BSE Limited — Q3 FY26

BSE Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=qBynVmIG1kA Published: 3 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to BSC Limited Q3 and FI26 investor conference call. As a reminder, 0:10 10 seconds all participant line will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation conclude. Should 0:17 17 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:26 26 seconds this conference is being recorded. I now hand the conference over to Mr. Anand Setan from BSC Limited. Thank you and over to you sir. 0:36 36 seconds Good evening everyone and thank you so much Danish. 0:40 40 seconds A warm welcome to all of you for participating in Q3 FI 2026 earnings call for BSE. My name is Anand and I'll 0:48 48 seconds be the host for the call. Today we are joined by BAC's leadership team consisting of Mr. Sundra Raman Ram Morti 0:56 56 seconds Managing Director and CEO Mr. Deepak Goyel Chief Financial Officer Shiti uh 1:02 1 minute, 2 seconds Shrimati Kamla Chief Regulatory Officer Mr. Sunil Damraani Chief Business Officer Mr. Viral Davda Chief Technology 1:11 1 minute, 11 seconds Officer Shrimati Radha Kitiasan head of listing and theme Mr. Rudesh Kundai, chief of product strategy and policy. 1:21 1 minute, 21 seconds Shrimati Vashali Babu, MD and CEO of ICCL. Also present here are senior members of our business, finance and investor relations team. 1:32 1 minute, 32 seconds The results for the quarter ended 31st December 2025 have been announced and the data pack consisting of financials 1:39 1 minute, 39 seconds and investor presentation is available on the BSE website. 1:44 1 minute, 44 seconds We will begin today's call with remarks from BAC's MD and CEO on the business and financial performance. 1:52 1 minute, 52 seconds All participant lines will be muted for the duration of the call. There will be an opportunity for you to ask questions after the management remarks. 2:02 2 minutes, 2 seconds Please note that some of the remarks made today may be forward-looking in nature and are subject to risks and 2:08 2 minutes, 8 seconds uncertaintities. The company does not undertake to update these forward-looking statements publicly. 2:15 2 minutes, 15 seconds With this, I would now like to invite PACMD and CEO to share his views. Thank you and over to you sir. 2:24 2 minutes, 24 seconds Thank you Anand. 2:26 2 minutes, 26 seconds Good evening everybody and a warm welcome to all our esteemed stakeholders 2:34 2 minutes, 34 seconds for joining the call today to discuss Q3 FY2026 earnings. 2:43 2 minutes, 43 seconds Warm wishes for the new year to all of you. 2:48 2 minutes, 48 seconds Let me first talk a little bit about the macroeconomic environment. 2:55 2 minutes, 55 seconds The global landscape has become more volatile with geopolitical tensions. 3:02 3 minutes, 2 seconds Trade and tariff uncertaintities have weighed on global investor confidence. 3:10 3 minutes, 10 seconds We have seen unprecedented movement of gold and silver prices and outflows from India by FBI. 3:22 3 minutes, 22 seconds However, the Indian economy continues to demonstrate 3:29 3 minutes, 29 seconds strong and stable growth with the year starting on a good note. 3:38 3 minutes, 38 seconds I take this opportunity to congratulate honorable prime minister Narendra Modi 3:45 3 minutes, 45 seconds GI for successful agreement of the trade deal with the United States 3:54 3 minutes, 54 seconds together with the trade deals with EU and UK announced earlier 4:02 4 minutes, 2 seconds the move to progressively lower tariffs and non-tariff barrier years has the 4:10 4 minutes, 10 seconds potential to enhance market access, boost trade 4:18 4 minutes, 18 seconds and enable deeper strategic collaboration while further strengthening 4:26 4 minutes, 26 seconds India's position as a trusted partner. 4:31 4 minutes, 31 seconds This will enhance the global competitiveness of Indian products while 4:40 4 minutes, 40 seconds catalyzing manufacturing, growth, employment creation and the 4:47 4 minutes, 47 seconds development of resilient supply chains directly advancing the vision of Vixit 4:56 4 minutes, 56 seconds Bharat which bs well for the Indian capital markets. 5:04 5 minutes, 4 seconds I also congratulate honorable finance minister Shrimati Nirmala Sithar Raman GI for her 5:14 5 minutes, 14 seconds ninth consecutive budget articulating a [clears throat] clear shift towards 5:22 5 minutes, 22 seconds ecosystemdriven industrial strategy and long-term capital formation 5:31 5 minutes, 31 seconds for capital markets. The budget offers a blend of structural reforms, 5:40 5 minutes, 40 seconds liquidity enhancing measures and regulatory finetuning 5:47 5 minutes, 47 seconds aimed at shaping deeper, more resilient 5:53 5 minutes, 53 seconds financial architecture by expanding foreign investor limits, 6:02 6 minutes, 2 seconds strengthening the corporate bond framework and maintaining fiscal discipline. 6:09 6 minutes, 9 seconds The budget enhances liquidity and broadens participation. 6:16 6 minutes, 16 seconds The ST adjustments also appear to be realigning 6:23 6 minutes, 23 seconds investor focus towards long-term equity investments and healthier market liquidity. 6:35 6 minutes, 35 seconds Additionally, the rationalization of the buyback tax removes distortion 6:44 6 minutes, 44 seconds that previously encouraged tax arbitrage. 6:51 6 minutes, 51 seconds Moving to Indian capital markets, the defining feature of 6:58 6 minutes, 58 seconds 2025 was the composition of capital flows not their absolute size. 7:09 7 minutes, 9 seconds When foreign portfolio investors retreated during 2025's 7:16 7 minutes, 16 seconds geopolitical turbulence, India's domestic institutional investors 7:24 7 minutes, 24 seconds comprising of mutual funds, insurance companies, 7:30 7 minutes, 30 seconds banks and others deployed rupees 7 lakh 7:36 7 minutes, 36 seconds crores during in the calendar year representing a 33% 7:44 7 minutes, 44 seconds increase from rupees 5.25 lakh crores in 2024. 7:52 7 minutes, 52 seconds This represented the fundamental change in market micro structure. 8:00 8 minutes The year demonstrated that domestic capital could manage foreign outflows without systemic disruption. 8:12 8 minutes, 12 seconds Equally encouraging is the unwavering commitment of India's retail investors. 