Equity Research November 4, 2020 BSE Sensex: 40261 Indian exchanges ICICI Securities Limited is the author and Monthly tracker – Derivatives hit new highs while cash and distributor of this report moderates MCX (HOLD) In Oct’20, cash volumes continued momentum for NSE (ADTV grew 39% YoY), while BSE saw moderation. Cash volumes have cooled from the record highs for both the 2,000 exchanges (NSE and BSE cash ADTV for the month of Aug / Sept / Oct’20 was Rs610 / 1,750 556 / 523bn and Rs44 / 32 / 28bn respectively). NSE derivatives ADTV grew robust 1,500 79% YoY and has been inching higher. (Aug /Sep / Oct’20 ADTV was Rs19 / 22 / 26bn). 1,250 MCX commodity ADTV (ex-crude) was up 70% YoY. Overall, MCX ADTV was up 13%

(Rs) 1,000 YoY in Oct’20 but has been declining on MoM basis (Aug /Sep / Oct’20 ADTV was 750 Rs409 /316 / 305bn). Crude futures witnessed a MoM increase of 7%. Currency 500 derivatives ADTV rose 17% YoY in Oct’20 (NSE: +46% YoY and BSE: -26% YoY). Equity cash: Trend remains strong for NSE while BSE saw moderation. Oct-18 Oct-19 Apr-20 Oct-20 Nov-17 May-18 May-19  In Oct’20, NSE’s ADTV (average daily turnover value) came in at Rs523bn, up 39% YoY, clocking tenth consecutive month of healthy growth. Number of trades grew 23% YoY in

Oct’20. BSE’s Oct’20 cash ADTV was Rs27.5bn, down 2.7% YoY. BSE’s exclusive segment came in at Rs586mn, up 73% YoY. On MoM basis, NSE / BSE cash ADTV has declined 6% / 13% in Oct’20, respectively.  NSE’s market share stood at 95% in Oct’20. FY21-TD, NSE’s market share in equity cash segment stands at 94% vs 93% in FY20 and 91% in FY19. Equity derivatives: Options ADTV at an all-time high  NSE’s total equity derivatives’ ADTV rose 79% YoY to Rs26.3trn (considering notional turnover in options) in Oct’20. Futures and options ADTV grew 14.7% and 83% YoY, respectively. Currency derivatives: NSE gains market share, BSE continues to decline  In Oct’20, NSE’s currency derivatives’ ADTV grew robust 46% YoY to Rs522bn and that of BSE fell 22% YoY to Rs204bn. NSE’s market share in currency derivatives stood at 72% in Oct’20. MF trading data: BSE holds dominant position  Number of orders traded on BSE’s platform grew 64% YoY to 7.7mn in Oct’20. NSE posted 26% YoY growth under the same parameter to 1.53mn. In value terms, BSE’s market share in online mutual funds stood at 75.2% in FY21-TD vs 73% in FY20. FY21TD number of order for BSE/NSE grew 61%/26% YoY, respectively. Commodity derivatives: Receding bullion volumes drag ADTV down 3% MoM in Oct’20.  MCX reported an ADTV of Rs330bn in Oct’20, up 13% YoY (down 3% MoM). Decline in ADTV on a MoM basis was driven by decline in gold volumes while silver ADTV was down due to fall in prices. Crude oil ADTV continues to remain lower as higher margin requirement continued in Oct’20. Gold/silver ADTVOL declined 19% / 2% MoM. Crude oil segment witnessed a positive growth on MoM basis but still remains significantly lower compared to pre-Covid levels.  On YoY basis, gold/silver/natural gas/copper ADTV grew 27/106/188/56% YoY, respectively. Crude ADTV declined 78% YoY. Ex-crude ADTV grew 70% YoY. On MoM basis, ADTV of gold/silver/copper declined 19/7/3/% MoM.  NCDEX’s ADTV grew 16% YoY (+19% MoM) to Rs15.5bn in Oct’20. Depository: CDSL maintains dominant market share in incremental demat accounts  Data till Sep’20 shows CDSL/NSDL market share stood at 56/44%, respectively. Research Analysts:  In terms of incremental accounts opened in FY21TD, CDSL has maintained a dominant Ansuman Deb share of 87% vs 76% in FY20. [email protected] NSE active clients: remains market leader in terms of NSE active clients +91 22 6637 7312  Data till Sep’20 shows that NSE’s active clients increased 9% MoM to 13.5mn Ravin Kurwa [email protected]  In terms of incremental active clients market share, Zerodha broking and RKSV securities +91 22 2277 7653 held a dominant market share of 22% and 21% respectively

