SEBI’s Regulatory Fee Order Causes BSE Share Price to Plummet by 18%

Shares of BSE tanked by 18.6% during morning trade on Thursday after SEBI’s directive to pay differential regulatory fees for past periods, along with applicable interest. The market regulator’s order led to a sharp decline in the stock price of the capital market exchange.

In response to SEBI’s communication, BSE issued a clarification stating that it is currently evaluating the validity of the claim. If the amount is deemed payable, the total differential SEBI regulatory fees for the past periods could amount to approximately ₹68.64 crore plus GST, including interest of ₹30.34 crore.

SEBI’s directive pertains to the computation of annual turnover for options contracts based on the notional value, as opposed to the premium value that BSE has been using. The exchange has been asked to pay the differential regulatory fees for the past periods, with interest of 15% per annum for every month of delay.

Following the news, shares of BSE opened lower at ₹2,728.45 and fell to an intra-day low of ₹2,612.10 on the NSE, resulting in a decrease in the company’s market capitalization to ₹38,327.08 crore. The stock is currently trading 12.36% down at ₹2,813.60 on the NSE.

Despite the decline in share price, BSE has delivered significant returns to investors over the past year, with a rise of 433.38% since May last year. The company’s year-to-date return stands at 27.69%, while it has surged 48.34% in the past six months alone. In contrast, the benchmark BSE Sensex is trading 0.91% up at 74,403, and NSE Nifty is up 0.66% at 22,569.9.