BSE declares a Final Dividend of Rs 21 per equity share of Rs 2 each for FY2020-21

Mumbai: BSE Ltd. (BSE), Asia’s oldest and first universal exchange and World’s fastest exchange with a speed of 6 microseconds, announced its audited consolidated and standalone financial results for the quarter ended and year end March 31, 2021.

The Board of directors of BSE Limited has recommended a final dividend of Rs 21 per equity share having face value of Rs 2 for the financial year 2020-21, subject to the approval of the shareholders in the ensuing annual general meeting. The total payout with a dividend payout ratio of 99% of the current year profits would be Rs 96.19 crore.

Business Highlights

Primary Markets

In financial year 2020-21, while the global economy faced adversities due to the pandemic, the various issuers raised over Rs. 3.65 lakh crores through 755 issues on BSE Bond platform.  BSE BOND platform continues to be the preferred choice by India Inc to raise debt capital through private placements, structured instruments, public issues and also by Municipal Corporations for issuing Municipal Bonds.   Various issuers also raised more than 1.33 lakh crores through IPOs, Preferential and Rights issues during the financial year 2020-21. The above is in addition to over Rs. 16.06 lakh crore of private placed debts and commercial papers listed on BSE during the financial year 2020-21.   It is encouraging to see how Indian Investors have shown faith in investing funds in Indian corporate sector through BSE platforms. BSE continues to be the preferred exchange for investments in India.     The total number of investors registered with BSE have been consistently growing and currently they stand over 6.77 crores. 

Equity Cash Segment

BSE is seeing increasing participation from high frequency traders.  Further, enablement of best price execution by certain large broking houses has also resulted in the increased turnover in our equity cash segment.    With BSE’s superior technology and customer friendly frontend software, the average daily turnover in the equity cash segment increased by 57% from Rs.  2,676 crore in financial year 2019-20 to Rs. 4,197 crore in financial year 2020-21.   The same is also reflected in the Company’s strong operational performance in the current period. 

Equity Derivatives Segment

In financial year 2020-21, BSE witnessed significant growth in turnover in its Equity Derivatives Segment.  The launch of Sensex 50 contracts with a differentiated expiry date from 29th June, 2020 has attracted a lot of attention and interest from the market participants.  It has been the primary reason for growth in BSE’s market share in equity derivatives segment from 0.1% in financial year 2019-22 to 5.2% for the financial year 2020-21.  The average daily turnover in Equity derivatives segment for March 2021 quarter was Rs. 2.78 lakh crore. 

Commodity Derivatives Segment 

BSE is India’s second largest Commodity Derivatives Exchange in India and offers a wide gamut of products across agri and non-agri segments.  Keeping up with its spirit of innovation and to meet market requirements, BSE was the first exchange to launch 'Options in Goods' contracts in Gold mini and Silver kg based on spot prices from June 1, 2020.  It has completed nine consecutive months of physical deliveries at the exchange designated vaults in Ahmedabad and Gujarat.    The average daily turnover in the Commodity Derivatives segment is steadily rising.  The average daily turnover in Commodity Derivatives segment for the year ended 31st March, 2021 was Rs 2,392 crore.   

Currency Derivatives Segment

The Currency Derivatives Segment continues to provide a very liquid platform for trading in currencies.  The average daily turnover in our Currency Derivatives Segment for the year ended 31st March, 2021 was Rs 20,913 crore.  BSE’s market share in this segment for financial year 2020-21 was 29.6%.

BSE SME Platform & BSE Startups Platform

Small & Medium Enterprises are the backbone of Indian economy.  Growth of SME’s can lead to significantly higher capital formation in the country. BSE has been actively encouraging listing of SME’s in India.  As on 31st March, 2021, 334 companies were listed on BSE’s SME segment.  The said companies raised funds amounting to Rs. 3,470 crore and their market capitalization as on 31st March 2021 exceeded Rs. 21,000 crores.  BSE’s market share in listing of companies in SME segment stood strong at 61% as at 31st March, 2021.  

BSE is the first exchange in India to launch Startups Platform in December 2018 for promoting listing of startups in IT, ITES, Biotech and many other hi-tech industries.  9 startups have already raised Rs. 33.50 crores on this platform and are listed on this platform as on 31st March, 2021. 

Mutual Fund - StAR MF Platform

BSE StAR MF, India's largest Mutual Funds Distributor platform continued its stellar growth throughout financial year 2020-21.  In financial year 2020-21, the number of transactions processed by BSE StAR MF grew by 63% to over 9.38 crore transactions as compared to 5.75 crore transactions in FY 2019-20.   The superior support system and distribution reach of BSE StAR MF has enabled the platform to grow exponentially with over 69,700 registered distributors in India.  BSE’s market share in this segment for the year ended 31st March, 2021 stands at 81.8%.