Please refer to important disclosures at the end of this report

Indian exchanges, November 4, 2020 ICICI Securities

India equity cash Chart 1: NSE equity cash – monthly turnover Chart 2: BSE equity cash – monthly turnover

16.0 1.2 1.1 1413 14.0 13 12 1.0 0.9 12.0 11 0.8 0.8 10 10 0.8 0.8 10.0 9 0.7 8 8 8 0.7 8 8 0.6 0.6 7 7 0.6 0.60.5 0.60.6 8.0 7 7 7 7 0.6 0.5 0.50.5 6 6 6 0.50.5 6 6 0.4 0.4 6.0 (Rs trn) (Rs (Rs trn) (Rs 0.4 4.0 2.0 0.2

0.0 0.0 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jun-19 Jun-20 Feb-19 Feb-20 Dec-18 Dec-19 Aug-19 Aug-20 Apr-19 Oct-19 Apr-20 Oct-20 Jun-19 Jun-20 Feb-19 Feb-20 Dec-19 Aug-19 Aug-20

Chart 3: NSE equity cash – monthly ADTV Chart 4: BSE equity cash – monthly ADTV

700 60 611 556 50 600 50 44 523 43 500 39 40 34 35 32 32 400 30 29 27 26 282827 28 28 30 25 25 25 25 24 25 300 21

(Rs bn) (Rs 21 (Rs bn) (Rs 20 200

100 10

0 0 Jul-19 Jul-20 Jul-19 Jul-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Mar-19 Mar-20 Jan-19 Jan-20 Feb-19 Feb-20 Nov-18 Dec-18 Nov-19 Dec-19 Sep-18 Aug-19 Sep-19 Aug-20 Sep-20 Mar-19 Mar-20 Sep-18 Nov-18 Sep-19 Nov-19 Sep-20 May-19 May-20 May-19 May-20

Chart 5: NSE equity cash – number of trades Chart 6: BSE equity cash – number of trades

60 56 51 48 50 41 40 40 35 36 32 31 31 27 28 30 25 26 26 25 25 26 26 25 (mn) 23 21 22 20

10

- Apr-19 Oct-19 Apr-20 Oct-20 Jun-19 Jun-20 Feb-19 Feb-20 Dec-18 Aug-19 Dec-19 Aug-20

Source: NSE, BSE, I-Sec research

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Indian exchanges, November 4, 2020 ICICI Securities

In equity cash Chart 7: Equity cash – market share in terms of turnover segment, NSE maintained its NSE BSE 100% dominant market 8 8 9 8 8 7 10 8 7 7 6 7 7 7 6 6 6 7 8 5 6 8 6 7 5 5 share in Oct’20 in 90% 80% terms of total 70% turnover at 95%. 60% 50% 92 92 91 92 92 93 90 92 93 93 94 93 93 93 94 94 94 93 92 95 94 92 94 93 95 95 40% 30% 20% 10% 0% Jul-19 Jul-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Feb-19 Mar-19 Feb-20 Mar-20 Sep-18 Nov-18 Dec-18 Aug-19 Sep-19 Nov-19 Dec-19 Aug-20 Sep-20 May-19 May-20

