New Delhi, Nov. 5 -- Indian stock exchanges are well-positioned for long-term growth, backed by strong liquidity, increasing investor participation and high operating leverage. However, their heavy dependence on transaction-based revenue makes earnings vulnerable to regulatory changes and fluctuations in trading activity, according to a report by Kotak Institutional Equities.

The report said Indian exchanges enjoy strong competitive advantages, including established liquidity pools, high operating leverage and significant growth potential.

However, it cautioned that dependence on transaction-based income makes revenue growth less predictable, as earnings remain sensitive to changes in regulations and market trading activity.

Comparing ...