BSE Limited Investor Presentation - November 2018
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BSE Limited
1
Investor Presentation – November 2018
Disclaimer
This presentation and the discussion may contain certain words or phrases that are forward - looking statements,
which are tentative, based on current expectations of the management of BSE Limited or any of its subsidiaries and
associate companies (“BSE”).Actual results may vary significantly from the forward-looking statements contained in
this presentations due to various risks and uncertainties. These risks and uncertainties include the effect of economic
and political conditions in India and outside India, volatility in interest rates and in the securities market, new
regulations and Government policies that may impact the businesses of BSE as well as the ability to implement its
strategy.
The information contained herein is as of the date referenced and BSE does not undertake any obligation to update
these statements. BSE has obtained all market data and other information from sources believed to be reliable or are
its internal estimates, although its accuracy or completeness cannot be guaranteed. Competition numbers are based
on published results and management analysis. For purpose of comparison, following stock exchanges are considered
– National Stock Exchange of India Limited, Metropolitan Stock Exchange of India Limited. The presentation relating to
financial performance herein is reclassified/regrouped based on Management estimates and may not directly
correspond to published data. The numbers have also been rounded off in the interest of easier understanding. Prior
period figures have been regrouped/reclassified wherever necessary. All information in this presentation has been
prepared solely by the company and has not been independently verified by anyone else.
This presentation is for information purposes only and does not constitute an offer or recommendation to buy or sell
any securities of BSE. Any action taken by you on the basis of the information contained herein is your responsibility
alone and BSE or its directors or employees will not be liable in any manner for the consequences of such action taken
by you.
The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession
this presentation comes should inform themselves about, and observe, any such restrictions.
2
Index
1 Overview
1
2 Business
3 State-of-the-art Infrastructure and Technology
4 Recent Initiatives & Growth Drivers
5 Performance Highlights
3
Evolution Of The Exchange - Key Milestones
1875 To 1995 1996 To 2005 2006 To 2010 2011 To 2014 2015 To 2016 2017 To 2018
•The Native Share & •Equity Derivatives •Currency Derivatives •Launch of Currency •BSE celebrated its •Hon’ble Prime
Stock Broker's introduced Introduced Derivatives (BSE CDX) 140th Foundation Minister of India, Shri
Association formed Day Narendra Modi
•Index Options •First to introduce •Launch of Interest inaugurated India
•BSE granted launched Mobile-based Trading Rate Futures (BSE – •BSE becomes the International
permanent IRF) fastest exchange in Exchange (IFSC) Ltd,
recognition under the world with a India’s 1st
•BSE becomes a International
Securities Contracts Corporate Entity •Launch of median response
(Regulation) Act speed of 6 Exchange
Institutional Trading
(SCRA) Platform on BSE SME microseconds
•BSE becomes India's
•S&P BSE SENSEX , •BSE announces 1st listed Stock
•BSE Launches New Exchange
country's first equity Debt Segment commencement of
index launched trading of Sovereign
Gold Bonds •BSE completes
•Launch of Equity Buyback of its Equity
•BSE On-Line Trading Segment on BOLT
(BOLT) system •Shri Arun Jaitley, Shares, reducing
Plus with Median issued equity share
introduced Response Time of 200 Hon'ble Minister of
Finance Unveiled the capital by 3.70%.
(µs)
Commemorative
Postage Stamp •BSE launches its
•BSE listed cos market Celebrating 140 commodity
cap crosses landmark glorious years of BSE derivatives segment
100 lakh crore making it India's 1st
Universal Exchange
4
BSE Group
BSE GROUP BSE LTD.
• NSE Symbol: BSE
• BloombergSymbol : BSE IN
• ReutersSymbol: BSEL.NS
DOMESTIC IFSC-GIFT CITY
Central Counter Party
Exchange Central Counter Party Central Securities Exchange (CCP )
(CCP) Depository (CSD)
100% 100%
100% 100% 24%
India International India
BSE Investments Ltd. Indian Clearing Central Depositary Exchange(IFSC)Ltd. InternationalClearing
Corporation Ltd Services Ltd Corporation (IFSC)
✓ Pranurja Solutions Limited
Limited ✓ CDSL Ventures Ltd. 100%
✓ BSE EBIX Insurance ✓ CDSL Insurance Repository Ltd.