Source: NSE, BSE, I-Sec research In FY20, NSE’s ADTV grew 14% Chart 8: Equity cash – market share in terms of number of trades YoY to Rs364bn NSE BSE whereas BSE’s 100% 11 ADTV fell 14.4% 10 10 10 10 10 10 11 9 9 8 9 9 8 9 10 11 10 9 9 8 12 11 10 10 90% YoY to Rs26.7bn. 80% Hence, NSE’s 70% market share was at 60% an all-time high of 50% 90 90 90 90 90 90 89 91 91 92 91 91 92 91 90 89 90 91 91 92 89 88 89 90 90 93% in FY20 vis-a- 40% vis 91% in FY19 and 30% 87% in FY18 in the 20% 10% equity cash segment. 0% Jul-19 Jul-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Feb-19 Mar-19 Feb-20 Mar-20 Nov-18 Dec-18 Aug-19 Sep-19 Nov-19 Dec-19 Aug-20 Sep-20 May-19 May-20

Source: NSE, BSE, I-Sec research

Chart 9: NSE equity cash – ADTV trend Chart 10: BSE equity cash – ADTV trend

600 562 50 44 45 40 500 40 35 36 35 400 364 30 31 321 30 27 294 300 25 22 21 (Rs bn) (Rs (Rs bn) (Rs 204 20 178 172 200 15 108 112 10 100 5 - - TD TD FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

Source: NSE, BSE, I-Sec research

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Indian exchanges, November 4, 2020 ICICI Securities

Chart 11: Equity cash – annual volume trend Chart 12: Equity cash – annual market share trend

NSE BSE Total NSE BSE 100 100 90 13 9 7 90 17 16 16 15 16 80 80 70 70 60 60 50 50 93 (Rs trn) (Rs 40 91

(%) 87 40 83 84 84 85 84 30 30 20 20 10 10 0 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Source: NSE, BSE, I-Sec research

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Indian exchanges, November 4, 2020 ICICI Securities

India equity derivatives Chart 13: NSE equity futures – turnover Chart 14: NSE equity options – turnover

25 2324 23 600 22 531 22 21 21 20 19 500 20 18181918 18 452 17 17 18 416 1616 1616 16 16 15 15 400 366 373 344 15 330 287 300 267 270276 273 242 254 236 226 231 210 10 203 203 202 191 (Rs trn) (Rs trn) (Rs 200 168176 174

5 100

0 0 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jun-19 Jun-20 Jun-19 Jun-20 Feb-19 Feb-20 Feb-19 Feb-20 Dec-18 Aug-19 Dec-19 Aug-20 Dec-18 Aug-19 Dec-19 Aug-20

Chart 15: NSE equity futures – ADTV trend Chart 16: NSE equity options – ADTV trend

1,200 996 1,000 875 875 830 800 624 600 510 501 (Rs bn) (Rs 400 320 271

200

-

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

Chart 17: Equity derivatives – volume trend Chart 18: Equity derivatives – market share trend

NSE BSE Total NSE BSE 4000 100 3500 6 19 19 90 27 3000 80 2500 70 60 2000 50 94 100 100 100 100 (Rs trn) (Rs (%) 81 81 1500 40 73 30 1000 20 500 10 0 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Source: NSE, BSE, I-Sec research Note: In the case of options, turnover is notional

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Indian exchanges, November 4, 2020 ICICI Securities

India currency derivatives

Chart 19: NSE currency derivatives – ADTV Chart 20: BSE currency derivatives – ADTV

Currency Futures Currency Options Currency Futures Currency Options 400 250 350 200 300 250 150 200 (Rs bn) (Rs 150 bn) (Rs 100 100 50 50 - - Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jun-19 Jun-20 Feb-19 Feb-20 Dec-18 Aug-19 Dec-19 Aug-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jun-19 Jun-20 Feb-19 Feb-20 Dec-18 Aug-19 Dec-19 Aug-20

Chart 21: Currency futures – turnover Chart 22: Currency options – turnover

NSE BSE MSEI 7.0 NSE BSE MSEI 8.0 7.0 6.0 6.0 5.0

5.0 4.0 4.0 3.0 (Rs trn) (Rs (Rs trn) (Rs 3.0 2.0 2.0 1.0 1.0 - - Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jun-19 Jun-20 Feb-19 Feb-20 Dec-18 Dec-19 Aug-19 Aug-20 Jul-19 Jul-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Feb-19 Mar-19 Feb-20 Mar-20 Nov-18 Dec-18 Nov-19 Dec-19 Sep-18 Aug-19 Sep-19 Aug-20 Sep-20 May-19 May-20

