Media Release

 

Net profit (Standalone) for the quarter ended December 31, 2019 increased by 151 % to Rs 98.50 crore from Rs 39.22 crore in previous quarter

 

Net profit (Consolidated) attributable to shareholders for the quarter ended December 31, 2019 increased by 24% to Rs 45.57 crore from Rs 36.69 crore in previous quarter

 

Revenue from Operations increased by 3% to Rs. 93.15 crore on standalone basis and increased by 1% to Rs. 109.92 crore on consolidated basis as compared to previous quarter

 

Mumbai, February 11, 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 and nine months ended December 31, 2019.

 

Quarterly Consolidated and Standalone Financial Results at a Glance

 

 

 

Business Highlights for the nine months ended December 31, 2019

 

·         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 55% to 393 lakhs during the nine months ended December 31, 2019 as compared to 253 lakhs in corresponding previous nine months. The platform received a record 53.65 lakh orders in the month of January 2020 surpassing the previous best record of 49.56  lakhs orders in the month of December 2019.  The total number of orders received in the month of December 2019 is higher by 51% as compared to the orders received in the month of December 2018. The Platform has processed a record 10.10 lakh transactions on a single day on February 10, 2020 surpassing the previous best record was 8.76 lakh transactions on November 11, 2019. The total number of X-SIPs registered under this segment increased by 38% to 16.35 lakhs for the nine months ended December 31, 2019 from 11.86 lakhs for the nine months ended December 31, 2018. The total value of orders processed in the Mutual Fund Segment increased by 31% to Rs  1.49 lakh crore for the nine months ended December 31, 2019 from Rs 1.14 lakh crore for the nine months ended December 31, 2018. Continuing the growth momentum, the platform had registered 1.13 lakh new SIPs amounting to Rs 32.48 crore for the period  February 1 to February 10, 2020. The current StAR MF SIP book size is 36.81 Lakhs amounting Rs 1058.28 crores

 

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 2.26 Lakhs transactions till January 31, 2020. BSE’s relentless scaling up of the Mutual Fund Distributors and IFA’s network alongwith its technology drives the growth in its Star MF platform.   During the period from October 2019 to January 2020, BSE has appointed 1,450 IFAs / Members taking their total to 56,000 as on January 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 Net income earned after considering provision for receivables in the StAR MF segment increased by 58% to Rs 32.76 crore for the nine months ended December 31, 2019 from Rs 20.75 crore for the nine months ended December 31, 2018.  Income earned in this segment has contributed to 12% of the revenue from operations for the nine months ended December 31, 2019 as compared to 7% of the revenue from operations for the nine months ended December 31, 2018.  Seeing it differently, the income earned in StAR MF segment now is equivalent to 64% of the income earned by BSE in its equity segment during this period.  BSE continues to remain positive on growth of this segment.  BSE’s market share in this segment for the nine months ended December 31, 2019 stands at 71%.

 

·         Insurance Broking: BSE Ebix Insurance Broking Private Limited, a joint venture of BSE with Ebix Fincorp Exchange Pte Ltd. has obtained insurance broking license from insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI).  The company is in process of appointing its intermediary network and commencing its business.  The company has successfully Beta launched on  February 7, 2020 and Started its operations.  The venture will enable distribution outlets, wealth management advisors, Point of Sales (POSs) to sell life and non-life insurance products.  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 December 31, 2019 was Rs  2,535 crore as compared to the Rs 2,447 crore in the previous quarter.

 

Over the last few months, equity derivatives business has been focused and the average daily turnover in Sensex Futures contracts has grown from Rs 1,001 crore in the month of December 2019 to Rs 2,266 crore in the month of January 2020.  The segment recorded a turnover in this segment of Rs 4,050 crore on February 10, 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: 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 face pace.  Average daily turnover in India INX, witnessed a growth of 211% to USD 2,158 million for the nine months ended December 31, 2019 from USD 694 million for the nine months ended  December 31, 2018.  The turnover comprises of significant contribution by Equity Derivatives Segment.  The Equity Derivatives Segment contributed to 92% of average daily turnover and the Commodities Derivatives Segment has contributed to 8% of average daily turnover for the nine months ended December 31, 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 nine months ended on December 31, 2019 is 83%.

 

The International Financial Services Centres Authority Act, 2019 has come into force from December 20, 2019.  The Act, inter-alia, provides for setting up a unified authority to regulate all financial services in IFSCs in the country has been approved by both the houses of Parliament.    It aims to set up a world class unified regulator for international financial services combining powers and functions of RBI, SEBI, IRDAI and PFRDA.    Currently, the banking, capital markets and insurance sectors in IFSC are regulated by multiple regulators such as RBI, SEBI and IRDAI.

 

On January 20, 2020, RBI has issued directions for Introductions of Rupee Derivatives at IFSC, further, as per SEBI circular dated February 3, 2020 it allowed for currency futures and options contracts involving Indian Rupees (with settlement in foreign currency) with position limits for eligible market participants.

 

·         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 month ended December 31, 2019 was Rs 11,192 crore and the average daily turnover in the Options Segment for the nine month ended December 31, 2019 was Rs 17,867 crore.  BSE’s market share for the said period was 43%.

 

·         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 and Soy bean.  In a short span of a year, BSE has become the dominant exchange for trading in derivatives of Cotton with a marketshare of 30.7% and Guarseed with a marketshare  of 32% for the quarter ending December 31, 2019.

 

The total number of members admitted in this segment is 276. The average daily turnover in Commodity Derivatives segment for the nine months ended December 31, 2019 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 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.

 

 

 

Commenting on financial performance for the quarter ended, Shri Ashishkumar Chauhan, MD & CEO, said: “The enactment of The International Financial Services Centres Authority Bill, 2019 is significantly positive step undertaken by our Government for growth and development of IFSC GIFT City as a global financial hub.  The legislative support on the taxation side and likely introduction of Rupee based currency derivatives in near future makes the business outlook of BSE’s international exchange, INDIA INX very promising.  The continuing growth of business in the StAR MF segment and the operations of BSE-Ebix Insurance Broking Private Limited opens up the long awaited opportunity for BSE to widen its services in the electronic aggregation and distribution business services.  The synergies in network of intermediaries pan-India in the StAR MF segment and the insurance broking services can go a long way in adding value to the BSE’s stakeholders.   

 

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