Media Release

 

 

BSE declares a Final Dividend of Rs 17 per equity share of Rs 2 each for FY2019-20.

 

Net profit (Standalone) for the quarter ended March 31, 2020 (excluding non-recurring & exceptional items) up by 92% to Rs 20.24 crore from Rs 10.54 crore in previous quarter.

 

Revenue from Operations increased by 9% to Rs 119.56 crore on consolidated basis  and increased by 7% to Rs 99.53 crore on standalone basis as compared to previous quarter.

 

MUMBAI, May 21, 2020: BSE Ltd. (BSE), Asia’s oldest and first universal exchange and World’s fastest exchange with a speed of 6 microseconds, announced its audited consolidated and standalone financial results for the quarter and year ended March 31, 2020.

 

The Board of Directors of BSE has recommended a final dividend of Rs 17 per equity share having face value of Rs 2 each subject to approval of shareholders in ensuing annual general meeting.  The total payout would be Rs 77.87 crore representing 95% of the profits excluding gain on part- equity stake sale of Central Depository Services (India) Limited.

 

Quarterly Consolidated and Standalone Financial Results at a Glance

 

 

 

 

Business Highlights for the year ended March 31, 2020

 

·         StAR MF Platform: BSE continues to march ahead in its growth of business in its StAR MF platform.    The total number of orders processed has risen by 60% to 575 lakhs during the year ended March 31, 2020 as compared to 360 lakhs in corresponding previous year. The platform received a record 70.36 lakh orders in the month of March 2020 surpassing the previous best record of 54.43  lakhs orders in the month of January 2020.  The total number of orders received in the month of March 2020 is higher by 86% as compared to the orders received in the month of March 2019. The Platform has processed a record 11.58 lakh transactions on a single day on April 13, 2020 surpassing the previous best record was 10.10 lakh transactions on February 10, 2020. The total number of X-SIPs registered under this segment increased by 52% to 24.37 lakhs for the year ended March 31, 2020 from 16.06 lakhs for the year ended March 31, 2019. The total value of orders processed in the Mutual Fund Segment increased by 39% to Rs  2.23 lakh crore for the year ended March 31, 2020 from Rs 1.61 lakh crore for the year ended March 31, 2019. Continuing the growth momentum, the platform  contributed 61% in net equity inflow i.e. Rs.3,806 crore out of the entire MF industry’s total of Rs.6,212 crore in April 2020.

 

BSE had launched BSE StAR MF app in May 2019 to enable Mutual Fund Distributors to process transactions on the go.  The app has been well received by the investment community and it has processed over 4.47 Lakhs transactions till April 30, 2020. BSE’s relentless scaling up of the Mutual Fund Distributors and IFA’s network along with its technology drives the growth in its Star MF platform.   During the period from January 2020 to April 2020, BSE has appointed 1,455 IFAs / Members taking their total to 57,060 as on April 30, 2020.  This network is over and above BSE’s 1400 members backed by over 2 lakh authorized representatives covering length and breadth of our country.

 

The income earned in the StAR MF segment increased by 54% to Rs 44.74 crore for the year ended March 31, 2020 from Rs 29.03 crore for the year ended March 31, 2019.  Income earned in this segment has contributed to 12% of the revenue from operations for the year ended March 31, 2020 as compared to 8% of the revenue from operations for the year ended March 31, 2019.  Seeing it differently, the income earned in StAR MF segment now is equivalent to 66% of the income earned by BSE in its equity segment during this year.  BSE continues to remain positive on growth of this segment.  BSE’s market share in this segment for the year ended March 31, 2020 stands at 74%.

 

·         Insurance Broking: BSE Ebix Insurance Broking Private Limited, a joint venture of BSE with Ebix Fincorp Exchange Pte Ltd. obtained insurance broking license from insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI). The Company has successfully Beta launched its operations on  February 7, 2020 and has issued more than 200 policies. It’s certified Point of Sales (POS) have crossed above 500 mark. The Company collected highest ever fresh premium of Rs 6.18 lakh of which highest collection in single day of Rs 1.1 lakh on March 16, 2020.  It is expected that the network of insurance broking business and mutual fund distribution platform shall complement and leverage each other for strong growth over time.  BSE holds equity stake of 40% through its subsidiary BSE Investments Limited.

