BSE share price suffers biggest single-day drop since listing.
BSE Share Price Crashes 17%! What Happened?
– BSE ordered by SEBI to pay higher fees for derivatives trading.– Fees based on "notional value" of options contracts, not premiums.– Analysts expect 15-18% hit to BSE's earnings per share.
Reason for BSE Stock Price Drop: Higher Regulatory Fees
– BSE calculated fees based on premium value, not notional value.– This difference led to the demand for higher fees from SEBI.– Potential impact: ₹165 crore in backdated fees + future fee hikes.
The Fee Calculation Controversy
– Jefferies analysts predict a 15% EPS cut for FY24 due to backdated fees.– Higher fees could reduce EPS by 15-18% in FY25 and FY26.
Potential Impact of Higher Fees on BSE
– Price hikes and higher premium quality could offset EPS impact.– Jefferies analysts predict partial recovery after factoring in price hikes.
A Silver Lining? Price Hikes & Premium Quality
– Track BSE news, market developments, and regulatory changes.– Consider your investment goals before making decisions.