India's NSE Expects to Reduce Reliance on Options Trading Revenue, CEO Says

The National Stock Exchange of India (NSE) expects the share of its revenue from weekly options trading to decline as its other business lines expand, according to CEO Ashish Chauhan. The comments on Friday came as India's largest stock exchange moves forward with an Initial Public Offering (IPO) that seeks a valuation of up to ₹4.42 trillion (approximately $46.26 billion).

Diversification Strategy

Speaking at a press conference for the upcoming IPO, Chauhan stated that the exchange's other business segments are growing, which will naturally dilute the revenue concentration from options trading.

"Other businesses are growing and that should take care of the so-called concentration of weekly options revenue," Chauhan said. Despite this shift, the NSE's Chief Financial Officer noted that transaction fees will continue to be a core driver of the company's financial performance.

IPO Details and Adjustments

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The exchange recently revised the terms of its public offering. On Thursday, the NSE reduced the size of its IPO by more than 15%.

According to a source familiar with the matter, the reduction occurred because some major investors scaled back the number of shares they planned to sell. This decision was reportedly influenced by an issue price range that was lower than market expectations.

Regulatory Context

Under current Indian regulations, a stock exchange is not permitted to list its shares on its own platform. Chauhan confirmed that the NSE has not yet applied to regulators for permission to have its shares traded on its own venue after completing its listing on another exchange.