It may be noted that the BSE StAR MF platform witnessed a consistent net equity inflow of investments during financial year 2020-21 when the industry was seeing net outflow in their equity-based schemes.  The net equity inflow to mutual funds through BSE StAR MF platform during financial year 2020-21 was Rs. 22,444 crores as against net equity outflow of Rs. 25,965 crores in the industry.

BSE StAR MF platform continues to scale new peaks of transactions in a single day.  The Platform has processed a record 17.84 lakh transactions in a single day on 12th April, 2021 surpassing the previous best record of 15.52  lakh transactions on 5th April, 2021.  The BSE StAR MF Platform has continued its unabated growth with processing 1.1 crore transactions in April 2021 as compared to 63.17 lakh transactions in April 2020. 

The BSE StAR MF app, launched in May 2019, to help Mutual Fund Distributors register clients on real-time basis and execute paperless transactions, has been well received by the investment community and has processed over 22.20 lakh transactions till 30th April, 2021.

India International Exchange at IFSC

BSE promoted international exchange at Gift City, Gandhinagar,  India INX has been growing exponentially ever since it commenced trading activities on January 16, 2017. Average daily trading turnover on India INX for the financial year 2020-21 increased by 207% to USD 6.96  billion as compared to USD .226 billion for the financial year 2019-20.  It has witnessed an all-time high turnover of over USD 30.21 billion on 10th March 2021. The previous all-time high turnover was USD 24.13 billion on 14th January, 2021.This increased trading activity validates the new products and initiatives taken by India INX and reflects growing interest in the IFSC among the broking fraternity. Even during the Covid-19 pandemic and lockdown, India INX was operational for 22 hours nonstop and has maintained its leadership as the No. 1 exchange in IFSC GIFT City.   India INX is the dominant IFSC exchange in GIFT city with the market share of 88% in derivatives trading and 100% in bond listing for the year ended 31st March, 2021.

BSE’s stake in India INX stood at 90.72% as on 31st March, 2020.  Thereafter, the stake has come down to 84.14% due to preferential issue amounting to Rs. 12.54 crore by India INX to certain investors.  Similarly, BSE’s stake in India ICC, which is BSE promoted international clearing corporation at Gift City, Gandhinagar, has gone down from 90.1% as on 31st March, 2020 to 78.88% post preferential issue amounting to Rs. 12.63 crores by India ICC to certain investors.

Insurance Broking

BSE Ebix Insurance Broking Private Limited, a joint venture of BSE and Ebix Fincorp Exchange Pte Ltd., had beta launched its operations on 7th February, 2020 with the offering of private car and two wheeler auto insurance and currently has seven General Insurance companies, two standalone Health Insurer and three Life Insurance Companies on its platform.  As on 30th April, 2021 BSE Ebix has registered 2492 Certified           Point of Sales. During the financial year 2020-21, the Company intermediated issue of 8,698 policies with premium amounting to Rs 2.75 crores. BSE holds equity stake of 40% through its subsidiary BSE Investments Limited.

BSE E-Agricultural Spot Market

BSE has launched an electronic spot platform for agricultural commodities known as BSE E-Agricultural Markets Ltd. (BEAM), through its wholly owned subsidiary BSE Investments Ltd. on 11th December, 2020.  During the quarter ended 31st March 2021, Frontier Agriculture Platforms Private Limited (FAPL) through its joint venture with BSE Investments Limited, picked up a 40% equity stake in BEAM. Also, on 25th March 2021, BEAM signed a Memorandum of Understanding (MoU) with the Steel Users Federation of India (SUFI) to help develop electronic spot markets in steel and enhance efficiencies of steel spot markets in the country.

Power Exchange

BSE along with PTC India Limited and ICICI Bank Limited had promoted Pranurja Solutions Ltd. and filed a petition with the power market regulator, Central Electricity Regulatory Commission (CERC) on 7th September, 2018 for grant of license for setting up a new power exchange.    CERC has granted registration to establish and operate a power exchange  on  12th May, 2021.  BSE has a stake of 22.61% in the proposed power exchange through its wholly owned subsidiary, BSE Investments Limited.

Commenting on financial performance for the quarter ended, Shri Ashishkumar Chauhan, MD & CEO, said: “BSE has time and again proved itself as the most technologically advanced exchange in India by providing fastest trade execution time and uninterrupted services on a consistent basis over many years.  The efforts made towards building and maintaining its technology prowess combined with culture of customer first, new initiatives and continuous innovation has started to reflect in the business growth and financial performance.”