BSE has stopped the cash bleed by discontinuing LES. So huge volumes are not coming at the cost of burning cash, rather this maybe bringing in more profit( BSEmargins are lesser than NSE)
It remains to be seen when BSE decides to launch another product with different expiry to keep traders invested. Hopefully, they will be ready for 15th July with countermeasures.
The battle of the exchanges is finally becoming interesting.
Wow, so NSE based on request from BSE, decides not to compete, but deepen the market, and will not move the expiry to Friday. Seems BSE gets to ride this wave 
NSE: NSE scraps plan to shift Nifty Bank F&O expiry to Friday - The Economic Times (indiatimes.com)
Link of SEBI board meeting held on 29th June SEBI Board Meeting Outcome | BQ Prime - YouTube
At 29th Min. and 55th Min. mark SEBI addressed the question related to their thoughts on 2 exchange theory.
SEBI admired the maturity shown by the two exchanges to broaden the market and called this as one of several interventions/steps to broaden the market and bring a level playing field between the 2 exchanges.
Disc: Invested, buys in last month.
Yes you are right. So if I understand correctly the regulator will do changes so as to ensure an equal opportunity between both the exchanges ,so BSE has to work on brokers to get them to offer their products like bankex and not just bank nifty so it will boil down to who is offering a better trading environment BSE or NSE. Thus reducing the risk of market concentration. In short BSE has a fair chance to improve its balance sheet from here. This press meet looks like has indicated a big positive for BSE LTD. Opinions ???
Disclaimer : Invested in BSE so views could be biased
Another froday and another all time high numbers. Would be interesting to track the contribution of derivaties to over all turnover for Q1. Mr. Sundararaman Ramamurthy seems to have checked into BSE holding a magic wand!
AJ
Disclaimer: Remain invested. Views are biased.
I guess the message is very clear - the regulators want both the exchanges to thrive. Interesting to see how the options turnover evolves.
Today, BSE LIMITED has informed NSE about Board Meeting to be held on 06-Jul-2023 to consider Buyback.
BSE did a buyback in 2018 & 2019 at really low prices. In 2022 they issued bonus shares (2 bonus for 1 share held), and now in 2023 they are doing a buyback.
I am confused what is the direction here… they reduce equity for 2 years, then triple it in 2022 & now trying to reduce it again. Would really like to ask management their long term intent for shareholder value creation?
Why not. When your business has no purpose with the cash that is being generated, the best thing for the management to do is to return it to the shareholders. I believe the current buy back is planned to return the money generated from CDSL stake sale to shareholders in a tax efficient manner. I believe management is doing the right capital allocation via this proposed buy back.
Bonus is issued to increase the free float and create more liquidity for the shares that is available – buy back and bonus issues have totally different purposes.
AJ
Disclaimer: Remain invested. Opinions are biased.
Has anyone done any assessment of potential revenues from the Options turnover?
As per this Notice, they charge Rs.500/Crore turnover. I did not see any further notices on turnover charges. Assuming this is correct, and i took the BSE turnover data from this link. basic caluclation says they earn mostly on Expiry days i.e. Friday. The Sum works out to be Rs.100Cr till June end. We will come to know if this calculation is correct, once results are declared. Hope some one else can validate and correct this if needed.
| Date | Contracts Traded | Turnover (₹ Cr.) | OI (No. Of Contracts) | OI Value (₹ Cr.)* | Revenue (Cr) |
|---|---|---|---|---|---|
| SUM | 2,122,076 | 106.10 | |||
| 05 May 2023 | 4 | 0 | 4 | 0.38 | 0.00 |
| 08 May 2023 | 0 | 0 | 4 | 0.38 | 0.00 |
| 09 May 2023 | 2 | 0 | 6 | 0.58 | 0.00 |
| 10 May 2023 | 2 | 0 | 4 | 0.38 | 0.00 |
| 11 May 2023 | 3 | 0 | 5 | 0.48 | 0.00 |
| 12 May 2023 | 1 | 0 | 4 | 0.38 | 0.00 |
| 15 May 2023 | 828 | 53 | 256 | 17.23 | 0.00 |
| 16 May 2023 | 893 | 57 | 302 | 19.45 | 0.00 |
| 17 May 2023 | 1401 | 88 | 372 | 23.53 | 0.00 |
| 18 May 2023 | 1807 | 112 | 418 | 26.33 | 0.01 |
| 19 May 2023 | 8563 | 528 | 46 | 2.87 | 0.03 |
| 22 May 2023 | 2033 | 126 | 400 | 24.87 | 0.01 |
| 23 May 2023 | 5120 | 319 | 768 | 47.69 | 0.02 |
| 24 May 2023 | 4475 | 278 | 955 | 59.04 | 0.01 |
| 25 May 2023 | 10761 | 665 | 1273 | 78.84 | 0.03 |
| 26 May 2023 | 278341 | 17,345 | 138 | 8.63 | 0.87 |
| 29 May 2023 | 11279 | 713 | 1009 | 63.41 | 0.04 |
| 30 May 2023 | 14452 | 915 | 1554 | 97.85 | 0.05 |
| 31 May 2023 | 15718 | 990 | 2384 | 149.29 | 0.05 |
| 01 Jun 2023 | 31232 | 1,965 | 5788 | 361.34 | 0.10 |
| 02 Jun 2023 | 1108880 | 69,422 | 455 | 28.46 | 3.47 |
| 05 Jun 2023 | 14172 | 892 | 1977 | 124.13 | 0.04 |
| 06 Jun 2023 | 15264 | 961 | 2362 | 148.32 | 0.05 |
| 07 Jun 2023 | 44392 | 2,800 | 6064 | 382.9 | 0.14 |
| 08 Jun 2023 | 79569 | 5,024 | 12871 | 808.92 | 0.25 |
| 09 Jun 2023 | 2754077 | 172,960 | 664 | 41.58 | 8.65 |
| 12 Jun 2023 | 27638 | 1,742 | 2963 | 185.85 | 0.09 |
| 13 Jun 2023 | 35724 | 2,257 | 6770 | 427.48 | 0.11 |
| 14 Jun 2023 | 51161 | 3,233 | 10587 | 669.4 | 0.16 |
| 15 Jun 2023 | 150076 | 9,487 | 26092 | 1641.65 | 0.47 |
| 16 Jun 2023 | 5407324 | 342,129 | 2992 | 189.65 | 17.11 |
| 19 Jun 2023 | 48967 | 3,110 | 5723 | 361.51 | 0.16 |
| 20 Jun 2023 | 67089 | 4,245 | 8625 | 546.2 | 0.21 |
| 21 Jun 2023 | 135498 | 8,595 | 15836 | 1005.95 | 0.43 |
| 22 Jun 2023 | 225500 | 14,319 | 36249 | 2292.35 | 0.72 |
| 23 Jun 2023 | 9611665 | 606,637 | 1545 | 97.3 | 30.33 |
| 26 Jun 2023 | 52648 | 3,333 | 5446 | 343.11 | 0.17 |
| 27 Jun 2023 | 69240 | 4,385 | 9478 | 601.4 | 0.22 |
| 28 Jun 2023 | 167043 | 10,652 | 29037 | 1856.44 | 0.53 |
| 30 Jun 2023 | 12838116 | 828,100 | 2358 | 152.61 | 41.41 |
The revenue is based on premium turnover and not the total turnover. One can download the detailed derivatives trading report from from this link.
