2 weeks Ago By Moneycontrol
The National Stock Exchange (NSE) has said that the total liquid assets of its clearing corporation arm – NSE Clearing Ltd (NCL) – has fallen below the regulatory prescribed limit on account of rival exchange BSE not clearing its dues amounting to Rs 312.37 crore. The country’s largest stock exchange in terms of market share disclosed the details as part of its Q3 financial results statement.
This assumes significance as clearing corporations are responsible for clearing and settling all transactions while also providing the counter-party guarantee for all the trades executed on the exchange platform. “NCL has computed liquid assets and informed to SEBI vide letter dated January 09, 2025 that there is a deficit of Rs 176.65 crores in minimum liquid assets required, primarily on account of non-receipt of dues from BSE Ltd.
amounting to Rs 312.37 Crores,” stated NSE in its Q3 financial results statement. The minimum limit is a mandatory regulatory compliance as set by the Securities and Exchange Board of India (SEBI).
“This deficit will be replenished by the internal accruals / recovery of the receivables before March 31, 2025. Further, NCL has not factored in interest accrued of Rs. 424.
35 crores as at December 31, 2024 while computing said deficit,” it added. Email queries sent to NSE and BSE remained unanswered till the time of publishing this story. NSE is the largest stock exchange in the country with a 94 percent market share in the cash market and a near-monopoly in the equity futures segment at 99.
9 percent. In the equity options, NSE had a market share of 87.5 percent in Q3FY25.
Both its cash and the equity futures segments registered a volume growth in excess of 30 percent in Q3FY25 while the equity options volume rose 10 percent. In the currency futures, the exchange commanded a market share of 93 percent. Globally, NSE is the largest derivatives exchange in terms of the number of contracts traded and the second-largest in terms of the number of trades.
In CY24, NSE also saw the highest number of IPOs in Asia and the highest equity capital raised in primary market globally. In the first nine months of FY25, NSE contributed Rs 37,271 crore to the government exchequer in the form of Securities Transaction Tax (STT) and Commodities Transaction Tax (CTT). It also contributed Rs 3,639 crore as income tax and GST along with Rs 2,976 crore as stamp duty.
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