BSE hits All-Time High of ₹1798 after F&O turnover charges revision

BSE Limited's shares soared to a historic high at ₹1,789.90, marking a remarkable 13% gain on the National Stock Exchange (NSE) during today's intraday trading. This surge followed the exchange's announcement of revised transaction charges for equity derivatives, effective November 1, 2023. The adjustments primarily affect S&P BSE Sensex Options, especially the nearest expiry contracts.

Under the new transaction fee structure, transactions with turnovers up to Rs 3 crore will incur charges at Rs 500 per crore. For turnovers exceeding Rs 3 crore up to Rs 100 crore, transaction fees are set at Rs 3,750 per crore. Transactions with turnovers ranging from over Rs 100 crore to Rs 750 crore will be subject to charges of Rs 3,500 per crore. Meanwhile, turnovers between more than Rs 750 crore and Rs 1,500 crore will have charges of Rs 3,000 per crore. For turnovers above Rs 1,500 crore up to Rs 2,000 crore, the fees will be Rs 2,500 per crore. Turnovers exceeding Rs 2,000 crore will incur a transaction fee of Rs 2,000 per crore.

BSE shares were trading made an all-time-high of 1,798. BSE has steadily gained market share in both cash and derivatives segments, standing at 7.1% and 4.2%, respectively. Notably, the gain in the derivative segment has been significant following the introduction of the SENSEX contract. The cash turnover recorded a substantial 55% QoQ growth, driven by a notable volume increase in both exclusive and non-exclusive cash transactions.

BSE's mutual fund platform, StAR MF, remains robust with a notable YoY growth of 64%. According to analysts at HDFC Securities, BSE is expected to report a strong quarter, driven by robust market activity and derivatives revenue contribution. The revenue is projected to grow by approximately 19% QoQ, with an EBITDA margin of 41% in the July to September quarter (Q2FY24). However, derivatives are not expected to contribute significantly to EBITDA during this quarter due to higher clearing costs.