Broking Private Limited – ✓ CDSL Commodity Repository Ltd India INX Global Access
40% IFSC Limited
SERVICES
100% 100% 50% 51.22% 100% 100%
Marketplace BSE Institute Ltd. Asia Index Pvt Ltd. BFSI Sector Skill BSE CSR Integrated BSE Sammaan CSR
Technologies Pvt Ltd. Council of India Foundation Limited
✓ BIL- Ryerson Technology
[Section 8 [Section 8
✓ Market place Tech Infra Startup Incubator
Services Pvt. Ltd.- 100% Foundation [Section 8 company] Company]
✓ Marketplace EBIX company] - 51% ✓ BSE-48.78% ✓ BSE - 75%
Technology Services Private ✓ BSE Institute Ltd. ✓ BSE Subsidiaries - 25%
Limited – 40% (BIL)– 2.44%
5 As on Sep 30, 2018
Shareholding Pattern
SOME KEY SHAREHOLDERS
SHAREHOLDING PATTERN Deutsche Boerse AG 4.92%
Life Insurance Corporation of India 4.88%
Siddharth Balachandran 3.42%
IDFC Group 2.86%
Others
44% State Bank of India 2.42%
Trading Member
23% GKFF Ventures 2.37%
Caldwell India Holding Inc. 2.27%
Jupiter India Fund 2.09%
Banks Acacia Banyan Partners Limited 1.95%
1%
ICICI Prudential Mutual Fund 1.81%
Mutual Funds
5% FDI / FII / FPI MSPL Limited 1.16%
Financial
22%
Institution Chanakya Investor Group 1.04%
5%
S Gopalakrishnan 1.03%
Aditya Birla Group 0.99%
Wellington Investor Group 0.37%
Paid up Capital ₹103.6 million|Face Value per share ₹ 2/- each As at Sept 30, 2018
6Experienced Board of Directors
On BSE On BSE Board
Name Bio Name Bio
Board since since
Promoter and Managing
S Ravi Vikramajit Previously, acting Chief Justice –
Partner of Ravi Rajan & Co.,
Chairman and Public 2016 Sen High Court of Karnataka and later
Chartered Accountants 2016
Interest Director Public Interest appointed as Judge, Supreme Court
Former Director of UCO Bank
Director of India
Previously, Group Chief
Ashishkumar Information Officer, Reliance Founder, Rajeshree Sabnavis
Manilal Chauhan Industries Limited Rajeshree & Associates
2012 Rajnikant
Managing Director Chairperson of the Board of Invitee Member on the Managing
Sabnavis 2015 Committee of the Bombay
and CEO Governors of National Institute
of Technology, Manipur Shareholder Chamber of Commerce and Co-
Director Chairperson of Direct Taxation
Previously, Member of the Committee
Expenditure Management
Sumit Bose Commission
2016 Sriprakash Deputy Dean and Gordon Y Billard
Public Interest Former Union Finance
Secretary and Revenue Kothari Professor of Accounting and
Director 2014
Secretary in the Ministry of Shareholder Finance at Massachusetts Institute
Finance, Government of India Director of Technology
Subhash S. Mundra Former Deputy Governor,
Public Interest 2018 Reserve Bank of India
Former General Secretary of IOSCO
Director Former Chairman & Managing
(2012-2016), former Deputy
Director ofBank of Baroda
David Director-General for Securities and
Financial Markets at the EU
Wright
2018 Commission.
Usha Sangwan Public Interest From March 2000 – October 2010
2015 Former Managing Director, Life Director
Shareholder Director he was first Director, then Deputy
Insurance Corporation of India
Director-General for securities and
financial markets.
7Experienced Management Team
Name Since Bio Name Since Bio
Prior to joining BSE, Credit Analysis & Research Ltd. as
B Tech in Mechanical Engineering from Joint General Manager (Accounts),CFO at Multi
IIT Bombay and a PGDM from IIM Commodity Exchange of India Limited and has also
Kolkata worked at the National Stock Exchange.
He is one of the founders of India's Nayan Mehta 2012 Heads Finance & Accounts, Treasury and Taxation
National Stock Exchange (“NSE”) where Functions at BSE
Chief Financial
he worked from 1992 to 2000. He is best Officer He represents BSE on the Boards of group companies
known as the father of modern financial and joint ventures of BSE and as a member of the
Ashishkumar
2009 Qualified Audit Review Committee of SEBI.
Manilal Chauhan derivatives in India due to his work at
NSE Prior to BSE he was an Executive Director in Morgan
Managing Director
Represents BSE as the Chairman on the Stanley India for 10 years. He was earlier with
and CEO
National Stock Exchange and has managed various
Executive Board of the South Asian
functions like Trading Operations, Inspection and
Federation of Exchanges.
Investigation, Futures and Options Clearing and
Previously, Group Chief information 2015 Trading. He was also the CEO of India Index Services
Neeraj
officer, Reliance Industries Limited Ltd. and Dotex International Ltd
Kulshrestha
HeadsTrading, Listing , Membership Operations and
Chief of Business listing sales.
Operations
Prior to joining BSE, worked with various 27 year experience in Capital markets, which includes
departments in SEBI Securities Markets and General Insurance.
