Bombay Stock Exchange (BSE) The stock has crashed as soon as the market opens today. The stock fell 19% during trading. However, the stock later fell 13.31% to close at Rs 2,783 as the market returned to buying. In the last one year, this stock has given more than 400% returns to investors. After all, what has happened that BSE shares have fallen so much? Let us tell you that market regulator SEBI has directed BSE to pay fees on the basis of ‘total value’ of its option contracts instead of premium price. After this decision, the stock crashed.
BSE’s earnings are expected to decline.
Market experts believe that the large difference between the notional value of the contract and the premium prices will lead to an increase in BSE’s regulatory fee payments to SEBI. “BSE is advised to pay regulatory fees to SEBI on the basis of annual turnover considering the total value in case of options contracts,” BSE said in a filing to the National Stock Exchange (NSE) on Friday. BSE has also been asked to pay regulatory fees for the previous period along with interest at 15 per cent per annum on the remaining unpaid amount, the notice said. Instructions have been given to pay the amount within a month of receiving the letter.
BSE is evaluating the validity of the claim
SEBI’s letter noted that since the introduction of derivative contracts, BSE has been paying regulatory fees on annual turnover to the regulator considering the premium price for option contracts instead of the total value. BSE on Sunday said it is currently evaluating the validity of the claim made in Sebi’s letter. In options trading ‘Notional’ represents the total buy/sell value of all contracts traded, while ‘Premium Turnover’ is the sum of ‘Premium’ paid on all contracts traded. Since the aggregate value is higher than ‘Premium’ trading, higher fees will be paid if aggregate trading is selected.
Will have to pay so many crores of rupees
BSE said that if the said amount has to be paid, the total additional SEBI regulatory fee for FY 2006-07 to FY 2022-23 would be Rs 68.64 crore plus GST. This includes interest of Rs 30.34 crore. Additionally, additional SEBI regulatory charges for FY 2023-24, if payable, may amount to approximately Rs 96.30 crore plus GST.
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