BSE shares tanked 18 per cent intraday on Monday, its biggest single-day drop since listing, after it was asked to cough up more fees on options contracts by the regulator for several years along with interest.

The shares ended the day at ₹2,783 apiece, down 13.3 per cent.

BSE has been paying the regulatory fee on the annual turnover — taking into account the premium value for options contracts. As per norms, the fees need to be paid on the notional value of options contracts. In addition, the fees paid to the regulator for FY07 was for a quarter instead of a full year.

The exchange will have to now pay up the differential amount in fees along with 15 per cent interest for every year.

huge amount

BSE said on Monday it was evaluating the validity, or otherwise, of the claim as per SEBI communication. In case, if it is ascertained that the said amount is payable, then the total differential SEBI regulatory fees from FY07 to FY23, would be ₹68.64 crore plus GST which includes interest of ₹30.34 crore.

The due date for payment of SEBI regulatory fee for FY24 is April 30. Amount payable as per premium (turnover) is about ₹1.66 crore plus GST, which has been paid by the company. The differential SEBI regulatory fees for the year could be around ₹96.30 crore plus GST.

Jefferies downgraded the stock to “hold” from “buy” and cut its price target to ₹2,900 from ₹3,000 earlier.

BSE can offset the impact of higher regulatory fees by increasing the transaction charges by about 25 per cent and reducing clearing charges by 10 per cent, said analysts.

“NSE charges ₹35/billion on options premium and the clearing/regulatory cost is 9/10 per cent of the derivative revenue. Similarly, BSE charges ₹26/billion on option premium and the clearing and regulatory cost is 29/38 per cent of the derivative revenue. If we assume a 25 per cent rate hike and a 10 per cent lower clearing cost, the adjusted PAT impact for FY25/26 will come down to 5.3/2 per cent,” said a report by HDFC Securities.