Source: NSE, BSE, MSEI, I-Sec research Note: In the case of options, turnover is notional Chart 23: Currency futures – market share

In Oct’20, NSE’s NSE BSE MSEI currency futures’ 100% ADTV grew 50% 90% 24 23 29 27 26 28 31 27 36 35 32 35 32 YoY to Rs265bn. 80% 39 39 42 42 38 39 41 41 40 38 38 38 37 BSE’s futures ADTV 70% declined 28% YoY to 60% Rs78bn. NSE 50% 40% 76 77 continued its 68 67 70 73 73 71 69 73 30% 61 61 62 60 64 64 59 60 62 62 62 62 64 dominance in 58 58 59 20% currency futures with 10% 77% market share in 0% Oct’20. Jul-19 Jul-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Mar-19 Mar-20 Feb-19 Feb-20 Nov-18 Dec-18 Nov-19 Dec-19 Sep-18 Aug-19 Sep-19 Aug-20 Sep-20 May-19 May-20

Source: NSE, BSE, MSEI, I-Sec research

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Indian exchanges, November 4, 2020 ICICI Securities

Chart 24: Currency options – market share In currency options, NSE BSE MSEI NSE’s market share 100% stood at 67% in 90% 25 24 29 32 32 29 33 Oct’20. 40 40 35 37 35 80% 44 46 44 41 46 45 49 48 52 47 70% 53 55 56 57 60% 50% 40% 75 76 71 68 68 71 67 30% 60 60 59 65 63 65 56 51 52 54 55 54 55 53 47 48 45 44 43 20% 10% 0%

Jul-19 Jul-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Mar-19 Mar-20 Feb-19 Feb-20 Nov-18 Dec-18 Nov-19 Dec-19 Sep-18 Aug-19 Sep-19 Aug-20 Sep-20 May-19 May-20

Source: NSE, BSE, MSEI, I-Sec research Note: In the case of options, turnover is notional Chart 25: Currency derivatives – market share

In Oct’20, NSE NSE BSE MSEI continued to 100% maintain its dominant 90% 27 28 26 28 35 29 30 33 32 32 market share. In 80% 41 41 36 40 42 42 42 45 46 43 43 45 49 50 50 FY20, NSE 70% increased it to 60% 60% from 54% in FY19. 50% 40% 72 72 74 72 64 70 70 67 68 68 30% 59 59 64 60 57 58 57 55 54 57 57 55 51 50 50 20% 10% 0% Jul-19 Jul-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Feb-19 Mar-19 Feb-20 Mar-20 Nov-18 Dec-18 Aug-19 Sep-19 Nov-19 Dec-19 Aug-20 Sep-20 May-19 May-20

Source: NSE, BSE, MSEI, I-Sec research Note: In the case of options, turnover is notional Chart 26: Currency derivatives – annual volume Chart 27: Currency derivatives – annual market trend share trend

NSE BSE MSEI Total NSE BSE MSEI 180 100 4 4 1 160 12 90 140 80 39 36 40 36 38 46 46 120 70 34 100 60 50 80 (%) (Rs trn) (Rs 40 60 30 61 60 54 59 58 53 54 60 40 20 20 10 0 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Source: NSE, BSE, MSEI, I-Sec research Note: In the case of options, turnover is notional

7

Indian exchanges, November 4, 2020 ICICI Securities

India mutual fund flows through exchanges Chart 28: Mutual funds – total order value Chart 29: Mutual funds – market share by value

NSE BSE NSE BSE 450 100% 400 90% 350 80% 70% 300 272 253 60% 250 50% 200

(Rs bn) (Rs 40% 150 30% 100 20% 50 10% 0% - Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jun-19 Jun-20 Feb-19 Feb-20 Dec-18 Dec-19 Aug-19 Aug-20 Jul-19 Jul-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Feb-19 Mar-19 Feb-20 Mar-20 Nov-18 Dec-18 Nov-19 Dec-19 Aug-19 Sep-19 Aug-20 Sep-20 May-19 May-20

