Ladies and gentlemen, good day and welcome to BSE Limited Q1 FY 2025 Investor Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anand Sethuraman, Head of Investor Relations. Thank you, and over to you, sir.
Thank you so much, Sagar. This is Anand from Investor Relations, and welcome you all to the BSE's earnings call to discuss Q1 FY 2025 performance. Joining us on this call is BSE's leadership team, consisting of Mr. Sundararaman Ramamurthy, Managing Director and CEO, Mr. Deepak Goel, Chief Financial Officer, Mr. Sameer Patil, Chief Business Officer, Ms. Kamala K, Chief Regulatory Officer, Mr. Subhash Kelkar, Chief Information Officer, and Mr. Khushro Bulsara, Chief Risk Officer. Also present here are the senior members of our Business, Finance, and Investor Relations team. Do note that this conference is being recorded, and the transcript of this call, along with the earnings release and presentation, can be found in the Investor Relations section of the BSE India website. Before we get started, I once again remind you that all our remarks today will include forward-looking statements.
Any actual results may differ materially from those contemplated by these forward-looking statements, and any forward-looking statements that we make today on this call are based on assumptions, and BSE assumes no obligation to update these statements as a result of new information or future events. With this, I will now request Mr. Sundararaman Ramamurthy, Managing Director and CEO, to give a brief overview of the company's financial and business performance for Q1 FY 2025.
Thanks, Anand. Good evening, everybody, and a warm welcome to all of our esteemed stakeholders for joining the call today. Before we delve into the numbers, I would like to take a moment to acknowledge the dynamic economic environment in which we operate. The first quarter of FY 2025 has been a period of significant transformation for the Indian economy and the financial markets.
The election results and the union budget have laid out a clear roadmap for sustained growth and development on the nine key priority areas, with a focus on capital expenditure, infrastructure, and digital transformation. This bodes well for the growth of the Indian economy and poised to create ample opportunities for all, including the Indian capital markets. In this backdrop, the Indian capital markets have been witnessing robust activity underpinned by active participation from all classes of investors. The combined market capitalization of all listed stocks on BSE crossed the INR 45,000,000 crore, the benchmark SENSEX, crossing the milestone of 80,000 points for the first time ever. When I joined BSE, registered investors based on Unique Client Code (UCC) stood at 12.1 crores, which has since increased to 18.4 crores as of date, a growth of 51%.
This is a testament to the growing confidence and interest in the capital markets and it is our responsibility to help them navigate the financial landscape. As highlighted in our previous earnings call as well, we remain steadfast in our commitment to fortify the Indian capital markets ecosystem through initiatives via our Investor Protection Fund. Coming back to the updates pertaining to the exchange, I'm happy to share that BSE recorded its highest-ever quarterly revenues, with a record revenue of ₹674.4 crores on a consolidated basis, up 149% as compared to the corresponding quarter previous year. I will now share some of the key financial numbers on a consolidated basis for the quarter ended June 30, 2024, as compared to the corresponding quarter previous year. The growth in revenues is led by strong performance in transaction-related income, treasury income from clearing and settlement services, and investment-related income.
Similarly, BSE's operational revenues have grown by 182% to INR 607.7 crores from INR 215.6 crores. The net profit attributable to shareholders as the company stands at INR 265 crores, up from INR 75.1 crores excluding CDSL stake sale, a growth of 253%. The operating EBITDA for Q1 FY 2025 stands at INR 283.9 crores from INR 70.1 crores, with operating EBITDA margin expanding to 47% from 33% earlier. The clearing and settlement operational revenues increased by 40% to INR 33.8 crores from INR 24.1 crores. Treasury incomes from clearing and settlement funds have increased by 179% to INR 62 crores from INR 22.2 crores. Other operating revenues, which include data dissemination fees, training income, and software income, have increased by 9% to INR 23.2 crores from INR 21.5 crores. Investment income increased by 43% to INR 62.9 crores from INR 44 crores. We have finished the first quarter strongly, with every business line contributing to revenue growth.
