BSE shares decline 18% in response to SEBI directive

SEBI instructed the exchange to pay regulatory fees based on the notional value of its option contracts rather than the premium value. Consequently, BSE shares experienced a significant 18% decline today (April 29). This steep drop occurred following SEBI’s decision.

Jefferies India analysts stated in their report that given that derivatives comprise approximately 40% of BSE’s estimated net profits for FY25 and FY26, the call for increased fees could potentially impact the overall earnings per share by 15-18%.

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SEBI directs BSE, complete within one month, apply 15% interest retroactively

Shares of BSE priced at ₹2,682.70 on the NSE this morning. SEBI instructed BSE to fulfill this requirement within a month, including retrospective application with a 15% annual interest on the outstanding amount.

Analysts at Jefferies stated that the one-time impact of legacy arrears, amounting to Rs165 crore plus taxes (18%), will result in a 15% reduction in Earnings per share for FY24. They also mentioned that given the anticipated rise in the share of derivatives in overall revenues to approximately 45% by FY27, these increased regulatory fees in the options business could potentially affect overall Earnings per share by 15-18% in FY25 and FY26.

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