Shares of stock exchange BSE logged their biggest ever intraday fall on Monday after the market regulator asked the exchange to pay a regulatory fee on the annual turnover based on the notional value of the options contract.
After sliding as much as 19 per cent, shares of BSE ended over 13 per cent down at Rs 2,783 apiece, wiping out over Rs 6,000 crore in market capitalisation.
The exchange said that it is evaluating the validity of the claims as per the communication sent by the Securities and Exchange Board of India (Sebi) on April 26.
Analysts expect a hit on BSE’s profit for the next two financial years and an overall decline in earnings per share.
“The regulatory fee impact for BSE is amplified because it collects one-third premium for the same notional volume and pricing is 25 per cent lower versus NSE,” added HDFC Securities.
For the financial year 2023-24, the exchange will have to pay Rs 96.30 crore as the differential Sebi regulatory fee. The exchange had already paid Rs 1.66 crore as a regulatory fee on the basis of premium turnover. Further, the total differential Sebi regulatory fee to be paid by BSE for the period from financial year 2006-2007 to 2022-23 is nearly Rs 68.64 crore, along with GST charges. The charges are to be paid by April 30.
The shares of MCX too declined by 2.5 per cent to Rs 4,066 as the clarification by Sebi will also impact the exchange’s outgo as a regulatory fee. However, the impact on MCX is much lower in comparison to BSE.
First Published: Apr 29 2024 | 7:08 PM IST