MUMBAI : Exchange volumes declined sequentially for cash and commodity segments, while equity derivatives rose in June compared with the previous month.

“The impact of phase-3 of upfront margin norms (75% margin requirement) was seen in cash and commodity segments, while derivatives volumes witnessed a month-on-month growth," said ICICI Securities.

In June, market regulator Securities and Exchange Board of India (Sebi) hiked the upfront margin requirement on day trade to 75% from the existing 50%. Last year, Sebi implemented a new mandate in margin trading in a phased manner. From 1 March, Sebi hiked the upfront margin requirement from 25% to 50%. After the phase in June, the margin will be ultimately increased to 100% by September.

Under the new system, securities lying in demat accounts of clients cannot be used towards margin payment; instead these need to be pledged with the broker after client authorization and further re-plegded with clearing corporations and exchanges.

Equity cash ADTV (average daily turnover value) came in at Rs77,500 crore in June compared with an average of Rs76,700 crore in March-May, showed data analyzed by ICICI Securities. Similarly, equity derivatives ADTV was at Rs49 trillion in June compared with average of Rs47.9 trillion in March-May. While for MCX ADTV was at Rs26,400 crore in June compared with the average of Rs28,500 in three months ending May.

Cash ADTV for NSE declined 10% month-on-month (m-o-m), while that for BSE grew 21% in June. NSE equity derivatives ADTV were up 6% m-o-m driven by options’ notional turnover while BSE ADTV declined 6% m-o-m in June.

In the cash segment, NSE’s ADTV came in at Rs70,700 crore versus Rs78,400 crore registered in May and average of Rs73,800 crore in Jan-May, said ICICI Securities. BSE’s cash ADTV was at Rs6,800 crore. “Q1FY22 NSE and BSE cash ADTV rose 32% and 52% year-on-year and fell 1% and 3% quarter-on-quarter (q-o-q) respectively. NSE’s cash segment market share stood at 91% in June," ICICI Securities said.

In the equity derivatives segment, NSE’s ADTV in June stood at Rs46.1 trillion, compared with Rs43 trillion in May. NSE futures/options’ ADTV stood at Rs1 trillion /45 trillion respectively in June. “Q1FY22 equity derivatives grew 10% q-o-q led by 11% growth in options turnover offset by 12% q-o-q decline in futures turnover. BSE’s options ADTV declined 6% m-o-m to Rs3 trillion in June. BSE options turnover grew 13% q-o-q in Q1FY22," it said.

During the month, mutual fund transactions grew 12.6% in BSE and 1% m-o-m in NSE. In currency derivatives, NSE reported growth of 8% while that for BSE grew 4% in June.

MCX ADTV declined to Rs26,400 crore in June from Rs32,200 crore in May. NCDEX reported ADTV of Rs1,900 crore in June, declining 22% from previous month.

Data till May showed CDSL and NSDL market shares at 62.8% and 37.2% respectively. “In terms of incremental accounts opened in FY21, CDSL has maintained its dominant share of 90% versus 86% in FY21," it said. Monthly demat addition for CDSL and NSDL were at 2.4 million / 0.29 million in May 2021 versus average of 1.53 million / 0.24 million added in January-April, it said.