Nithin Kamath, co-founder & CEO of Zerodha, told BusinessLine that the BSE stake purchase was mainly a treasury operation. This makes Zerodha the only stock broking firm to own such a huge stake in a stock exchange in India.
According to me, on a very elemental level, the role of Treasury Operations is to ensure that the company has enough capital to do what it plans to do. I was wondering if any of you could shed some more light on what this means? For Zerodha, as well as BSE.
And why a stake in BSE? Could Zerodha be entertaining an idea of acquiring the exchange down the line? Can they take up a substantial, if not a majority (>50%) stake in the exchange?
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Have anyone here tried this? Looks interesting to me and if this is well implemented could generate significant revenue for BSE in the medium term.
This one looks more like a broking platform rather than an exchange. Check out for more information at https://www.indiainxga.com/
Didnt know about this, looks interesting. Would be great if anyone can share their experience in using the platform. From cost/brokerage perspective they seem to be one of the cheapest.
As per SEBI regulations an exchange is not entitled to enter brokerage or AMC business. Might be they would have allowed since it’s an overseas market…
We have to wait for other players also to enter the business like zerodha, groww.
EBIX is the partner BSE has chosen for the Insurance broking business. With such background being exposed, does it make sense for BSE to continue with this partnership? Also the insurance broking segment has not grown anywhere that will make meaningful impact.
BSE has two Associates in JV with EBIX group of companies and holds 40% stake in each. The income is in lakhs, not significant. But association maybe harmful for BSE reputation if the company does not act and review the JVs.
The Star MF data as at end of June shows that the mutual fund inflows is not really impacted by the volatility in market. The total orders processed continues to grow at a steady pace. Note that the quarter 2 represent the April-June period.
Expect the revenue and profitability of Star MF to grow in proportion to the orders processed.
Source: BSE Star MF Data.
The data shows that, while the absolute number of subscriptions are moving upward at a steady pace the average value per transaction is falling steady - I believe this is on account of younger people entering into the market via mutual fund route with smaller monthly SIP’s - The mutual fund sahi he! campaign certainly seems to be working. Additionally the redemption number and value seems to be significantly down from December and March quarter’s - are our mutual fund investors getting smarter? did they see a fairly big fall coming? the data certainly seems to be proving it right. Now, does the fall in redemption during June quarter give an indication that the market is near to bottom or is it that the holders are not interested in booking loss by redeeming in a falling market? we will know when the data for next quarter is available.
Quick comparison of fee structure between IEX and HPX shows that HPX is not offering any special discounts to attract customers. Lets see how this pans out. PTC being a promoter would certainly help bring some volume.
Ashish is a BSE insider, someone who know everything about this company - operations, short and medium term strategies etc., I still cannot comprehend his own and NSE’s conscience here. Their should be at-least a year long cool off period before taking up such positions at an immediate rival.
BSE should immediately remove/ relieve Mr. Ashish from the post of MD and director. I hope BSE does that immediately or Mr. Ashish himself graciously tender his resignation from these posts immediately.
BSE should start scouting for a competent person to take over the role of MD and CEO and should include a non-compete clause and cool off period in employment letter.
Thanks,
AJ
Disclosure: Remain invested but now really not sure what to do with this. This is a clear example of poor corporate governance and independence practice. Will keep a close watch and decide what to do with this investment in the next few months.
Ashish has been vocal about privilege NSE has been enjoying in capital market. He was also trying to implement “Best buy” and “interoperability” when he was with BSE. Hope he will push SEBI to implement both during his NSE tenure also
Seems very heartening.
According to the article, HPX has attained a total market share of 37% of the contingency market within 2 weeks of commencing operations.
It is rather unfortunate that he is jumping ship this way. Especially after the fact that it was BSE that gave him the platform to build up his network to this extent. Sky would literally have been the limit as to what he could have done after the expiry of his term. However, BSE has weathered many storms in the past and this too shall pass.
The organization is always bigger than its leaders. Many corporate leaders who seemed irreplaceable have faded into oblivion and organizations have still thrived.
Asian Paints which is a market leader in its segment has seen many key executives jumping ship to Berger Paints. Asian Paints still is the most dominant player in its segment.
We can hope BSE is that someday.
As per news reports they have received many applications. I have attached a link to this article too.
Mr. Neeraj Kulsrestha and Mr. V Balasubramaniam both BSE insiders have also applied. Both of them are very able hands to steer the Exchange to the next level. Mr. V Balasubramaniam presently heads INDIA INX (BSE Subsidiary at Gift City) and Mr. Kulsrestha is the Chief Regulatory Officer of the Exchange. Both have a stellar track record and have been loyal to BSE for very many years. bse: Race for top positions at BSE and NSE enters the final lap - The Economic Times
