NSE India 4QFY24 Conference Call
In a recent conference call, NSE India shared significant updates and insights regarding its business operations, financial performance, and strategic initiatives.
Here are the 3 key takeaways NSE India QFY24 Conference Call
1. Business Updates
- Introduction of T+0 facility for 25 stocks from 28th Mar’24.
- Launch of derivatives contracts on the Nifty Next 50 Index, receiving a positive response from market participants.
- Witnessed approximately 30 million unique trading accounts in FY24.
- Investor base distribution: 42% from North India, 28% from West, 17% from South, and 13% from East.
- 21 IPOs on the main board and 38 IPOs on the emerging platform were launched in 4QFY24.
- ETF ADTO grew 92% YoY and 55% QoQ to INR 7.5 billion.
- Plan to move out of non-core business as desired by SEBI initiated.
- Actively working towards shifting to a new data center.
2. Settlement Guarantee Fund (SGF)
- Contribution to core SGF in line with rising risk levels and surge in volumes.
- Current target is to increase SGF to INR 100 billion, subject to assessment of OI & volumes.
- NSE clearing contributed INR 14 billion to SGF in 4QFY24.
- Incremental transaction charges contribute around 2% to the core settlement fund.
3.Financial Insights
- Transaction charges breakdown: 11% from cash, 11% from futures, and 78% from options.
- Increase in other expenses due to SEBI regulatory fees and clearing charges linked to volumes.
- No plans to increase tariffs currently.
- Treasury income breakdown: INR 16.5 billion from other income and INR 8.12 billion from operational treasury.
- Decision to appropriate INR 19.5 billion to a separate reserve within equity – risk capital management reserve.
- Dividend policy: Surplus after internal capex and working capital requirements distributed among shareholders.
- NSE fully compliant on paying SEBI charges on options volume, no penalty expected.
- Stake sale in Protean yields INR 1.27 billion with a gain of INR 0.8 billion.
- NSE Board recommended dividend of INR 90 per share (pre-bonus) for FY24, amounting to pay-out of INR 44.6 billion.
- Recommended issue of 4 bonus shares for existing 1 share held, subject to necessary approvals.
Conclusion
The insights from NSE India’s conference call reflect its proactive measures, robust financial performance, and strategic focus on enhancing market offerings and shareholder value. With a strong foundation and prudent financial management, NSE is poised for continued growth and success in the dynamic financial landscape. Buy NSE unlisted shares via SPA & NSE unlisted shares via institution from Altius Investech.
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