Leading stock exchange BSE is expected to shell out more regulatory fee after the markets watchdog Sebi asked the bourse to pay the fee based on the "notional value" of its options contracts rather than on the premium value.
Also, the exchange has been asked to remit the differential payment for past years with interest. Initial data provided by BSE suggest an outgo of Rs 165 crore plus GST by the exchange.
Reacting to the development, shares of BSE have slumped as much as 18.64 per cent to an intra-day low of Rs 2,612.0 on the NSE on Monday. Finally, the stock settled 13.31 per cent lower at Rs 2,783 on the NSE.
There could be an increase in the BSE's regulatory fee payments to Sebi due to the significant variance between the notional and premium values. This discrepancy arises from the calculation method, which involves multiplying the contract size by the underlying price.
turnover represents the overall strike price of all contracts traded in derivatives, whereas premium turnover is the sum of premiums paid on all contracts traded. As the notional value exceeds the premium turnover, opting for notional turnover as the basis entails a higher fee outlay.
"BSE is hereby advised to pay the regulatory fee based on annual turnover to Sebi considering the notional value in case of options contract," the exchange said in a filing to the National Stock Exchange (NSE) on Friday.
Also, the exchange has been asked to pay the differential regulatory fee for the past periods along with an interest of 15 per cent per annum on the remaining unpaid amount. It has been directed to pay the amount within one month of the receipt of the letter, the filing noted.
