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Shareholding Info
  • Foreign institutions-FII
    7.9 %
  • Other domestic institutions
    3.26 %
  • Retail and other
    58.93 %
  • Mutual Funds
    4.8 %

Company Overview

The Bombay Stock Exchange (BSE) is the oldest and the largest stock exchange in India. It is based in Mumbai, India and was founded in 1875 as the Native Share and Stock Brokers' Association.

BSE lists more than 5,200 firms. It gives competition to Nasdaq, the New York Stock Exchange (NYSE), the Japan Exchange Group, the London Stock Exchange Group, and Shanghai Stock Exchange.

The BSE provides a trustworthy and transparent market for trading in equities, derivatives, foreign exchange, debt instruments, and mutual funds. BSE SME, India's leading SME (small and medium sized enterprises) platform, has listed 250 businesses and is continuously growing.

BSE StAR MF, India's largest online mutual fund platform, adds about 2 lakh new SIPs monthly and executes over 27 lakh transactions.

Moreover, a BSE Bond is a simplified and open ebook mechanism for the private placement of debt securities. It is also the market leader, with over ₹ 2.09 lakh crore in fundraising from 530 issuances.

The BSE has contributed to the growth of the Indian business sector and the development of India's capital markets, especially the retail debt market. The BSE is the first stock exchange in Asia and features a platform for trading stocks for small and medium-sized businesses (SMEs). BSE has expanded its offerings to include clearing, settlement, and risk management services for the capital markets.

Company Journey

The BSE has had a modest origin; it all began with four Gujarati stock brokers and one Parsi stockbroker considering their options about increasing their profits through shares and stocks at the Mumbai Town Hall. The number of brokers eventually only increased due to the numerous location changes that followed.

The BSE relocated to Dalal Street, the financial district of Mumbai, in 1874, and the following year it started conducting business formally under the name Native Share and Stock Brokers Association. Under the Securities Contracts (Regulation) Act of 1956, it received legal status.

The BSE improved and modernised its open outcry system with the BSE Online Trading (BOLT) system in 1995. This transition expanded BSE's operational capabilities and allowed investors to conduct trading activities online using a dematerialisation account.

Under the Corporatisation and Demutualisation Scheme of 2005, BSE changed its name to BSE Limited 2005. In 2007, the organisation completed the demutualisation or legal reorganisation procedure.

The IPO for BSE Limited commenced on 23 January 2017, and ended on 25 January 2017.

Business Highlights

One of the top exchange groups in India, BSE Ltd. acts as a stock exchange. Most of the company's revenue comes from its stock exchange activities, which it conducts under the heading of 'Stock Exchange Operations' or 'Facilitating Trading in Securities and Other Related Ancillary Services.'

It primarily offers a trading platform for the more than 5,000 businesses listed on its market. The exchange provides various services, including trading in debt instruments, mutual funds, derivatives, and stocks. Additionally, BSE provides its clients with risk management, market data services, and instructional initiatives.

The BSE, which has three sectors, is the oldest in Asia and the tenth largest in the world in market capitalisation.

The exchange's securities services segment generates roughly 57% of the income. The rest of the revenue is driven from services to corporations and data distribution fees, which account for 38% and 5% of the total revenues, respectively. The BSE had 1,440 distinct members in all sectors as of 30 June 2016. The BSE ranked as the twelfth most actively traded exchange in the world in the financial year (FY) 2016, with an average of 285 million equity share orders and roughly 1.5 million equity share deals each day.

Performance highlights

  • As of 2022, BSE has a market capitalisation of ₹7,685 crore.
  • BSE's stock price CAGR (Compound Annual Growth Rate) between 2019 and 2022 was 51%. Over the same time period, the compounded profit growth has been at 9%.
  • The operating profit for BSE increased from ₹219 crore in the FY 2019 to ₹346 crore in the FY ending in March 2022.
  • BSE made a net profit of ₹245 crore in the FY 2022 as compared to ₹142 crore in 2021.
  • BSE's compounded sales growth from 2019 to 2022 is 9%. For the same duration, BSE's share price return has been 245.07%.
  • Foreign Portfolio Investors(FPI) have reduced holdings from 11.02% to 10.58% in the quarter ending September 2022.
  • Mutual Funds have also reduced holdings from 0.48% to 0.36% in the quarter ending September 2022.
  • The following mutual funds own BSE stock:
    • Canara Rob Small Cap Fund-Reg(G)
    • Aditya Birla SL Nifty Smallcap 50 Index Fund-Reg(G)
    • Nippon India Nifty Smallcap 250 Index Fund-Reg(G)
    • Motilal Oswal Nifty Smallcap 250 Index Fund-Reg(G)
  • BSE's FY 2022 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) margin was 53.52.
  • The EBITDA margin grew from 44.67 in FY 2021.
  • For the fiscal year that ended in March 2022, BSE had an ROE (Return On Equity) of 5.5% and a ROCE (Return On Capital Expenditure) of 8.7%. For the same time period, its ROA (Return on Assets) percentage was 3.3%.