 

·         Equity and Equity Derivatives Segment: The trading volumes in the equity segment at BSE have generally been found to be co-related to the macro-economic growth and many other factors.  As such certain volatility has been historically observed in the volumes in this segment which is affected, inter-alia, by the level of activity in capital markets in India.  BSE’s Equity segment has stabilized and Equity Derivatives segment is also growing reflecting in the quarter on quarter improvement in the operational performance of the company. The average daily turnover during the quarter ended March 31, 2020 was Rs  3,024 crore as compared to the Rs 2,535 crore in the previous quarter.

 

Over the last few quarters, equity derivatives business has been focused and the average daily turnover during the quarter ended March 31, 2020 was Rs  3,639 crore as compared to the Rs 475 crore in the previous quarter.  BSE shall continue to make further efforts to increase its business in Equity Derivatives segment.

 

 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.  As more and more members of the investment community start insisting on best price execution across exchanges from their trading members, a positive impact on the liquidity and turnover on the equity and equity derivative segment is possible.

 

·         International Exchange & International Clearing Corporation: The turnover at BSE’s subsidiary, India International Exchange (IFSC) Limited, also known as India INX, at IFSC Gift City Gandhinagar, has been growing at a fast pace.  Average daily turnover in India INX, witnessed a growth of 195% to USD 2,260 million for the year ended March 31, 2020 from USD 766 million for the year ended  March 31, 2019.  The turnover comprises of significant contribution by Equity Derivatives Segment.  The Equity Derivatives Segment contributed to 93% of average daily turnover and the Commodities Derivatives Segment has contributed to 7% of average daily turnover for the year ended March 31, 2020.  India INX is the dominant IFSC exchange in GIFT city with the market share of 82% in derivatives trading and 100% in bond listing. During the March, 2019 quarter approx. 27% of Indian issuers of debt securities in the international markets have listed on India INX’s Global Securities Market.   

 

On May 8, 2020, Hon'ble Finance Minister Smt. Nirmala Sitharaman inaugurated Rupee Dollar Derivatives on India International Exchange (IFSC), Limited (India INX), India’s first international exchange based in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City). The launch was done virtually by the Finance Minister, where she rang the bell electronically and declared Rupee-Dollar Futures and Options contract open for trading on India INX.  The market participant interest in Rupee Dollar Derivatives contract is very encouraging.  The average daily turnover in Rupee Dollar Futures & Options Contracts till 19^th May, 2020 is USD 55 million and USD 18 million respectively. The average daily traded volume futures & options Contracts till 19^th May, 2020 is 7,225 and 2,309 respectively. Market share of India INX is 78%.

 

·         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 year ended March 31, 2020 was Rs 11,740 crore and the average daily turnover in the Options Segment for the year ended March 31, 2020 was Rs 15,763 crore.  BSE’s market share for the said period was 40%.

 

·         Commodity Derivatives Segment: On January 27, 2020 BSE has signed a licensing agreement with Intercontinental Exchange, Inc (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, for the use of the ICE Brent Index as the final settlement price for BSE’s Rupee-denominated Brent futures contract.

 

In the Commodity Derivatives Segment, BSE facilitates trading in derivatives of Gold, Silver, Oman Crude Oil futures, Copper, Guar seed, Guar Gum, Cotton Futures, Turmeric, Castor seed, Chana, Soy bean and Energy-BR crude .  In a short span of a year, BSE has become the dominant exchange for trading in derivatives of Cotton with a marketshare of 23% and Guarseed with a marketshare  of 25% for the year ending March 31, 2020.

 

The total number of members admitted in this segment is 277. The average daily turnover in Commodity Derivatives segment for the year ended March 31, 2020 was Rs 203 crore.

 

·         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 March 31, 2020 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.

 

 

 

Commenting on financial performance for the quarter ended, Shri Ashishkumar Chauhan, MD & CEO, said: “The introduction of Rupee based currency derivatives by BSE’s international exchange, INDIA INX completes the bouquet of major currencies traded on its trading platform.  With a cumulative trading volume of $822 billion since launch and international debt MTN (medium term note) programme of about $48 billion, India’s INR-USD derivative is expected to attract more participants to the IFSC and make India INX a leading centre for raising capital for issuers across the globe.  The growth of transactions in the StAR MF segment and pick up in operations of BSE-Ebix Insurance Broking Private Limited in spite of adverse economic environment is encouraging.  BSE looks forward to continue to build upon its existing areas of strength and pursue other opportunities from time to time as the same arise.”   

           

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