BSE shares drop nearly 5.5% after placement under additional surveillance measures

Shares of BSE Ltd declined 5.51 per cent to Rs. 2,839.90 by 1:44 pm IST on Wednesday, following the stock’s inclusion under the Additional Surveillance Measure (ASM) framework by the exchange.

The ASM framework is a regulatory tool used to rein in excessive volatility and abnormal price movements. Stocks placed under ASM face stricter trading norms, including higher margin requirements and restrictions on intraday trades, aimed at protecting investors and maintaining market integrity.

The move comes after a sharp rally in BSE shares, which have surged 116.6 per cent in the last three months and 225.6 per cent over the past year. The stock gained nearly 32 per cent in the past month and 58.5 per cent over six months. Such rapid gains likely prompted the regulatory intervention.

Technical indicators show the stock is overbought. It trades above seven key simple moving averages but fell below its 5-day moving average, signalling short-term weakness. The Relative Strength Index stood at 80.9, above the overbought threshold of 70, while the Moving Average Convergence Divergence remained positive, suggesting bullish momentum persists.

The recent price surge has been underpinned by robust quarterly results. For the January–March 2025 quarter, BSE reported a 362 per cent year-on-year increase in net profit to Rs. 494 crore, with revenue up 75 per cent to Rs. 847 crore. Operating EBITDA more than tripled to Rs. 594 crore, with margins expanding to 70 per cent.

Transaction charges, a key revenue driver, jumped 112 per cent to Rs. 612 crore. Investment income increased to Rs. 70 crore, although treasury income declined to Rs. 44.3 crore from the previous year.

The board declared a total dividend of Rs. 23 per share, including a special Rs. 5 dividend commemorating the exchange’s 150th anniversary.

BSE said it plans to capitalise on growing investor participation and rising market turnover to expand its market share.