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BSE Derivative turnover spikes to Rs 116 lakh cr for Apr-Oct

(Disclosure: I am market making in the shares of Bombay Stock Exchange)

Equity derivative turnover at BSE has grown substantially to over Rs 116 lakh crore so far in the current fiscal, from year-ago levels, as the exchange has put in place new measures including technology systems for faster trades.

The exchange had recorded trades amounting to about Rs 50 lakh crore, during the April-October period in fiscal 2013-14.

In the last six months itself, the orders per day at BSE has grown nearly three times from 15 crore per day to 45 crore per day, helped by a faster technology.

In terms of volumes, the trades on the exchange also surged to nearly 30 crore in the first seven months of current fiscal as against 16.80 crore in the year-ago period.

BSE, a top exchange globally for the number of listed companies, had upgraded its technology platform to Bolt Plus for all its segments earlier this year.

Following this, the equity derivative segment value on the bourse has stood at Rs 19-24 lakh crore on a monthly basis, as against Rs 5 lakh crore in April.

Number of derivative contracts also surged from 1.5 crore in April to more than 5 crore in the subsequent months.

“BSE implemented new technology in April 2014 which provides response time of 200 micro-seconds with a capacity of 500,000 orders per second.

“It is faster than any exchange by ten times or more in India giving significant advantage to the investors who trade on BSE vis-a-vis other exchanges,” BSE CEO Ashish Chauhan told PTI.

Noting that it had been only six months since the new system was implemented, Chauhan said: “Even within this short period of six months, number of orders per day on BSE has gone up from 15 crore per day to 45 crore per day”.

According to Chauhan, many Indian members and even foreign brokerages who were not trading on BSE earlier have started connecting to the new system.

“We believe even now many exchange technology vendors have not changed their technology to interact with high speed and scale system like the one BSE has implemented at 200 micro seconds.

“We believe it will take some more time for old technology vendors to change to the new faster technology… Only 20 per cent vendors seem to have changed their systems yet. Once the balance 80 per cent technology vendors change their system to become faster to match BSE system, it will perhaps see more than 200 or 300 crore orders per day on routine basis,” he added.-from BS

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17 Indian Companies recognized as Global Growth Companies

17 Indian Companies have been recognized by the World Economic Forum as Global Growth Companies.

The companies are:

  • 4G Identity Solutions
  • ANI Technologies
  • Avesthagen
  • Bandhan Financial Services
  • Centum Electronics
  • Finolex
  • Flipkart
  • Forbes Marshall
  • InterGlobe Enterprises
  • Justdial
  • MakeMyTrip
  • Nash Industries
  • Persistent Systems
  • Radikal Foods
  • RBL Bank
  • Sobha
  • Transasia Bio-Medicals.

(Source:World Economic Forum)

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RBL Bank plans to launch IPO in the next 3 quarters

(Disclosure:I am market making in the shares of RBL Bank)

RBL Bank, formerly known as Ratnakar Bank, plans to raise funds through an initial public offer which will hit the market in the next 8-9 months.

“We are preparing ourselves for the IPO and it may hit market in 8-9 months. It would not happen this fiscal but next calender year,” RBL Bank Managing Director Vishwavir Ahuja told PTI.

The quantum of offer has not been finalised by the board of the bank, he said, adding that the decision will be taken in the next few months after taking into account various factors including Basel III requirement.

The bank has been able to build scale and size in the last four years so that it gets right valuation, he said.
The capital is required for the next phase of operation as the bank has already done with transformation stage, he said, adding it has got high technology and risk management system.

The bank services more than 6 lakh customers and has a total business size of over Rs 26,000 crore. As of September total deposits were Rs 12,000 crore while advances stood at Rs 14,000 crore.

The bank posted a net profit of Rs 87 crore for six months ended September 2014, while for the entire 2013-14 the profit stood at Rs 93 crore.

“So we have almost matched the net profit of the last fiscal in the first two quarters of the current financial year,” he said.-from ET

 

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Anecdotes Excerpts

The secret to making a fortune in the stock market

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from the book 100 to 1 in the Stock Market

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Excerpts Realty

Better to rent than buy

Pankaj Kapoor, MD, Liasas Foras, told dna that unaffordability is the main reason behind people choosing houses on rent. “Taking a house on rent is a better option than buying an expensive house and paying hefty EMIs,” he said. “In Kharghar, the cost of a 2BHK (1000sqft) is more than Rs1 crore. If you go for such a house, you will end up paying Rs1 lakh as EMI. But a house of the same size in the same area will be available on a monthly rental of Rs8,000-12,000. In the current property market scenario, it is better to take houses on rent.”

Kapoor said buying property is a good option if there is steady appreciation. “But now the property market is stagnant… so people will prefer to stay on rent than buy a house. Also, investors don’t want to park their money in property because of the stagnant market. They are asking developers to take the liquidity on interest. It shows the ground reality… investors are the first to understand the pulse of the market and any upcoming crisis. So, they have stopped buying the property in bulk as an investment.”

“In the rental market, developers have no role… They cannot inflate or influence the market. The rental market is transparent. Rentals have not gone up proportionately with the property market. Only those with a huge stash of black money are parking their wealth in the real estate,” Kapoor said

Kailash Patil, a property agent from Thane, said that people were only enquiring about houses. “In the past two months, I have hardly sold any flats. A couple of deals are in pipelines but the sale is still to happen,” he said.” “The property market has been gloomy for the past eight months. On the other hand, rental enquires have increased. Potential buyers say they would stay in rented houses till property rates come down.”-from DNA