02 March 2026
The market regulator has stopped the country's two newest exchanges from offering trading in equity derivatives and has asked them to build up their share-trading businesses first, two regulatory sources with direct knowledge of the matter said.
Late last year, the National Commodity and Derivatives Exchange (NCDEX) and theMetropolitan Stock Exchange (MSE)separately sought approval from the Securities and Exchange Board of India (SEBI) to launch and develop equity cash and derivative products, according to exchange disclosures.
NCDEX predominantly trades agricultural commodities, while MSE mainly offers currency derivatives and has very thin equity volumes. Both exchanges have been looking to diversify their businesses.
SEBI's decision underscores continued caution over India's soaring equity derivatives market, where premiums are now roughly twice the size of the cash market, compared with 2% to 3% in major global economies.
The market regulator has stopped the country's two newest exchanges from offering trading in equity derivatives and has asked them to build up their share-trading businesses first, two regulatory sources with direct knowledge of the matter said.
Late last year, the National Commodity and Derivatives Exchange (NCDEX) and theMetropolitan Stock Exchange (MSE)separately sought approval from the Securities and Exchange Board of India (SEBI) to launch and develop equity cash and derivative products, according to exchange disclosures.
NCDEX predominantly trades agricultural commodities, while MSE mainly offers currency derivatives and has very thin equity volumes. Both exchanges have been looking to diversify their businesses.
SEBI's decision underscores continued caution over India's soaring equity derivatives market, where premiums are now roughly twice the size of the cash market, compared with 2% to 3% in major global economies.
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