Shares of BSE Limited, India's and Asia’s oldest stock exchange, have been on an impressive upward trajectory, rallying sharply in the past year. With a surge of 19% on Monday, 16th September, the stock hit an all-time high of ₹3,448 apiece on the National Stock Exchange (NSE). Over the last 12 months, the stock has gained a remarkable 173%, delivering multibagger returns for its investors. Let's dive deeper into the reasons behind this surge and the prospects for those looking to invest in stocks.
Regulatory relief boosts market sentiment
One of the significant factors that contributed to the recent rally in BSE shares is the regulatory relief granted to the National Stock Exchange (NSE). On Friday, the Securities and Exchange Board of India (SEBI) dismissed allegations of regulatory violations against NSE and seven of its former employees, including high-profile names like Chitra Ramkrishna and Ravi Narain. These charges related to the controversial 2019 co-location case, where preferential access was allegedly given to certain brokers via a ‘dark fibre’ network.
This decision from SEBI, following an earlier directive from the Securities Appellate Tribunal (SAT), was a crucial development for NSE. The clearing of charges is seen as a positive step for the stock market ecosystem, boosting investor confidence. As the NSE plans to go public, its future shares are expected to be listed on the BSE, which further contributed to the optimism surrounding BSE shares.
BSE: A multibagger in the last year
For investors who chose to invest in stocks of BSE, the past year has been nothing short of rewarding. The stock has delivered gains of 173% over the last 12 months, and an astounding 1,784% in the last five years. This performance has made BSE a multibagger, consistently rewarding long-term investors with exceptional returns.
The reasons behind this consistent growth lie in several factors, including the overall bullish sentiment in the Indian stock market, regulatory developments, and the strategic initiatives taken by the BSE to enhance its services and market presence.
SEBI’s clean chit to NSE: Impact on BSE
The dismissal of regulatory violations against NSE and its former executives has far-reaching consequences, not just for NSE but also for BSE. This decision comes at a time when NSE is actively pursuing its long-awaited Initial Public Offering (IPO). Reports suggest that NSE has already filed for a ‘no-objection certificate’ (NOC) with SEBI to float its IPO. Once the IPO process is completed, NSE shares will be listed on the BSE, further solidifying BSE’s position as a key player in India's capital markets.
This clean chit from SEBI to NSE is expected to smooth the path for the IPO, and investors are keeping a keen eye on the opportunities that will arise post-listing. For those looking to invest in stocks, this creates an exciting avenue for growth, as the listing of NSE shares on the BSE could create a ripple effect of increased trading volumes and market activity.
Conclusion
BSE shares have shown incredible growth over the past 12 months, with a surge of over 170%, making it an attractive stock for investors. The recent regulatory relief to NSE has added a fresh layer of optimism, not just for NSE's IPO but also for BSE’s future prospects. For those looking to invest in stocks, the BSE presents a compelling case, backed by its historical performance and potential for future growth. However, as always, it’s crucial to consider the risks and do thorough research before making any investment decisions.
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