The management at BSE include:
  • Subhash Sheoratan Mundra - Chairman
  • Ashishkumar Chauhan - CEO
  • David Wright - Public Interest Director
  • Jayshree Vyas - Public Interest Director
  • Kersi Tavadia - Chief Information Officer
  • Nayan Mehta - Chief Financial Officer
  • Neeraj Kulshrestha - Chief Regulatory Officer
  • S S Mundra - Public Interest Director
  • Sameer Patil - Chief Business Officer
  • Shiavax Jal Vazifdar - Public Interest Director
  • Subhasis Chaudhuri - Public Interest Director
  • T C Suseel Kumar - Shareholder Director
  • Umakant Jayaram - Public Interest Director
  • Vishal Bhat - Company Secretary and Compliance Officer

Investor Relation Officer

Mr. Yatin Padia
Tel. No.: 022 2272 8516

Industry Overview

Following the COVID19 pandemic in March 2020, the Indian financial market had a surge in thousands of new investors, with the creation and activation of Demat accounts tripling between 2020 and 2021.

Demat accounts increased dramatically in 2021, from 551 lakh in March to 806 lakh in December. This expansion resulted in 28.33 lakh in monthly account additions in FY21, an increase of 11.91 lakh from FY20. This is high compared to the 408 lakh accounts registered in March 2020.

A list of companies that make the Indian broking industry what it is are:

  • (Upstox) RKSV Securities India Private Limited - Upstox is another well-known name on the stock brokers list, with a market share of 14.47%. It is among the country's fastest-growing stock brokers and is frequently chosen by big-volume traders looking for high margins, aggressive brokerage, and cutting-edge trading platforms.
  • Zerodha Broking Limited - Regarded well for its inexpensive stockbroking, Zerodha represents approximately 15% of the nation's total retail trading activity. 17.42% of the market is served.
  • (Groww) Nextbillion Technology Private Limited - The brand name Nextbillion Technology Private Limited uses Groww to provide investors with online trading and investing services. 10.68% of the market is owned by them.
  • Angel One Limited - Angel Brokerage, a well-known brand in the stock broking sector since its establishment in 1987, is primarily renowned for its cutting-edge trading platforms and client-focused research and consulting services. Its market share is 10.15%
  • ICICI Securities Limited- A fully integrated technology-based securities company, ICICI Securities Ltd. provides various financial services, such as retail and institutional broking, private wealth management, the distribution of financial products, and issuer and advisory services. 8.41% of the market share is owned.

Growth Prospects

According to rating agency ICRA, the sector is expected to produce total revenue of ₹27,000–₹28,000 crore in FY2022, which would represent a y-o-y (year-over-year) increase of 28%–33%. The industry is expected to generate between ₹28,500 and ₹29,000 crore in total sales in FY2023, with the pace of revenue growth expected to decline to 5-7%.

Key market growth factors of the broking industry include:

  • The growing involvement of investors in equity markets is mostly a result of technological advancements. The stock market saw a huge collapse as a result of the pandemic. But demat accounts opened by 130% due to increased financial literacy. The first half of FY 2021 saw the opening of about 6.3 million accounts.
  • Fintech firms have contributed significantly to the expansion of the brokerage business after demonetisation, with support from rising smartphone usage, fast internet, and affordable data. Retail investors use phone trading because they invest largely in practical, user-friendly apps on safe platforms.
  • Brokerage firms in India provide clients access to international investing services that enables them to purchase blue-chip companies in the US. One of the main factors for businesses to offer these services is the demand for portfolio diversity from investors.
  • International agreements amongst brokerage companies show a high demand for these services. In September 2020, Vested Finance, a US Securities and Exchange Commission (SEC) listed investment firm, teamed with Kuvera, an online platform for mutual fund investing in India. Through this collaboration, investors can buy US equities on its online marketplace.

Risks and concerns

The broking sector faces some risks, which are-
  • The sector is suffering from product uniformity and oversaturation. There is not much service variation.
  • For new or aspiring institutional brokers, getting access to funding managers can be difficult, restricting their ability to generate money.
  • Discount brokers of the modern era have forced established brokers to compete for business. Unlike the conventional transaction-based model, discount brokers have a fee-based business strategy.
  • Broking firms are anticipated to boost their funding needs to maintain sufficient margins at the exchanges.
  • The capacity of brokers to provide their clients with additional value propositions, such as variable payment terms and credit, is predicted to be restricted by the standardisation of cash segment margin.
  • The research department is considered a cost centre. It faces the pressure of producing fresh concepts, broader coverage, in-depth and urgent research, and creative publishing. Most of this is on a shoestring financial basis.
  • High attrition is a persistent problem, particularly at the associate level and perhaps below, which causes delays in the creation of new stocks, coverage gaps, knowledge repository loss, and significant lost opportunities for the Head of Research (HoR) and Senior Research Analyst.

The broking sector is doing well in adjusting to these difficulties and overcoming them by using fresher business models, coming up with new products and services, and improving operational effectiveness.


Ms. Sheetal Doba
Corporate Registry
KFin Technologies Limited (Formerly known as KFin Technologies Private Limited)
Selenium Tower B, Plot 31 & 32,
Financial District, Nanakramguda, Serilingampally Mandal,
Hyderabad - 500 032, Telangana.
Toll-Free No. : 1- 800-309-4001

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