New Delhi, July 17 -- India's stock exchanges continue to benefit from strong operating leverage and expanding revenue streams, although recent margin funding regulations could weigh on proprietary trading volumes with average daily turnover (ADTO) in options expected to decline by up to 20 per cent in FY28, according to Dolat Capital.

According to the report, the exchanges have recorded strong profitability growth over the past few years, mainly driven by a sharp rise in index options trading volumes. Additionally, the exchanges have benefited from strong operating leverage while diversifying revenue streams through businesses such as colocation, clearing services and mutual fund transactions.

However, the Reserve Bank of India's (RBI)...