BSE Share Crash 65%: Here’s Why the Stock Plunged Sharply

Market Performance

BSE shares witnessed a massive 65% drop, falling to ₹2,395 apiece on May 23, 2025. This sudden crash occurred as the stock began trading ex-bonus for its 2:1 bonus issue.

• Previous Close: ₹6,810.15
• Current Price: ₹2,395
• Decline: 65%

This dramatic fall was not due to a business-related concern but a technical adjustment because of the ex-bonus trading.

Main News

The Bombay Stock Exchange (BSE) began trading ex-bonus on May 23. This follows the company's 2:1 bonus issue announcement, where shareholders will receive:

• 2 bonus shares for every share held
• Bonus shares are fully paid-up equity shares of ₹2 each
• Record date: May 22, 2025

This adjustment is a part of the T+1 settlement system, which means investors had to buy BSE shares by May 22 to be eligible for the bonus shares, ensuring the transaction settles by May 23.

Company Details

This marks only the second time since BSE's 2017 listing that the company has issued a bonus.

Purpose of Bonus Issue:

• Converts free reserves into share capital
• Increases the number of outstanding shares
• Decreases Earnings Per Share (EPS)
• Boosts paid-up capital
• Referred to as free shares, as no additional cost is involved for shareholders

Additional Pressure from Regulatory Development

Beyond the ex-bonus adjustment, BSE shares also experienced selling pressure due to regulatory news:

• Reports suggest SEBI is reviewing NSE's proposal to shift weekly index options expiry to Tuesdays
• A shift could reduce BSE's market share in index options premiums by 3–4 percentage points
• This would lower its market share to 18.8%, down from the current 22.2%

This change is significant, given that:

• 24% of index options premiums in India were traded on Tuesdays in 2025
• This is higher than the 16–19% range for other weekdays

Summary of the Article

The 65% crash in BSE share price results from the technical adjustment linked to its 2:1 bonus issue, not due to deteriorating fundamentals. Investors who were eligible as of May 22 will receive bonus shares at no extra cost. Additionally, the stock faced regulatory-driven selling pressure on reports of a potential shift in index options expiry rules, which could impact BSE's derivative market share.

Despite the sharp drop, this movement reflects corporate actions and trading dynamics, not underlying weakness.