Media Release

 

·        Consolidated Net profit from total operations for the quarter ended June 30, 2020 up by 34.39 crore to Rs 32.48 crore from loss of Rs 1.91 crore in previous quarter. 

·        Standalone Net profit for the quarter ended June 30, 2020 up by Rs 30.75 crore to Rs 32.34 crore from Rs 1.59 crore in previous quarter.

·        52% increase in transactions processed in StAR Mutual Fund platform from 122 lakhs during the quarter ended June 30, 2019 to 186 lakhs during the quarter ended June 30, 2020.

·        39% increase in average daily turnover in equity segment to Rs 3,724 crore during the quarter ended June 30, 2020 as compared to the Rs 2,683 crore during the quarter ended June 30, 2019.

·        Over 6 times increase in equity derivatives average daily turnover to Rs 26,196 crore for the month of July 2020 from Rs 3,915 crore after shifting weekly expiry of derivatives contracts from Thursday to Monday with effect from June 29, 2020.

·        The Board of BSE has decided ‘in-principle’ to explore the possibility of unlocking value in BSE’s distribution business of StAR MF.

 

MUMBAI, August 3, 2020: 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 June 30, 2020.

 

Quarterly Consolidated and Standalone Financial Results at a Glance

 

 

Business Highlights for the quarter ended June 30, 2020

 

·         StAR MF Platform: BSE has been at the forefront of new innovative products and exceptional user experience in all its platforms and especially its StAR Mutual Fund Platform.  BSE’s StAR Mutual Fund platform continues to be the electronic mutual fund investment platform of choice for investors across India. Investment through this platform has been growing steadily over the years.  It may be noted that the StAR MF platform witnessed a net equity inflow of Rs 1,882 crore as against the total  net equity inflow in mutual fund industry  of Rs 241 crore in June 2020. The total number of orders processed has risen by 52% to 186 lakhs during the quarter ended June 30, 2020 as compared to 122 lakhs during the quarter ended June 30, 2019. Inspite of COVID-19, 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 SIP registered under this segment increased by 51% to 1.78 lakhs for the quarter ended June 30, 2020 from 1.18 lakhs for the quarter ended June 30, 2019. The total number of X-SIPs registered under this segment increased by 23% to 5.76 lakhs for the quarter ended June 30, 2020 from 4.67 lakhs for the quarter ended June 30, 2019. The total value of orders processed in the Mutual Fund Segment increased by 57% to Rs 85,000 crore for the quarter ended June 30, 2020 from Rs 54,000 crore for the quarter ended June 30, 2019.

 

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 7 lakh transactions till July 31, 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.  Inspite of social distancing and COVID-19, BSE has appointed 740 IFAs / Members over last four months taking their total to 57,413 as on July 31, 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 19% to Rs 14.19 crore for the quarter ended June 30,  2020 from Rs 11.90 crore for the quarter ended March 31, 2020 as adjusted for previous quarter adjustments.  Income earned in this segment has contributed to 17% of the revenue from operations for the quarter ended June 30, 2020 as compared to 12% of the revenue from operations for the quarter ended March 31, 2020.  Seeing it differently, the income earned in StAR MF segment now is equivalent to 85% of the income earned by BSE in its equity segment during the quarter ended June 30, 2020.  BSE continues to remain positive on growth of this segment.  BSE’s market share in this segment for the quarter ended June 30, 2020 stands at 80%.

 

Further, BSE plans to increase its revenue in this segment through value added services such as e-KYC, commission distribution services, etc.  Accordingly, on May 26, 2020, BSE has partnered with LIC Mutual Fund for BSE eKYC services on BSE StAR MF Platform. The digital KYC process facilitates BSE’s member and distributors to ensure zero contact, hassle-free customer on-boarding process, especially during this COVID-19 situation. LIC MF is now able to facilitate a complete digital customer onboarding experience to all distributor partners on BSE StAR Platform.

 

The Board in its meeting held today has ‘in-principle’ approved exploration of the possibility of unlocking value in BSE’s distribution business of StAR MF and appoint a merchant banker for the same.

 

·         Insurance Broking: BSE Ebix Insurance Broking Private Limited, a joint venture of BSE with Ebix Fincorp Exchange Pte Ltd., has successfully launch health insurance products on June 3, 2020 and Life Insurance products on July 13, 2020 in addition to Motor Insurance products which was launched on  February 7, 2020. As on July 31, 2020 the company has 3290 registered Point of Sales (POS).  The total premium collected till July 31, 2020 is Rs 78.77 lakhs. The company has issued 1901 policies till July 31, 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 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 June 30, 2020 increased by 39 % to Rs 3,724 crore as compared to the Rs 2,683 crore during the quarter ended June 30, 2019.

