Sundararaman Ramamurthy, MD & CEO of BSE, states that BSE has prioritized equity derivatives, followed by equity and currency options in the current year. The focus for BSE will be on SMEs, as well as mutual funds, due to their socio-economic impact and potential for converting financial savings into capital market savings. Commodities and interest rate derivatives will be addressed later, as interest rate derivatives are more complex in India.
In terms of SMEs, there are currently less than 500 listed on BSE. The example of Rajasthan is given, highlighting industries such as marble, artificial jewellery, and gemstones. It is mentioned that even a small percentage of SMEs in certain regions, such as Tamil Nadu’s Tiruppur and Karur belt, are not yet represented on BSE. Sundararaman Ramamurthy believes that there is significant potential for the growth of SMEs in the coming years.
Regarding the prospects of the Indian economy and BSE as an exchange, Sundararaman Ramamurthy expresses optimism. He mentions that India has experienced significant growth and believes it will continue to do so in the future. He identifies three factors for growth: consumption-led growth, export-led growth, and investment-led growth. India’s demographics, growing middle class, English-speaking ability, time zone advantages, legal and regulatory systems, democracy, and cultural diversity all contribute to its potential for further growth. Sundararaman Ramamurthy is confident that India is entering a golden era.
When asked about BSE’s prospects, Sundararaman Ramamurthy emphasizes that he cannot provide forward-looking statements as a representative of a listed company. However, he states that BSE aims to unleash the power of vibrance. The focus areas include equity derivatives, equity, currency options, SMEs, mutual funds, RFQ platforms, and retail debt. Sundararaman Ramamurthy acknowledges the importance of initial support and volume from market participants to achieve a 10% market share, after which growth can occur naturally. He mentions that commodities and interest rate derivatives will be addressed later, with interest rate derivatives being a complex product for India.
Sundararaman Ramamurthy briefly mentions that BSE has investments in other companies such as CDSL and keeps a close oversight on their progress. It is mentioned that it is still early days for some investments, and there may be potential for value unlocking in the future.