“According to a person with knowledge of the matter who declined to be named, other direct mutual fund platforms such as Kuvera and Groww avail services of intermediaries like BSE Star MF whereas Paytm Money had developed internal infrastructure for the services mentioned above. The platform had hence requested the regulator if it would ask AMCs for reimbursements for providing these services. However the request was turned down by the regulator.”
the regulator has given paytm another reason to switch starmf or like platform.
as groww/kuvera/etc grow, their flow and therefore txn fees from amc comes to starmf. this comes at no extra cost to bse. no marketing expense. no customisation. all additional revenue is largely profit.
its a royalty stream on the growth of these platforms direct mf business. and right now they are growing very fast. so is starmf.
but mr market doesnt see it that way. at least not yet.
Significant price volume action noticed in BSE today morning - if the momentum takes it above 890, the gains could be significant.
Edit: Now that the price is above 890(currently at 924) we could see BSE moving to 1135 levels - which is the next resistance on weekly chart(keep stop losses around 890 in case anyone is trading).
Good findings @Manivannan . One point to add is BSE CEO is looking for fintech kind of valuation for StarMF and they have asked ICICI securities to find a buyer for stake . The valuation as per media is around 2000 crore . if this sale does happen then it will have a positive impact . Other than that in last equity cash segment shows growth which was missing in many quarter . This segment needs a close watch
Yes. Although I feel it is difficult to take liquidity away from the bigger player in the exchanges space (we are seeing that with IEX, MCX and NSE), BSE might hang on and slightly improve from their past 2-3 years. Couple of reasons I can think of for that:
Majority of the NSE trading happens on index derivatives, and Nifty50 is very popular. BSE launched a Sensex50 few quarters ago and has shown decent traction. Would be interesting to see how it performs
BSE also got pounded because of the performance of Small/Midcap markets prior to this year
Change of the expiry day to differentiate from NSE
These might be tactical moves to stay relevant and gather few points on share. Need to track how this plays out
Also had one tactical question regarding StarMF. When players like ISEC, Kuvera, Groww purchase MFs - what are the options for them? (Star MF/ MF Utilities/RTAs) or Can they bypass StarMF and directly go to Fund Houses? I am trying to understand if Star MF is like a RTA - That even direct/regular funds get accounted for them
BSE StarMF is for all MF Intermediaries . So all Intermediaries can go througth them for any kind of MF plans ( direct or regular ) .
Below broucher has the excellent details on how this works.
It seems there have been some algorithmic trading done by XTX Markets Llp during last two days. Not sure if this is a regular practice or should be seen as a red flag.
Interesting observation from the share holding pattern of BSE as at 30th June 2021:
Zerodha has increased its stake to 3.71% as at 30th June against 2.16% holding as at end of March.
Biggest retail broker in India may know a thing or two more than the mortals here.
You can check the latest share holding pattern here.
I am not sure if the Sebi circular has anything new. Currently MF Utility (I am using it since last few years), provides the functionality that Sebi circular seeks to achieve. Seems like another bureaucratic decision.
Given the low level of digitization and overall penetration of financial services in India, there should be ample room for 3 to 4 players to exist in this domain. Potential four players could be - BSE, NSE, MF Utility and new Sebi mandated platform.
As expected the results for the current quarter shows significant improvement in the business. The standalone numbers are similar to the ones posted during the FY 2018.
See the Investor presentation here.
Conference call link.
Additionally noted that INX is now readying itself to allow trading in stocks listed on NYSE, Nasdaq, LSE, Canadian Securities Exchange, Toronto Stock Exchange, BATs Europe, Euronext France and Tokyo Stock Exchange.
See the news report: BSE's India INX to allow trading in foreign stocks
