BSE Q2 profit drops 21 pc at Rs 36 cr

Leading stock exchange BSE on Wednesday reported 21 per cent decline in consolidated net profit at Rs 36.27 crore for the September quarter of the ongoing fiscal.

The bourse had logged a profit of Rs 45.85 crore in the year-ago period, the BSE (formerly known as Bombay Stock Exchange) said in a regulatory filing to the NSE.

Total income fell to Rs 159.58 crore during the quarter under review from Rs 164.05 crore in the year-ago period.

During the quarter, the BSE had undertaken buyback of 67.65 lakh shares on an average price of Rs 680 through tender offer route amounting to Rs 460 crore.

On standalone basis, the exchange posted a profit of Rs 39.22 crore during the quarter under review as against Rs 53.03 crore in July-September, 2018-19.

Total income declined to Rs 144.33 crore in the three months ended September 30, 2019 from Rs 152.47 crore in the same period last fiscal.

The exchange said inter-operability among clearing corporations went operational in the quarter, starting with equity segment on July 15, equity derivatives on July 29 and currency derivatives on August 5.

The BSE and its provident fund trust has an investment of Rs 1,700 lakh and Rs 349 lakh (including interest of Rs 68 lakh), respectively in secured non-convertible debentures of IL&FS Group.

Considering the status of IL&FS Group companies, the BSE said that a provision of Rs 266 lakh and Rs 268 lakh have been made during the September quarter and first half of the fiscal, respectively.

Further, the exchange has been asked by markets regulator Sebi to reimburse Rs 1,427 lakh to Investors' Services Fund and Rs 1,372 lakh to BSE Investors Protection Fund Trust along with interest, in respect of certain expenses charged in the earlier years to these funds.

The BSE received observations from Sebi in respect of inspection conducted for the period 2005-17. In response to this, "the company has submitted its detailed reply to Sebi and requested to reconsider the matter. Since the matter is not yet concluded, it is considered as a contingent liability," as per the filing.

"The issuance of in-principle approval to BSE-Ebix Insurance Broking to act as a direct insurance broker by Insurance Regulatory and Development Authority of India is a significant next step for BSE group to transform itself as the full-fledged financial services and distribution platform..." BSE CEO Ashishkumar Chauhan said.

The implementation of inter-operability among clearing corporations is a major reform in the Indian capital market and the BSE looks forward to higher liquidity across its inter-operable platforms in time to come, he added.