8:22 8 minutes, 22 seconds SIP flows touched a record high of 8:27 8 minutes, 27 seconds rupees 3.34 lakh crores in 2025 8:33 8 minutes, 33 seconds from 2.68 68 lakh crores in 2024, reaching new all-time levels and 8:43 8 minutes, 43 seconds reinforcing the deepening culture of disciplined long-term investing across the country. 8:54 8 minutes, 54 seconds Against this backdrop, I'm pleased to share the DSC delivered 9:01 9 minutes, 1 second its 11th consecutive quarter of record revenues with consolidated revenues 9:10 9 minutes, 10 seconds of,334 crores surpassing the previous quarter's 9:16 9 minutes, 16 seconds record of rupees 1139 crores and marking a robust first 9:24 9 minutes, 24 seconds 62% yearon-year expansion. 9:30 9 minutes, 30 seconds Moreover, with cumulative revenues reaching rupes 3,518 9:36 9 minutes, 36 seconds crores during the first 9 months of the current financial year, BSE has already 9:44 9 minutes, 44 seconds exceeded the total topline of rupees 3,236 crores recorded for the entire previous 9:54 9 minutes, 54 seconds fiscal underscoring the strong and sustained growth momentum. system across its business segments. 10:05 10 minutes, 5 seconds I will now share some of the key financial numbers on a consolidated 10:11 10 minutes, 11 seconds basis for the quarter ended December 31st, 2025 10:18 10 minutes, 18 seconds as compared to the corresponding quarter previous year. 10:25 10 minutes, 25 seconds BSC's operational revenues have grown by 62% 10:32 10 minutes, 32 seconds to,244 crores from rupees 768 crores. 10:41 10 minutes, 41 seconds Transaction charges comprising revenues from the equity cash, equity derivatives, 10:50 10 minutes, 50 seconds mutual fund and clearing of segments have registered a substantial increase of 86%. 11:00 11 minutes rising to rupees 953 crores from rupees 11:05 11 minutes, 5 seconds 511 crores reflecting robust growth in core trading and settlement related activities. 11:16 11 minutes, 16 seconds Other operating income which includes enhanced data dissemination seats 11:24 11 minutes, 24 seconds collocation index services etc have increased by 56% 11:33 11 minutes, 33 seconds to rupees 92 crores from rupees 59 crores. 11:41 11 minutes, 41 seconds Income from investments has increased by 47% 11:47 11 minutes, 47 seconds to rupees 84 crores from rupees 57 crores. 11:53 11 minutes, 53 seconds Operating expenses increased by 40% to rupees 511 crores from 364 crores. It 12:03 12 minutes, 3 seconds may be noted that 51% of the total operating expenses are attributable 12:12 12 minutes, 12 seconds to regulatory fees and clearing and settlement expenses. All of which is directly correlated 12:21 12 minutes, 21 seconds to increasing transaction volumes. 12:27 12 minutes, 27 seconds The operating abita including contribution to core SGF 12:34 12 minutes, 34 seconds has more than tripled to rupees 732 crores as compared to rupees 236 crores 12:43 12 minutes, 43 seconds with margins expanding to 59% from 39%. 12:51 12 minutes, 51 seconds The net profit attributable to the shareholders of the company has 12:58 12 minutes, 58 seconds demonstrated a significant acceleration more than doubling to rupees 602 crores 13:07 13 minutes, 7 seconds from rupees 220 crores representing a robust yearon-year growth of 176%. 13:19 13 minutes, 19 seconds This marked improvement across both top line and bottom line performance 13:27 13 minutes, 27 seconds underscores the company's enhanced operational resilience, 13:34 13 minutes, 34 seconds disciplined execution and sustained financial momentum. 13:42 13 minutes, 42 seconds The continuation of this trajectory further reflects the breadth and depth 13:51 13 minutes, 51 seconds of participant engagement across our platforms, the effectiveness 13:57 13 minutes, 57 seconds of our strategically aligned initiatives and the progressively increasing 14:05 14 minutes, 5 seconds confidence that India's capital market ecosystem 14:11 14 minutes, 11 seconds system continues to repost in DSC 14:18 14 minutes, 18 seconds as highlighted in our previous earnings calls. 14:22 14 minutes, 22 seconds The SGF contributions recorded during the quarter reflect the 14:29 14 minutes, 29 seconds implementation of BSC's revised policy whereby 5% of transaction linked revenue 14:40 14 minutes, 40 seconds is allocated to the core settlement guarantee fund on a monthly basis. 14:46 14 minutes, 46 seconds The policy framework incorporates an upper limit mechanism to ensure 14:54 14 minutes, 54 seconds prudent capital management while simultaneously maintaining robust and adequate risk coverage. 15:06 15 minutes, 6 seconds As of Jan 2026, BSC's core SGF balance stood at rupees,2 15:16 15 minutes, 16 seconds crores inclusive of an incremental contribution of rupees 45.6 crores made 15:25 15 minutes, 25 seconds during the quarter arising from the application of this new policy. 15:33 15 minutes, 33 seconds Furthermore, employee expenses for the period increased by rupees 22 15:41 15 minutes, 41 seconds crores primarily attributable to the enactment of government of 15:48 15 minutes, 48 seconds India's new labor codes notified on November 15:57 15 minutes, 57 seconds 21, 2025 which introduced a standardized 16:04 16 minutes, 4 seconds wage definition and revised regulatory provisions relating to graduating leave 16:12 16 minutes, 12 seconds and cashment and other employee benefit obligations. 16:18 16 minutes, 18 seconds Let me now highlight a few of the many business milestones in Q3 FY2026. 16:28 16 minutes, 28 seconds BSC's theme platform achieved a significant milestone with the 16:35 16 minutes, 35 seconds successful listing of its 700me company on February 1, 2026. 16:46 16 minutes, 46 seconds The pace of listings has accelerated meaningfully 16:52 16 minutes, 52 seconds with the most recent trench of 100 companies added within a span of just 17:02 17 minutes, 2 seconds 179 days marking the shortest interval recorded to date. 17:11 17 minutes, 11 seconds Collectively these 700memes have mobilized rupees 14,735 17:20 17 minutes, 20 seconds crores in capital and together represent accumulative 17:28 17 minutes, 28 seconds market capitalization of approxim approximately 17:33 17 minutes, 33 seconds rupees 1.8 8 lakh crores reflecting the platform's growing depth scale and 17:44 17 minutes, 44 seconds relevance within India's evolving capital market ecosystem. 17:53 17 minutes, 53 seconds The total number of investor accounts registered on BSC has surpassed 18:00 18 minutes 24 crores with 10 states individually contributing more than 1 cr registered 18:10 18 minutes, 10 seconds investors reflecting a broad-based deepening of retail market participation across regional demographics. 