Tuesday, August 17, 2010

Just 451 clients account for 50% of NSE daily turnover

As many as 451 client identities accounted for about 50 per cent of the average daily turnover in the cash equity segment of the National Stock Exchange in the first quarter this fiscal.

This was stated by the Minister of State for Finance, Mr Namo Narain Meena, in a written reply to question posed by Mr Sukhdev Singh Dhindsa in the Rajya Sabha.

The number is even more intriguing in the derivatives segment, with only 106 clients accounting for 50 per cent of the average daily turnover.

Daily Average

While the average daily turnover in the NSE's cash segment is Rs 13,000 crore, it is about Rs 90,000 crore in the derivatives segment.

In the first quarter of 2010-11, more than 30.90 lakh clients traded in the NSE cash equity segment, Mr. Meena said.

About 52 per cent of the exchange's turnover was contributed by retail investors, high net worth individuals and corporate clients. While institutional clients contributed about 24 per cent, proprietary traders accounted for about 24 per cent of the exchange turnover, Mr Meena said.

Even in the case of derivatives segment, about 52 per cent of turnover in NSE was contributed by retail investors, high net worth individual and corporate clients. However, institutional clients accounted for only 12 per cent, while proprietary traders contributed 36 per cent of the turnover.

Mr. Meena also said that top 25 trading members of the NSE accounted for about 42 per cent and 43 per cent of cash and derivatives segment turnovers respectively during the first quarter this fiscal.

In a reply to a question from Mr. Mohammad Adeeb, the Minister noted that foreign brokerage firms with direct or indirect controlling interests in domestic brokerage houses accounted for 12 per cent and 9 per cent of the turnovers in NSE's cash and derivatives segment respectively.

Source: www.thehindubusinessline.com & Karandeep Vashisht

Thank you,
Minita Aiya
Client Service Associates
DENIP Consultants Pvt. Ltd.

No comments:

Post a Comment