Media Release

 

·         Consolidated Net profit attributable to the shareholders excluding exceptional items for the quarter ended December 31, 2020 up by 139% to Rs 32.37 crore from Rs 13.53 crore in corresponding quarter of previous year.

·     Consolidated Operating EBITDA for the quarter ended December 31, 2020 up by Rs 20.11 crore to Rs 11.91 crore from loss of Rs 8.20 crore in corresponding quarter previous year.

·         Consolidated Operating EBITDA Margin for the quarter ended December 31, 2020 is 10% from loss of 7% in corresponding quarter previous year.

·         71% increase in Mutual fund order received for the quarter ended December 31, 2020 month as compared to corresponding quarter previous year.

·    43% increase in average daily turnover in equity segment to Rs 3,618 crore for the quarter ended December 31, 2020 as compared to the Rs 2,535 crore during corresponding quarter previous year.

 

MUMBAI, February 11, 2021: 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 ended December 31, 2020.

 

Quarterly Consolidated Financial Results at a Glance

 

 

 Business Highlights

 

·         StAR MF Platform:  Continuing its stellar performance, BSE StAR MF, India's largest Mutual Funds Distributor platform is moving consistently towards transforming itself into a unique end-to-end-value based platform.  It achieved a new milestone of processing 92.98 Lakh transactions which is the highest ever in a month including 4.77 Lakhs new SIP registrations in January 2021.

 

The total value of orders processed in the Mutual Fund Segment increased by 37% to Rs 2,04,646 crore for the nine months ended December 31, 2020 from Rs 1,48,863 crore for the nine months ended December 31, 2019.

 

In spite of a pandemic year, BSE’s StAR MF platform has been seen growth in the total number of orders processed by 64% to 643 lakhs during the nine months ended December 31, 2020 as compared to 393 lakhs during the nine months ended December 31, 2019.   The total number of SIP registered under this segment increased by 256% to 11.18 lakhs for the nine months ended December 31, 2020 from 3.14 lakhs for the nine months ended December 31, 2019. The total number of X-SIPs registered under this segment increased by 2% to 16.72 lakhs for the nine months ended December 31, 2020 from 16.35 lakhs for the nine months ended December 31, 2019.

 

The platform continues to scale new peaks of transactions in a single day.  The Platform has processed a record 14.69 lakh transactions on a single day on January 11, 2021 surpassing the previous best record was 12.88 lakh transactions on October 12, 2020.

 

BSE had launched BSE StAR MF app in May 2019 to enable Mutual Fund Distributors process transactions on the go.  The app has been well received by the investment community and it has processed over 15.3 lakh transactions till January 31, 2021. It may be noted that the StAR MF platform has witnessed a consistent net equity inflow of investments over past 10 months when the industry was seeing net outflow in their equity based schemes.   StAR MF platform has witnessed a consistent net equity inflow of Rs 15,809 crore as against the total net equity outflow in mutual fund industry of Rs 30,546 crore.  The total turnover on StAR MF platform for the 10 month period from April 2020 to January 2021 has exceeded Rs 2,73,000 crore.  BSE has continued with its strategy of expansion of its Mutual Fund Distributors and IFA’s network.   BSE has appointed 12,383 IFAs / Members over last ten months taking their total to 69,039 as on January 31, 2021.  This network is over and above BSE’s 1400 members backed by over 2 lakh authorized representatives covering length and breadth of our country.

 

             BSE’s market share in this segment for the nine months ended December 31, 2020 stands at 79%.

 

·         Insurance Broking: BSE Ebix Insurance Broking Private Limited, a joint venture of BSE and Ebix Fincorp Exchange Pte Ltd., had beta launched its operations on February 7, 2020 with the offering of private car and two-wheeler auto insurance. Currently, there are seven General Insurance companies, two standalone Health Insurer and three Life Insurance Companies on the BSE Ebix platform.  As on January 31, 2021 BSE Ebix has registered 3,907 Point of Sale Persons (PoSPs) and 2,370 Certification.

