Media Release

 

Net profit (Standalone) for the quarter ended September 30, 2019 increased by 14 % to Rs. 39.22 crore from Rs. 34.36 crore in previous quarter.

 

EBITDA margin for the quarter ended September 30, 2019 at 32%.

 

BSE has undertaken buyback 67.65 lakhs fully paid up equity shares of Rs. 2 each at Rs. 680 per equity share through tender offer route amounting to Rs. 460 crore.

 

MUMBAI, November 6, 2019: BSE Ltd. (BSE), Asia’s oldest and first universal exchange and World’s fastest exchange with a speed of 6 microseconds, announced its unaudited consolidated and standalone financial results for the quarter and six months ended September 30, 2019.

 

Quarterly Standalone Financial Results at a Glance

 

 

Business Highlights for the half year Ended September 30, 2019

 

·         StAR MF Platform: BSE continues to upgrade and grow its StAR MF platform. This Platform has been consistently growing in terms of number of orders received, new registrations and SIPs. The Platform has processed a record 8.56 lakh transactions on a single day on August 13, 2019 surpassing the previous best record was 7.62 lakh transactions on June 10, 2019. The number of registered mutual fund distributors in the Mutual Fund segment increased by 79% to 27,759 as on September 30, 2019 as compared to 15,472 as on September 30, 2018.  The total number of X-SIPs registered under this segment increased by 27% to 10.42 lakhs for the half year ended September 30, 2019 from 8.21 lakhs for the half year ended September 30, 2018.  The total value of orders processed in the Mutual Fund Segment increased by 38% to Rs. 1,03,865 crore for the half year ended September 30, 2019 from Rs. 75,283 crore for the half year ended September 30, 2018.  Further, the total number of orders received in the month of September 2019 is higher by 36% as compared to the orders received in the month of September 2018. The Net income earned in the StAR MF segment increased by 58% to Rs. 20.74 crore for the half year ended September 30, 2019 from Rs. 13.10 crore for the half year ended September 30, 2018.  Income earned in this segment has contributed to 11% of the revenue from operations for the half year ended September 30, 2019 as compared to 7% of the revenue from operations for the half year ended September 30, 2018.

 

The daily number of orders received on this platform in the half year ended September 30, 2019 has increased by 60% to 250 lakhs as compared to 156 lakhs in corresponding previous half year.   The platform received a record 46.67 lakh orders in the month of October 2019 surpassing the previous best record of 43.44 lakhs orders in the month of July 2019. BSE’s market share in this segment for the half year ended September 30, 2019 stands at 72%.

 

 

·         Insurance Broking: BSE has set up a Joint venture with Ebix named BSE Ebix Insurance Broking Private Limited for conducting Insurance Broking business where BSE holds equity stake of 40% through its subsidiary BSE Investments Limited.  BSE Ebix has recently received in-principle approval for Certificate of Registration to act as a direct insurance broker under the IRDAI (Insurers Brokers) Regulations, 2018. The venture, branded as BSE-Ebix Insurance Broking Pvt. Ltd., will enable distribution outlets, wealth management advisors, Point of Sales (POSs) to sell life and non-life insurance products. The actual insurance distribution of BSE-Ebix will commence after receipt of certificate of license from IRDAI.

 

·         Inter-operability amongst clearing corporation: Inter-operability amongst clearing corporations went operational in this quarter starting with Equity Segment on  July 15, 2019, Equity Derivatives Segment on  July 29, 2019 and Currency Derivatives Segment on  August 5, 2019. Inter-operability amongst clearing corporations facilitates efficient order execution by enabling any order to be executed at more than one exchange and thus reduces the slippages in execution without the need to maintain margins at multiple clearing corporations.  More and more members of the investment community starting to insist on best price execution across exchanges from their trading members would increase their returns while have a positive impact on the liquidity and turnover across exchanges over next few quarters.  

 

·         Power Exchange:  BSE along with PTC India Limited and ICICI Bank Limited have filed a petition with the power market regulator, Central Electricity Regulatory Commission (CERC) on September 7, 2018 for grant of license for setting up a new power exchange. The CERC approval is awaited. This proposed institutional exchange, subject to necessary regulatory approvals, would leverage on the experience and expertise of its stakeholders in their fields; knowledge of the power sector, funding of power projects and associated infrastructure, setting-up and running various exchanges and platforms in India, and offer the market participants a credible power trading platform.

 

BSE has a stake of 41.08% as on September 30, 2019 in the proposed power exchange through its wholly owned subsidiary, BSE Investments Limited.  The said stake would have be bought down to 25% after grant of license.

 

·         Commodity Derivatives Segment: BSE has tied up with various associations as well as Exchanges in the commodities business for growth and development of commodities derivatives business in India.  During the quarter ended September 30, 2019, BSE has signed a Memorandum of Understanding (MoU) with the Steel Users Federation of India (SUFI).  BSE and SUFI will work towards enlisting steel futures in both long and flat segments. This will bring in stability, avert risks and facilitate a level-playing field to one and all players.

