BSE shares jump nearly 7% to an all-time high of Rs 1,695 apiece
Shares of BSE (formerly Bombay Stock Exchange) closed at a record high of Rs 1,695 apiece on Monday, up nearly 7 percent. The increase came on the back of the exchange’s revision of the transaction charges for Sensex Options, which will come into effect from November 1.
The exchange said charges for all other equity derivative contracts will remain unchanged.
In October so far, the average daily turnover (ADTV) for BSE Sensex Options stood at Rs 23,616 crore. The ADTV has seen a more than four-fold jump since July, when it stood at Rs 5,617 crore. However, it is still only a fraction of the volumes on NSE Index Options.
After the revision, the transaction fees for Sensex Options will start from Rs 500 per crore for the slab with a monthly turnover of up to Rs 3 crore, and the highest will be Rs 3,750 per crore for the slab between Rs 3 crore and Rs 100 crore monthly turnover of the trading members.
“The premium-based turnover on these nearest expiring contracts is calculated daily and accumulated at the end of the month. Transaction fees are charged on the incremental turnover basis based on the cumulative turnover at the end of the month,” BSE said .
BSE shares have seen an exponential rise since the relaunch of derivatives contracts Sensex and Bankex in May, with smaller lot sizes and weekly expiry dates. The share price has registered a growth of over 213 percent this year.
With the relaunch, BSE kept its prices at just a fraction of NSE to attract more traders to its platform. Its efforts to revive its hold in the segment have seen the number of active customers on BSE’s derivatives platform rise to 400,000 from almost zero in June 2023.
However, last week, HDFC Securities pointed out in its report that BSE will increase its prices, which will support future revenue growth.
“The price of BSE options is currently one-seventh of the NSE, which is not sustainable. We expect the price change to happen soon and have increased the price of options by approximately three times; yet this is a discount of 57 percent compared to NSE. Assuming there is a premium market. share of around 9 per cent in FY26E and a price hike, derivatives will contribute around 25 per cent of BSE’s total revenue, 35 per cent of Ebitda and 75 per cent of incremental growth. We expect revenue/EPS CAGR of around 26/31 percent over FY23-FY26E, led by revival in transactional revenues,” the HDFC Securities note said.
The brokerage firm maintained a buy rating with a target price of Rs 1,600.