18:23 18 minutes, 23 seconds On the investor education front, BSC conducted 4,841 18:31 18 minutes, 31 seconds investor awareness programs during Q3 FY26 18:39 18 minutes, 39 seconds aimed at enhancing financial literacy, strengthening informed decision making and furthering 18:48 18 minutes, 48 seconds the protection of investor interests within the capital market ecosystem. 18:56 18 minutes, 56 seconds BSE signed a memorandum of understanding with the department of post to enable 19:03 19 minutes, 3 seconds the distribution of mutual fund products via India post was network of post offices. 19:14 19 minutes, 14 seconds Under the agreement, selected postal employees will be trained and certified to act as 19:24 19 minutes, 24 seconds mutual fund distributors using the BSC starf platform to facilitate transactions. 19:34 19 minutes, 34 seconds This partnership aims to enhance financial inclusion 19:41 19 minutes, 41 seconds specifically targeting rural and semi- urban areas by leveraging the BSC starf platform. 19:54 19 minutes, 54 seconds SBI along with BSC launched the first 19:59 19 minutes, 59 seconds ever bond issuer outreach program introducing the new identity bonds. 20:13 20 minutes, 13 seconds This initiative strengthens our collective push to deepen India's corporate bond market. 20:24 20 minutes, 24 seconds At BSC, we remain committed to building a transparent, digital and issuerentric 20:33 20 minutes, 33 seconds ecosystem that broadens participation, enhances trust and position corporate 20:41 20 minutes, 41 seconds bonds as a key engine of long-term capital formation. 20:48 20 minutes, 48 seconds BSC's fundraising platforms continue to remain the preferred choice 20:55 20 minutes, 55 seconds by Indian companies to raise capital by enabling issuers to raise rupees 22.4 21:04 21 minutes, 4 seconds lakh crores in FY26 by means of equity debt bonds commercial 21:13 21 minutes, 13 seconds papers mutual funds etc. Q3 FY26 21:20 21 minutes, 20 seconds proved to be an exceptionally strong quarter in terms of capital mobilization. 21:29 21 minutes, 29 seconds A total of 39 companies raised a record of rupees 95,272 21:36 21 minutes, 36 seconds crores reflecting the depth and resilience of fundraising environment on BSA. 21:46 21 minutes, 46 seconds The strong uptick in the IPO pipeline since early 2025 21:53 21 minutes, 53 seconds continues to reflect the vibrancy of India's primary markets reinforcing 22:01 22 minutes, 1 second BSC's position as a preferred listing venue across both the main board and theme segments. 22:11 22 minutes, 11 seconds Moving on to our trading segment, it continues to maintain strong growth 22:18 22 minutes, 18 seconds momentum supported by healthy volumes and increased client participation across key business lines. 22:29 22 minutes, 29 seconds Cash market trading volumes remained at long-term normalized levels at rupees 22:38 22 minutes, 38 seconds 7,645 crores in Q3 FY2026 22:44 22 minutes, 44 seconds against rupees 6,800 crores in the same period last year. 22:52 22 minutes, 52 seconds on the regulatory front. Sebi directed exchanges to introduce a closing auction session 23:01 23 minutes, 1 second to be implemented from 3rd August 2026 23:07 23 minutes, 7 seconds replacing the existing methodology of determining closing prices through 23:14 23 minutes, 14 seconds the volume weight rated average price of trades executed during the final 30 minutes of continuous trading. 23:24 23 minutes, 24 seconds The shift is anchored the objective of ensuring a fair, transparent and 23:32 23 minutes, 32 seconds representative closing price particularly given its critical role in 23:38 23 minutes, 38 seconds derivative settlement index computation and mutual fund net asset value calculations. 23:48 23 minutes, 48 seconds In addition, CB has aligned the pre-open auction session with the CAS framework. 23:57 23 minutes, 57 seconds The pre-open session will remain 15 minutes long. Although market and limit 24:04 24 minutes, 4 seconds orders follow a similar equilibrium price discovery mechanism with random 24:12 24 minutes, 12 seconds closure and improve transparency through dissemination of indicative prices and other imbalances. 24:24 24 minutes, 24 seconds BSC is preparing to implement the changes to ensure a smooth transaction for all market participants. 24:35 24 minutes, 35 seconds The BSC index derivative segment continued to exhibited 24:43 24 minutes, 43 seconds a strong and sustained growth trajectory during the quarter with the 24:51 24 minutes, 51 seconds average daily premium turnover reaching a new record of rupees 19,459 25:00 25 minutes crores more than double recorded on the corresponding founding quarter of the previous year and representing a 25:10 25 minutes, 10 seconds sequential increase of 30% Qoq 25:17 25 minutes, 17 seconds following the transition to a Thursday expiry cycle. We have observed a 25:24 25 minutes, 24 seconds pronounced expansion in open interest, deeper market participation and a broadening of the contracts liquidity profile. 25:36 25 minutes, 36 seconds Sensex index options has consequently advanced 25:42 25 minutes, 42 seconds to rank among the most actively traded contracts in 2025 25:49 25 minutes, 49 seconds with continued momentum observed in 2026 so far. 25:57 25 minutes, 57 seconds In addition, BSC has revamped the bank index to make it broad-based and 26:06 26 minutes, 6 seconds representative of the evolving banking landscape. 26:13 26 minutes, 13 seconds Following this enhancement, we are witnessing a marked increase in 26:20 26 minutes, 20 seconds market participation and liquidity, further strengthening the index 26:27 26 minutes, 27 seconds relevance as a benchmark for investors and market participants. 26:35 26 minutes, 35 seconds We remain focused on further enhancing market depth by expanding participation, 26:44 26 minutes, 44 seconds evolving our product suite, particularly through the promotion of longer 10 26:52 26 minutes, 52 seconds contracts and strengthening our technology infrastructure 26:59 26 minutes, 59 seconds through systematic upgrades to data center capabilities and connectivity framework. 27:10 27 minutes, 10 seconds Collocation continues to constitute a strategically significant component 27:19 27 minutes, 19 seconds of our broader diversification agenda serving as a critical enabler of enhanced market access. 27:31 27 minutes, 31 seconds latency sensitive trading infrastructure and long-term revenue stability. 