 

The total number of members admitted in this segment is 272. The average daily turnover in Commodity Derivatives segment for the half year ending September 30, 2019 was Rs. 224 crore. BSE facilitates trading in derivatives of Gold, Silver, Oman Crude Oil futures, Copper, Guar seed, Guar Gum, Cotton Futures, Turmeric Castor seed, Chana and Soy bean.   In a short span of a year, BSE has become the dominant exchange for trading in derivatives of Turmeric with a market-share of 31.9%, Cotton with a market-share of 30% and Guarseed with a market-share of 26.7% for the quarter ending September 30, 2019.

 

BSE has started levying charges in commodity derivative segment with effect from October 1, 2019 at Rs. 2 per crore of traded value of all commodity futures contracts.

 

·         International Exchange & International Clearing Corporation : During the quarter ended  September 30, 2019, ICICI Bank Limited has joined India International Exchange (IFSC) Limited (“India INX”) and India International Clearing Corporation (IFSC) Limited (“India ICC”), both subsidiaries of BSE, as a strategic investor through preferential issue of equity shares amounting to 7.71% and 9.90% of their respective enhanced equity capital of India INX and India ICC. On September 17, 2019 State-owned Power Finance Corporation Limited (PFC) has listed its global notes on India INX’s Global Securities Market. PFC has launched issuances of USD 300 million worth bonds at 3.25% due in 2024 and USD 450 million at 3.9% due in 2029 under USD 5 billion Global Medium Term Note Program.

 

Average daily turnover in India INX, BSE’s subsidiary at GIFT City, Gandhinagar witnessed a growth of 231% to USD 2,087 million for the half year ended September 30, 2019 from USD 630 million for the half year ended September 30, 2018.  The turnover comprises of significant contribution by Equity Derivatives Segment as well as Commodity Derivatives Segment.  The Equity Derivatives Segment contributed to 91% of average daily turnover and the Commodities Derivatives Segment contributed to 9% of average daily turnover for the half year ended September 30, 2019.  India INX witnessed an all-time high turnover of over USD 4.9 billion (Rs.  34,031 crore approx.) on its derivative segment on July 25, 2019.   It achieved a major milestone on October 7, 2019 when its cumulative total trading turnover crossed the USD 500 billion mark driven by a substantial jump in its trading volume which increased to over 37.15 million contracts.  India INX’s market share for the half year ended on September 30, 2019 is 87%. Further, it has achieved a major milestone on October 7, 2019 when its cumulative total trading turnover crossed the USD 500 billion mark driven by a substantial jump in its trading volume which increased to over 37.15 million contracts.

 

India ICC is a Qualified Central Counterparty and recognised as a third country central counterparty by the European Securities and Markets Authority (ESMA). It provides clearing & settlement and risk management services to India INX.  CARE Ratings Limited (Formerly known as Credit Analysis & Research Limited) has reaffirmed the rating of CARE AAA (Is) to the India International Clearing Corporation (IFSC) Limited (India ICC) for the third consecutive year.

 

Vide Statement on Development and regulatory policies dated October 4, 2019 of RBI policy document, RBI has accepted recommendation of Task Force on Offshore Rupee Markets for allowing rupee derivatives to be traded in International Financial Services Centres (IFSCs). The directions for implementing the above recommendation will be issued in consultation with Government and Other regulators.

 

 

·         India INX Global Access (IFSC) Ltd. : India INX Global Access IFSC Limited (“Global Access”) a wholly owned subsidiary of India INX, provides trading connectivity to global exchanges, namely, London Metal Exchange, ICE Futures U.S., ICE Futures Europe, EUREX & Euronext N.V. Clients in addition to CME Group of exchanges - CME, CBOT, COMEX, NYMEX.

 

 

Buyback of equity shares

 

BSE has undertaken buyback of 67.65 lakhs fully paid up equity shares of Rs. 2 each at Rs.  680 per equity share through tender offer route. The buyback commenced on August 30, 2019 and was closed on September 16, 2019.  The total amount of buyback size was Rs. 460 crore.   The consolidated and standalone net worth of BSE stands at Rs. 2,400 crore and Rs. 2,065 crore as on  September 30, 2019 respectively.

 

 

Commenting on financial performance for the quarter ended, Shri Ashishkumar Chauhan, MD & CEO, said: “The issuance of in-principle approval to BSE-Ebix Insurance Broking Pvt. Ltd. to act as a direct insurance broker by Insurance Regulatory and Development Authority of India is a significant next step for BSE group to transform itself as the full-fledged financial services and distribution platform.  In the last quarter, StAR Mutual Fund platform has further consolidated its dominant position as demonstrated by continuous growth in the number of orders being received and processed in the segment.  The synergies in the distribution network of the above business activities enable faster growth and development of both the mutual fund platform as well as insurance broking businesses. The implementation of inter-operability among clearing corporations is a major reform in the Indian capital market and BSE looks forward to higher liquidity across its inter-operable platforms in time to come.”

 

About BSE

 

BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.

 

BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.

 

Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.

 

Media Contact

Yatin Padia

022 2272 8516

yatin.padia@bseindia.com