In just over a year, BSE’s share price has risen more than 14 times, turning the historic exchange into a fast‑growing profit machine.
Why the Change Was Needed
When Sundararaman Ramamurthy became managing director and CEO in January 2023, the exchange faced stagnant revenue and many operational problems. Instead of chasing quick sales, he first tackled the basics.
Cost‑Cutting and Clean‑Up
- Saved roughly ₹100 crore by cutting unnecessary expenses.
- Closed “barter” schemes that leaked revenue.
- Filled vacant positions, rationalised pay scales and restored regular performance reviews.
- Re‑energised senior leadership.
Listening to Brokers
Ramamurthy met about 350 brokers in his first three months, simply asking, “What would make you trade more on BSE?” Their feedback shaped the next wave of changes.
Technology Overhaul
- Replaced old servers and built a new data centre.
- Boosted order‑processing capacity from 10 crore to 1,800 crore orders per second.
- Enabled brokers to handle up to 67,500 trades per second with just a one‑second delay.
These upgrades removed latency, a key barrier that had pushed traders to rival exchanges.
New Derivative Products
In May 2023 BSE relaunched equity‑derivative contracts, focusing on index options that had previously been dominated by NSE. The flagship product, Sensex weekly options, quickly gained market share.
- Index‑options premium turnover share rose to 28.4% (up from 13.1% a year earlier).
- Notional turnover share grew to 44% (up from 24.5%).
Financial Impact
Revenue jumped four‑fold in FY24, reaching ₹1,371 crore, and is projected to hit ₹4,368 crore by FY26 – a 218% rise. Profit after tax could climb to ₹2,229 crore, while EBITDA margins may expand from 28% to about 62%.
- Transaction fees now make up nearly 60% of revenue, an eight‑fold increase since FY23.
- Co‑location rack capacity doubled, with plans for 500 racks by FY26.
- Institutional ownership surged: mutual fund stakes rose from 0.3% to 10.4%, and foreign investors doubled to 16.7%.
Looking Ahead
Brokerages expect further earnings from co‑location services, the clearing corporation and the Star MF platform. However, analysts warn that as Sensex weekly options grow, they could face the same turnover limits that now constrain Nifty contracts after FY29.
Disclaimer
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.