BSE Shares Surge 18% After SEBI’s Proposal on Derivatives Expiry
Shares of BSE jumped 18% to ₹5,519 on Friday, March 28, after the Securities and Exchange Board of India (SEBI) proposed limiting the derivatives expiry schedule. This proposal forced the National Stock Exchange (NSE) to delay its plan to modify the weekly expiry day. Analysts believe this move will help BSE protect its market share from potential losses.
BSE’s board will meet on March 30 to discuss the issuance of bonus shares.
SEBI’s Expiry Proposal Boosts BSE
In a consultation paper released on March 27, SEBI suggested restricting the expiration dates of stock derivative contracts on any exchange to Tuesday or Thursday. The proposal aims to reduce concentration risk, encourage product innovation, and optimize the scheduling of expiration days.
Currently, BSE’s stock derivative contracts expire on Tuesdays. NSE had planned to shift its expiry date to Monday starting in April 2025 but has now postponed the decision indefinitely.
Brokerage Firms Weigh in on BSE
Jefferies, a leading brokerage firm, reaffirmed its HOLD rating on BSE stock and set a price target of ₹5,250, suggesting a potential 12% rise from its March 27 market price of ₹4,694.
Jefferies noted that SEBI’s proposal could ease concerns about BSE’s market share decline, which was previously expected to impact earnings per share (EPS) by 12%. While the brokerage awaits further clarification on open interest limits, it expects minimal impact on BSE.
BSE Board to Discuss Bonus Shares
BSE’s board will also convene on March 30 to consider issuing bonus shares—additional fully paid-up shares granted to existing shareholders at no extra cost. Companies typically issue bonus shares to improve stock liquidity and lower the share price, making shares more accessible to retail investors.
In line with regulatory requirements, BSE announced that its trading window for securities transactions will remain closed from March 26, 2025, to April 1, 2025.