I have downloaded the report and worked out the numbers for the month of June 2023. Here is the computation file for your referenceMRC_EQD_JUN2023.xlsx (251.1 KB)
Note: The premium TO for 23rd July is significantly lower than expected number(this could be due to an error in data uploaded by BSE).
As per data downloaded from BSE, the weekly revenue from derivatives segment moved from Rs. 99K during the week ended 9th June to Rs. 363K for the week ended 30th June.
As per my workings for the month of June, the total revenue at Rs. 500 per 1 crore of premium turnover results in a total income of about Rs. 8.81 lakh rupees.
For now don’t look into what revenue BSE is earning but concentrate on the growth in derivatives trading. The current 8 lakh per month can grow exponentially as the market grows.
Thank you!
AJ
Disclaimer: Remain invested and consider my opinion as biased.
Great work folks - so we have a divergence between 8 lakhs a month and 100 cr. for the quarter, I guess I have my work cut out for the week
Star mutual fund data update:
The number of subscription orders received during the quarter is at 7.72 Cr against 7.23 for Q4.
Number of redemption orders came in at 55.10 lakh for Q1 against 49.85 lakh for Q4.
Source: BSE Star MF - Market Summary
Data over last two years:
| Year | Quarter | No. of Orders Received (Subscription) | Value (Subscription) | No. of Orders Received (Redemption) | Value (Redemption) |
|---|---|---|---|---|---|
| 2021 | Qtr1 | 30,772,311 | 620,846,332,246 | 4,610,500 | 396,849,652,903 |
| 2021 | Qtr2 | 37,675,906 | 629,379,243,702 | 4,977,920 | 471,026,584,994 |
| 2021 | Qtr3 | 44,255,259 | 690,196,925,800 | 5,914,091 | 510,542,626,948 |
| 2021 | Qtr4 | 50,638,038 | 712,493,066,234 | 5,875,567 | 509,337,096,230 |
| 2022 | Qtr1 | 54,418,958 | 668,490,622,988 | 5,017,144 | 450,705,062,871 |
| 2022 | Qtr2 | 54,259,535 | 596,025,302,724 | 4,902,746 | 387,000,812,346 |
| 2022 | Qtr3 | 63,599,181 | 609,443,144,364 | 5,080,634 | 381,067,941,469 |
| 2022 | Qtr4 | 72,321,482 | 803,188,160,714 | 4,985,270 | 448,186,629,384 |
| 2023 | Qtr1 | 77,232,320 | 734,175,427,497 | 5,510,226 | 318,876,850,115 |
AJ
Disclaimer: Remain invested.
Avg. Premium turn over for May month is 15 cr. which translates 1.42Lac revenue & for June is 111.14 cr. which translates 11.66 Lac revenue for June month.
Majority brokers have not enable BSE derivatives. Now NSE is not going to compete on Friday, we can safely assume that volumes will jump atleast 10X once all brokers allow it. Even at June’s turnover rate, quarterly 30 Lac additional revenue will be generated. So, after 10X volume, even at 1/10th fees of NSE, BSE can deliver 3 cr. additional revenue quarterly. Although SGF cost will also rise but majority of this revenue will transalate directly in profit.
1 more thing - From April, BSE has discontinue LES (liqidity Enhanement Scheme) which will directly increase it’s EPS by 10% bcoz they were spending approximately 8cr./quarter on it. Effect of this will be visible in Q1 result.
Also whatever turnover we are seeing, half of that is from Prop. Need to check whether they are getting same revenue from Prop or they are just market maker & BSE is not getting any revenue from there.
BSE announces buy-back
BSE to buy back 3.39 %((45,93,137 Equity Shares) of the total number of Equity Shares at a price of ₹ 816 /- per Equity Share. Aggregate amount of buy back is ₹ 374.8 Crore.
See the announcement here.
AJ
Disclaimer: Remain invested.
Sad considering they have 3500+ cr of cash on book.
Another fantastic friday on derivatives front:
AJ
Disclosure: Remain invested.
Media appearances of MD
Disclaimer: Holding this share hence views can be biased
