BSE Shares Decline 18%, the Most Since Listing, on Regulatory Costs Concerns!
BSE Shares Dropped by 18%
BSE shares dropped 18%, the most significant dip since its 2017 listing, due to regulatory fees on options contracts. BSE faces a ₹165 crore fee, which will impact EPS by 15-18%.
Regulatory Fee Impact
Based on options premium values, BSE's fee totals ₹165 crore. Brokerage firm Jefferies warns of a 15-18% EPS impact, downgrading BSE's stock to "hold" from "buy".
Click Here Market Response
BSE shares are down 17% to ₹2,672. Jefferies cuts its price target to ₹2,900, citing potential EPS impact. Despite this, BSE's stock rose over 400% in the past year.
Future Outlook
Despite the setback, BSE remains resilient. With derivatives volume growth surpassing estimates, BSE aims to offset EPS impact through price adjustments and premium quality improvements.
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