This reflects the strength of our proposition, the improvements we have made to our products, and the depth of our relationships with our customers. I would now like to share updates pertaining to business. For specific numbers pertaining to turnover, kindly refer to the BSE website and the investor presentation. Let me start by covering our primary market segment. BSE platforms continue to remain the preferred choice by Indian companies to raise capital by enabling issuers to raise INR 770,000 crore by means of equity, debt, bonds, commercial papers, etc. Moving on to our trading segment, BSE's average daily turnover in the cash segment for Q1 FY 2025 stands at INR 9,006 crore as compared to INR 4,025 crore in the same quarter last year on account of a boiling market, as mentioned earlier.
It also gives me great pleasure to inform you that SENSEX derivatives continues to grow and broke its record on 26 July 2024 with more than 54 crore contracts traded, representing a notional turnover of INR 43,200,000 crore and a premium turnover of INR 24,929 crore. BANKEX's contracts have also generated significant interest since its expiry date changed to Monday from October 16, 2023, by creating a new record on 29 July 2024 with 25.9 crore contracts traded, representing a notional turnover of INR 23,000,000 crore and a premium turnover of INR 20,269 crore. Since relaunch, more than 430 members have traded the BSE derivatives, representing around 47 lakh active clients. BSE forayed into single stock derivatives space with effect from 1 July 2024, with a mid-month expiry on the second Thursday of the month. So far, 155 members have participated in single stock futures and 35 in single stock options.
The total turnover for the month was ₹316 crores in futures and ₹35 crores in options. The performance so far has exceeded our expectations. I would like to delve a bit deeper into the evolving regulatory landscape of the Indian derivatives market, the associated growth in retail participation, and dynamism in this segment. SEBI has recently issued several circulars and consultation papers encompassing various concerns in the derivatives market and the broader securities landscape. These include strengthening index derivatives framework for increased investor participation, protection and market stability, treatment of interest income by clearing corporation on cash collateral received from clearing members, and upstreaming with client funds, charges levied by market infrastructure institutions, etc. I do not wish to go into specific details since they are all readily available.
While some of the proposed measures may potentially impact the derivatives volumes, we are in a phase of careful evaluation and analysis of these consultation papers and circulars. These consultation papers offer valuable opportunities for industry feedback, and we are actively engaging in the process to ensure that the evolving regulatory framework supports market development and deepening liquidity. The reduction of transaction charges for BSE derivatives segment significantly contributed to our financial performance this quarter. BSE is also in the process of redesigning the existing charge structure, which will be uniform for all the members in the equity derivatives segment, to conform to the SEBI circular stating the Market Infrastructure Institutions have to be True to Label, and the new charge structure should give due consideration to the existing per-unit charges realized. The announcement for the new charges will be made separately.
Moving on to our mutual fund distribution segment, BSE StAR MF delivered yet another year of record revenues and performance, up 101% year-over-year to reach INR 48 crores. The total number of transactions processed by BSE StAR MF grew by 72% to reach 14.1 crore transactions in Q1 FY 2025 from 8.3 crores in the corresponding quarter previous year. On an average, the platform processed 4.7 crore transactions per month in Q1 FY 2025 as compared to 2.75 crores in Q1 FY 2024. The platform also processed a new high of 5.27 crore transactions in July 2024. Given the growth, we are going to continue investing in StAR MF and improve it in terms of scalability, functionality, order processing, and introduce a new platform called StAR MF 2.0 this quarter.
Moving on to our subsidiary business now, I would like to update that we have completed the acquisition of S&P Dow Jones Indices' entire equity stake in Asia Index Private Limited, making AIPL our wholly owned subsidiary company. AIPL is committed to improving and expanding its product offerings by working closely with the financial market ecosystem and other relevant stakeholders. The company announced its first index called SENSEX Next 30, which monitors the performance of the largest companies from the BSE 100 that are not yet included in SENSEX. The index is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds. The index launch also aligns with BSE's vision to provide innovative indices in line with the market trends and will be an important area of focus in the coming year given the growth of passive investments in India.