 

·         Equity Derivatives Segment: Average daily turnover in Equity derivatives segment for the quarter ended June 30, 2020 was Rs 3,915 crore. BSE changed the weekly expiry of contracts to Monday from Thursday in its equity derivatives segment from June 29.  This change has resulted in a transformational increase in its turnover in the equity derivative segment. Since the change in weekly expiry day to Monday, the average daily turnover has increased over 6 times to Rs 26,196 crore for the month of July 2020 with the highest daily turnover of Rs 52,763 crore on July 30, 2020.  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: 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 by Hon'ble Finance Minister Smt. Nirmala Sitharaman.  The said contracts have seen strong interest by the market participants with its average daily turnover has steadily increasing to USD 2,911 million in July 2020 and average daily number of contracts traded increasing to 98,158 in July 2020. Average daily turnover on India INX’s trading platform for the quarter ended June 30, 2020 was USD 1,924 million including significant contribution from Equity Derivatives Segment.  The Equity Derivatives Segment contributed to 85% of average daily turnover and the other Segments has contributed to 15% of average daily turnover for the quarter ended June 30, 2020.  India INX is the dominant IFSC exchange in GIFT city with the market share of 91% in derivatives trading and 100% in bond listing for the quarter ended June 30, 2020. During the quarter ended June 30, 2020, almost all of Indian issuers of Debt Securities in the international markets have listed on India INX’s global securities market. As on July 31, 2020, India INX’s  cumulative  turnover since inception has crossed USD 1 Trillion.  It also witnessed an all-time high turnover of over USD 4.92 billion on July 24, 2020. The previous all-time high turnover was USD 4.83 billion on February 27, 2020.

 

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.

 

·         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 quarter ended  June 30, 2020 was Rs 7,920 crore and the average daily turnover in the Options Segment for the quarter ended June 30, 2020 was Rs 10,405 crore.  BSE’s market share for the said period was 31%.

 

·         Commodity Derivatives Segment:  BSE launched options contracts on Gold and Silver on June 1, 2020 and launched world’s only Almond future contract on June 22, 2020.   In a very short span of time, BSE’s almond in shell prices are widely used as reference prices for physical market transactions and helping industry stakeholders with better price marking and quality benchmarking. BSE delivered 16,000 Kgs of Almond in shell in the last settlement. 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. BSE facilitates trading in derivatives of Gold, Silver, Oman crude oil, Brent crude oil, Aluminum, Zinc, Copper, Guar seed, Guar Gum, Cotton, Turmeric, Castor seed, Chana, Soy bean and Almond.  In a short span of a year, BSE has become the dominant exchange for trading in derivatives of Brent crude oil with highest turnover of Rs 1,342 million on January 28, 2020.

 

The total number of members admitted in this segment is 278. The turnover in Commodity Derivatives segment for the quarter ended June 30, 2020 was Rs 30,251 crore and highest turnover of Rs 5,010 crore recorded on July 29, 2020.

 

·         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 June 30, 2020 in the proposed power exchange through its wholly owned subsidiary, BSE Investments Limited.  The said stake would have to be bought down to 25% post receipt of grant of license.

 

 

 

Commenting on financial performance for the quarter ended, Shri Ashishkumar Chauhan, MD & CEO, said: “The spirit of innovation continues to drive BSE to provide new and differentiated services to its members and investors even during these tough times.  BSE’s shift of expiry of weekly contracts from Thursday to Monday has been very well received by the market players bring a new wave of possibilities for the growth of BSE’s equity derivative segment. The growth of turnover in equity segment by 39% in this quarter over corresponding quarter previous year is highly encouraging.  Coupled with the focus on “best price execution” of trades by trading members, the prospects for growth in equity segment in BSE also look brighter.  Introduction of e-KYC services in the mutual fund segment as a value added service as well as introduction of health and life insurance segment in the insurance broking entity demonstrates the relentless drive by BSE to provide more and better services to its stakeholders and public.  The achievement of total turnover of USD 1 trillion by India INX is another feather in the cap of the BSE group.  BSE remains committed to continue to explore growth opportunities and innovate in the exchange and electronic distribution ecosystems.”   

           

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