ValuePickr Forum

BSE (Bombay Stock Exchange)- Bet on Financialization?

Can this attract enough trading volume to make significant impact for BSE?
Any thoughts on this move from senior boarders?

this is the 2nd such more to increase eq deriv volumes. first being the LES announced a couple of weeks back here https://economictimes.indiatimes.com/markets/stocks/news/bse-to-introduce-liquidity-enhancement-scheme-in-equity-derivatives-from-august-26/articleshow/70657409.cms

this has happened in the past too. and you will see a clear pattern here:
https://www.bseindia.com/markets/keystatics/Keystat_turnover_deri.aspx

the question is - if this time its different. with the inter-op between clearing houses there is certainly some hope. but i suspect it might take a couple of years to know for sure.

So far it looks like only BSE will have weekly expiry on equity stocks… I have searched through and I couldn’t find any NSE notification for that… BSE has a better tech and better response time ( Its at least 10 times faster). This wasn’t the case in their previous attempts. Its an interesting development… Only time will tell us if it will grow and if its sustainable.

Why BSE management do not hold BSE shares? If an investor see BSE as value buy today, BSE management could see the same much more closely. I can see BSE doing lot of work to compete and flourish, but that should ideally show up with management holding stake in it, which is not the case now. Any thoughts?

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BSE stock buy back closes on 16th Sept. Buy back price Rs.680.
I have offered all my shares , hoping they will accept 20 % plus of shares.

i got update for my shares held in Zerodha. About 20% accepted(less than 2lk shares). waiting for other demat accounts where i hold shares over 2lk rupees which does not qualify under retail.

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I had offered all my shares ( 200 shares) for this buyback, they have accepted 59 shares.I am holding this in Kotak Securities. They have accepted 29 % of my share. I got an email from Karvy on the same around 5PM Today.

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Acceptance ratio for retail is 29-30%. I had applied from 2 accounts and in both cases the AR was around 29%. Have also received the amount credited in my account.

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I rendered 400 shares and they accepted only 87. About 22%. Not sure how the acceptance ratio is decided and why it is different for each one.

With 400 shares, you wouldn’t qualify for retail quota.

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To qualify retail category , I believe total market value of the equity held should be less than Rs.2 Lakh on the record date for the particular share where buy back is happening.

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Please check Page 17 Q1FY20 CCT -

Retail eligibility was up to 380 shares.

In my retail account AR was 30% and in non-retail it was 22.2%.

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As I said back then, folks were expecting the acceptance ratio to be below 18%.

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RBI has allowed USD INR contracts at India INX

https://www.outlookindia.com/newsscroll/rs-trading-at-ifsc-will-deepen-onshore-mkt-india-inx-md/1634116

Trade on India INX has been very quiet last months… Lets hope that this gets some good volumes once introduced.

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Another metric I’ve been tracking about INX is the number of registered members, which has increased from 35 last year to 40 now. The growth is a bit slow but a positive sign nonetheless.

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https://www.freepressjournal.in/insurance/insurance-top-news/irdai-approves-bse-ebix-to-sell-life-and-non-life-insurance-products

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BSE has just posted the results online. EPS has fallen even after the reduction of capital post buyback.

The results clearly show that while other streams of business revenues are bringing in chunk of profits, BSE’s main stay is in equity markets where it is losing market share. Other businesses are still too small to have any major impact on the results. This includes INX, STAR MF and BSE SME.

  1. It is really disappointing to note that BSE is losing huge marketing share in a duopoly. The effects become even more disappointing after realizing that BSE has the largest number of companies listed in the world. Why BSE is losing such huge volumes in equity to NSE is a surprise and a question mark at the same time.

  2. Two major investors in BSE with a recognized name in India that I can see are
    a. Deutsche boerse ag (before IPO IIRC.)
    b. Pabrai Investment fund (probably recent quarter).

  3. I see a very volatile business in the bullion segment on BSE where it has only lost market share quarter on quarter. This is a big downer.

In conclusion, not happy with the results and see the stock price taking a dive from here.

Highlights from the Q2 Media Release & Investor Presentation

  1. Net Income from StAR MR for HY20 is 20.74 Cr. (vs. 13.10 Cr. in HY19)
  2. StAR MF contributed to 11% to HY20 revenue from operations (vs. 7% in HY19)
  3. BSE Ebix is likely to leverage the distribution reach of StAR MF for its insurance products
  4. StAR MF is described as “zero cost”
  5. The quarter saw inter-operability (among clearing corporations) kicking in across Equity, Equity Derivatives and Currency Derivatives. The impact of inter-operability on market share / revenue, however, remains to be seen.
  6. As on Sep. 30, BSE holds a 41.08% stake in Pranurja Solutions; this will go down to 25% AFTER grant of license by the CERC
  7. From Oct. 1, BSE is levying Rs. 2 per crore of traded value of all commodity futures contracts.
  8. BSE is rapidly gaining market share in the agri-commodities space.
  9. ICICI Bank holds 7.71% in India INX and 9.90% in India ICC
  10. StAR MF & India INX remain the dominant (72% - 98%) players in their respective niches.
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