The BSE Group, directly by our subsidiaries, also has its presence in other related businesses, including India International Exchange, that is India INX, BSE's exchange at GIFT City, BSE Ebix, the Hindustan Power Exchange, BSE Agricultural Markets BEAM, spot platform for trading in commodities, and BSE Administration and Services Limited, BASL. BSE is committed to these new areas and is constantly working with partners for the growth of these businesses. As we move forward, we see that there is a significant opportunity to continue to expand and evolve these businesses. In summary, we have started the new financial year well, and our high pace of innovation continues. We are revamping our pricing model and adding newer participants to widen and deepen the liquidity profile in exchange-traded derivatives segment. In our index company, we are seeing strong demand for new products.
BSE StAR MF had an outstanding first quarter, growing share in a strong marketplace. We are making significant enhancements to BSE StAR MF, and the revamped BSE StAR MF 2.0 is approaching launch. We are also delivering efficiency improvements with underlying profitability margins improving year-on-year despite ongoing technology investments to support growth in our business. Before I end my speech, I assure all of our stakeholders that BSE remains steadfast in its commitment to emerge as a vibrant and innovative platform for all stakeholders. With these updates, I now hand over the call back to Anand.
Thank you so much, sir, for these updates. We can now open the conference for question and answer session. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and One on their touchtone phone. If you wish to remove yourself from the question queue, you may press Star and Two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question is from the line of Pranav Thakkar, who is an individual investor. Please go ahead.
Thank you for the opportunity and congratulations for a great set of results. Finally, it's a big relief for shareholders because since last 2 quarters, we are getting surprises, first in terms of SGF and then CB order on notional turnover. Sir, my first question is that if you can bifurcate the equity derivative revenue because up to 3 crores, we are subsidizing it to ₹500, and after that, the next slab is 4,950, which is almost 10x. And I believe that from first October pursuant to the CB order, this will go to 10x, and I believe that it will straight away add to the bottom line. So if you can give some color on what is the subsidized revenue and also if we have worked out what will be the exchange fee per crore from first October.
Pranavji, thank you first of all for listening to us and showing interest with us and asking this question. This question is talking about the telescopic charges which are currently levied on a slab system basis with people doing more turnover, paying lesser charges, and people with very low turnover getting some benefits, and above that, people based on turnover paying higher fees or lower fees. So if you may recall, recently the regulators have issued a circular where they have directed the exchanges to compute the charges based on what is the charge per unit realized. We have started charging on a full-scale basis very recently, that is May 15th, 2024.
Therefore, we are not in a position to ascertain exactly what will be the blended rate for us and what will be the realized rate because the CB dictates it should be per unit charges what is realized currently. That's what should be the starting point for the charge to be levied by the exchange. Since it is just May and we are stabilizing, as you know, there are two important costs for us. One is the clearing and settlement cost, and second is the regulatory fee. While that will not affect the gross value, the gross value will be dependent on what is the premium per traded contract, and the premium per traded contract has been fluctuating a lot in the recent times.
So maybe it will require a few more weeks or at least one more month for us to properly ascertain what is the realized revenue per unit. But what we see is that given the trading pattern that we have seen, we do not find it to be closer to the bottom compared to the top. That much it is becoming evident. Where exactly the needle will stop, we need to see a few more weeks of data before we can come up with a clear number.
Right, sir. The intention of asking this question was mainly because I am also a trader. What exactly I am doing is up to 3 crores of turnover. I do it in one account and another 3 crore in another account. So as an individual, if I see the monthly benefit by trading in BSE compared to NSE is ₹13,000. So ₹4,500 up to 3 crore, ₹500, so that is a small change. So what I need to know.
Not for members, not for investors.
Total revenue, if you have that number ready available, that's what is under INR 500 premium what we are charging.
₹500.
Probably I'm not understanding your question. What is the question? What is the last statement you made? What do you want me to check?
Sir, there is INR 106 crore is the total revenue from equity derivatives for the quarter. How much it belongs to the first slab up to INR 3,500?
No, we do not distribute the income that way as to which slot what it comes because that will not be possible because irrespective of the slab where it belongs to, my clearing and settlement charges are going to be distributed uniformly. So that is not the distribution that we have. That is point number one. The second point is the charges that we make are not with individual investors bearing in mind. It is with the individual members. And what was happening earlier was different members were having different charges because they were in different slab. Going forward, it will be a uniform slab across all members. So how much you want to what you want to know is how much your charges may go up.
