It depends on the broker. Some brokers facilitate it online. Icicidirect allows it online.
I have applied for multiple buybacks in the last 2-3 years with different brokers (Sharekhan and Edelweiss). It’s mostly a hasslefree task. They mostly ask for the buyback offer letter mail that the respective company mails us and then apply from their side only. We don’t have to give any physical document.
Talking to some of the broker community, they said BSE is more responsive and communicative. Seems BSE is conducting lots of free courses to make people familiar with their platforms ( BSE star MF for example).
After the co-location scandal in NSE, BSE stands to gain its reputation. Also Ashish Chauhan refused to speak about NSE scandal, when asked during ET interview. I found it to be professional though it is an opportunity for BSE to capitalise. Recent events in NSE might force it to bring the IPO soon and its more answerable. Especially on the areas where its not charging and BSE is also forced not to charge (INX for example).
New investments and efforts are reaping benefits as Star MF contributed 30 Cr top line last year. BSE said that it was only a token amount and they will increase the charge.
There is one telling example of BSE’s intent to work hard and capture every bit of it. Recently IndiaINX changed it market timings… Now the Bourse is closed only for 2 hours. But NSE IFSC is closed at midnight. Screenshots below
NSE IFSC
BSE INX
BSE INX captures about 150 million dollar market turnover after Indian market hours ( 9:00 AM- 3:30 PM).
Now NRIs also allowed to trade in GIFT city bourses and it helped INX. Now everyday turnover stand 1.3-1.5 Billion $ and volumes constantly crossing 100,000 per day. Hopefully once market sentiments are back it will go even higher.
Recent article in Forbes, in which Chauhan seems to admit that they are doing very bad in equity market and i derivatives due to low liquidity. Here BSE needs to step up but I don’t know what they can do better.
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I dont understand why can’t BSE start charging a nominal fee per trade at INX. Why there’s so much dependancy on NSE to take the first move. I don’t think the people will run away from BSE INX to NSE IFSC if they started charging a nominal fee of 2-5 cents per trade. Everyone knows both the exchanges would eventually follow. It’s been more than 2 years now that INX got operational. I think it’s the right time BSE should start charging at INX, be it a token amount of 2 cents.
They will start charging soon. NSE now has to face lots of heat and penalty they might run out of gas and relent. I think once the unified regulator for GIFT city is setup they will start the charging soon and that will be a trigger for more growth at INX as regulatory huddles will be easy ( cabinet already cleared the proposal). Now that the elections are over, I hope RBI also gives its nod for trading USD/INR at INX.
One more interesting development for BSE is the interoperability. I expect this to be a game changer for BSE to get some handle on cash market and get liquidity back in the case of derivative. Its only my guess and some analyst also feels so. Ashish Chauhan also mentioned it in the con Call. You can read about interoperability here .
The deadline is June1 and after that this should come in to force. I will keep an eye on trading volumes and if there are interesting developments, I will keep the community updated.
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https://www.livemint.com/industry/banking/icici-bank-to-buy-stake-in-bse-subsidiary-inx-for-rs-31-crore-1558363422663.html Things seem to be moving in the right direction for INX
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Why is INX still in loss of 15 times its revenue after 3 years? What’s taking so long for it to turn profitable?
On the other hand, what has ICICI seen in INX as a positive to invest 31cr?
In 1999, BSE and clutch of PE investors (mostly PSU banks) set-up a depository company. Today, the listed company is valued by the market at around 2300 Cr. BSE is still the largest shareholder, with a 24% stake. The company is, of course, CSDL.
A PE investor (ICICI Bank) values a company (INX) at around 300 Cr. For FY19, the company had revenues of 2.25 Cr. It is a loss making company; in fact, it lost nearly 31 Cr. for FY19. However, given the extraordinary regulatory moat provided by its status as an international exchange located in GIFT City, it is likely to scale up rapidly.
Scenario 1: Another company, a wholly owned subsidiary of BSE (ICCL), had revenues of 64.84 cr. and a PAT of 38.64 in FY18. Yes, that’s a PAT margin of nearly 60%. However, this company is unlikely to grow revenues the way INX is likely to. But again, this company will likely be a beneficiary of interoperability, which is likely to kick-off on Jun. 1. How will a PE investor value this company?
Scenario 2: Another potential company, a PaaS provider (StAR MF), is likely to earn revenues of 30 Cr. or more in the years ahead; assuming good stewardship, this company likely is scale up nicely. Given that it an integral part of BSE as of now, practically the entire revenue flows through to the bottomline. Mr. Chauhan pointed out one way of valuing this company in a recent concall; however I am not claiming that it is the ONLY way to arrive at a valuation. What value is a PE investor likely to give this company?
Scenario 3: Another company (Pranurja Solutions) was incorporated last year; BSE has set-up the co. along with PTC India and ICICI Bank. The company has filed a petition with the regulator, CERC, to launch a power exchange. What will be the fate of this company in 10 yrs.?
I am merely trying to point out the extraordinary optionality available to a universal exchange headed by an intelligent fanatic. We have seen at least one instance of such positive optionality every quarter since listing.
Disc: Invested; views biased.
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Yet another initiative from INX. From yesterday they started trading at LME via INX. As I closely watch the INX and BSE turnover, INX got some commodity Futures back on track with some 200 million turnover everyday. We have to wait and see if it continues to be the case.
The notional turnover at INX almost touched $3.5bn(first time $3bn+) yesterday with over 270k contracts traded. I think its getting very close to the critical mass. This is probably close to or even higher than the BSE’s equity turnover!
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Yesterday was expiry so the volumes were high. But you are right, in general volume growth has been pretty impressive. I have compiled the data and presented below. Its the average volume per day ( month wise). Lets hope that this volume doubles this year. That would be just excellent.
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Hi,
Since there is no promoters or majority shareholders of BSE, can’t this be a target of hostile takeover?
Per regulatory requirements, no shareholder, group or PAC can hold more than 5%. There is also the requirement of Public Interest Directors. In any case, we as shareholders will benefit ONLY IF the neutrality / impartiality of BSE is beyond even a shadow of doubt.
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Interoperability is postponed to July 1st onwards. I was curiously looking to see if the volumes are picking at BSE, then found out that its from next month.
In layman’s term, once interoperability is implemented, a separate margin to trade on NSE and BSE will not be required. It will allow trade orders to be executed on the platform that gives best ‘spread’ without dual margin. It will ensure a level playing field between exchanges as those with better trading technology may gain in cut-throat volumes game, experts say.
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Not sure if my understanding on this is correct, but wouldn’t this help BSE in gaining additional volumes especially from the Algo trades?
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When is the buyback happening ? what is the buyback %ge expected?
The dates for the buyback have not been declared yet.
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BSE INX came up with yet another initiative…
On the domestic side, cash market turnover has been low for both NSE and BSE. And BSE is still loosing market share ( due to low volumes in BSE exclusive shares ). It would be interesting to see if interoperability brings some good news to BSE.
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My Hindi is very bad, but If I understood it correctly, currency derivatives will come soon as RBI task force is positive about it. And unified regulator for GIFT city is also on the process. I strongly believe currency derivatives will be a game changer as the offshore markets are higher than Indian exchanges.
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