BSE, MCX shares soar up to 8% following lenient-than-expected F&O norms

BSE and MCX stocks are also in an uptrend since both exchanges have hiked and introduced new transaction charges for brokers across various segments effective October 1, 2024.

Shares of BSE Ltd, Multi Commodity Exchange Of India (MCX) gained up to 8 percent on October 3 after the new F&O norms released by the Securities and Exchange Board of India (SEBI) turned out to be lenient-than-expected.

The market regulator announced six new norms that ranged from upfront premium collection to limiting weekly expiry of index derivatives. These six regulations will take effect between November 20, 2024, and April 2025.

A significant change is the reduced increase in expiry-day margins, set at 2 percent instead of the expected 8 percent, along with a hike in lot size of 2-3 times compared to the earlier proposal of 3-4 times.

Citi anticipates a gradual decline in retail volumes, predicting a nearly 35 percent reduction in index options premium turnover for NSE, BSE's competitor.

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Meanwhile, IIFL Securities estimates that the new rules will impact NSE's options premium turnover by 35 to 40 percent, while BSE could see a decrease of 15 to 20 percent. Jefferies also believes that the phased implementation of these regulations over the next three to six months will lead to a measured tightening of the market.

At 10:34 am, BSE shares were trading 8 percent higher at Rs 4,193.60 on the National Stock Exchange (NSE). The stock hit an all-time high of Rs 4,200 in early trade. BSE share price has zoomed 91 percent so far this year, outperforming Nifty's returns of 18 percent.

In the past 12 months, the counter has surged 224 percent, more than tripling investors' money. In comparison, Nifty rose 32 percent during this period.

Shares of MCX were trading over a percent higher at Rs 5,889.35 on NSE. Year-to-date, the stock has surged 85 percent. In the past one year, the counter has rallied over 200 percent, beating Nifty's returns by a margin.

The stocks are also in an uptrend since both exchanges have hiked and introduced new transaction charges for brokers across various segments effective October 1, 2024. The BSE has raised transaction fees for Sensex and Bankex options contracts to Rs 3,250 per crore of premium turnover. MCX also revised transaction fees for futures and options contracts.

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