27:40 27 minutes, 40 seconds During the quarter under review, collocation revenues stood at rupees 48 crores 27:48 27 minutes, 48 seconds broadly in line with the previous quarter. 27:53 27 minutes, 53 seconds Revised throttle charge framework introduced in July 2025 28:00 28 minutes continues to support the study performance with utilization trends remaining healthy. 28:11 28 minutes, 11 seconds Turning to our mutual fund distribution business, BSE StarMF 28:17 28 minutes, 17 seconds continues to serve as a strategically important pillar of our market 28:25 28 minutes, 25 seconds infrastructure ecosystem, playing a critical role in facilitating 28:32 28 minutes, 32 seconds retail participation, scale, and strengthening the efficiency and transparency 28:40 28 minutes, 40 seconds of mutual fund transactions nationwide. 28:45 28 minutes, 45 seconds During the quarter, the platform delivered yet another period of record performance 28:54 28 minutes, 54 seconds with revenues increasing 14% yearonear to rupees 72.5 crores. 29:02 29 minutes, 2 seconds Transaction volumes also exhibited strong momentum rising 21% to 21.7 29:12 29 minutes, 12 seconds cr transaction in Q3 FY26. 29:19 29 minutes, 19 seconds Notably, the platform achieved a new monthly peak 29:26 29 minutes, 26 seconds of 7.97 crore transactions in Jan 2026, 29:33 29 minutes, 33 seconds further reinforcing its position as a high growth systemically critical distribution 29:42 29 minutes, 42 seconds channel within India's mutual fund landscape. 29:48 29 minutes, 48 seconds Moving to our subsidiary business now. 29:52 29 minutes, 52 seconds BSC's clearing house Indian clearing corporation limited ICL 30:00 30 minutes continues to grow in Q3 FY26 with equity settled turnover at rupees 30:09 30 minutes, 9 seconds 8.14 lakh crores and equity derivatives premium turnover at rupees 12.57 lakh 30:18 30 minutes, 18 seconds crores when number of equity derivatives contract settled stood at 364 crores. 30:27 30 minutes, 27 seconds This is enabled by major tech upgrades including re-engineering of our realtime 30:36 30 minutes, 36 seconds risk management system and scaling trades per second per member from 3,000 to 27,000. 30:46 30 minutes, 46 seconds BSC Index Services, your wholly owned subsidiary of BSC, 30:52 30 minutes, 52 seconds offers a comprehensive portfolio of 200 plus indices 30:59 30 minutes, 59 seconds spanning, broad-based, thematic, sector, and strategic equity 31:07 31 minutes, 7 seconds categories serving over 350 marquee clients both domestically and globally. 31:17 31 minutes, 17 seconds As of December 2025, passive products tracking our indices 31:24 31 minutes, 24 seconds has surpassed rupees 2.7 lakh crores in AUM with 85 passive schemes benchmarked to our indices. 31:36 31 minutes, 36 seconds Since the acquisition of 50% stake from SPDJI, the company has launched 31:45 31 minutes, 45 seconds 50 new indices significantly accelerating innovation. 31:52 31 minutes, 52 seconds Additionally, the company has attained RBI approval for two debt indices, 31:59 31 minutes, 59 seconds expanding our product suite beyond equities. 32:05 32 minutes, 5 seconds Overall this quarter we recorded our strongest performance to date across multiple 32:14 32 minutes, 14 seconds dimensions including topline and bottom line expansion, new listings, transaction 32:22 32 minutes, 22 seconds link revenues, clearing house activity, market data services and index related revenues 32:30 32 minutes, 30 seconds underscoring the scalability, resilience and the operational depth of our diversified 32:38 32 minutes, 38 seconds business model. These outcomes reaffirm the effectiveness of our I'm sorry to 32:47 32 minutes, 47 seconds initiative. I'm sorry to interrupt you, sir, but there's a lot of disturbance from the background. Thank you. 32:56 32 minutes, 56 seconds Peace outcomes reaffirm. I'm sorry to interrupt Bula. Hello. Hello. 33:05 33 minutes, 5 seconds Shall we shall be correct? Yes. Yes. Yes. Please. I think one second. 33:21 33 minutes, 21 seconds Is this better? Uh yes, you may please uh proceed. 33:30 33 minutes, 30 seconds These outcomes reaffirm the effectiveness of our strategic 33:36 33 minutes, 36 seconds initiatives and the deepening trust placed in BSC by participants across the financial ecosystem. 33:50 33 minutes, 50 seconds As we move forward, BSC remains firmly committed to strengthening India's 33:58 33 minutes, 58 seconds capital market architecture with integrity, innovation and resilience at its core 34:07 34 minutes, 7 seconds supported by a healthy IPO pipeline, sustained retail participation 34:14 34 minutes, 14 seconds and the expanding adoption of our trading clearing and settlement platforms. s we are well positioned to 34:23 34 minutes, 23 seconds enable the next phase of market development. 34:29 34 minutes, 29 seconds Our strategic focus will continue to center on broadening opportunities, 34:36 34 minutes, 36 seconds simplifying market processes and upholding the highest standards of governance and institutional discipline. 34:47 34 minutes, 47 seconds Together, we will continue to build a more vibrant, inclusive, and future ready market for all stakeholders. 35:00 35 minutes Thank you for your continued trust and support and sorry for the disturbances and noise 35:08 35 minutes, 8 seconds which you might have encountered during my speech. With these updates, I now hand over the call back to Anand. 35:19 35 minutes, 19 seconds Thank you so much, sir, for the remarks. 35:21 35 minutes, 21 seconds We will now open the floor for Q&A. Over to you, Danish. Thank you. 35:30 35 minutes, 30 seconds Ladies and gentlemen, we'll now begin with the question and answer session. 35:34 35 minutes, 34 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you 35:42 35 minutes, 42 seconds may press star and two. Participants are request to use handsets while asking a question. 35:49 35 minutes, 49 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 35:54 35 minutes, 54 seconds Before we take the first question, would like to inform you in order to ensure that the management will be able to address all the question from the 36:01 36 minutes, 1 second participant, we request you to kindly limit your question to one question per participant. If you have a follow-up question, please rejoin the queue. 