Synopsis: Shares of BSE Limited rose about 4% after the Securities and Exchange Board of India approved derivatives on the BSE Sensex Next 30 Index. The move could expand trading opportunities and improve liquidity. Strong financial performance and new product launches continue to strengthen the exchange’s position in India’s growing derivatives market.
Shares of BSE Limited traded higher during Thursday’s trading session following the announcement of significant regulatory news by the exchange regarding the Securities Exchange Board of India. This approval will enable the stock exchange to add more depth to its derivatives segment, which has been recording robust growth in India’s capital markets with the participation of both institutional and retail investors.
With a market cap of Rs 1.1 lakh crore, the shares of BSE Ltd jumped about 4% in today’s trading session and reached a high of Rs 2,727.90. When compared to its previous day’s closing price of Rs 2,626.90. The shares are trading at a PE of 50.4, whereas their industry’s PE is at 49, and they have given a return of more than 4,000% in the last 5 years.
BSE Gets SEBI Nod to Launch Derivatives on Sensex Next 30 Index
BSE Limited has been given approval by the Securities and Exchange Board of India (SEBI) to develop derivative contracts on the BSE Sensex Next 30 index, marking the latest in a series of developments in the derivatives space for the company. The move is likely to enable investors with further avenues to hedge and trade on companies that are just outside the main Sensex index constituents, while still being large and liquid in the market.
Sensex Next 30 Index
The Sensex Next 30 Index is a measure that tracks the next lot of large and liquid companies in the BSE 100 universe that are still outside the main BSE Sensex index. The companies are already part of the derivatives market and are potential future constituents of the main BSE Sensex Index. The move by BSE to develop derivatives on this index is likely to further enhance market participation and provide trading avenues for institutional and retail investors alike.
According to the new framework, the exchange would launch cash-settled monthly index futures and monthly index options that would expire on the last Thursday of the expiry period, similar to other existing index derivatives. These instruments would enable investors to take directional bets on the index or hedge their portfolios against any broad market movement involving mid-to-large-cap companies.
The launch of derivatives would also have positive implications for liquidity and price discovery in the underlying stocks and would help to reinforce BSE’s position in the competitive space for derivatives trading. As exchanges become increasingly innovative with the launch of new derivatives based on indices, it may have positive implications for the trading activity in India’s capital markets.
Financials
The revenue from operations for the company stood at Rs 1,244 crores in Q3 FY26 compared to the Q3 FY25 revenue of Rs 768 crores, up by about 62 per cent YoY. Similarly, the net profit stood at Rs 597 crore in Q3 FY26, up compared to the Rs 219 crore profit in Q3 FY25.
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