shares of BSE logged their biggest-ever intraday decline on Monday following a directive from the market regulator, requiring the exchange to pay a regulatory fee on the annual turnover, calculated on the notional value of the options contract.
After sliding by as much as 19 per cent, BSE shares closed over 13 per cent lower at Rs 2,783 apiece, wiping out over Rs 6,000 crore in market capitalisation.
The exchange said that it is currently assessing the validity of the claims in accordance with the communication received from the Securities and Exchange Board of India (Sebi) on April 26.
Sebi’s regulatory charges for the cash and futures segments are straightforward since there is only one turnover. However, in the options segment, there is both notional turnover and premium turnover. As the premium turnover is lower than the notional turnover, BSE will face a higher outgo in the future.
Analysts expect an impact on BSE’s profits for the next two financial years, leading to an overall decline in earnings per share.
“BSE’s profit after tax estimates for 2024-25/2025-26 could decrease by around 20 per cent basis this cost rise, but it could be managed by a 30 per cent price hike on an aggregate level. However, this sensitivity is subject to estimates and has many levers of options volume growth, options cost growth, and also development in premium to notional turnover,” said ICICI Securities.