If you are in the lowermost point of INR 500, how much it would like it may go up is what you are planning to see. But unfortunately, we are not able to look at it from that perspective. We look at it from the members' perspective. What is the top slab and bottom slab? What is the average revenue that we get? So that would require a few weeks for us for reasons explained by me to come up with a proper number.
Right, sir. Understood. And sir, I am very delighted to see that we are coming with second week expiry because based on whatever experience I have, it will absolutely increase the demand and transactions into the exchange. And traders would be more interested in having the theta value for the first 15 days. But sir, it is observed that broking firms are not allowing it to operate. I also tweeted, but there is no response. So if you can share when it is available on larger platforms like Zerodha, Angel Broking, and Upstox?
On behalf of brokers, it will be very difficult for me to give a commitment of date. Certainly, what we will do is we will be engaging with all the brokers. Because of the public demand, they should start making it available ASAP. We will engage with all of the brokers.
Sir, final one suggestion from my side. It's Bombay Stock Exchange. Can we change the name to Bharat Stock Exchange, please? It will give national footing as well.
We note your suggestions. Thanks for it. We will deliberate on it, and we'll see how best we can look into it. Thank you.
Thank you.
Thank you. A reminder to all the participants. In order to ensure that the management is able to address questions from all the participants in the conference, please restrict your questions to two per participant. If you have any follow-up questions, you can rejoin the queue. The next question is from the line of Devesh Agarwal from IIFL Securities. Please go ahead.
Good evening, sir, and thank you for the opportunity. Firstly, many congratulations on a great set of numbers. My first question would be, although you touched upon the recent consultation paper, but if you could share your initial thought as to what could be the possible impact on the industry volumes and relatively how it can impact BSE, can there be some safeguard in terms of market share gain, and the impact could be relatively lower for BSE? Any thoughts around that?
Sure. May I request you to put it on mute because there is some background noise? Thank you. Thank you. So as you know, SEBI had constituted an expert working group on the topic which you mentioned about derivatives, which deliberated and gave their thoughts to the regulators, which was discussed in a committee called Secondary Markets Advisory Committee. And a public consultation paper has been published by SEBI requesting for views from the market till August 2024. Regulatory process in India are co-created with active consultation from the market participants. And the outcome of any regulatory discussion is based on and has a large bearing on what the market suggestions are to the paper. So at this point of time, that is, the jury is not yet out, so it's not sure as to what is the direction the public consultation paper will ultimately take in formulation of regulation.
Having said that, every emerging regulatory and business environment is new, and therefore the regulatory changes, when they impact existing paradigm, invokes a sense of concern at times. But what we need to notice, they also provide newer opportunities. BSE, since it is at its nascent stages of development of this market, I'm sure will find it comparatively easier to adapt to the emerging paradigms and strategize and grow stronger. As you would have noticed, BSE in the last 18 months has faced multiple headwinds, and it has emerged stronger. What I can tell you is that we reiterate that BSE remains steadfast in its commitment to emerge as a vibrant and innovative platform.
We feel, while we will wait and watch as to see what emerges, we will be restrategizing ourselves to whatever it emerges, adapt ourselves, continue our path of growth journey with the same amount of vibrance that we have been displaying all along. We are very confident about it.
Okay, sir. So the second consultation paper, which talked about returning the interest income on the margin money, if we were to believe that that paper were to be implemented as is, could you share what could be the possible impact for BSE?
So basically, if you're talking about the margin money return on ICCL, since I would what I would think I can tell you what is the total treasury income. It is around INR 62 crore. What portion of it will be coming from the clearing and settlement fund? I need to see. Let me check whether I have this number.
Do we have this?
62 crore. The total number is INR 62 crore, which is coming out of the treasury income of ICCL. That is the number I can say.
Can we say that this entire number could be under, what do you say, discussion in terms of whether this has to be returned?
No, I don't think so. My CFO will reply to this. So Devesh, as Anand explained earlier, this is also under consultation, and the jury is still not out. So once that regulation comes out, we'll be able to exactly assess the impact and possibly can come up with a number. But at this point in time, it is very difficult how much impact it is going to have.
