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MARCH 2003 VOL. 1 PART 3

SECURITIES AND EXCHANGE BOARD OF INDIA

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SEBI MONTHLY BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 2

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SECURITIES AND EXCHANGE BOARD OF INDIA

SEBI MONTHLY BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 3

PAGE

ARTICLES

u Price Discovery and Volatility on NSE Futures Market 1u Put Warrants on Fixed Price Buyback/Takeover Offers 12u Stock Market Development and Economic Growth: The Evidence from India 16

SPEECHES

u Significance of Securities Market in the Growth of an Economy: An Indian Context 24

DISCUSSION PAPERS/COMMITTEE REPORTS

u Code of Conduct for Sub-Brokers 33u Corporate Governance 34u Exchange Traded Interest Rate Derivatives in India 37u Review of SEBI (DIP) Guidelines 2000 38

PRESS RELEASES

u Codes of Conduct for Regulated Entities 40u Report on Corporate Governance 40u Review of SEBI (DIP) Guidelines 2000 40u Governing Board of Ahmedabad Stock Exchange 40u Investor Grievances 41

CIRCULARS & GUIDELINES

u Calendar for T+2 Rolling Settlement 42u Risk Management for T+2 Rolling Settlement 43u Cancellation of Certificate of Registration of brokers 44u Monthly Reporting Format 45u Electronic Data Information Filing and Retrieval 46u Unique Client Code for Mutual Funds and FIIs 46

LEGAL ROUND UP

u Notifications 48u Securities Appellate Tribunal Orders 54

ANNEXURES AND STATISTICAL TABLES

1

The Indian capital market has witnessedmany changes in the past decade. A majorreform initiated by SEBI was the introduc-

tion of derivatives products: Index futures, Indexoptions, stock options and stock futures, in aphased manner starting from June 2000. It hasbeen about two and half years since the introduc-tion of Index futures in India mainly as a riskmanagement tool for institutional and for otherinvestors. The two main functions of futures mar-ket are price discovery and hedging. Futures mar-kets are also known to have a stabilising effect onthe underlying spot market. Price discovery is ex-pected to first take place in the futures marketand then it is transmitted to underlying cash mar-ket (Pizzi et.al., 1998). Since futures market is dif-ferent from cash market in terms of capital re-quired, cost of transactions and other aspects, itwould be a forerunner of the cash market as faras the information discounting is concerned. Thusmany small and risk averse investors can trade inthe cash market without taking the risk of boutsof volatility. Therefore, this paper makes an at-tempt to find out if price discovery actually takesplace first in the futures market.

A related issue is level of volatility. Introductionof Index futures is expected to reduce volatility inthe cash market since speculators are expected tomigrate to futures market (Antoniou and Holmes,1995). Many past studies in other countries mea-sured impact of futures market on the volatilityin the cash market. In India as of now there is noscientific study that used some of the moderneconometric techniques to measure volatility inthe cash market after the introduction of Index

futures. There are somestudies which used stan-dard regression and stan-dard deviation techniques.It is proved in India alsothat volatility is a timevarying factor (ThiripalRaju and Patil, 2002). Therefore, in this study AutoRegressive Conditional Heteroscedasticity (ARCH)family of techniques is used to capture time vary-ing nature of volatility so that the estimators aremore reliable. These are the two important mo-tives; price discovery and volatility that workedas drivers of this research study.

Theoretical PinningEngle and Granger (1987) introduced the conceptof cointegration when two variables may movetogether although they are nonstationary. The ra-tionale behind the concept is that there exists along run equilibrium relationship between the twovariables. In the short run they may deviate fromeach other but market forces, government inter-vention etc., will bring them back together. Engleand Granger (1987) extended this concept andshowed that cointegrated series have an error cor-rection representation. With the error correctionrepresentation, a proportion of disequilibrium inone period is expected to be corrected in the nextperiod.

The results of the effect of Index futures on theunderlying spot market volatility are mixed. Oneview is that derivative securities increase volatil-ity in the spot market due to more highly lever-aged and speculative participants in the futures

Price Discovery and Volatility on NSEFutures MarketM. T. RAJU AND KIRAN KARANDE*

*Dr. Raju is Economic Adviser, SEBI and Mr. Karande is Assistant General Manager, SEBI. The views expressed and the approach sug-gested in this paper are of the authors and not necessarily of SEBI.

SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 5

2 SECURITIES AND EXCHANGE BOARD OF INDIA

market. The introduction of stock futures causesan increase in volatility in the short run while thereis no significant change in volatility in the long-run (Edwards, 1988). With increased volatility,regulatory bodies may interfere in the markets toenact further regulations. While these regulationsare certainly costly they may or may not reducestock price volatility.

An alternative view is that derivative markets re-duce spot market volatility, by providing low costcontingent strategies and enabling investors tominimize portfolio risk by transferring speculatorsfrom spot markets to futures markets. The lowmargins, low transaction costs and the standard-ized contracts and trading conditions attract risktaking speculators to futures. Hence, futures areexpected to have stabilizing influence as it addsmore informed traders to the cash market, mak-ing it more liquid and, therefore less volatile.

Literature ReviewPrice Discoveryu Kawaller et.al. (1987) examined the intra day

price relationship between S&P 500 Index andthe S&P 500 Index futures. Their results showthat both S&P 500 spot and futures marketsare simultaneously related on a minute tominute basis throughout the trading day, andthat a lead lag relationship also exists. The leadfrom futures to cash appears to be more pro-nounced relative to cash to futures markets.

u Stoll and Whaley (1990) investigated causalrelationships between spot and futures mar-kets using intra day data for both S&P 500and the Major Market Index (MMI). Feedbackwas detected, but the futures lead was stron-ger than the cash Index lead.

u Chan et.al. (1991) examined the inter depen-dence in price change. They found muchstronger bidirectional dependence betweenstock Index and stock Index futures pricechanges.

u Wahab and Lashgari (1993) used daily dataand cointegration analysis to examine thetemporal causal linkage between Index and

stock Index futures prices for both the S&P500 and the FTSE 100 Index for the period1988 to 1992. They find that although feed-back exists between spot and futures mar-kets for both the S&P 500 and the FTSE 100indices, the spot to futures lead appears to bemore pronounced across days relative to thefutures to spot lead.

u Pizzi et.al. (1998) examined price discovery inthe S&P 500 spot Index and its three and sixmonth stock Index futures using intra dayminute by minute data. Cointegration analy-sis is used. The results show that both thethree and six months futures markets leadthe spot market by at least twenty minutes.There is bidirectional causality but the futuresmarket does tend to have a stronger leadeffect.

u Booth et.al. (1999) study intra day price dis-covery process among stock Index, Index fu-tures and Index options in Germany usingDAX Index securities and intra day transac-tions data. They find that spot Index and In-dex futures have substantially larger infor-mation shares than Index options.

u Roope et.al. (2002) make a comparison of theinformation efficiencies between theSingapore exchange and the Taiwan futuresexchange for Taiwan Index futures listed inboth markets. The results provide strong evi-dence to suggest that price discovery prima-rily originates from the Singapore futuresmarket.

Volatilityu Edwards (1988) studied whether stock Index

futures trading destabilised the spot marketin the long run. Using variance ratio F testsfor the period June 1973 to May 1987, he con-cluded that the introduction of futures trad-ing did not induce a change in spot volatilityin the long run.

u Harris (1989) examined volatility after intro-duction of Index futures by comparing dailyreturn volatilities during the pre futures (1975-


3

1982) and post futures (1982 - 1987) periodbetween S&P 500 and a non S&P 500 groupof stock controlling for differences in firmattributes. He found that increased volatilitywas a common phenomenon in differentmarkets and Index futures by themselvesmay not be a cause.

u Chan et.al. (1991) estimated the intraday re-lationship between returns and returns vola-tility in the stock Index and stock Index fu-tures. Their study covered both S&P500 andMajor Market Index (MMI) futures. BivariateGARCH models were used to estimate vola-tility. Their results indicate a strong intermarket dependence in volatility of spot andfutures returns.

u Kamara et.al. (1992) examined the influenceof innovations in the rate of productive ac-tivity, unanticipated changes in the defaultrisk premium, unanticipated changes in dis-count rate, unanticipated price level changesand changes in expected inflation on the vola-tility for the pre-future and post-future pe-riod. The results indicate that the increase involatility in the post-futures period cannot becompletely attributed to the introduction offutures trading.

