The BSE stock closed at an all-time high of Rs 1,695 each on Monday – registering a jump of nearly 7 percent. The increase came after the exchange’s revision in its transaction charges for Sensex Options, which will be effective from November 1.
The exchange said the charges for all other equity derivative contracts will remain unchanged.
In October so far, the average daily turnover (ADTV) for BSE Sensex Options stood at Rs 23,616 crore – more than a four-fold jump from July, when it stood at Rs 5,617 crore. However, this is still only a fraction of the volumes seen on NSE Index Picks.
After revision, transaction charges for Sensex Options will start from Rs 500 per crore for the slab of up to Rs 3 crore monthly turnover, the highest being Rs 3,750 per crore for the slab between Rs 3 crore and Rs 100 monthly turnover of the business. members
“Premium-based turnover of these nearest expiry contracts is calculated daily and accumulated at the end of the month. Transaction costs will be paid based on the slab as per incremental turnover as per cumulative turnover at the end of the month,” BSE said.
The BSE stocks have seen an exponential jump since the relaunch of the Sensex and Bankex derivatives contracts in May with smaller lot sizes and weekly expirations. The stock price has grown more than 213 percent this year.
With the relaunch, the BSE has kept its price at just a fraction of that of the NSE to attract more traders to its platform. The efforts to revive its hold in the segment led to active clients on BSE’s derivatives platform to 400,000 from almost zero in June 2023.
However, last week HDFC Securities in its report pointed out that BSE would increase its prices, which would support its revenue growth going forward.
“The BSE option price is currently one-seventh of the NSE, which is not sustainable. We expect the price to rebound soon and have increased the option prices by around 3 times; however, it is at a 57 percent discount to the NSE .Assuming premium market share of around 9 percent in FY26 (estimated) and price increase, derivatives will make up around 25 percent of the BSE’s total revenue, 35 percent of earnings before interest, tax, depreciation and amortization (Ebitda) and 75 percent of incremental growth. We expect revenue growth at a compound annual rate of around 26 percent and earnings per share growth of 31 percent over FY23-26 (estimated), led by a revival in transactional revenues,” the HDFC Securities note said.
The brokerage maintained a ‘buy’ rating with a target price of Rs 1,600.