bse share price: BSE shares fall 3% as provision for SEBI regulatory fees mars Q4 profitability

Shares of BSE fell 3.3% to the day’s low of Rs 2,726 on NSE after its Q4 profit was impacted due to provisioning for SEBI’s regulatory fee.

The consolidated net profit reported by BSE was Rs 106.9 crore for the quarter ended March 31, up by a mere 0.56% from the previous quarter. This was primarily due to a provision for SEBI’s regulatory fees of Rs 170 crore.

Excluding provision for SEBI fees, profit before tax came in at Rs 300 crore, 26% higher than the estimate by domestic brokerage firm Motilal Oswal. The opex came in 22% higher than the estimates at Rs 390 crore due to the provision of the said regulatory fee.

The report by the brokerage firm further emphasised that after the re-launch, derivative contracts (Sensex and Bankex) are witnessing significant traction from market participants. BSE has increased derivatives transaction charges with effect from 13th May 2024. Thus, the derivatives segment would see a strong revenue growth.

Motilal has also raised its EPS estimates for BSE by 6%/10% for FY25/FY26 to factor in a higher-than-expected growth in volumes, higher profitability in CDSL and a lower-than-expected clearing and settlement cost. They have maintained a ‘neutral’ stance on the stock, however, have increased the one-year target price to Rs 3,000.Recently, SEBI had asked BSE to pay a regulatory fee to the former based on the annual turnover fee considering “notional value” in the case of the options contract along with the payment of differential regulatory fee for the past periods with the applicable interest of 15% per annum on the amount remaining unpaid or belatedly paid or short paid for every month of delay.Also read: Equity MF inflows fall 16% in April; smallcap and debt schemes back in demand(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)