Chart 30: NSE mutual funds – monthly orders Chart 31: BSE mutual funds – monthly orders

18,00,000 90,00,000 16,00,000 80,00,000 14,00,000 70,00,000 12,00,000 60,00,000 10,00,000 50,00,000 8,00,000 40,00,000 6,00,000 30,00,000 4,00,000 20,00,000 2,00,000 10,00,000 0 0 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

Source: NSE, BSE, I-Sec research

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Indian exchanges, November 4, 2020 ICICI Securities

India commodity derivatives Chart 32: MCX – ADTV Chart 33: NCDEX – ADTV 35 500 433 29 450 30 2828 377

374 26 371

363 25 357

400 350 340

330 25 323 22 315 350 311 21 21 293 288 286

277 19 275 19 274 273 270 265 264 262 18 300 258 20 18 17 18 1717

238 16 232 15 16 250 13 14 13

(Rs bn) (Rs 15 (Rest bn) (Rest 12 11 200 157 9 150 10 8 7 6 100 5 50 - - Jul-18 Jul-19 Jul-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Jul-18 Jul-19 Jul-20 Feb-19 Mar-19 Feb-20 Mar-20 Aug-18 Sep-18 Nov-18 Dec-18 Aug-19 Sep-19 Nov-19 Dec-19 Aug-20 Sep-20 May-19 May-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Feb-19 Mar-19 Feb-20 Mar-20 Aug-18 Sep-18 Nov-18 Dec-18 Aug-19 Sep-19 Nov-19 Dec-19 Aug-20 Sep-20 May-19 May-20

Source: MCX, NCDEX, I-Sec research

Chart 34: Commodity derivatives – market share

MCX NCDEX 100% 5 7 95% 10 10 9 10 13 13 12 15 15 90%

85% 95 93 90 90 91 90 87 87 88 80% 85 85

75% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Source: MCX, NCDEX, I-Sec research

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Indian exchanges, November 4, 2020 ICICI Securities

Chart 35: ADTVOL – Gold Chart 36: ADTVOL – Silver

Gold Silver

140 200 180 120 160 100 140 75 120 80 93 Rs bn Rs Rs bn Rs 100 60 80 40 60 40 20 20 - - Jul-19 Jul-20 Jul-19 Jul-20 Apr-19 Oct-19 Apr-20 Oct-20 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Jan-19 Jun-19 Jan-20 Jun-20 Feb-19 Mar-19 Feb-20 Mar-20 Feb-19 Mar-19 Feb-20 Mar-20 Aug-19 Sep-19 Nov-19 Dec-19 Aug-20 Sep-20 Aug-19 Sep-19 Nov-19 Dec-19 Aug-20 Sep-20 May-19 May-20 May-19 May-20

Chart 37: ADTVOL – Crude Chart 38: ADTVOL – Natural Gas

Crude Oil Natural Gas

200 70 64 180 60 160 140 50 120 40 Rs bn Rs 100 bn Rs 80 30 60 20 40 25 10 20 - - Jul-19 Jul-20 Jul-19 Jul-20 Apr-19 Oct-19 Apr-20 Oct-20 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Jan-19 Jun-19 Jan-20 Jun-20 Feb-19 Mar-19 Feb-20 Mar-20 Feb-19 Mar-19 Feb-20 Mar-20 Aug-19 Sep-19 Nov-19 Dec-19 Aug-20 Sep-20 Nov-19 Dec-19 Aug-19 Sep-19 Aug-20 Sep-20 May-19 May-20 May-19 May-20