36:14 36 minutes, 14 seconds Our first question comes from the line of Sukrit Deep Part from Eyesight Finate Private Limited. Please go ahead. Uh good evening to the team. I have two 36:22 36 minutes, 22 seconds questions. My first question to Mr. MD surveys. How do you see BSC balancing between expanding new product offerings, 36:29 36 minutes, 29 seconds strengthening technology infrastructure and protecting the profits as investor participation and competition evolves? 36:37 36 minutes, 37 seconds What will guide your decision-m process on which of these areas should get the strongest focus in the coming quarters? 36:42 36 minutes, 42 seconds That's my first question. I'll ask my second question after this. Thank you. 36:47 36 minutes, 47 seconds Uh thank you first of all for asking this question. 36:52 36 minutes, 52 seconds I'm not sure whether these objectives that you are talking about are conflicting actually I feel they are complimentary. 37:00 37 minutes Uh as MI we don't strive hard to protect the top line or bottom line. We try to provide services which will suit the 37:08 37 minutes, 8 seconds market's requirement and fulfill the market's demand for products and better the economy in terms of capital 37:15 37 minutes, 15 seconds creation. When we adhere to this process, naturally and necessarily infrastructure building becomes part and 37:23 37 minutes, 23 seconds parcel of it and profits becomes an automatic outcome and therefore we don't have to go towards making profit as a 37:32 37 minutes, 32 seconds specific goal. So our focus will continue as what it was. It will be 37:39 37 minutes, 39 seconds deepening and broadening market, enhancing customer delight and in the process help in the capital formation 37:48 37 minutes, 48 seconds for the economy. All our product introductions will be keeping in mind these broad strategic objectives and 37:57 37 minutes, 57 seconds this is what will be guiding. We are very confident and sure when we pursue these objectives 38:05 38 minutes, 5 seconds profit is a natural corollary that will be happening. Thank you. 38:11 38 minutes, 11 seconds Thank you. My second question to Mr. uh CFO is again along the similar lines as 38:18 38 minutes, 18 seconds BSE plans for the next few quarters or next few years which financial signals or metrics will be most important in 38:26 38 minutes, 26 seconds guiding decisions on cost control, cash flow management and capital allocation for technological investments. How do 38:34 38 minutes, 34 seconds you see these particular levers shaping BSC's ability to protect the margins and deliver sustainable value as the exchange business grows? Thank you. 38:43 38 minutes, 43 seconds So thank you for this question. 38:46 38 minutes, 46 seconds Protecting margin and managing cost is a continuous process. So it doesn't get uh get driven by any one particular 38:53 38 minutes, 53 seconds objective. Ultimately uh the overall objective what MDS mentioned is what guides us in terms of maximizing capital 39:02 39 minutes, 2 seconds formation maximizing providing in best infrastructure to the market and we guide get guided by the development of 39:09 39 minutes, 9 seconds the market. [clears throat] As I mentioned cost control etc is uh guiding uh regular process which we continue to manage. 39:18 39 minutes, 18 seconds Now we request all participants to please limit their question to one per person and please follow the queue. 39:25 39 minutes, 25 seconds Thank you and best vision. 39:30 39 minutes, 30 seconds Thank you so much. Again reminder for all the participant please limit the question to one question per participant. Our next question come from 39:39 39 minutes, 39 seconds the line of Sarab Mukharji from BNK securities. Please go ahead. Hi sir, thank you for the opportunity. 39:46 39 minutes, 46 seconds Uh I just wanted to understand in terms of the core SDF contribution so the 39:52 39 minutes, 52 seconds limit that you have in mind. So uh how much runway for that is left? If you could give some color on that that would be very helpful. Thank you. 40:02 40 minutes, 2 seconds Thanks for this question. At this point of time if you recall we decided to contribute 5% till we reach a threshold 40:09 40 minutes, 9 seconds of 150%. Uh in this quarter we have reached the threshold of 150%. Limiting therefore the requirement to contribute 40:18 40 minutes, 18 seconds the amount to lesser than 5%. That is where we stand. 40:24 40 minutes, 24 seconds Okay sir very helpful. U I'll come back in the key. Thank you. 40:31 40 minutes, 31 seconds Thank you. Our next question come from the line of Supritim Duta from Jeff. Please go ahead. 40:39 40 minutes, 39 seconds Thanks for the opportunity. U you know what we have seen in the last few months is commodities has emerged as a key 40:45 40 minutes, 45 seconds segment of interest uh for both HFDs as well as retail traders. Just wanted to understand how are you seeing that 40:52 40 minutes, 52 seconds category and is that this a category of interest that you would like to build in the next you know coming years. Yeah, thank you 41:01 41 minutes, 1 second Dr. G. Thanks for this very valuable question that you have asked me. As you would recall, BSC commenced its journey 41:09 41 minutes, 9 seconds in derivatives very late and very recently somewhere around some 30 plus months back. 41:16 41 minutes, 16 seconds uh we started it from scratch. Therefore we needed to consolidate ourselves put ourselves in a growth path and the 41:25 41 minutes, 25 seconds policy of deepening and broadening of markets and customer relate were to be achieved. So I think slowly and steadily 41:33 41 minutes, 33 seconds we are reaching there and we do recognize the fact that commodities are very important 41:41 41 minutes, 41 seconds uh important underlyings from a nation's perspective and its overall economic development. So clearly once we feel 41:50 41 minutes, 50 seconds well stabilized in what we have started to do and once we feel we are resilient we will certainly be embarking on all 41:58 41 minutes, 58 seconds the available opportunities including commodities with the same seriousness with which we took derivatives for equities. Hope this answers your question. 42:09 42 minutes, 9 seconds Yeah, just you know so when would you think that you know you have become resilient on the equity derivative side so that you can pursue these you know new opportunities you know 42:18 42 minutes, 18 seconds honestly 30 plus months before when I started I never thought I will reach this place in 30 months so it's very 42:26 42 minutes, 26 seconds difficult to put a timeline uh it can be anything so the the the passage of for us in equity derivatives has been really 42:34 42 minutes, 34 seconds swift we hope the same way we progress further so that we can take of other areas. 