More than 19 years of experience in the Prior to joining BSE, employed with Log-in Utility and
InvestSmart Financial Services Limited
area of legal and compliance. He has
2009 previously worked at the Securities and 30 years of experience in the area of Application
Nehal Vora Systems/ IT Infrastructure development and
Exchange Board of India (SEBI) for 10
Chief Regulatory 2010 management, managing all aspects of IT operations in
yearsand asDirector, Law & Compliance
Officer Financial Services, Capital markets and manufacturing
at DSP Merrill Lynch Ltd heading Broking Kersi Tavadia
companies. He has played a leading role in
and Investment Banking Compliance Chief Information transforming BSE into the fastest exchange in the
Officer country
8Index
1 Overview
1
2 Business
3 State-of-the-art Infrastructure and Technology
4 Recent Initiatives & Growth Drivers
5 Performance Highlights
9Diversified Lines of Business
Revenue Business
Listing Business Market Business Data Business
Primary Market BSE Star Mutual Information
Secondary Market New Debt Segment Membership Post Trade
Funds platform Products
• Equity Cash
• IPO ▪ OTC Corporate ▪ Trading ▪ Clearing and
• Small & Medium ▪ Order Bond Reporting Members Settlement
• EQUITY Enterprises placement CP/CD Services ▪ Market Data
• Commodity Markets platform ▪ Clearing
▪ Trade through ICCL ▪ Corporate Data
• SME Repository
Members
• Offer to Buy ▪ Depository ▪ Corporate
• BOND ▪ Self-clearing Services Action through
• Offer for Sale
Members through CDSL SWIFT
• FPO • Close Ended Mutual
▪ End of Day
Funds
• BSE Hi-Tech Products
• Corporate Bonds
• Sovereign ▪ Historical Data
• Government Securities
Gold Bonds ▪ Macroeconomic
and Sovereign Gold
Indices
• Mutual Fund- Bonds
NFO • Equity Derivatives
• Currency Derivatives
• Interest Rate Futures
Supporting Business
• Securities lending &
borrowing (through ICCL)
• ETF
Technology Corporate Social
Index Products Training
Responsibility
▪ S&P BSE SENSEX ▪ Training
▪ IT services & solutions
▪ Sectorial Indices ▪ Certification ▪ BSE Sammaan CSR
▪ Sustainability Indices ▪ Skill Development
▪ Thematic Indices ▪ Technology
▪ Fixed Income Indices Incubator&
10 Accelerator ProgramGlobal Ranking
Highest globally with
Listed
Companies 5,071*
Number of listed entities
Largest globally with
Currency
Options 435 million*
Number of Contracts Traded
Third largest globally with
Currency
Futures 340 million*
Number of Contracts Traded
Electronic 11th largest globally with
Book 236 million*
Trades
Market 10th highest globally with
Capitalization
$ 2 trillion#
*Data as on Sep 2018
# Data for Sep 2018
Source : WFE, BSE 11Membership
Equity Cash Currency Derivatives
Members Members
1364 527 535 540
516
1361 485
410
1353 1354
1351
1344
FY14-15 FY15-16 FY16-17 FY17-18 Q1FY19 Q2FY19 FY14-15 FY15-16 FY16-17 FY17-18 Q1FY19 Q2FY19
Continuous interaction with members in normal course of business and through various programs
Investor Education Programs Promote Algorithmic Traders
Jointly established a series of investor education BSE bears software license costs for algorithmic
programs with members and broker associations to trading and market access, infrastructure costs on
have open communication with members and co-location rack space, among other costs
increase exposure to investors
12Business – Marketshare
Red Ocean Businesses Blue Ocean Businesses
Established leader in Listing related
Market leadership in Blue Ocean Businesses
Business. Gaining share in Currency Derivatives
75%
86%
79%
47% 60% 62% 66%
36% 37%
9%
Companies/ Currency Interest Rate Debt/ Fixed Equity Cash StAR MF@ SME# Commodities^ BSE Bond India INX
Securities Derivatives Derivatives Income
Listed$
Insurance
New Power
Distribution JV
Businesses Exchange*
with EBIX*
@ Marketshare in Mutual Fund StAR Platform represents the value of purchase / redemption orders executed during Q2 FY19
# Marketshare in SME Segment represents number of companies listed in SME segment during Q2 FY19.
$ As on September 30, 2018.
All Marketshare for Q2 FY19
*Subject to Regulatory Approvals
^represents share in the exchanges commencing commodity trading since Oct-18
13Business - Equity Markets
Average Daily Turnover - Equity (₹ million) Transaction Charges Income - Equity (₹ million)
1,442
CAGR 21% 44,023
40,252 1,174
35,179
32,993 32,055 CAGR 50%
29,963
20,783
531
485
286
226 218
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19
Revision in transaction charges of equity segment w.e.f August
▪ Significant increase in Transaction Charges 01, 2018
Income in FY16-17 mainly due to differential Monthly Turnover in Rs. Crs Rate (in Rs.) per Crore on
charging of transaction charges on select in calendar month incremental turnover.
exclusive group of securities with effect from
Upto 750 300
1st January, 2016 at the rate of 0.1% on value
traded. Above 750 upto 1500 290
Above 1500 Upto 2500 280
Above 2500 upto 5000 270
▪ Average number of trades per day is 1.37
Above 5000 upto 7500 260
million during Q2 FY19.
Above 7500 250
14Business – Currency Derivatives
Average Daily Turnover - Currency Derivatives (₹ million)
30,162 80,191 1,14,212 1,31,060 1,82,891 3,14,177 3,38,878
CAGR 21%
1,92,285
1,84,586
1,00,932
4,012 37,751 56,356
25,272 1,29,592 1,46,593
26,150 76,461 81,959
54,919 74,704
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1FY19 Q2 FY19
Currency Futures Currency Options
Average Daily Number of Contracts - Currency Derivatives
0.48 1.30 1.74 1.95 2.85 4.68 4.85
2.75 2.77
1.58
0.58 0.84
0.41 1.92 2.08
0.06 1.16 1.11 1.27
0.89
0.42
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19
Currency Futures Currency Options
15Business – Currency Derivatives
Open Interest (End of Year) - Currency Derivatives
41,532 6,64,668 12,87,841 15,98,346 8,97,944 12,87,083 11,68,931
5,30,152
3,87,638 2,80,721
3,83,186
2,30,258
1,90,275 10,68,194 10,06,362
9,00,203 7,85,745
5,974 6,67,686
4,74,393
35,558
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19
Currency Futures Currency Options Total
Transaction Charges Income - Currency Derivatives (₹ million)
82
CAGR 280%
45
16 19 20
- 2
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19
Transaction charges in Currency derivatives for Q1 FY18 was ₹ 2.2 and ₹ 200 per million of turnover for Currency future and
currency options respectively.