Sure, sir. One last question, sir, from my side. In terms of your equity option segment, if you could share what was the quantum of clearing and settlement cost and the regulatory cost, either in terms of absolute number or in rupees per crore based on premium turnover?
See, around INR 1,200-INR 1,300 per crore. INR 1,200 is the regulatory charge. That is very clear. INR 1,300-INR 1,200 is the clearing and settlement charges that we pay.
Those are more or less 12-13.
Devesh, see, we have given our regulatory expenses in our presentation. So, if you simple division of our regulatory expenses to the premium turnover, we'll give you the figure.
That will be largely for the equity option segment?
Yes.
Clearing and settlement also, is it the similar thing?
Yeah. We have given the clearing and settlement also in our presentation. A simple division will give you the numbers as well.
Perfect. Perfect. Thank you so much.
Thank you. The next question is from the line of Prayesh Jain from Motilal Oswal. Please go ahead.
Yeah. Good evening, sir. Congratulations. So firstly, on the fee that has supported the transaction charge.
Sorry, sorry, sorry for interruption. Can you keep your mouth slightly away from the speaker and talk? It is echoing, so I'm not able to hear you.
Is this better, sir?
Slightly better.
Okay. So what I was asking was with respect to the transaction charges that we have to decide on, would we also, if by that time the budget is out on the clearing and settlement treasury income, so would you also consider that while deciding on a transaction charge, or these two are separate things altogether, and you will have to take the hit of clearing and settlement treasury income per se?
Two points need to be clarified. First of all, they are two separate. By finding the average revenue, that is, the blended rate, actually, you are not taking any hit. What you are doing is whatever you are getting as of now, that instead of being different, different slabs, you are making a uniform slabs. Therefore, that uniform rate, that's not in any way create a new room for any hit. The existing charges continue, and they are separate. They do not go and impact the arriving out of the revenue, realized revenue per unit. That is different, and they do not impact. There is no negative thing coming out because of averaging these out across members. I hope you understand this.
Yeah. So my question was, if I look at the consolidated entity today, right, we have not had hit on the transaction revenues because we will come down to a unit cost, which will be similar to probably the realized rate that we will be earning today. But when the clearing and settlement treasury income interest cost goes away in any form, that will be a hit to the exchange from a revenue and profitability perspective. Do you consider that also while deciding on a charge, or will it be completely separate, and you will have to take that hit?
So no, that's exactly what I thought I clarified. Treasury income clearing and settlement fund is an income of the ICCL. On consolidation, I'm showing it as a revenue. So that's a very separate thing. And if you're talking about the clearing and settlement charges and regulatory charges paid on the revenue earned by the exchange to the clearing corporation and the regulator, even that will not impact arriving at a realized revenue per unit because realized revenue is top line, and these are expenses part. Since the realized revenue is nothing but an averaging out across what we are earning already, it is not in any way further going to be impacted by the existing clearing and settlement charges or by the regulatory charges. As explained before, treasury income on clearing and settlement funds have nothing to do with this, and it is part of ICCL.
Only because of consolidation, you are seeing it along with BSE.
Got that. So then second question is again on clearing and settlement charges that we are paying.
I would really like to say that if people could restrict to two questions and stand again in the queue, it will be helpful.
Sure, sir. I'd ask this one, but I'll come back in the queue. Thank you.
Okay. Okay. Yeah.
Thank you. The next question is from the line of Nalin Shah from NVS Brokerage. Please go ahead.
Mr. Ramamurthy, sir, let me congratulate the BSE team led by yourself, MD, and for producing such wonderful results. We are really delighted to see the complete change in the BSE. As you said, vibrant BSE. It is really vibrant BSE now. That is my first comment. Sir, I wanted to, sir, overall only ask you one question that if I take my Q1, your performance compared to the Q1 of the last year, excluding the extraordinary income of that CDSL profits, can we, in the terms of while computing our equity, this thing value, can we say that this is the similar performance as it was in the last year, first quarter versus total four quarters? We can, I mean, simulate that in the same manner, or do you feel that there could be a lot of fluctuations in the quarterly performance?
