The article has some hard hitting numbers for BSE.
The results are not encouraging.
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BSE is still losing marketshare in equity segment post fair price execution. Mr.Ashish Chauhan accused NSE of foul play. Now that he is chair at NSE, will he want to play fair?
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Why is the MD and CEO post vacant at BSE. Also, there is nobody in discussion to lead BSE as a rightful successor to fill Mr Chauhan’s shoes.
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No details on HPX results which as per news is taking a big bite out of IEX.
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BSE Ebix insurance is going nowhere. With EBIX governance issues, it is time to either takeover or divest in this business.
The next BSE concall should be interesting.
Update:
India INX MD, former MCX chief lead race for BSE top job | Mint)
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After relentless growth over years, star mutual fund data is showing early signs of peaking out. The number of subscription orders received during the quarter is at 5.42 Crore and redemption orders is at 49 lakh as compared to 5.44 Crore and 50 lakh respectively for Q1.
Source: BSE Star MF - Market Summary
AJ
Disclosure: Remain invested in BSE.
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Sep-22 - Q2 Result
Sep22 - Investor Presentation
“At present, Ramamurthy is the chief operating officer of the India arm of Bank of America Corp, and has previously worked as a senior vice president at NSE, as per his LinkedIn profile.”
Seems to be a capable replacement.
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Star mutual fund data for the quarter present a positive picture:
The number of subscription orders received during the quarter is at 6.35 Cr against 5.42 for Q2 and 5.44 Crore for Q1.
Redemption orders is at 50.77 lakh aganst 49 lakh during Q2 and 50 lakh respectively for Q1.
Source: BSE Star MF - Market Summary
Thank you!
AJ
Disclosure: Remain invested.
Not sure why 34% public institutions have voted against the appointment of new MD… In total - 70% in favor and remaining in against the appointment.
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It is not always an happy move when you bring a new boss from outside. Disappoints insiders who have put in their blood and sweat for many years. But it’s the usual practice.
He seems to have the required credentials.
It seems HPX - Power exchange is gaining some ground.
Just to be clear, this is more like one day spike but good for exchange that is just started 8-9 month ago.
Thanks!
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Star mutual fund data continues to be encouraging:
The number of subscription orders received during the quarter is at 7.23 Cr against 6.3 for Q3, 5.42 for Q2 and 5.44 Crore for Q1.
Redemption orders is at 49.84 lakh for Q4 against 50.77 lakh for Q3, 49 lakh during Q2 and 50 lakh for Q1.
Source: BSE Star MF - Market Summary
AJ
Disclosure: Remain invested.
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BSE trying new things but no results will yield until Brokers comply.
It will be interesting to see how Mr. Ashish Chauhan, who was vocal about NSE’s bullying tactics regularly will react now that he is heading NSE.
BSE is lagging in launching new products…
NSE was aggressive in launching multiple factor based indices, multi factor indices, strategy indices. Meanwhile BSE stopped with launching 4 basic factors…
NSE today launched india’s first REIT & INVIT index.
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‘the country’s oldest exchange does not charge any transaction fees for equity futures, and charges 90 per cent less fees for equity options than its rival NSE’
‘The lot size of futures and options will be reduced to 10 from 15 for Sensex, and to 15 from 20 in case of Bankex’
‘Now, the Sensex contract size will be Rs 6 lakh, compared to the Nifty’s Rs 9 lakh’.
‘The exchange has been in dialogue with several top brokers like Zerodha, Upstox, ICICI Securities, and Axis Securities. On many platforms, the BSE was not getting access and prices were not being shown to traders.’
many small changes being made.
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Ok, so by stopping Liquidity Enhancement Scheme (LES), Mr Sundaraman, the new CEO is helping the bottom line, having realized that it is not having the desired impact.
BSE not being enabled on a brokers platforms is something very basic, and yes should be addressed. But what %age of brokers are we referring here, whats the %age increase in revenue due to this exercise, and will it make up for the lost revenue due to lapsing of the LES.
If LES incentive was not enough for these brokers to enable BSE on their platform, what else can BSE really do here?
Product differentiation like expiry date different from NSE, smaller lot sizes, etc… 5 years is what Mr Sundraman says, he will need to see any results!! Do we have any that long term investors here?
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BSE needs to make commercial changes that hurt brokers that do not trade at least 20/25% daily volumes . Thry can do this by having agreement with brokers stating that unless their past average volumes are not 25% on BSE in past six months incase of OUTAGE on NSE they will not accept volumes beyond their daily average volumes …this will shake up the brokerage industry that happily uses NSE ANS USES BSE as standby.
Sebi should ideally make this directive othewise whats the point of having 2 exchanges . Most countries just have one x US . SO if SEBI is not making this directive then let brokers take the risk of not having liquidty available to them . Alternatively BSE can charge a massive fee to access liquidity incase of market outages at NSE. Montly charge to acces market in case of outage over and above past daily volume.
MOST BIG BROKERS LIKE ICICI HDFC ETC will simply shift 25% volumes . Thats how institutons work …
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Cannot seem to find the investor presentation.
Here: https://www.bseindia.com/downloads1/2ee75eea-1814-4eb0-ab17-af143461d1cd.pdf
You can find all Investor Presentations here
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Liquidity enhancement scheme stopped and now tightening the governance noose with help from SEBI on Brokers not complying by providing BSE as an option for trade,
In contrast, NSE reported net profit of 2067CR for the q4 and 7356CR yoy. BSE reported a full year 2023 revenue of 925cr.
This is a truly David vs. Goliath fight. A winning BSE can be handsomely rewarding for the investors.
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