The same was revised, in FY19, to Incremental turnover basis and ₹ 10 per million for currency future and currency option
respectively.
16Business – Interest Rate Futures
Average Daily Turnover - Interest Rate Futures Average Daily Number of Contracts - Interest
(₹ million) Rate Futures
9,251 46,881
CAGR 97%
CAGR 96%
5,288 25,559 25,958
4,716 4,856 23,503
3,788 20,280
1,761 8,543
629 3,135
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19
Open Interest Contracts (End of Period) - Transaction Charges Income
Interest Rate Futures Interest Rate Futures (₹ million)
80,078 4.48
CAGR 351%
1.43
18,044
9,829 0.50 0.60
5,566 8,237 0.22
336 1941 - -
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19
17Business - Mutual Fund Distribution Platform-StAR MF
PLATFORM FEATURES CONNECTIVITY & USPs
• Completely digital- Demat and Non-Demat /Mutual • Unique overnight investments framework
Fund transactions, while facilitating the benefits of Physical • Multi-mode of platform access
mode
• Completely digital and REAL Time Investors registration /
• 24x7 order acceptance onboarding
• SGB enabled for MFDs • Widely accepted by NDs / Custodians / Brokers / IFA
• 6 day order holding facility Platform/ New age Digital Distributors / IFAs,
• Paperless SIP • E-submission and online MFD Registration
• Any day STP and SWP
• Paperless bank Mandate
BSE StAR MF created SIP STORM in Indian Mutual Funds Industry
11,111 SIPs registered on StAR MF Platform in a single day on October 10, 2018 by Swastika Investments Limited
Number of Mutual Funds Number of Mutual Fund Number of Registered
as on September 30, 2018 Schemes available for Mutual Fund Distributors
trade as on September as on October 31, 2018
30, 2018
38 8,409 16,221
18Business - Mutual Fund Distribution Platform-StAR MF (cont’d)
Some Key
Total Transaction value - Mutual Fund (₹ million) Transacted value through BSE Star MF -
Figures
SchemeType
11,78,237 Orders Processed
2,22,460
~ 3.2 million
1,88,600 (Sep 2018)
CAGR 114% 1,68,790 1,72,980
7,43,014
4,42,346
9,16,000 SIPs
3,91,255 3,61,570
added
1,04,940 New Registration
55,955
Count for XSIP
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19
Q1FY19 Q2FY19 increased 3x in FY
Liquid Non-Liquid
17-18
Number of Orders - Mutual Fund Average Value Per Order (in ₹ '000)
Q2 FY19
1,70,30,445 Mutual fund
135 Revenue : ₹ 71
115 million
CAGR 132% 96
86,57,302
69,51,498
66 69 In H1 FY19, BSE
64,83,468 56
42
StAR MF has
32,80,067
15,87,735
processed above
5,84,453 15.6 million
transactions.
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19
19Business – Services to Corporates
Securities Listed (as at year-end) Listing Fees (₹ million)
484 958 1,446 1,382 1,776 512 472
5,911
5,834 496
433 340
5,624 5,629 332
5,577 1,280
1,013 1,042
184 115 111
626
300 397 361
5,363
5336
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19
Annual Listng Fee Listing processing and Other Listing fees
Book Building & Other Services (₹ million)
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19 108 96 165 187 431 48 72
• Include listing of debt capital and mutual fund schemes and excludes CAGR 35%
delisted securities 100
• As on Aug 31, 2018
Decrease in securities listed during FY19 on account of delisting of 327 44 331
53
securities majorly due to compulsory delisting, partly offset by new listing 33 26
41 112 143 17
of 61 securities. 74 55 32 46
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19
Book Building Fees Other Services Fees
20Business – Small & Medium Enterprises (SME)
No. of Companies Listed (As on End of Period) Listing Related Income (₹ in million)
258
235 39
CAGR 28%
178
131 23
20
18
89 14
43 9
7
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 YTDFY19 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19
Total Turnover (₹ million)
No. of Companies Migrated to Main Board
(As on End of Period) 30,075
53 27,306
46
15,895
25 13,946
10,164
16 7,704
5,834
- - -
FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 YTDFY19 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY19 Q2 FY19
21Preferred Capital Raising Platform
Since April 2015, capital raised $ 3.88 billion During Q2 FY19,
through BSE [₹ 0.17 trillion] BSE listed
$ 30 billion Raised through BSE’s electronic 504
[₹ 2.17 trillion] (till Sep 30, 2018) bond platform during H1 FY19 Privately Placed Debt instruments
During FY 17-18 capital raised During H1 FY19, During FY 18-19,
through BSE BSE listed BSE listed
$ 10 billion 30 942
[₹ 0.62 trillion] Initial Public Offers Privately Placed Debt instruments
Fund Raised – PPDI (₹ in Million)
7,04,454
5,38,220
4,44,544 4,64,112
4,36,795
Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19
Source : BSE 22Business – India International Exchange at GIFT City
Commenced Operations from 16th January, 2017
Index Derivatives Sensex, India 50 Futures & Options
Indian Stock 107 stocks including Reliance Industries Limited, HDFC Bank Limited, Axis Bank Limited, Infosys
Futures Limited, Tata Consultancy Services Limited, Maruti Suzuki India Limited, Tata Motors Limited,
ICICI Bank Limited, Larsen & Toubro Limited and State Bank of India Limited
Global Stock Apple INC, Facebook INC, Microsoft Corporation, Alphabet INC (Google) and JP
Futures Morgan
Asset
Classes & Commodity Gold, Gold KG, Silver, Copper, WTI Crude, BRENT Crude