Thank you, first of all, for your congratulations. Let me confess to you my shortcoming in not me being capable of forecasting future and not being able to advise you in any fashion whatsoever. From Q1 to Q4 last year, what you saw, whether you can use that as a yardstick to project Q1 to Q4 this year, unfortunately, my capabilities and knowledge do not lie in that area. I'm not able to help you there. My apologies on that.
Thank you. Thank you, sir. My second question was only that StAR MF, looking to the number of transactions and the quantum which we are handling, do you think that, I mean, we can earn, I mean, better and more from that if we were to charge some very negligible even charge to the investors also, that could be your or per transaction basis, which could really enhance our income and profitability from the StAR MF platform?
Thank you for this suggestion. It's a good idea from an income earning perspective. We will have to analyze it and look at it and study it carefully. There are multiple objectives when you start a service for the market. One objective is, of course, taking care of shareholders' value. The second objective is serving the broader market. Three, helping investors in the capital creation of the country through their participation into the markets. There are multiple objectives. Every suggestion will therefore have its pros and cons across many of them. We will certainly take your suggestion on board, analyze it thoroughly, and also consult our other stakeholders, and we will take a meaningful decision.
Sure, sir. Thank you very much. Thank you very much. Thank you.
Thank you. The next question is from the line of Deepak Ajmera from IGE India Family Office. Please go ahead.
Thank you for the opportunity and congratulations on the wonderful result. On the consultation paper, I would like to seek your guidance to understand it more better. One is on the weekly expiry. There is a point that only one exchange can have one weekly expiry. In case NSE opt for Nifty, we will be opting for BANKEX or SENSEX that will decide the revenue swing. So if you can guide that. Thank you.
Thanks for this question. Honestly, at this stage, it's a slightly presumptuous question because there's a good amount of distance to be covered in terms of what is going to be ultimately in black and white from a SEBI circular post the co-created version of regulatory decision. Having said that, BSE will always go by what the market participants want from it. Our decision on what index and what way to go will depend upon what is the meaning of the word benchmark index as understood from SEBI, and also what the market participants require us to do. We will factor both, that is, what SEBI means by benchmark index and also what the market participants want.
Post the public consultation, when things come out in the light of that, with these guidances for us from the regulator and from the market, we will take a decision which will help the marketplace to become more and more vibrant.
Yeah. And on the second part was on the concern that we started generating good derivative income, and then in less than a year, there is a circular from or the consultation paper from SEBI. And in case the derivative income reduces significantly because of elimination of one weekly expiry, what all levers do you have in order to maintain the profitability? Thank you.
Is it a question or a comment?
Yeah. I would like to have your views on what all levers in case we have to maintain the profitability and more from your view, whether we would like to maintain the profitability by increasing the charges, etc. Thank you.
Deepak Ji, actually, this question was asked by two, three speakers before questioners before this question was asked. I gave a sort of a very detailed reply. So in the interest of time, I'll give a very summarized reply for you. I was telling that emerging regulatory and business environments are realities. Things keep on going changing. When they change, they actually also throw new opportunities. So from a shift from a weekly to monthly, I'll give you just one example and leave everything else to your imagination. While one school of thought may think that the number of transactions and contracts may come down, the other school will say the premium traded will be very high.
So the regulatory charge and clearing charge will come down, whereas the revenues will go up because the revenues are based on premium, whereas the charges are based on number of contracts traded. So there are multiple ways of looking at the same thing. One may look dim from one perspective. The same thing may look very bright from other perspectives. So presumptuously, at this point of time to say this is good or bad, it's not possible. What certainly we will have to do is embrace every emerging regulatory requirement because it throws new opportunities. With a very open mind, we should see all possibilities. With a lot of fire in the belly, we should restrategize ourselves with our full energy to ensure we provide a vibrant platform for BSE, which I promised you a few minutes before. We are steadfast, and we will continue with our commitments there.
We have to wait and watch a bit now.
Thank you. Thank you very much.