 

BSE Ebix has beta launched term Insurance of ICICI Prudential Life Insurance Co. Ltd. on its state-of-the-art hi-tech platform on December 15, 2020.   With this launch, BSE Ebix now has the ability to handle insurance sales across both Term and Endowment policy in Life Insurance segment using its omnichannel digital presence supplemented by the “Phygital” pan India physical presence of BSE Ebix’s thousands of Point of sale Persons (POSPs). The launch of Life insurance products by BSE Ebix is a major development from the Company’s perspective, since Life insurance is traditionally one of the fastest growing insurance segments in the country.

 

 

BSE Ebix’s strategy is to have an unrivalled ‘Phygital’ pan India reach by combining the physical presence of tens of thousands of PoSPs with an omnichannel digital channel, thereby allowing its PoSPs to have access to extensive real-time quotes from insurance companies and to complete the entire transaction online on behalf of their customers. Through its technology, BSE Ebix empowers PoSPs to deliver best of the Insurance products and provide comfort to the end customers by transacting physically at the speed of digital technology. This presents a huge opportunity for BSE Ebix to build its Life insurance portfolio. In order to offer a full bouquet of insurance to meet the diverse needs of the end customer, BSE Ebix also plans to offer other insurance products for Commercial Vehicles like Trucks, Tractor, Auto, Taxi; Commercial Products like fire, liability, shopkeeper insurance; and other Personal lines of business like Home, Personal accident, travel Insurance etc.  BSE Ebix also plans to add many more insurance companies in each insurance vertical in coming days and months, while ensuring that their integration with BSE Ebix is state of the art for each vertical.

 

Till January 31, 2021, the company has intermediated issue of 7,912 policies with premium amounting to Rs 2.35 crores.   BSE holds equity stake of 40% through its subsidiary BSE Investments Limited.

 

·         BSE E Agricultural Markets: BSE has launched an electronic spot platform for agricultural commodities known as BSE E-Agricultural Markets Ltd. (BEAM), through its wholly owned subsidiary BSE Investments Ltd. on December 11, 2020. This platform functions as a national level, institutionalized, electronic, transparent commodity spot trading platform in line with the Prime Minister's vision to create a “single market”. The platform facilitates spot agricultural commodities transactions across value chain consisting of producers, intermediaries, ancillary services and consumers.

 

BEAM has leveraged on state-of-the-art technology to offer customized solutions to farmers, traders, and stakeholders to facilitate risk-free and hassle- free purchase and sale of various agri commodities.  This platform ensures reduced cost of intermediation, improved procurement efficiency, enhanced producers’ realization and more competitive consumer prices. The platform also helps eliminate bottlenecks associated with procurement and trading. The Platform witnessed trading of 2 tons of Imported Almond in shell worth value of more than Rs 6 lakh on the launch day of electronic spot platform for agricultural commodities.

  

·         Equity Segment: The average daily turnover during the nine months ended December 31, 2020 increased to Rs 3,675 crore as compared to the Rs 2,554 crore during the nine months December 31, 2019 and  Rs 3,132  crore during the nine months ended December 31, 2018. The same is also reflected in the Company’s strong operational performance in the current period.  The pick-up in average daily turnover in equity segment in the current financial year to levels much higher than previous two financial years is a very positive development and provides encourage to look forward to better operational performance going forward.

 

·         Equity Derivatives Segment:  BSE changed the weekly expiry of contracts to Monday from Thursday in its equity derivatives segment from June 29, 2020.  Since the change in weekly expiry of equity derivative contracts from Thursday to Monday, the average daily turnover in Equity derivatives segment has grown from Rs. 78,442 crore for the September 2020 quarter to Rs. 2,01,162 crore for December 2020 quarter.  The average daily turnover in this segment is Rs. 2,46,651 crore for the month of January – 2021. Over time, growth in turnover of equity derivatives contracts can significantly complement growth in turnover in equity segment to improve BSE’s turnover and market share in these Red Ocean businesses of BSE.  