Futures
Contracts
Commodity Gold
Options
Currency EUR USD, GBP USD and JPY USD
Derivatives
Debt Securities Masala Bonds, Foreign Currency Denominated Bonds
23Business – India International Exchange at GIFT City (cont’d)
Particulars INDIA INX
Value of MTN Programme Established USD 30,845 Million
No. of MTN Programme Established 5
Value of Bonds Listed USD 6,299 Million
No. of Bonds Listed 13
Market Share – MTN Market Share – Bonds Listed
100% 95%
Highest Volume in a day Highest Turnover in a day
1,35,740 $ 1.77 Billion
on 26th September 2018 on 26th September 2018
Exchange Daily Trading Hours
22.00 Hours
04:30:00 hours to 17:00:00 hours and 17:00:01 hours to 02:30:00 hours (Indian Standard Time)
24Business – India International Exchange at GIFT City (cont’d)
(₹ in Million) INX Commodity
INX Index Derivatives Total
Turnover Derivatives Total Turnover
16,864
35,256
11,865
INX Total Turnover
17,015 6,827
52,274
8,296 3,247
3,412 1,721
1,276 29,043
Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19
15,132
INX Indian Stock Derivatives 6,670 INX International
3,071
Total Turnover Commodity Total Turnover
Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19
74
158 154
11 9
5 0
- - -
Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 25 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19Business – India International Exchange at GIFT City (cont’d)
INX Index Derivatives INX Commodity Derivatives
Contracts No. Contracts No.
29,74,380 4,45,013
2,95,604
INX Total Contracts No.
15,21,314
34,39,843 1,60,027
7,53,046 79,801
3,17,376 42,153
1,24,227
Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 18,38,223 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19
9,13,939 INX International
INX Indian Stock Derivatives
Commodity Contracts No.
Contracts No. 1,71,971
3,98,113
5,591
Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19
20,853 20,448
936 864
452
2 - - - -
Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19
Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19
26Business - Data Business Products
Corporate End of day or
Market Data
Data Historical
Equity Level 1 – Real-time & 1
Corporate Announcement Quotation files
minute Snapshots
Equity Level 2 – Real-time Financial Results Annual report
Indices – Real-time & 1 minute
Shareholding Pattern Daily Bulletin
Snapshots
Corporate Action – through
Derivatives (Equity , Index , Sector Classification
SWIFT
Currency & Interest Rate
Derivatives) – Real-time
Trade and Order book data
Market Data products marketed by Deutsche Boerse in International Market
27Index
1 Overview
1
2 Business
3 State-of-the-art Infrastructure and Technology
4 Recent Initiatives & Growth Drivers
5 Performance Highlights
28State-of-the-art Infrastructure & Technology
Technology is a key component of operations and business strategy and we regard it as an
important component of success
Entered into strategic technology alliance with Eurex in Mar 2013,
Co-location services and high-speed Ethernet connections
so as to deploy the Eurex new generation trading system, the T7,
offered to market participants to enable low latency trading
for trading in various segments
Screen based trading system Standard Portfolio Analysis of Risk ("SPAN") margin system, an
Available under license to members of the exchange as industry-standard margin system, used by over 30 exchanges
and clearing organizations worldwide, to evaluate the overall
well as their clients
risk in a portfolio and accurately match margins to risk
All equity cash, equity derivatives and currency derivatives
trades are executed on BOLT+
Technology Spend as % of Total Revenue1
Migrated various segments onto BOLT+
₹ million
- Currency derivatives: Nov 2013 12% 11% 12% 16% 16% 17% 18%
- Equity Derivatives: Feb 2014
- Equity Cash: Apr 2014
All platforms are interconnected and operated through the same
network and workstation, which provides market participants a
seamless experience and efficient operation
Real-time risk management system that conducts real-time
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1FY19 Q2FY19
calculations of members' margins and limits
Technology Cost
29 1. Includes Computer Technology Related Expenses and Spend on Technology Program.Sponsored Market Access
Implementation of ‘Sponsored Market Access’ (SMA) at Co-location
• SMA is a software distribution model in which applications are hosted by a service provider and made available to
customers over a network.
• Free of cost rack space is allocated by BSE to the SMA Service providers to install their algo trading application server in BSE
Co-location. The members can connect to this SMA algo server at Co-location via Internet.
• The algo strategy parameters can be triggered from the member front-end application and sent to the SMA algo server at
Co-location.
• The corresponding algos will generate orders to be sent to BSE trading system through Co-location network.
• The algo orders will be sent to the BSE Trading system via the high speed Co-location gateway for minimum latency.
• Members can execute orders over high speed Co-location network without installation of any infrastructure at Co-location
by the members.
Advantages
• For Members
• Zero capital expenditure on infrastructure at Co-location.
