The numbers are growing at good pace, we should watch this data over the next few months to see where this is going to plateau out.
Another data point i have noticed is, from last Wednesday FII/FPI’s has started participating in this segment. Though the numbers are small its a big positive development.
For the quarter ended in June, i expect some release in cost(about 3 Crore) due to stoppage in liquidity enhancement scheme adjusted for cost of market makers.
From next quarter onwards we might get to see top line impact trickling in.
So as AP for Angel & IIFL, you have to pay 4k to NSE & 4k to BSE or is it 8k to each of them, as AMC?
Also, any idea on what could be the total no. of AP’s for NSE and BSE ? Sub Broker: How to Become a Sub Broker in India | Angel One Claims to have 20k AP’s, does this mean, that 20k APs will need to pay the AMC separately to BSE and NSE ?
Initially it was like - I need to pay 50k to angel broking to take AP & then according to Exchange & their segment I need to pay fees. Like I took nse F&O & NSE currency - for both I paid 2k each. BSE was almost non-existence at that time so i didn’t took BSE.
I am not aware abt total APs but yes Angel have around 21k AP.
Yes as per latest circular APs need to pay NSE & BSE separately 4k AMC charge though it will be implemented from next FY. I will be surrending my AP in angel bcoz i took AP just to trade in my family accounts. Now due to this AMC, i don’t think it is viable for me.
For shareholder’s perspective - Suppose I don’t take BSE AP, i & my client can still take trades in BSE F&O (Provided Angel allows it), it is just that If i take AP, I will get sharing of brokerage & if i don’t take AP, entire brokerage amount remains with Broker.
I don’t think members & AP are same. I think these members are those who have taken license to trade in BSE. Under them many APs can be there. however majority of them don’t run on such model. Angel, Icici, Iifl etc. have such model of AP.
The results were good if you consider the sale in cdsl but otherwise YoY it’s good but QoQ it’s just flat. But it looks like there is a major reshuffle in BSE management. Am I correct to say if the sale of cdsl was not there this result would not have been that great QoQ
BSE Q1 was flat as expected. The company got its legs just recently with restarting of equity derivatives and stopping LES. The volumes built up only post June. Need to also check their share in equity cash segment.
This should show in q2. Also, now that the buyback is useless, it remains to be seen how the management returns the funds from CDSL stake sale to shareholders. Higher dividends?
Also, fresh in the news is sip hitting all time high. Positive for star MF?
1st CMD took almost 20 to 25 minutes for initial remarks which could be definitely shortened to cover more time in Q&A. & then in Q&A also, I didn’t find much relevent questions. Few questions were in mind
Currency derivative side, BSE is loosing market share. particualry currency options (Where actually market is growing) again BSE posted huge dip in volumes (almost near to 0 !!). Also they added 10 paisa strikes in it but I don’t think any major broker still allows bse currency.
Entire profit rise YoY is because of an increase in investment value (from 6 cr. to 44 cr. something). So whether it is routine or 1 time. Some more clarity needed on it.
Although we all are cheering abt rising volume in equity derivatives, CMD spoke that huge capex in terms of infra, colo, bandwidth etc. etc. need to incur for future growth. What will be the Approximate quantum of that capex, no one asked it.
In the recent conf call, i noted the MD made a statement that Rs.26lakh was the revenue from the Aug 4th Friday derivatives turnover. The transcript is NOW available at - Transcript. Note this conf call happened on Aug 9th, and question was with reference to the Aug 4th Fri derivative turnover of Rs.44Lakh Cr, so approx Rs.60,000 per Lakh of derivative turnover. Turnover hit Rs.71L Cr on 25th Aug, which might have yielded ~Rs.42lakh. These are not big Cr amounts as of now, but seeing these as green shoots for now, which can bring some % of trading eco system back to BSE, which might then help in economics of scale thereby helping in incremental revenues.
Another interesting news - Effective Oct 16th. Stock price has reacted to this. Next 2 months will be interesting to see how this plays out. Are there any NSE product expiring on Monday, that this will compete directly with?
