Why Did BSE Shares Plunge 17%?

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.

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