• The algo orders will be generated at Co-location and sent to the BSE Trading system via the high speed 10G Co-location
network for minimum latency.
• For Vendors
• Free of cost rack space is allocated by BSE to SMA service providers to install their algo trading application server in BSE Co-
location.
• Vendor can service multiple clients with a centralized algo server installed at Co-location. Hence, vendor’s cost of
maintenance is low.
30BOLT PLUS ON WEB (BoW)
Application for Desktop & Mobile One Window with Multiple Utilities
Trading Segments For Connectivity
• Single window for Multi
• BSE • Equity – F&O • Dealers • Leased Line
Exchange Segments with all – Currency –
• NSE • Investors • Internet
Asset Class. IRF - OFS –
• MCX • Admin for HO
• Combined Market Depth. Mutual Fund
• NCDEX • Multiple Mini
• Facility of After Market Orders – SLB – Debt Admin for
(AMO). – ITP Regions &
• Real Time Margining and Risk Branches
Monitoring. • Equity – F&O • RMS
• MTM Based Single Click Auto – Currency
square Off. Timer Based Square
off. • Commodities
• Bolt+on web (BOW)- Free of cost
for all Members
• Corporate Action Information. • No IT infrastructure cost to
• Customized short cut keys - the Member.
predefined Key Mapping Styles . • Completely Hosted
• NEWS Plus with RSS feeds and Application.
Twitter. • Single Application for all
• Customized Add on of Web links. Users Types .
• Top Gainers / Top Losers - Most • Trade commencement in one
Active by VOLUME / VALUE. day.
• Real time support services.
31BEST- BSE ELECTRONIC SMART TRADER – HOSTED TRADING SUITE
(Thomson Reuters Omnesys NEST hosted trading platform )
SingleWindow with Multiple Utilities
Exchanges/Segments Users Features
•BSE (Equity, Equity Derivatives, Currency •Admin •Real time Risk Management
Derivatives, SLB, OFS, IPO, OTB, MF) •Multiple Parallel Admin •User Management
•NSE (Equity, Equity Derivatives, Currency •Branch Admin •Multi Exchange/Segment trading
Derivatives, SLB, IPO, OFS)
•Dealer
•MCX
•Offline Client
•NCDEX
•Online Client
BEST- Free of cost for all Members
Roles & Functionalities
Admin Users
User Management Risk Management Dealers Online Client
• User Creation • Comprehensive Risk Rules • Multiple Exchange & • Common login for EXE & WEB
• Creation & assigning roles • Real time Margin & MTM Segments for Trading platform
• Manage Users calculation • Real time broadcast • Real time broadcast
• Reporting & MIS • Managing different Risk • Basket Order, Spread Order, • Payment gateway
• Send Message levels After Market Order, Cover • Order & Trade reports
• Multiple Trading Products Order functionality • Historical reports
• Admin Square off • Online IV’s for Option
• MIS Auto Square off Traders
• Payment Gateway
32Index
1 Overview
1
2 Business
3 State-of-the-art Infrastructure and Technology
4 Recent Initiatives & Growth Drivers
5 Performance Highlights
33Recent Initiatives & Growth Drivers
Recent Initiatives About Enablers Highlights
New electronic bidding platform Introduction of appropriate fee * Reliance Industries Limited
for raising debt by any entity structure based on the growth successfully raised Rs. 3500
BSE-Bond Platform over ₹ 5 billion in a year (w.e.f. and competition strategy at an crores by issuing bonds on
July 1, 2016) and ₹ 2 billion in a appropriate time private placement basis using
year (w.e.f. April 1, 2018) BSE BOND platform.
* Andhra Pradesh Capital
Region Development Authority
successfully raised Rs.2000
crores on BSE BOND platform
* Market-share of 61%
BSE commenced commodity * Commenced commodity * Gained Market share of 86%
Commodities derivatives trading and became derivatives trading in delivery-
the first universal exchange based futures contract in gold
Segment and silver on October 1, 2018.
* Commenced trading in futures
contracts on Oman Crude Oil
* Commenced trading in 1MT
copper contracts
Monetization of services Commencement of a steady BSE StAR MF set an all-time
source of revenue which would record high of 31.66 lakh
BSE StAR MF grow with increasing transactions in September
participation of investors in 2018, witnessing a 10% growth
mutual funds. on a month on month basis.
34Recent Initiatives & Growth Drivers (cont’d)
Recent Initiatives About Highlights
Board of SEBI has approved Inter-operability may increase liquidity across segments
Inter-operability the inter-operability among
among Clearing Clearing Corporations on all
products except commodity
Corporations derivatives, in its Board
Meeting held on September
18 , 2018.
Ongoing thrust to encourage Increase in steady annual source of listing revenue.
SME companies to list on Growth in turnover on Exchange over time especially after
Small & Medium Exchange migration of SME companies to Main Board of the Exchange.
Enterprises Segment
Introduced cross currency Allow entities like corporates, foreign portfolio investors and
Cross Currency derivatives (future and non-resident Indians to participate and to take positions in the
Derivative & Cross options) on pairs such as Euro exchange traded currency derivatives markets.
(EUR)-US Dollar (USD), Pound
INR Options Sterling (GBP)-USD and USD-
Japanese Yen (JPY) and
options on EUR-INR. GBP-INR
and JPY-INR in addition to
existing USD-INR Options.
