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Shares of BSE Limited hit a record high of Rs 1,789.90, as they rallied 13 per cent on the National Stock Exchange (NSE) in Monday’s intra-day trade after the exchange announced a revision in transaction charges for trades in the equity derivatives segment with effect from November 1, 2023.
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These changes will primarily be levied on S&P BSE Sensex Options, particularly the nearest or immediate expiry contracts, according to BSE notice dated October 20, 2023. The new transaction fee structure is based on the incremental billable monthly turnover (premium value).Under the revised structure, transactions with turnover up to Rs 3 crore will be charged at Rs 500 per crore. For turnover more than Rs 3 crore and up to Rs 100 crore, the transaction charges are set at Rs 3,750 per crore.
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For turnovers above Rs 1,500 crore up to Rs 2,000 crore, the fees will be Rs 2,500 per crore. For turnovers above Rs 2,000 crore, a transaction fee of Rs 2,000 per crore will be charged. CLICK HERE FOR DETAILS
At 10:09 AM; shares of BSE were quoting 9 per cent higher at Rs 1,728, as compared to 0.18 per cent decline in the Nifty 50 index. Around 3.61 million equity shares changed hands on the NSE, the exchange data shows. In past six months, the stock price of BSE has zoomed 293 per cent, as against 9.8 rise in the Nifty 50.
BSE has gained market share in the cash and derivatives segment, standing at 7.1/4.2 per cent. The gain in the derivative segment has been sharp after the launch of the SENSEX contract. The cash turnover has registered around 55 per cent QoQ growth, led by exclusive/non-exclusive cash volume growth of 57/54 per cent. The mutual fund platform (StAR MF) continues to be strong with 64 per cent YoY growth.
According to analyst at HDFC Securities BSE is expected to report a strong quarter, led by robust market activity and derivatives revenue contribution of Rs 5 crore; revenue will grow ~19 per cent QoQ with an EBITDA margin of 41 per cent in July to September quarter (Q2FY24). Derivatives will not contribute anything to EBITDA in the quarter due to higher clearing costs.
The brokerage firm has highlighted that the BANKEX launch will boost volume and the options price hike will make the derivatives segment profitable. “We maintain our BUY rating with a target price of Rs 1,600, based on 33x core June25E PAT + net cash + CDSL stake,” analyst said in Q2FY24 result preview.
