Initiatives Taken Four Years Ago Bearing Fruit

ON THE EVE of its results, BSE’s Ashishkumar Chauhan (49) took time out to speak to Clifford Alvares on how the exchange business is being reshaped globally and how India’s oldest exchange is gearing up for the future. 

- Clifford Alvares

Q: BSE has reported an increase in net profit. How has it fared on core operations?

Our net profits increased to Rs 523 crore in the second quarter, because of an exceptional transaction where we reduced our stake in CDSL to 24 per cent through an offer for sale. But otherwise, our revenues from operations has increased 26 per cent y-o-y consolidated, while net profit is up 44 per cent. It’s been a good quarter. We have a steady nature of business, and some of our initiatives over the last few years are bearing fruit.

Q: Which are the areas that have seen improvement? Your market share has slipped to competition?

We have seen improvement in listings, and on transaction charges. The volumes on gift city exchange is about $50 million, which is improving.

Our trading volumes have increased. We are now charging on per transaction basis. Our aim is to push people towards investments, and not towards speculation. It is important to measure the exchange’s performance on the basis of capital raising, and quality of compliance, not just volumes.

Nevertheless, BSE has taken leadership in currency derivatives, where we are No. 1. This segment does not make headlines because the Rupee is stable. Our fund distribution platform is gaining ground. On our SME platform, we have more than 75 per cent market share. We are doing well in bond distribution business. Over the next 20 years, India will require more investments. Speculation is plateauing across the world, and exchanges across the world have to figure out new ways of getting themselves engaged with society.

Q: In equity derivatives, BSE has negligible market share...