  

·         International Exchange & International Clearing Corporation: India International Exchange (IFSC), Limited (also called as “India INX”), India’s first international exchange based in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City) introduced Rupee Dollar Derivatives Contracts on May 8, 2020.  Average daily turnover on India INX’s trading platform for the nine months ended December 31, 2020 was USD 4,166 million including significant contribution from Equity Derivatives Segment.  The Equity Derivatives Segment contributed to 94% of average daily turnover and the other Segments has contributed to 6% of average daily turnover for the nine months ended December 31, 2020.  India INX is the dominant IFSC exchange in GIFT city with the market share of 80% in derivatives trading and 99% in bond listing for the nine months December 31, 2020. During the nine months ended December 31, 2020, almost all of Indian issuers of Debt Securities in the international markets have listed on India INX’s global securities market. It has witnessed an all-time high turnover of over USD 24.13 billion on January 14, 2021. The previous all-time high turnover was USD 23.06 billion on February 3, 2021. The constitution of the IFSC authority at Gandhinagar is a big step towards development of the IFSC as a major international financial hub and growth of exchange therein.

 

On January 25, 2021, among many firsts of 2021, supranational institution, Asian Development Bank, listed their re-tap of 10 year INR 3 Billion Masala Bonds on Global Securities Market (GSM) of India International Exchange at GIFT IFSC. The 6.15% bonds due in 2030 are rated AAA by S&P and Moody’s.

 

On December 22, 2020, Adani International Container Terminal Private Limited listed USD 300 million foreign currency bond on Global Securities Market (GSM) of India International Exchange (India INX) at GIFT IFSC. This is the first issuance by the corporate on Global Securities Market. The issuer has raised the funds at a very competitive rate of 3% for the senior secured notes maturing in 2031.

 

·         Currency Derivatives Segment: The Currency Derivatives Segment continues to provide a very liquid platform for trading in currencies.  The average daily turnover of Currency Futures Segment for the nine months ended  December 31, 2020 was Rs 8,145 crore and the average daily turnover in the Options Segment for the nine months ended December 31, 2020 was Rs 11,698 crore.  BSE’s market share for the said period was 29%.

  

·         Commodity Derivatives Segment:  BSE is a second largest Commodity Derivatives Exchange in India and the only exchange in India to witness delivery in Options on Goods contract. BSE facilitates trading in derivatives of a bouquet of bullion, energy, metal and agri products which include Gold, Silver, Oman crude oil, Brent crude oil, Aluminum, Zinc, Copper, Guar seed, Guar Gum, Cotton, Turmeric, Castor seed, Chana, Soy bean and Almond. BSE created history on November 3, 2020, by becoming India's first exchange to complete deliveries of Gold under BSE-BIS India Good Delivery Standard on its commodity platform, supporting the Prime Minister's vision of "Make in India" and "Atmanirbhar Bharat". The exchange executed delivery of Gold to the tune of Rs. 1.5 crores in the 'Options in Goods' framework, marking the fifth consecutive month of deliveries at the exchange designated vault in Ahmedabad, Gujarat. BSE's seamless trading platform, integrated with a robust delivery framework for 'options in goods' contracts has proved extremely beneficial and cost efficient for jewellers, bullion dealers and other physical market participants. It empowers them to not only hedge their price risk but also avail delivery on expiry of the contract.

 

The total number of members admitted in Commodity Derivatives segment is 290. The turnover in Commodity Derivatives segment for the nine months ended December 31, 2020 was Rs 4,10,832 crore and highest turnover of Rs 5,118 crore recorded on August 11, 2020

 

·         Power Exchange: BSE along with PTC India Limited and ICICI Bank Limited had earlier 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.  BSE has a stake of 22.62% as on December 31, 2020 in the proposed power exchange, through its wholly owned subsidiary, BSE Investments Limited.  Approval of CERC is awaited.

 

Commenting on financial performance for the quarter ended, Shri Ashishkumar Chauhan, MD & CEO, said: “BSE has continued to innovate and undertake new initiatives right through the COVID period.  BSE’s launch of its electronic spot platform for agricultural commodities BEAM on December 11, 2020 would now serve as a national level, institutionalized, electronic, transparent commodity spot trading platform in line with the Prime Minister's vision to create a “single market”.   BSE’s has launched StAR MF Plus platform to significantly improve customer experience and offer superior services including end-to-end value-based services offered to the asset management companies (AMCs), distributors, investors, and mutual fund industry participants.  BSE continues to undertake new initiatives for a much bigger, stronger, robust and dominant future.”   

 

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. 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 and other exchanges 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
22 2272 8516
yatin.padia@bseindia.com