InvestorQ : Why did BSE report a sharp fall in profits in Jun-20 quarter when exchanges were functioning normally?
Anamika Sodhani made post

Why did BSE report a sharp fall in profits in Jun-20 quarter when exchanges were functioning normally?

Answer
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2 months ago


India’s only listed stock exchange, BSE, reported 21.4% fall in net profits at Rs.32.48 for the Jun-20 quarter. Total income saw a marginal fall to Rs.162.11 crore for the Jun-20 quarter. BSE reported in a statement that their recent shift for expiry of weekly contracts from Thursday to Monday had been very well received by market players.

Interestingly, growth in market turnover in equity segment was 39% but clearly, the revenues earned by the exchange on this turnover have been falling, which explains the fall in profits and the flat revenues. BSE also reported 52% jump in transactions processed on the STAR Mutual Fund platform to 1.86 crore during the quarter. BSE is looking to sell a stake in STAR MF during the year to monetize its franchise.