While initial volumes on both the exchanges were more or less the same, the advantages at the NSE—lower impact costs and better pricing—eventually led to more transactions there than on the BSE.
Also, FIIs prefer to trade in the S&P CNX Nifty-based products, also available on the Singapore Exchange Derivatives Trading. Arbitrage opportunities between the two markets make it a better proposition, sources said.
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Low turnover seen denting BSE, NSE financials
Mumbai--The Securities and Exchange Board of India's (Sebi) ban on carryforwards is expected to affect the financials of the country's two premier bourses- the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) adversely as trading volumes drop drastically, which account for more than 90 per cent of the turnover posted by country's bourses.
At present more than 15 regional exchanges are on the verge of closure which include Saurashtra (Rajkot), Cochin, Guwahati, Mangalore, Jaipur, Magadh, Indore and Bhubaneshwar on account of low turnover.

From July 2 heavyweight stocks, which account for more than 90 per cent of the turnover will move into rolling settlement, leading to a further dip in turnover on the stock exchanges, as there would be no arbitrage opportunities for marketmen.
In addition, volumes from sundry derivative products would at least take 12-18 months to pick up given the market regulator's tough attitude towards brokers in giving new licences till registration fees based on turnover is not cleared.
For stock exchanges income from turnover accounts for 40-45 percent of total income of the bourses.
The BSE gets Rs 2.50 per lakh of turnover on the exchange. While the NSE follows a slab system where it charges Rs 6 per lakh of turnover up to Rs 200 crore, Rs 4 per lakh turnover greater than Rs 200 crore up to Rs 600 crore and Rs 4 per lakh of turnover greater than Rs 600.
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