Chart 39: ADTVOL – Copper Chart 40: ADTVOL – ALNZ

Copper ALNZ

30 80 26 70 25 60 20 50 43 Rs bn Rs 15 bn Rs 40 30 10 20 5 10 - - Jul-19 Jul-20 Jul-19 Jul-20 Apr-19 Oct-19 Apr-20 Oct-20 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Jan-19 Jun-19 Jan-20 Jun-20 Feb-19 Mar-19 Feb-20 Mar-20 Feb-19 Mar-19 Feb-20 Mar-20 Aug-19 Sep-19 Nov-19 Dec-19 Aug-20 Sep-20 Nov-19 Dec-19 Aug-19 Sep-19 Aug-20 Sep-20 May-19 May-20 May-19 May-20

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Indian exchanges, November 4, 2020 ICICI Securities

India depository services Chart 41: Number of demat accounts

CDSL NSDL 30.0 26 25.0 21 19.7 20.5 18.5 20.0 17.1 17.4 15.6 13.7 14.6 14.8 15.0 12.7 13.1 12.0 12.3 (in mn) (in 9.6 10.8 10.0 7.9 8.3 8.8

5.0

- Mar-20 Sep-20 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Source: CDSL, NSDL, I-Sec research

Chart 42: Number of demat accounts – market share

CDSL continues to CDSL NSDL gain the larger share 100% of incremental demat 90% 80% 44 accounts, with 87% 52 48 59 57 56 54 new accounts 70% 60 60 60 60% opening in FY21-TD. 50% 40% 30% 56 48 52 20% 40 40 40 41 43 44 46 10% 0% Mar-20 Sep-20 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Source: CDSL, NSDL, I-Sec research

Chart 43: Number of incremental demat accounts – market share

CDSL NSDL 100% 13 90% 24 37 36 80% 45 44 42 40 70% 61 60% 50% 87 40% 76 63 64 30% 55 56 58 60 20% 39 10% 0%

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Source: CDSL, NSDL, I-Sec research

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Indian exchanges, November 4, 2020 ICICI Securities

India INX Chart 44: India INX – monthly trades Monthly turnover at 3,500 3,161 India INX grew by 52% MoM to 3,000 US$114bn in Oct’20. 2,500 Number of trades 2,000 grew 27% MoM in Oct’20. 1,500'000) (in 1,000

500

- Jul-19 Jul-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Feb-19 Mar-19 Feb-20 Mar-20 Sep-18 Nov-18 Dec-18 Aug-19 Sep-19 Nov-19 Dec-19 Aug-20 Sep-20 May-19 May-20

Source: India INX, I-Sec research

Chart 45: India INX – monthly turnover

120 114

100

80 72 75 68 70 67 62 56 54 60 51 49 43 (US $ bn) $ (US 42 41 36 38 40 33 27 29 27 19 18 19 19 16 20 16

- Jul-19 Jul-20 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Jan-19 Jun-19 Jan-20 Jun-20 Mar-19 Mar-20 Feb-19 Feb-20 Nov-18 Dec-18 Nov-19 Dec-19 Sep-18 Aug-19 Sep-19 Aug-20 Sep-20 May-19 May-20 Source: India INX, I-Sec research

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Indian exchanges, November 4, 2020 ICICI Securities

Table 1: NSE active clients Active clients ('000) Growth June'20 / July'20 / Aug'20 / Sep'20 / FY20 June'20 July'20 Aug'20 Sept'20 FY20 Jun'20 Jul'20 Aug'20 Zerodha Broking LIMITED 1,414 1,941 2,126 2,226 2,475 37% 10% 5% 11% RKSV Securities India Private Ltd 619 778 922 978 1,224 26% 18% 6% 25% LIMITED 576 767 856 894 1,009 33% 12% 4% 13% HDFC Securities LTD. 720 749 770 783 801 4% 3% 2% 2% Kotak Securities LTD. 572 639 668 672 677 12% 4% 1% 1% 5Paisa Capital LIMITED 434 566 552 625 697 30% -2% 13% 11% Motilal Oswal LIMITED 377 412 424 427 449 9% 3% 1% 5% Axis Securities LIMITED 270 302 312 316 361 12% 3% 1% 14% SBICAP Securities LIMITED 250 269 274 279 286 8% 2% 2% 2% IIFL SECURITIES LIMITED 219 235 239 239 252 7% 2% 0% 6% Edelweiss Broking LIMITED 130 135 139 138 142 4% 3% -1% 3% LIMITED 119 119 119 118 121 0% 0% -1% 3% Aditya Birla Money LIMITED 43 46 48 48 50 7% 4% 0% 5% JM FINANCIAL SERVICES 40 43 43 43 45 8% 1% 0% 3% Others 5,013 5,195 4,528 4,597 4,939 4% -13% 2% 7% Total 10,796 12,196 12,021 12,339 13,484 13% -1% 3% 9% Source: NSE India, I-Sec research