42:41 42 minutes, 41 seconds Thank you. Thank you. 42:48 42 minutes, 48 seconds Reminder for all the participant please limit the question to one question per participant. Our next question come from the line of Amit Chandra from HDFC securities. Please go ahead. 43:00 43 minutes Yes. So thanks for the opportunity. Uh so my question is uh on the strategic direction that you laid in terms of uh 43:07 43 minutes, 7 seconds you know gaining market share in the you know in the in the in the cash segment and also improving on the you know 43:14 43 minutes, 14 seconds monthly contribution in the option side and also the institutional participation. So where we are in that journey maybe if you can update us uh 43:24 43 minutes, 24 seconds know versus last quarter commentary and uh also uh know in terms of the market share that we see in terms of 43:31 43 minutes, 31 seconds collocation and clearing corporation we are currently in terms of revenue market share for colo we are at 14% around 14 43:38 43 minutes, 38 seconds 15% in clearing cop we have gained uh to around 25 to 27%. So is it fair to assume that these market share will 43:46 43 minutes, 46 seconds converge to our uh know options options market share eventually in the 43:53 43 minutes, 53 seconds on the cash market segment uh and in the monthly options to start with. As far as cash market segment 44:02 44 minutes, 2 seconds clearly we felt there need to be a level playing field in the market which was absent. So with lot of regulatory 44:10 44 minutes, 10 seconds advocacy common contract nodes were brought in place. What we are understanding from the market 44:17 44 minutes, 17 seconds participants is that while they absolutely realize the benefits of common contract nodes when they seek 44:24 44 minutes, 24 seconds ALGO approvals so that the SOR can be implemented and best price execution could be implemented for the market 44:32 44 minutes, 32 seconds participants. There are quite a few bottlenecks that they are encountering. 44:36 44 minutes, 36 seconds We are very confident that wisdom will prevail and the market will be ready to embrace competitiveness with open mind 44:46 44 minutes, 46 seconds so that the market participants get the benefit of best price execution and become exchange agnostic. I think it's a 44:54 44 minutes, 54 seconds transformation and it's therefore a journey. All participants need to embrace what is good for the market without thinking what is good for 45:03 45 minutes, 3 seconds themselves and we are confident that it will happen. More and more participants are getting aligned with this. 45:10 45 minutes, 10 seconds Particularly mutual fund and insurance companies have started seeing the benefits of embracing this path and 45:17 45 minutes, 17 seconds getting the benefits of best price execution as well as long-term rather other than rather that always we used to 45:24 45 minutes, 24 seconds measure it in terms of other than weekly uh expiry uh other than the current weekly expiry our market share has 45:32 45 minutes, 32 seconds started market share means the share of whatever we trade within that has started growing and earlier Here we were 45:40 45 minutes, 40 seconds nothing there in the next week and next to next week. Today we are very proud to say including the monthly other than the 45:47 45 minutes, 47 seconds current week total volumes of around of of 5% comes from that. I think this is a starting process and we will be going further ahead. 45:57 45 minutes, 57 seconds I mean I'm not actually remembering your second question. Uh oh I think you talked about collocation. Collocation 46:05 46 minutes, 5 seconds was never clearing corporation. Yeah, now I remember uh collocation we never started 46:12 46 minutes, 12 seconds as a profit center. As we earlier also stated deepening and broadening of markets was a necessity for us and 46:19 46 minutes, 19 seconds without collocation it could not have happened. It is incidental that we put in place collocation as a requirement 46:26 46 minutes, 26 seconds and it has become a profit center. At this point of time we are planning to allocate 80 more racks which is in the 46:34 46 minutes, 34 seconds offing soon. Which way and how will depend upon multiple factors. With that we will be having around 500 racks in 46:43 46 minutes, 43 seconds place. Currently the collocation revenue is somewhere around 45 to 48 crores per quarter. We think it will get stabilized 46:51 46 minutes, 51 seconds at that level. If you are not planning to increase any charges which at this point of time will not be done ad hoc. 46:57 46 minutes, 57 seconds It will be only at appropriate time appropriate levels. As far as clearing corporation is concerned, we have put in lot of efforts to improve the 47:05 47 minutes, 5 seconds technological supremacy and efficiency of clearing corporation. Traveling from 3,000 trades per second per member to a 47:13 47 minutes, 13 seconds p uh in clearing corporation uh that capability to 27,000 I think which you are doing now in itself is a great 47:20 47 minutes, 20 seconds achievement and there is still a long way to go. We will strive hard to provide the best of services. Therefore 47:28 47 minutes, 28 seconds the so that there is a level playing field in the market in the area of clearing as well. 47:35 47 minutes, 35 seconds Thank you sir. Thank you and all the best sir. Thank you so much Chandra G. 47:41 47 minutes, 41 seconds Thank you. Our next question come from the line of Prag Jen from Motila Los Financial Services. Please go ahead. 47:49 47 minutes, 49 seconds Yeah. Hi sir. So my question is on uh stock options um you know how do we kind of scale up that segment is it linked to 47:58 47 minutes, 58 seconds the uh cash volumes and what are the efforts and what are the plans uh for that particular segment because I think 48:06 48 minutes, 6 seconds that's a a decent part of the industry volumes in terms of premium turnover and the premium to national is also uh 48:14 48 minutes, 14 seconds significantly better there. So what are the odds on that particular category uh over the medium term? 48:21 48 minutes, 21 seconds It's a very good question that you are asking. Uh BSC always looks for product diversification in its portfolio. 