Introduction

In the past two years, the Bombay Stock Exchange (BSE) has witnessed a stunning turnaround. Once a quiet player in the derivatives market, BSE suddenly became the center of action — thanks to weekly index options. These short-term contracts attracted traders in massive numbers, pushing BSE’s profits to record highs.

But now, the landscape might change dramatically. SEBI, the market regulator, has hinted at banning weekly expiries and allowing only monthly contracts. This raises one big question: What happens to BSE’s revenues and traders if weeklies go away?

BSE’s Overall Revenue Model

BSE doesn’t earn money from just one business. Its revenue streams include:

1. Trading fees – equity cash, equity derivatives (biggest), currency, commodities.

2. Listing fees – annual & IPO fees from listed companies.

3. Data & index licensing – market data, Sensex licensing to ETFs/funds.

4. Mutual fund distribution (StAR MF) – India’s largest MF transaction platform.

5. Treasury income – interest earned on investor margin money.

6. New ventures – insurance JV, power exchange, startup/SME platforms.

👉 BSE’s growth plan is to diversify: strengthen derivatives, grow StAR MF, attract more SME listings, and monetize data.

How Much BSE Earned from Index Options

• FY2025 (full year): ₹1,415 crore from index options.

• Apr–Jun 2025 quarter: ₹598 crore.
  👉 This has become the single largest revenue source for BSE.

Compare this with before May 2023, when BSE relaunched derivatives:

• Derivatives revenue was almost zero.

• In Apr–Jun 2023, it was only ₹0.16 crore!

So, weekly options have literally transformed BSE’s financial health.

What Happens If SEBI Bans Weekly Options?

Weekly options are popular because:

• Cheap, short-term bets.

• Huge retail trader participation.

• High trading volumes = high exchange revenue.

If they are banned:

• Volumes drop sharply – analysts already estimate a 10–15% hit when just one expiry was shifted.

• If all weeklies go → 30–50% revenue loss possible for BSE.

• Many traders may not migrate to monthly contracts, as they require more capital and have slower time decay.

👉 This means BSE could lose ₹200–300 crore per quarter in derivatives income.

Why SEBI Wants This Change

• Retail traders are overexposed to weekly options.

• Sudden losses are rising, creating systemic risk.

• SEBI already increased lot sizes & limited expiries; banning weeklies is the next step to cool speculation.

So, this is more about investor protection than exchange profits.

Key Takeaways

• BSE’s rise in profits is built entirely on weekly index options.

• Without them, BSE’s revenues could fall 30–50%.

• Traders will need to adapt strategies if only monthly options remain.

• BSE will have to rely more on other revenue streams (mutual funds, listings, data) to balance the impact.

✅ In simple words:
BSE’s rocket growth came from weekly options. If SEBI removes them, the rocket may lose its fuel — forcing both BSE and traders to rethink their future strategies.