Angel One, BSE shares lose nearly one-fifth value in six sessions

Angel One and BSE lose nearly 20% market value in six sessions as SEBI hints at reforms in equity derivatives, sparking fears over weekly contracts

Nearly one-fifth of the market value of Angel One and BSE — two key stocks linked to the capital market theme — has been wiped out in just six trading sessions. 

This decline follows the Securities and Exchange Board of India’s (Sebi) indication that it is considering a shift towards longer-term derivatives products and measures to improve their maturity profile. 

“We have often stated that equity derivatives play a crucial role in capital formation, but we must ensure quality and balance. We will consult with stakeholders on ways to improve, in a calibrated manner, the tenor and maturity profile of derivative products, so that they better serve hedging and long-term investing,” Sebi Chairman Tuhin Kanta Pandey said at an event on August 20. 

 

The statement has fueled speculation that the regulator may discontinue weekly derivatives contracts, which currently generate the highest revenue for brokers and stock exchanges. 

Since August 21, Angel One’s shares have fallen 19 per cent, declining in each of the six consecutive trading sessions.  Meanwhile, BSE shares have dropped 17 per cent and other stocks in the capital market space, such as Central Depository Services Limited, 360 One Wam and 5Paisa Capital, too, have dipped during the same period. 

BSE Index Services launches BSE Capital Markets index 

BSE Index Services, a wholly owned subsidiary of BSE, on Friday announced the launch of a new index — BSE Capital Markets Index. The new index is designed to measure the performance of all companies classified under the capital markets industry, BSE Index Services said in a statement. This new index can be used for running passive strategies such as exchange traded funds and index funds as well as gauging the performance of capital markets sector in India. Also, it can be used for benchmarking of portfolio management services strategies, MF schemes and fund portfolios.