48:29 48 minutes, 29 seconds Certainly therefore stock options would be one of the areas which we'll be looking into. As you would be knowing 48:36 48 minutes, 36 seconds comparatively stock futures were more attractive products for the market compared to stock options and stock 48:43 48 minutes, 43 seconds options were therefore getting slightly lesser attention compared to stock futures and as I said previously we 48:52 48 minutes, 52 seconds recently started our journey just around 30 months uh before and it was fortunate for us that we were able to grow to the 49:00 49 minutes level where we are now we have our primary focus has seen at this point of time on cash market volumes and bringing 49:07 49 minutes, 7 seconds in level playing field there and ensuring other than the current weak options gaining traction slowly we are 49:15 49 minutes, 15 seconds progressing there at the appropriate time like what we talked about commodities we'll be putting in efforts for stock options as well to gain 49:24 49 minutes, 24 seconds momentum at BSC and use the existing infrastructure of market participants and technology so that we can leverage 49:31 49 minutes, 31 seconds on it and provide a very good alternative competitive platform for the market participants. 49:39 49 minutes, 39 seconds So just follow up on that is there any linkage between cash volumes? Are we having a low market share on cash volumes and stock options? Would there 49:48 49 minutes, 48 seconds be any linkage? Uh in that sense uh it is very difficult to say that because the market micro structure is 49:56 49 minutes, 56 seconds not that easy to predict. Uh whether the stock market volumes will increase, stock options volume or the vice versa will happen or they will continue to 50:05 50 minutes, 5 seconds exist. See today if you look at it the cash market is fungeible across exchanges. The stock options in a way 50:12 50 minutes, 12 seconds are fungeible across exchanges. So I don't know whether there is any prerequisite of one to be present in the same exchange or the other. So it's very 50:21 50 minutes, 21 seconds difficult to give an answer in that sense. The stock as a as a underlying is very active in Indian markets. That in 50:30 50 minutes, 30 seconds itself therefore should be sufficient for picking up stock options. probably it may not be venue sensitive. That is 50:37 50 minutes, 37 seconds one view but we have to wait and see how it unfolds. Thank you so much sir. All the best. 50:46 50 minutes, 46 seconds Thank you. 50:49 50 minutes, 49 seconds Our next question come from the line of Deepak Ajamira from IG India. Please go ahead. 50:55 50 minutes, 55 seconds Thank you. Thanks for the opportunity and congratulation on great set of return and also congratulations 51:02 51 minutes, 2 seconds uh considering or looking at January number where NX is higher than the NSE in terms of national turnover Nifty. So 51:11 51 minutes, 11 seconds my question is on the charges to my knowledge u premium compared to the 51:17 51 minutes, 17 seconds turnover we are charging lower than the NSE. So what is plan there to increase 51:24 51 minutes, 24 seconds the same? Thank you Ajira G. Thank you for your congratulatory messages and thanks for kindly attending this call and asking 51:33 51 minutes, 33 seconds this question. Uh and thanks for noting the way in which Sensex is growing. At this point of time the charges that we 51:42 51 minutes, 42 seconds make are around 250 rupees lower on a per cr basis. Uh if you recall we 51:49 51 minutes, 49 seconds started our journey with no charges then we went into 500 rupees and then we slowly increased it to some mid-level 51:56 51 minutes, 56 seconds and then we ultimately landed up with the current charges that we are charges are not fixed and written in stone 52:04 52 minutes, 4 seconds certainly they have some scope for further increase as I always say depending on the market's capability to 52:11 52 minutes, 11 seconds bear the cost there are multiple costs that are evolving in the market profit cannot be a sole objective for an MI it 52:18 52 minutes, 18 seconds also has other responsibilities. Keeping that in mind the any increase in charges will be considered at an appropriate 52:26 52 minutes, 26 seconds time for appropriate reasons and after considering what the voice of customer would be in this regard. 52:35 52 minutes, 35 seconds Thank you all the Thank you. Our next question come from 52:43 52 minutes, 43 seconds the line of Dshan Bulch Chandani from DB wealth. Please go ahead. 52:49 52 minutes, 49 seconds Um, congratulations management on the good results. Um, what is the sort of impact that we are envisioning? 52:57 52 minutes, 57 seconds I'm really sorry Mr. Bulshandani, your voice is very low. Okay. Is this better? Yes, please go ahead. 53:06 53 minutes, 6 seconds So, um, management, what is it that we are thinking on the recent changes that the government has made on the ST? What 53:14 53 minutes, 14 seconds are the reflection in the markets that you are have started to expect that what can happen now? What are your thoughts on it? 53:24 53 minutes, 24 seconds Uh thank you uh Vish Bjendani G for congratulating us and thanks for attending this call and asking this 53:31 53 minutes, 31 seconds question. I think you are primarily referring to the ST increase. Uh the other part of it is of course with 53:39 53 minutes, 39 seconds regard to the buyback the capital gains tax. I think that's a very wonderful change. Lot of people talk about the ST. 53:47 53 minutes, 47 seconds So let me take the question to reflect that area and answer you. It had two portions. One is increasing the ST for futures and second is for options. 53:58 53 minutes, 58 seconds uh as I have been telling the press also before my experience from the past is that whenever SGT charges are increased 54:07 54 minutes, 7 seconds for options it has not had any meaningful impact on the volumes and volumes have continued as before. Uh 54:16 54 minutes, 16 seconds that is the experience that I have seen from my limited knowledge of what I have seen in the market. As far as futures 54:23 54 minutes, 23 seconds are concerned, I think the thought process behind the uh move probably 54:30 54 minutes, 30 seconds could be twofold. One is to encourage long-term equity investments among 54:38 54 minutes, 38 seconds retailers instead of getting into the derivatives and secondly secondly to inc 54:44 54 minutes, 44 seconds en encourage longerterm future contracts which may help mutual funds and other institutions which are permitted to 54:52 54 minutes, 52 seconds trade derivatives both if materialized will be in the interest of the market. So I think there 54:59 54 minutes, 59 seconds will be some time to adjust and reorient for the market and once it happens it'll be in the interest of the market as more 55:07 55 minutes, 7 seconds retail people may move towards mutual fund and long-term equity investments and mutual funds which are doing arbitrage funds and others may think of 55:16 55 minutes, 16 seconds a longerterm option instead of monthly option so that the cost that would be debited to the funds will get lowered. 