Thank you. A reminder to all the participants, please restrict your questions to two per participant. If you have any other follow-up questions, please rejoin the queue. The next question is from the line of Dhaval Parekh from IIFL. Please go ahead.
Good evening, sir. Thank you so much for the opportunity, sir. Hope I'm audible. Sir, I have two questions. Firstly, on the StAR MF business, sir, the average yield that we have seen over the last two quarters has improved to INR 3.4 per transaction compared to INR 3 earlier. So is there any material change in the commercials here, or is it something else to do? And is this run rate sustainable going ahead? And also on my second question, on the segment-wise revenue that you have provided in the presentation, we see that the other securities services has grown sharply on a sequential and annual basis to around INR 61 crore in this quarter. So can you please elaborate what all services are plugged into this, and how do we look forward to this? Thank you. These are my two questions, sir.
On the first point, certainly, we have improved the efficiency in processing because of this, our costs have come down. Therefore, the revenues have gone up. On the other security-related charges, I need to look into the details, and we will revert back once we get the details from it. I don't have it readily in front of me now.
Okay. No problem, sir. Thank you, sir. Hello.
Thank you. The next question is from the line of Vikas Jajodia, who is an individual investor. Please go ahead.
Respected Ramamurthy, it's been a pleasure reading the fabulous results presented by BSE and feeling myself enough fortunate to be a BSE shareholder. First, my question is regarding this BSE has contributed to SGF before two quarters. Since currency volume is down to almost zero, do you see reversal in SGF going forward? This is my first question. And secondly, if the one weekly expiry by each exchange is implemented, do we see BSE and NSE going forward for an equal market share? This is my second question, sir.
On the first one, with regard to SGF of currency segment, the computation, retention, and reversal of settlement guarantee funds are governed by regulatory stipulations issued from time to time. The fact that the earlier regulatory clarification has resulted in not being any volumes in currency segment, and therefore the need for the settlement guarantee fund coming down is well known and highly appreciated. But to take back that money and reuse it elsewhere as part of settlement guarantee fund would require regulatory discussions. And based on that outcome, the needful will be done. With regard to the single contract, which you talked about, already, if you could please see the last two questions, we have very detailed way explained. Since it is just few minutes before, the stand is not same. The stand is not different. The stand is same.
Okay, sir. Okay. Thank you so much.
Thank you. The next question is from the line of Amit Chandra from HDFC Securities. Please go ahead.
Before Amit Chandra could proceed, one of the previous people who questioned asked other services included what. I just was looking at the fee. It includes mainly the data fee, the data dissemination fee which we charge. As you know, the basic data which we give to investors is always free of cost. Basic data we provide to the members is also free of cost. So whereas the charges that we make from selling enhanced data is included there, which is one of the main components. Apart from that, we also collect bookbuilding fee, as you know, that bookbuilding fee is not a transaction fee. That also gets there. And what other small amounts we today collect from colocation as a rent, that also goes there.
My apologies, I was not able to reply when the question was asked, but fortunately, we were able to browse through it, and I was able to take it out, and this is the answer for the earlier questionnaire. Sorry, Amit, I have taken away your time. Please proceed with your question.
No problem, sir.
My question is on the SGF part. So you mentioned about the SGF thing, but now the regulator has asked the other exchange to increase the F&O SGF contribution to INR 10,500 crore, which is around 30%-35% higher than where they are currently. And in terms of our contribution to F&O segment, it's only around INR 100 crore. So do we see this that the SGF contribution on the F&O for BSE is also going to increase, or we have a target set by the regulator as it has been done for the other exchange? This is my first question, sir.
I would like to clarify to you that we do not, at this point of time, have any regulatory targets stipulated to us in terms of SGF requirement from F&O. That is the first clarification. We are fully aware of the fact the regulators are looking into the sufficiency and adequacy of settlement guarantee fund, considering various scenarios. The regulators will always come out with a very reasonable co-created decision on what should be the settlement guarantee fund size based on risk analysis on very objective grounds. Once they come out, it may positively or negatively impact. What also some other speaker earlier talked, there is a good amount of surplus lying with BSE in terms of contribution we made to currency segment for SGF. In totality, all have to be looked at. That is the reply from my side.
