamp the way it trades by diversifying into products other than equities.

James Shapiro, Head - Market Development, BSE, says, "Fundamentally, BSE is moving from traditional equity exchange, which is where its 135-year history is centered, to taking advantage of market opportunities, to become a multi-asset exchange. It is quite likely that equities, although they form a core of our franchise, may be much less important to us in five years, when we will be trading many other products."

After having failed to make any inroads in the derivatives market, it is now revamping this segment. It plans to start derivative segments with a mid-month expiry, though the duration of the contracts will remain the same. It has already received the Securities Exchange Board of India's nod for index futures and is awaiting nod for stock futures. But that's not all. It is looking to start non-equity products as well.

"We intend to expand into the power sector, power trading or environment-related products. There will be other asset classes, other things you can trade, other things you can leverage," Shapiro added.

It is going to be tough task for the new management to bring back sizeable market share in the derivative segment. Hence, the best bet for the BSE today is to venture into newer pastures.


Source - CNBC-18