SEBI Regulations Impact on Capital Market Players

Shares of

Ltd and have come under pressure following SEBI's discussions about potential new curbs on equity derivatives, leading to significant drops in both stocks. However, a closer look at their business models reveals that their sensitivity to regulatory changes is quite different. → Contrasting Revenue Models: BSE's revenue is directly tied to the premium value of options, charging a percentage-based transaction fee. Therefore, its performance is best tracked by the Average Daily Premium Turnover (ADPT). Angel One's revenue comes from a flat brokerage fee of ₹20 per order, regardless of the trade's premium value. Its revenue is thus more dependent on the total number of orders. → Divergent Financial Impact from Previous Curbs: Despite earlier SEBI measures—like increased contract sizes and stricter margin requirements—BSE's ADPT actually grew by 35% sequentially in Q4 FY25 and another 28% in Q1 FY26. This shows the company's revenue has been resilient to past regulatory changes. In contrast, Angel One's total orders in the F&O segment fell by 25% sequentially in Q4 FY25. Even with a slight recovery in Q1 FY26, the volume remains 22% lower than before the previous curbs were fully implemented. → Financial Outlook and Market Position: Analysts expect BSE's earnings per share (EPS) to grow by 54% in FY26, while Angel One's EPS may fall by 24%. Given its business model, BSE seems better positioned to handle any future regulatory curbs. The exchange also benefits from a duopoly market structure and has shown its ability to grow revenue despite regulatory headwinds, unlike Angel One.