The BSE share price witnessed a sharp correction on July 8, 2025, falling over 4% intraday to touch ₹2,518.20. This marks a total decline of around 10% since the Securities and Exchange Board of India (SEBI) initiated a crackdown on Jane Street, a prominent US-based proprietary trading firm. The regulator has alleged that the firm engaged in manipulative trading strategies to profit from Indian indices, leading to strong regulatory action and restrictions on its access to the Indian securities market.
Market Sentiment Hit by Regulatory Overhang
Following SEBI’s move, investor sentiment has turned cautious, not just toward BSE, but also across the broader capital markets sector. Other key stocks like Angel One, Central Depository Services Limited (CDSL), and 360 ONE WAM also faced heavy selling pressure, dropping up to 3.5% during the session. Analysts attribute this sell-off to growing uncertainty about how regulatory actions could impact trading volumes, especially in the equity derivatives space, where Jane Street had a strong presence.
Limited Direct Impact, But Valuation Concerns Remain
Despite the steep decline, several market analysts believe the direct earnings impact on BSE from Jane Street’s exit may be minimal. According to brokerage estimates, even a 100 basis points drop in FY26 premium trading could affect BSE’s EPS by only about 60–70 basis points.
However, concerns around the company’s high valuation multiples and potential volume overhangs have added to the bearish outlook. The recent drop in premium Average Daily Turnover (ADTV) for BSE — which fell 12.4% month-on-month in June to ₹13,900 crore — has further fueled anxiety among investors.
Brokerage View: Regulatory Risk, Expiry Shift & Volume Decline
Leading brokerage house ICICI Securities has flagged three main concerns:
- Regulatory overhang after SEBI’s crackdown
- Change in derivatives expiry day, which may alter trading behavior
- Premium valuation concerns, making the stock vulnerable to corrections
While these headwinds may not fundamentally alter BSE’s long-term prospects, they are expected to weigh on short-term investor sentiment.
What Lies Ahead for BSE Shareholders?
Despite the ongoing correction in the BSE share price, some market participants are optimistic about a potential rebound, especially if regulatory clarity emerges and trading volumes stabilize. Until then, investors are likely to remain cautious, closely watching both regulatory developments and market turnover data.
The BSE share price is expected to remain volatile in the coming weeks, as the market digests the full implications of the SEBI action and gauges the sustainability of BSE’s revenue from equity derivatives.