MESSAGES

my views as below are based on a simplistic understanding of the issue. please correct me if wrong. basically, sebi regulatory fees is collected by brokers from customers and remitted to exchanges who in turn send it to sebi. from what i gather, the sebi fee is rs.10 per crore on notional turnover. so, if the monies have been collected from customers on this basis but remitted by the exchange to sebi on premium turnover basis -which is much less- then the difference is payable to sebi and probably that is what sebi is asking with retrospective effect. thus if the monies had been lying with bse then it is not going to affect their profits but it is only a cash flow issue which bse can easily manage, being cash rich. also, the derivatives business got traction only since the past 18 months earlier, it was negligible and hence the retrospective claim may not affect them much. however, interestingly, it is reported that it is the rival nse who have taken up the issue with sebi. perhaps they are paying charges on notional turnover. but then, after all, the present ceo of nse was earlier at the helm in bse for many years until very recently and how the discrepancy arose. anyway, let us wait and see. in any case, the future prospects of bse along with its various triggers are in tact. as always, this is strictly a scrip for long term.