Quarterly report pursuant to Section 13 or 15(d)

FEE AND COMMISSION INCOME

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FEE AND COMMISSION INCOME
 9 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
FEE AND COMMISSION INCOME FEE AND COMMISSION INCOME
Fee and commission income is recognized when, or as, the Group satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Group determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Group’s progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The amount of revenue recognized reflects the consideration the Group expects to receive in exchange for those promised services (i.e., the “transaction price”). In determining the transaction price, the Group considers multiple factors, including the effects of variable consideration, if any.

The Company’s revenues from contracts with customers are recognized when the performance obligations are satisfied at an amount that reflects the consideration expected to be received in exchange for such services. The majority of the Group’s performance obligations are satisfied at a point in time and are typically collected from customers by debiting their brokerage account with the Group.
Brokerage Services and Bank Services
Commissions from brokerage services — The Group earns commission revenue by executing, settling and clearing transactions with clients primarily in exchange-traded and over-the-counter corporate equity and debt securities, money market instruments and exchange-traded options and futures contracts. Commissions from bank services — The Group earns bank commissions by executing client order for money transfer, purchase and sale of foreign currency, and other bank services. A substantial portion of the Group's revenue is derived from commissions from private clients through accounts with transaction-based pricing. Trade execution and clearing services, when provided together, represent a single performance obligation, as the services are not separately identifiable in the context of the contract. Commission revenue associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, are recognized at a point in time on trade date when the performance obligation is satisfied.

Commission revenue is generally paid on settlement date, which is generally two business days after trade date for equity securities and corporate bond transactions and one day for government securities, options and commodities transactions. The Group records a receivable on the trade date and receives a payment on the settlement date.

Investment Banking

The Group earns underwriting revenues by providing capital raising solutions for corporate clients through initial public offerings, follow-on offerings, equity-linked offerings, private investments in public entities, and private placements. Underwriting revenues are recognized at a point in time on placement date, as the client obtains the control and benefit of the capital markets offering at that point. These fees are generally received within 90 days after the placement date. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are included in underwriting revenues. These costs are deferred and recognized in the same period as the related investment banking transaction revenue. However, if the transaction is abandoned and does not close, the accounting treatment for the transaction-related costs may differ. In such cases, the accounting principles typically require the immediate recognition of the transaction-related expenses as an expense in the period in which the decision to abandon the transaction is made. This ensures that the costs associated with the abandoned transaction are recognized and reflected accurately in the financial statements of the entity.
Receivables and Contract Balances
Receivables arise when the Group has an unconditional right to receive payment under a contract with a customer and are derecognized when the cash is received. Margin lending, brokerage and other receivables are disclosed in Note 6 in the notes to consolidated financial statements.

Contract assets arise when the revenue associated with the contract is recognized before the Group’s unconditional right to receive payment under a contract with a customer (i.e., unbilled receivable) and are derecognized when either it becomes a receivable or the cash is received. As of December 31, 2023 and March 31, 2023, contract asset balances were not material.

Contract liabilities arise when customers remit contractual cash payments in advance of the Group satisfying its performance obligations under the contract and are derecognized when the revenue associated with the contract is recognized either when a milestone is met triggering the contractual right to bill the customer or when the performance obligation is satisfied. As of December 31, 2023 and March 31, 2023, contract liability balances were not material.


Payment Processing and Agency Fees
Commissions from payment processing — The Group earns commissions from payment processing services provided to our clients. These commissions are generated as compensation for facilitating and handling various payment transactions on behalf of our clients. Payment processing services encompass activities such as authorization, clearing, settlement, and related services associated with electronic payment methods. Commissions from agency fees — The Group earns commissions from agency fees as a result of acting as an intermediary or agent in facilitating transactions between two parties. These fees are derived from services provided to clients who engage the company to act on their behalf in securing and facilitating various transactions.

During the three months ended December 31, 2023, and December 31, 2022, fee and commission income was comprised of:
Three months ended December 31, 2023
Central Asia and Eastern Europe Europe excluding Eastern Europe
The United States
 Middle East/Caucasus Total
Brokerage services $ 65,451  $ 32,285  $ 1,223  $ 854  $ 99,813 
Commission income from payment processing 8,977  —  —  —  8,977 
Underwriting and market-making services 1,502  —  1,842  —  3,344 
Bank services 1,331  —  —  —  1,331 
Other fee and commission income 5,293  300  1,101  —  6,694 
Total fee and commission income $ 82,554  $ 32,585  $ 4,166  $ 854  $ 120,159 
Three months ended December 31, 2022
Central Asia and Eastern Europe Europe excluding Eastern Europe
The United States
 Total
Brokerage service $ 19,490  $ 47,893  $ 1,149  $ 68,532 
Bank services 5,507  —  —  5,507 
Underwriting and market-making services 4,778  —  —  4,778 
Other fee and commission income 1,473  593  —  2,066 
Total fee and commission income $ 31,248  $ 48,486  $ 1,149  $ 80,883 



Nine months ended December 31, 2023
Central Asia and Eastern Europe Europe excluding Eastern Europe
The United States
 Middle East/Caucasus Total
Brokerage service $ 159,072  $ 75,274  $ 3,295  $ 1,967  $ 239,608 
Commission income from payment processing 37,318  —  —  —  37,318 
Bank services 23,480  —  —  23,480 
Underwriting and market-making services 7,971  —  7,114  —  15,085 
Other fee and commission income 12,324  725  2,025  —  15,074 
Total fee and commission income $ 240,165  $ 75,999  $ 12,434  $ 1,967  $ 330,565 
Nine months ended December 31, 2022
Central Asia and Eastern Europe Europe excluding Eastern Europe
The United States
 Total
Brokerage service $ 31,814  $ 192,330  $ 3,332  $ 227,476 
Bank services 15,100  —  —  15,100 
Underwriting and market-making services 8,008  —  —  8,008 
Other fee and commission income 1,793  1,109  —  2,902 
Total fee and commission income $ 56,715  $ 193,439  $ 3,332  $ 253,486