55:25 55 minutes, 25 seconds Um so just to follow up here a good chunk of our growth has happened because of the futures introduction by BSC and 55:34 55 minutes, 34 seconds uh if the charges go up uh more than double on SD uh wouldn't that be a a 55:42 55 minutes, 42 seconds problem for our growth trajectory just from a uh just from basic perspective? 55:50 55 minutes, 50 seconds It's a very valid question that you're asking but the truth is slightly different. The growth of BSC's 55:57 55 minutes, 57 seconds derivatives has been based on Sensex options volumes at this point of time in 56:04 56 minutes, 4 seconds comparison to the Sensex options. Sensex futures are still at a very nent stages of growth 56:12 56 minutes, 12 seconds because it is such a small level. I don't think it will have much impact because of any increase or decrease. If it had been a significant chunk, there 56:21 56 minutes, 21 seconds is a probability for us to rethink on what could be the strategy for futures. 56:27 56 minutes, 27 seconds Since at this point of time, it looks like more a supporting volume for options that is happening in very nent 56:33 56 minutes, 33 seconds stages. We do not find any impact specifically coming on Sensex futures because of the change. 56:41 56 minutes, 41 seconds So this is more of a neutral news for us rather than a negative news for us or an impact on our direct business. 56:49 56 minutes, 49 seconds Uh Bulandani G I think we should restrict it to one question. You had two questions and if you are getting into three questions I have replied you. I'm 56:58 56 minutes, 58 seconds sure you get what I'm saying. You should get into the queue again. Yeah. Thank you sir. 57:07 57 minutes, 7 seconds Thank you. Request participant to please limit the question to one question per participant. 57:14 57 minutes, 14 seconds Our next question come from the line of Dish Agarwal from Capital. Please go ahead. 57:20 57 minutes, 20 seconds Yeah, good evening sir. Uh thank you for the opportunity and congratulations on a very strong performance. Uh most of the questions have been answered just to 57:28 57 minutes, 28 seconds clarification. First uh did you say that uh you are nearly at 150% of your core SDF requirement and to that extent the 57:37 57 minutes, 37 seconds incremental contribution will not be there from the coming quarter or it will come down that is first and secondly the increase in the STD that has happened on 57:46 57 minutes, 46 seconds the future side uh would uh that in any uh way directionally can the volume shift from futures to either equity 57:54 57 minutes, 54 seconds options or cash is that a possibility uh as far as the uh say SGF if you look 58:02 58 minutes, 2 seconds at it most of the time what we talk about SGF is more on a retrospective basis on a prospective basis it's not 58:10 58 minutes, 10 seconds very ammenable for prediction that is why a hadock number of 5% and 150 were arrived at by us to prevent any shocks 58:18 58 minutes, 18 seconds in this quarter with the type of parameters that we have seen we found that there was no need for us to contribute the entire full 5% and we 58:28 58 minutes, 28 seconds restricted somewhere on 3% plus I guess because we touched the top line of 150%. 58:34 58 minutes, 34 seconds Will the same thing will continue and therefore there will be no need for any contribution in the next quarter? No, it 58:41 58 minutes, 41 seconds is not it that way. As we always maintained the algorithm for computing 58:47 58 minutes, 47 seconds the SGF requirement is a complex one and therefore depending upon what is the highest open interest and other things 58:54 58 minutes, 54 seconds in the next quarter there may be a need for contributing or there may be no need. The move is not to predict and 59:02 59 minutes, 2 seconds prevent. The move is to normalize so that there are no sudden jerks. As far as the [clears throat] 59:11 59 minutes, 11 seconds SGT is concerned, your question was will that result in move towards options? 59:17 59 minutes, 17 seconds Will that lead to move towards uh f equity underlying equity volumes? uh my 59:25 59 minutes, 25 seconds impression is that the way the futures ST is structured I think it is more to 59:32 59 minutes, 32 seconds encourage people particularly retailers to think of participating in longerterm equity and for mutual fund and others to 59:42 59 minutes, 42 seconds think about longerterm futures instead of monthly futures. So that could be the result. Options at this point of time 59:50 59 minutes, 50 seconds for various reasons in a growth trajectory because of that while the growth may be 59:58 59 minutes, 58 seconds slightly slower compared to what it was I think it will still grow and may uh 1:00:05 1 hour, 5 seconds not show any severe impact because of the SGT increase. All these are what we 1:00:13 1 hour, 13 seconds consider could be truth. The time will tell what is the right thing and maybe we have to wait and watch to see what 1:00:21 1 hour, 21 seconds type of reaction the market has because market cannot be just predicted with our own understanding. Market is complex and 1:00:30 1 hour, 30 seconds so we will have to wait and watch as my reply to your question. 1:00:34 1 hour, 34 seconds Understood. Thank you so much and all the very best. Thank you. Thank you so much ladies and gentlemen. 1:00:42 1 hour, 42 seconds due to the time constraints. That was the last question for today. I now hand the conference over to Mr. Anand Setan for closing comments. Thank you and over to you sir. Thank you so much Danish. 1:00:53 1 hour, 53 seconds Thank you everyone for joining the call today. Uh if you have any further questions please feel free to reach out to us at bac.irbs.com. 1:01:02 1 hour, 1 minute, 2 seconds Thank you. 1:01:04 1 hour, 1 minute, 4 seconds Thank you Aner. Ladies and gentlemen on behalf of BS Limited that conclude this conference. Thank you for joining us.