Mumbai: The National Stock Exchange (NSE), India’s largest exchange by trading volume and market share, reported a 44% year-on-year drop in net profit for the quarter ended June 2016 to Rs.186.93 crore as it set aside money toward a core settlement guarantee fund (SGF) under regulatory requirements.
In the first quarter (April-June) of fiscal 2015, NSE reported a net profit of Rs.331.30 crore, according to the latest financial data published on the bourse’s website.
NSE transferred Rs.56.22 crore to NSCCL Core SGF during the April-June quarter compared with Rs.18 crore during the corresponding period last year. The National Securities Clearing Corporation Ltd. (NSCCL) is a wholly owned subsidiary of NSE.
As per Securities and Exchange Board of India (Sebi) norms, clearing corporations are required to have a fund called Core SGF for each segment of every stock exchange to guarantee the settlement of trades. The exchanges have to contribute at least 25% of the minimum required corpus of the core SGF.
The exchange’s revenue from operations for the first quarter of fiscal 2016 rose 12.5% to Rs.390.50 crore. It reported a total income of Rs.347.17 crore in the same period last year.
NSE has a market share of nearly 70% in equity trading and 98% in futures and options trading in India equities market. It ranks among the top three stock exchanges in terms of the number of contracts traded in single stock futures, index futures and stock options.
NSE, which has been facing intense pressure from its shareholders to go public, plans to get listed in India as well as abroad and will file draft papers with markets regulator Sebi for domestic listing by January 2017. It will further file for overseas listing by April next year.
It had formed a listing committee to expedite the listing process and seek support for self-listing.
The exchange’s closest competitor, BSE, has already begun its IPO process and is likely to file papers with Sebi soon.
PTI contributed to this story.