BSE Limited: There is a famous saying in every casino in the world, ‘The house always wins.’ That means whether the players win or lose, the casino owner makes money from every bet. A similar model is also seen in the stock market of India, especially in the business of BSE Limited. More than 90% of small investors in futures and options (F&O) trading in India lose money. Despite this, the business of BSE has increased rapidly. The reason is that BSE earns fees on every trade, every expiry and every deal. Whether the trader makes profit or loss, the exchange keeps earning.

History of BSE
Asia’s oldest stock exchange BSE was started in the year 1875. For a long time, it was considered behind the National Stock Exchange of India i.e. NSE. But its picture has changed in the last few years. When Sundararaman Ramamurthy became CEO in 2023, the market cap of BSE was around Rs 5,000 crore. Now it has increased to approximately Rs 1.68 lakh crore. The stock has given returns of about 3,985% in the last five years.

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BSE’s business model is strong
The biggest reason for this rise was the increase in derivatives business. After the strict rules of SEBI and some changes of NSE, trading in Sensex and Bankex option products of BSE increased rapidly. Transaction fees from derivatives business increased by 87% to Rs 3,795 crore in FY26. The business model of BSE is considered very strong because it does not bet in the market itself. It only provides platform, technology and systems for trading and earns fees on every transaction.

However, there are risks in this also. If the Securities and Exchange Board of India imposes more stringent rules on F&O trading in the future, BSE’s earnings may be affected. Nevertheless, at present the increasing trading activity and number of investors is proving to be a big advantage for BSE.

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