BSE (Bombay Stock Exchange) share price fell over 19% in trade today following the SEBI diktat on the payment of regulatory fee for transactions. MCX shares too fell over 4% in trade today following the SEBI order. The fall in BSE share price today was also its biggest ever single-day fall, data showed. As of 11:20 AM, BSE share price was at Rs 2,835.60, down 11.6%. The stock made an intraday low of Rs 2,612.6 in the morning trade.
SEBI on Friday demanded that BSE and MCX pay regulatory fees based on the annual turnover calculated from the “notional value” of options contracts, rather than the “premium value” that the companies had been using for their calculations. As a result, BSE finds itself liable to pay a staggering ₹165 crores as the differential regulatory fee, while MCX faces a bill of ₹4.43 crores for the same discrepancy.
Brokerage firm Jefferies downgraded its rating on BSE from “Buy” to “Hold,” citing concerns over the impact of the higher fees on the exchange’s bottom line. Furthermore, Jefferies slashed the target price for BSE shares to ₹2,900, estimating that the increased fees could dent the company’s overall EPS by 15-18%.
