BSE Share Price Jumps 10% as NSE Defers Weekly Expiry Plan

BSE shares witnessed a sharp 10% rally on Friday, March 28, 2025, marking the second consecutive day of gains. This surge came after the National Stock Exchange (NSE) deferred its plan to revise the weekly expiry day for derivatives contracts. The move is seen as favorable for BSE, helping it maintain its market share and boosting investor confidence.

SEBI’s Expiry Proposal Gives BSE an Edge

The Securities and Exchange Board of India (SEBI) issued a consultation paper on March 27, proposing to restrict the expiry of equity derivative contracts on any exchange to either Tuesday or Thursday. This move aims to promote better spacing of expiry days, reduce concentration risks, and encourage innovation in the derivatives market.

Currently, BSE’s equity derivatives expire on Tuesday, while NSE had planned to shift its expiry to Monday from April 2025. However, with SEBI’s new proposal, NSE has now indefinitely postponed its Monday expiry plan. This benefits BSE by preventing potential market share losses, as it effectively locks NSE into Thursday expiries, maintaining BSE's exclusivity on Tuesdays.

Brokerage Views on BSE

The recent SEBI announcement has boosted optimism among investors and analysts. Jefferies, a leading brokerage firm, reiterated its HOLD rating on BSE, setting a share price target of ₹5,250, indicating a 12% upside from its current market price of ₹4,694 (as of March 27).

Jefferies highlighted that the SEBI proposal could:

• Prevent BSE from losing volume to NSE.

• Mitigate the previously estimated 12% earnings per share (EPS) impact due to market share erosion.

Meanwhile, Motilal Oswal Financial Services (MOSL) expressed a positive outlook on BSE, noting that the SEBI changes could sustain the company’s growth trajectory. With BSE’s expiry ahead of NSE, the time decay advantage in options trading would remain intact, benefiting BSE’s market share.

BSE Board to Consider Bonus Share Allotment

Adding to the excitement, BSE’s board is scheduled to meet on March 30, 2025, to discuss the issuance of bonus shares. These are additional shares granted to existing shareholders at no extra cost. Bonus shares are typically issued to enhance stock liquidity and make shares more accessible to retail investors by reducing the share price.

BSE also announced that its trading window for securities transactions will remain closed from March 26 to April 1, 2025, covering the board meeting period.

BSE’s Stock Price Trend

BSE’s share price hit a day’s high of ₹5,152.75, reflecting a 10% gain on March 28. The stock has rallied over 15% in just two days, including a 5% jump on Thursday.

Over the past year, BSE shares have surged by over 90%, highlighting strong investor confidence. Despite a 13% drop in February, the stock rebounded by 13% in March, continuing its upward momentum.

Conclusion

BSE’s recent rally showcases investor optimism driven by SEBI’s regulatory proposal, which helps protect the company’s market share from NSE’s influence. With the upcoming bonus share consideration and regulatory changes favoring BSE, the stock is likely to remain in focus. However, as always, investors are advised to consult financial experts before making any investment decisions.

✅ Stay tuned for more stock market updates and financial news.

Reference from:-https://www.livemint.com/market/stock-market-news/bse-shares-gained-15-in-2-sessions-heres-why-11743135098382.html