Okay. And sir, on the reversal of the interest component, on the interest from the clearing corporations, I know we have actually discussed on this. But one clarification more from a fundamental understanding perspective, is it the whole interest that we get from the member deposit or from the clearing funds has to be reversed, or only the interest that is on the idle funds that has to be reversed? Because if I take the idle funds, which don't have any position against it, then the impact becomes very less.
So the current understanding for us is that when a member keeps funds with us, some portion of it gets utilized, and some portion of that is an excess collateral kept by him with us. So our understanding at this point of time is whatever excess funds that are kept with us, which are not at this point of time utilized for any collateral requirement, that alone will be eligible for getting some interest from us. And whatever administrative charges that we will be incurring in retaining that funds with us will be recovered by us, and the balance only will be given to them.
Okay. Sir, just a follow-up on this. Obviously.
Sorry, before that.
Just a follow-up.
Before that, one more clarification, and probably you have to come to the queue again, I guess, for the third question. So therefore, in the light of this, when we look at it, the number INR 62 crore, which we talked about, some price is off; all our administrative expenses included in it, also the interest earned on utilized funds and also on surplus funds. The entire INR 62 crore, what we talked about, cannot be attributed to the interest earned on excess funds only.
Sure, sir. Thank you. I will be back in the queue. Thank you.
Thank you. The next question is from the line of Rajesh Gajra from Informist. Please go ahead.
Yeah. Hi. So in the con call in May, in the previous quarter, you had mentioned that you'll be writing to SEBI about the turnover fee around that INR 160 crore, somewhere around that. So did you write to SEBI? Has SEBI responded to BSE? Because it will have a bearing. You have already provided a big amount in the previous quarter. And if the regulator considers it favorably, then there could be an impact. So what is the feedback that you got from the regulator? This is my question.
Thanks, Rajesh, for your good memory and asking this question to us. We always do what we promise to do, and keeping up our promise. We have had detailed discussions, and we have submitted our submissions to the kind review of the regulators. We also understand that they are actively reviewing our requirements and our submissions. While we would like to have a reply immediately, they are working on it, and probably we are expecting the reply from them soon. And that means, therefore, we have not yet received any reply from them in this regard. On the part of the impact, fortunately, as a part of prudent thought process and management, we have already provided for this money in our earlier quarter. It will not impact in any way negatively our income in the future or the present.
If any relief comes to us, it will positively impact us.
Correct. Thanks. Thanks, sir. My last question is that in this F&O consultation, they were on index derivatives. While you said you will go by what the market participant wants, and you said that thing is over, SEBI comes out with its final thing, whatever the board approves, SEBI board. But what is BSE's view on the proposals in the paper? You would, as an MII affected by the proposal, you would have your own view. What is that view that you will put before SEBI as a feedback to the consultation?
See, BSE's view will be towards what the market should have from a regulatory perspective in order to ensure the objective set out by the regulators in the paper. Because BSE is not outside the market or outside the regulatory setup to have an independent and separate view on what should be done. What is good for the market should be the view of the market infrastructure intermediary. In order to ensure whatever outcome is good for the market, the regulators are not making a unilateral decision. They are discussing with the market participants, such as they have discussed with us, to take our points, what we would like to put across on various points that they have mentioned. They, based on that, what they feel should be the right path, have put it across to the market for their use.
BSE cannot independently voice out a view by itself, which could be other than what is good for the market, what typically is the regulatory view.
But do you agree with SEBI's objectives mentioned in the paper?
SEBI's objective is to ensure market liquidity and growth by taking care of the markets, investors, and intermediaries. That view, nobody can disagree, right? It's a very noble view, and it is in the right direction as a view. The actions towards achieving this view can be very different from different people's perspective. That is why SEBI thinks that these are the right ways to achieve that objective. If the public feels it is different, then accordingly, whatever provides will become the law.
Okay. Thank you. Thank you very much for that. Thank you.
Thank you. Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to Anand sir for closing comments.
Thank you so much. If you still have any further questions, please feel free to write to us at bse.ir@bseindia.com. Thank you so much.
Thanks a lot for all the questions and all the participation.
Thank you. On behalf of BSE Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.