BSE Stock Loses Rs 30,000 Crore As Regulatory Changes Hit Trading Volumes
· Business · Economic Times, LiveMint
BSE Ltd has lost nearly Rs 30,000 crore in market value over the past three months due to mounting pressure on its exchange business. The stock decline is driven by three main factors: the introduction of the new Closing Auction Session, weaker index options volumes, and tighter bank guarantee rules for brokers. Brokerages have subsequently cut earnings estimates and lowered their stock projections for the exchange. Market analysts report that domestic proprietary traders face compounding risks from securities transaction tax hikes and stricter regulatory norms. Average daily turnover and premium turnover figures have dropped significantly across major exchanges following the rollout of the closing auction mechanism.
Why it matters
Retail investors and stockbrokers face increased margin pressures and shifting trading dynamics as stricter exchange regulations alter equity options turnover.
Read the original report — Economic Times
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