Table 2: NSE active clients total market share and incremental clients market share Market share Market share in incremental clients Brokers FY20 June'20 July'20 Aug'20 Sep'20 June'20 Aug'20 Sep'20 Zerodha Broking LIMITED 13.1% 15.9% 17.7% 18.0% 18.4% 38% 31% 22% ICICI Securities LIMITED 10.0% 9.2% 9.5% 9.3% 8.9% 3% 2% 4% RKSV Securities India Private LIMITED 5.7% 6.4% 7.7% 7.9% 9.1% 11% 18% 21% Angel Broking LIMITED 5.3% 6.3% 7.1% 7.2% 7.5% 14% 12% 10% HDFC Securities LTD. 6.7% 6.1% 6.4% 6.3% 5.9% 2% 4% 2% Kotak Securities LTD. 5.3% 5.2% 5.6% 5.4% 5.0% 5% 1% 0% 5Paisa Capital LIMITED 4.0% 4.6% 4.6% 5.1% 5.2% 9% 23% 6% Motilal Oswal Financial Services LIMITED 3.5% 3.4% 3.5% 3.5% 3.3% 3% 1% 2% Axis Securities LIMITED 2.5% 2.5% 2.6% 2.6% 2.7% 2% 1% 4% SBICAP Securities LIMITED 2.3% 2.2% 2.3% 2.3% 2.1% 1% 2% 1% IIFL SECURITIES LIMITED 2.0% 1.9% 2.0% 1.9% 1.9% 1% 0% 1% Edelweiss Broking LIMITED 1.2% 1.1% 1.2% 1.1% 1.1% 0% 0% 0% Reliance Securities LIMITED 1.1% 1.0% 1.0% 1.0% 0.9% 0% 0% 0% Aditya Birla Money LIMITED 0.4% 0.4% 0.4% 0.4% 0.4% 0% 0% 0% JM FINANCIAL SERVICES LIMITED 0.4% 0.4% 0.4% 0.4% 0.3% 0% 0% 0% Others 46.4% 42.6% 37.7% 37.3% 36.6% 13% 22% 30% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100% 100% 100% Source: NSE India, I-Sec research

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Indian exchanges, November 4, 2020 ICICI Securities

ICICI Securities has received an investment banking mandate for CDSL Ltd and BSE Ltd. This update is prepared on the basis of publicly available information.

In case of industry/sector reports or a report containing multiple , the rating/recommendation for a particular may be based on the last released stock specific report for that company.

This report may be distributed in Singapore by ICICI Securities, Inc. (Singapore branch). Any recipients of this report in Singapore should contact ICICI Securities, Inc. (Singapore branch) in respect of any matters arising from, or in connection with, this report. The contact details of ICICI Securities, Inc. (Singapore branch) are as follows: Address: 10 Collyer Quay, #40-92 Ocean Financial Tower, Singapore - 049315, Tel: +65 6232 2451 and email: [email protected], [email protected].

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New I-Sec investment ratings (all ratings based on absolute return; All ratings and target price refers to 12-month performance horizon, unless mentioned otherwise) BUY: >15% return; ADD: 5% to 15% return; HOLD: Negative 5% to Positive 5% return; REDUCE: Negative 5% to Negative 15% return; SELL: < negative 15% return

ANALYST CERTIFICATION I/We, Ansuman Deb, MBA, BE; Ravin Kurwa, CA; authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Analysts are not registered as research analysts by FINRA and are not associated persons of the ICICI Securities Inc. It is also confirmed that above mentioned Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the report. 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