35Recent Initiatives & Growth Drivers (cont’d)
Alliances About Highlights
BSE has entered into an a The partnership will strengthen BSE's and LME's global
London Metal licensing agreement with the collaboration and support opportunities that will mutually
London Metal Exchange (LME) benefit the exchanges. The agreement is designed to facilitate
Exchange Limited a premier base metals- closer cooperation in areas such as product development,
(LME) focused commodities training and the sharing of market resources. The licensing
exchange agreement will also allow BSE to use the prices of LME's Base
Metals contracts to price its proposed base metals futures
contract.
BSE signs MoU with BSE has signed a MoU with FIEO to create awareness about the
Federation of Federation of Indian Export benefits of commodity/derivatives market and encourage
Indian Export Organizations commodity stakeholders to hedge on exchange.
BSE and FIEO will be collaborating together for the growth and
Organizations development of the value chain participants and enable them to
face competition and manage price risk better.
BSE signs MoU with Dubai DME is the premier international energy futures and
Dubai Mercantile Mercantile Exchange to commodities exchange in the Middle East
Exchange explore cooperation on The strategic collaboration with the energy-focused
commodity derivatives market commodities exchange will help create a resourceful
commodities derivatives market to facilitate tremendous growth
in the country’s energy sector
36Recent Initiatives & Growth Drivers (cont’d)
Macro-economic Factors – Underpenetrated Indian Markets
GDP Factor & India’s Credit Rating
Correlated to market capitalization / activity which in turn is linked to GDP
Compared to other geographies,Market Cap / GDP ratio has room for
Scope for Market Cap / GDP ratio to increase to pre-financial crisis levels improvement
151% 107%
99% 99% 69% 77% 72% 69% 90%
55% 55% 61% 96%
90%
CY07
CY08
CY09
CY10
CY11
CY12
CY13
CY14
CY15
CY16
CY17
India World BRICS
Global rating agency Moody’s upgraded India’s local and foreign currency issuer ratings to Baa2 from Baa3
and changed the outlook on the rating to stable from positive
Government Initiatives
Demonitization will lead be a positive impact on capital markets in
GST will lead to tax simplification which in turn will boost GDP
India during long term
₹ 2.1 trillion Bank Recapitalization announcement a booster dose to
economy by Government
Corporates to meet about 25% of their financing needs from the bond
market
EPFO allowed to invest in equity markets – will boost equity Launch of Commodity Spot exchanges to drive transparency and efficiency
investments in India Provisions to further develop the IFSC at Gift City
37Recent Initiatives & Growth Drivers (cont’d)
Macro-economic Factors – Underpenetrated Indian Markets
Global Inflow of Funds Demographic Dividend
With 7-8% GDP growth rate, India is the
preferred investment destination % of India’s total population in
FPIs granted permanent registration compared working age category for the
to approvals for 1 / 5 years earlier 65% - 70% next 25 years
Participation by Retail Investors New Products and Initiatives
Historical preference for physical assets but that is
changing with increasing financial awareness
Increase in India equity indices has improved Room to introduce innovative derivative products like weather
confidence derivatives, energy derivatives and credit derivatives
Tax breaks further incentivizing to invest
Further easing of restriction of FIIs trading in capital market
India’s equity savings as a percentage of financial savings is
products
substantially lower than other countries
Source : World Bank & Care Research Introduction of more agricultural commodities and other global
commodities for trading
5% 15% 26% 29% 30% 49%
India China Malaysia Singapore W.Europe US
38Index
1 Overview
1
2 Business
3 State-of-the-art Infrastructure and Technology
4 Recent Initiatives & Growth Drivers
5 Performance Highlights
39Integrated Business Model
• Multiple contact points with members and market participants provides the ability to generate revenue from
multiple levels of the business
Primary Trading Clearing & Settlement Distribution
Linked to
1 Transaction Charges Market Activity
Directly proportional to market activity levels
Treasury Income on Linked to
Linked to interest rates and, to an extent, market activity since that would lead to more
2 Clearing and Settlement Market Activity
margin being deposited by members
Funds to an Extent
3 Other Securities Services Recurring Primarily consists of charges recovered from members for network connectivity
Mostly derived from listing income that is not impacted by market activity
4 Services to Corporates Recurring Dependent on number of listed entities and hence is a recurring revenue stream
Potential for increase if amount charged is increased
Impacted primarily due to level of subscriptions and revision in pricing policies
5 Data Dissemination Fees Recurring
Contributes only 4-5% in India compared to 10-25% in developed markets
6 Income From Investments Recurring Linked to investment yields
and Deposits
7 Other Income Recurring Mostly derived from rent and training institute etc., which are stable sources of income
Linked to Market Activity Recurring
40Standalone Profit & Loss
Operational Income
Half Year Ending (₹ in million) 30-Sep-16 30-Sep-17 30-Sep-18
Securities Services 614 805 695
Services to Corporates 802 1,008 1,104
Data Dissemination Fees 123 124 147
Revenue from Operations 1,539 1,937 1,946
Income From Investments and Deposits 1,020 1,132 862
Other Income 199 128 178
Total Income 2,758 3,197 2,986
41Standalone Profit & Loss (cont’d)
Half Year Ending (₹ in million) 30-Sep-16 30-Sep-17 30-Sep-18
Total Income 2,758 3,197 2,986
Employee Expenses 343 364 419
Technology Cost & Technology Program 518 625 638
Admin & Other Expenses* 554 484 628
EBITDA 1,344 1,724 1,301
Depreciation & Amortization 220 182 200
Exceptional Items
Settlement Guarantee Fund ("SGF") 208 - -
Profit on sale of part equity stake in CDSL - -3,160 -51
Other Exceptional Items - 5 5
Profit Before Tax 916 4,697 1,147
Tax Expenses 44 224 98
Net Profit (Inc. CDSL Gain) 872 4,473 1,049
Net Profit Margin (Exc. CDSL Gain) 32% 41% 33%
Note :
The Company has investment of ₹ 1,700 Lakh in secured Non-convertible Debentures of IL&FS Group. Considering the recent developments, during the current quarter, a
provision of ₹ 340 Lakh has been made, and unrealised interest of ₹ 82 Lakh has been reversed.
