Sensex Today | Stock Market LIVE Updates: Domestic indices rise, boosted by bank and RIL gains, positive global cues. Improved sentiment on Dalal Street due to easing geopolitical tensions and robust corporate earnings. Auto and realty sectors underperform, others advance.
Stock Market Today: BSE share price drops by more than 17% in Monday morning trades, marking its largest single-day decline since listing.
Navigating Regulatory Challenges and Financial Impact: BSE’s Response and Market Analysis :
The drop in BSE share price is linked to SEBI instructing BSE to pay higher regulatory fee for
derivatives, calculated on notional turnover instead of premiums.
Jefferies India analysts report that a rise in fees could reduce BSE’s FY25 and FY26 estimated net profits by 15-18%, as derivatives contribute around 40% to earnings per share.
After requesting to pay SEBI a higher regulatory fee based on yearly turnover calculated from the ‘notional value’ of options contracts, the stock faced scrutiny.
In its exchange release, BSE stated that it had computed the annual turnover using the premium value for options contracts.
BSE, in its exchange release, stated that Regulatory Fees, along with 15% interest, must be paid to SEBI based on Annual Turnover using “Notional Value” for Option Contracts. If deemed payable, the total differential SEBI regulatory fees for past periods (FY 2006-07 to FY 2022-23) would be approximately ₹ 68.64 crore plus GST, with interest amounting to ₹ 30.34 crore.
“The Company paid SEBI regulatory fee for FY 2023-24, due on 30th April 2024, approximately ₹ 1.66 crore plus GST, based on premium (turnover). BSE release mentions potential differential SEBI regulatory fees for the year could be about ₹ 96.30 crore plus GST.”
Jefferies India Pvt Ltd analysts suggest that despite EPS impact, price rises and enhanced premium quality might counterbalance. With derivatives volume growth anticipated to outpace estimated price increases, and improved premium quality potentially mitigating the EPS impact, Jefferies trimmed FY25 and FY26 estimates by 6-9% after incorporating a partial price hike (15%). They now rate the stock as Hold.
Disclaimer: The opinions and suggestions presented are those of individual analysts or brokerage firms, not Mint. We encourage investors to consult certified experts before making investment decisions.
You might also be interested in – NSE lowers market lot size for Nifty 50 derivative contracts, along with two others
