The wave of regulatory tightening in India’s derivatives market is largely over, according to the head of the country’s largest bourse. The National Stock Exchange of India Ltd. is regaining market share in equity options as traders adapt to stricter rules, and the bourse is seeing a pickup in commodities, Chief Executive Officer Ashishkumar Chauhan said in an interview with Bloomberg TV on Friday.

“The cycle of derivatives tightening is broadly done,” Chauhan said a day after NSE shares made their trading debut, ending the exchange’s decade-long road to going public. The market regulator’s crackdown last year on Jane Street Group, plus steps to curb excessive speculation, cooled the derivatives market that made India the world’s leading options hub. Measures changed the economics of a business central to NSE’s profitability and forced it to scale back valuation expectations.

Average daily notional turnover for NSE futures and options declined 10% to 193 trillion rupees ($2 trillion) in August from July, the lowest since February 2025. At smaller rival BSE Ltd., it fell 34% to 154 trillion rupees. Weekly equity options still account for about 40% of exchange revenue, Chauhan said. NSE is gaining traction in commodities, with crude oil and natural gas contracts and work on bond-index futures and options. The Securities and Exchange Board of India allowed foreign investors to trade a broader range of commodity derivatives.