42Consolidated Profit & Loss
Steady increase in Operational Income
Half Year Ending (₹ in million) 30-Sep-16 30-Sep-17 30-Sep-18
- Transaction Charges 485 682 596
- Treasury Income on Clearing and Settlement Funds 175 199 164
Others 136 134 117
Securities Services 796 1,015 877
Services to Corporates 802 1,008 1,105
Other Operating Income 213 269 317
Revenue from Operations 1,811 2,292 2,299
Income From Investments and Deposits 970 870 812
Other Income 184 146 171
Total Income 2,965 3,308 3,282
43Consolidated Profit & Loss (cont’d)
Half Year Ending (₹ in million) 30-Sep-16 30-Sep-17 30-Sep-18
Total Income 2,965 3,308 3,282
Employee Expenses 504 588 680
Technology Cost & Technology Program 456 546 570
Other Expenses* 647 614 770
EBITDA 1,358 1,560 1,262
Depreciation & Amortization 227 210 235
Finance Cost 5 6 4
Exceptional Items
Liquidity Enhancement Scheme ("LES") - - 59
Settlement Guarantee Fund ("SGF") 208 - -
Other Exceptional Items - -4,613 -46
Profit Before Tax & Minority/Associate 918 5,957 1,010
Associate Share 5 70 135
Profit Before Tax 923 6,027 1,145
Tax Expenses 63 244 171
Minority Share 210 133 -
Net Profit From Continuing Operations 649 5,650 974
Profit From Discontinued Operation 427 255 -
Net Profit from Total Operation 1,076 5,905 974
Note :
The Company has investment of ₹ 1,700 Lakh in secured Non-convertible Debentures of IL&FS Group. Considering the recent developments, during the current quarter,
a provision of ₹ 340 Lakh has been made, and unrealised interest of ₹ 82 Lakh has been reversed.
44Financial Overview – Consolidated
Key Performance Indicators (₹ in million)
16,000 26% 21% 20% 36% 34% 31% 25% 110%
14,000 90%
12,000 70%
10,000
50%
8,000 6,701 6,989
6,248 6,183 30%
6,000
5,298
4,000 10%
2,206 2,373
1,352 1,297 1,329 1,642 1,641 -10%
2,000 515 407
- -30%
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18* Q1FY19 Q2FY19
Total Revenue Net Profit Net Margin * Net profit from continuing operation
Earnings per share (₹)
[Continuing operations]
43.51
40.41
25.57 23.77 24.35
22.48
9.64 7.75
FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1FY19 Q2FY19
45Financial Overview (cont’d)
Consolidated Net-worth (₹ million)
31,344 30,789
29,256
26,624
24,609 25,229
23,708
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 Q1 FY18-19 Q2 FY18-19
Dividend per share (₹) & Pay-out Ratio
80 124% 140%
70 120%
60 93% 95%
87% 100%
50 74%
66% 36.0 80%
40
28.0 60%
30
15.0 40%
20
8.0 8.0 10.0
10 20%
- 0%
FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18
Dividend Per Share Dividend Payout Ratio
Figures as per restated IGAAP financials for FY12-13 to FY14-15 and Ind-AS financials for FY15-16 onwards
# Dividend pay-out ratio is calculated based on Standalone Profit 46THANK YOU
INVESTOR RELATIONS CONTACT :
Yatin Padia
Head – Investor Relations
+91 22 2272 8516
bse.ir@bseindia.com
This document has been prepared exclusively for the benefit and internal use of the recipient and does not carry any right of
reproduction or disclosure.Neither this document nor any of its contents maybe used for any other purpose without the prior
written consent of BSE Ltd. (the “Company”).
In preparing this document, the Company has relied upon and assumed, without any independent verification, the accuracy and
completeness of all information utilized within this document. This document contains certain assumptions, which the Company
considers reasonable at this time and which are subject to change. Any calculations or forecasts produced within this document
are indicative and subject to change. No representation or warranty is given by the Company as to theaccuracy, reasonableness o
r
completeness of any idea and/or assumption utilized within this document.
Recipients should not construe any of the contents within this document as advice relating to business, financial, legal, taxation,
or investment matters and are advised to consult their own business, financial, legal, taxation and other advisors . This document
does not constitute an offer for sale, or an invitation to subscribe for, or purchase equity shares or other assets or securities of the
Company and the information contained herein shall not form the basis of any contract. This document is also not meant to be or
to constitute any offer for any transaction.
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