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Stock exchanges continued to make money in volatile times, with both exchanges recording a jump in profits for the financial year ending in March 2014.
The BSE and the National Stock Exchange made total profits of Rs 1,100.72 crore in FY14, according to financial statements on their respective websites. They had made Rs 965.58 crore last year.
The BSE’s net profit is up 24.51% to Rs 135.2 crore from Rs 108.57 crore for the last financial year. Higher profits were largely driven by the exchange reducing the amount it spent for the purpose of liquidity enhancement schemes, a process to improve volumes by providing monetary incentives to those trading on its platform. It spent Rs 61.29 crore on incentives in FY14, compared to Rs 96 crore the previous year.
The NSE’s net profit was up 12.66% to Rs 965.53 crore from Rs 857 crore last year. The rise was aided by a Rs 76.86 crore profit from sale of long-term equity investments.
Its profits from trading services rose from Rs 476.31 crore to Rs 523.78 crore. Clearing services profit was up from Rs 149.12 crore to Rs 171.95 crore. A third segment including income from Data Feed, IT services and Index licensing and other services was up from Rs 49 crore to Rs 73 crore.
Figures are for consolidated net profit after tax available to the exchange’s shareholders, including share of the profit and loss of associate entities.