u Antoniou and Holmes (1995) examined therelationship between information and vola-tility in FTSE 100 Index in the U.K usingGARCH technique. They find that introduc-tion of FTSE 100 Index futures has changedvolatility in the spot market and attribute thisto better and faster dissemination of infor-mation flow due to trading in stock Indexfuture.

u Gregory et.al. (1996) examined how volatilityof S&P 500 Index futures affects the S&P 500Index volatility. Their study also examined theeffect of good and bad news on the spot mar-ket volatility. Volatility was estimated usingEGARCH model. They find that bad news in-creased volatility more than good news andthe degree of asymmetry was higher for fu-tures market.

MethodologyPrices in the cash market and futures market areexpected to be inter-related. The products tradedare similar in nature. Stock index futures value isderived from the value of the cash market priceplus interest rate. Any information; economic, po-litical, social and other influences changes in priceseither in spot market or in futures market. Sincefutures market has lesser trading costs, higher li-quidity than spot market the information is firstexpected to be reflected in the prices of futuresand then it is expected to flow to cash market(Kawaller et.al., 1987). However, this may not betrue in all circumstances. Sometimes it can hap-pen that the information is first discounted in thecash market and then moves on to futures mar-ket. Alternatively, information is reflected simul-taneously in both the markets. In this paper whatis attempted to measure is the speed of the infor-mation flow and its early impact on prices.

There are some econometric techniques to mea-sure the direction as well as the intensity of theinformation flow. Among others, Granger causal-ity, Spectral Analysis and Cointegration are moreappropriate techniques useful to find out speedof information flow and its intensity on prices. Inorder to choose an appropriate technique betweenthese, the prices in their levels are tested forcointegration and found to be cointegrated (seeend note 1). Therefore the cointegration techniqueis preferred to Granger causality.

The use of cointegration analysis and error cor-rection models explicitly takes into account nonstationarity and enables one to distinguish be-tween short run deviations from equilibrium in-dicative of price discovery and long run deviationsthat account for efficiency and stability. If twoseries (such as futures and spot prices) are non-stationary but that a linear combination of the twovariables (such as the basis) is stationary so thatboth are cointegrated then a bivariate dynamicmodel that uses only first differences (with lags)is misspecified because it ignores interim short runadjustments to long run equilibrium.

The link between cointegration and causalitystems from the fact that if spot and futures prices

ARTICLES



are cointegrated, then causality must exist in atleast one direction and possibly in both directions.Cointegration implies that each series be repre-sented by an error correction model that includeslast period�s equilibrium as well as lagged valuesof the first differences of each variable, temporalcausality can be assessed by examining the statis-tical significance and relative magnitudes of theerror correction coefficients and the coefficientson the lagged variables.

The possibility that one variable in a system ofcointegrated series is exogenous (independent)within the error correction process motivates theuse of error correction models in evaluating pricediscovery. The cointegrating vectors define thelong run equilibrium while the error correctiondynamics characterise the price discovery process,the process whereby markets attempt to find equi-librium. The primary purpose in estimating theerror correction model (ECM) is to implementprice leadership tests between futures and spotprices. Tests of causality between cointegratedvariables should be conducted in an error correc-tion framework because standard tests of causal-ity overlook the reversion to equilibrium channelof causality represented by et (basis). Causalitytests in the ECM framework involve testing sig-nificance of the coefficients α and β. If these coef-ficients are jointly insignificant, then there is noGranger causality and hence there is no price dis-covery.

In this paper it is proposed to test the impact ofintroduction of stock index futures on volatilityof spot market. Several techniques are availableto measure volatility and its level; standard devia-tion, and ARCH family techniques. ARCH familytechniques take into consideration time varyingvolatility. As has been mentioned already (ThiripalRaju and Patil, 2002) Indian stock indices do ex-hibit time varying volatility property. Therefore,GARCH (1,1) has been used to study the impactof the introduction of stock index futures on spotmarket volatility.

Econometric TechniquesPrice changes in one market influence pricechanges in the other market so as to bring about a

long run equilibrium relationship as given by theequation:Ft - α0 - β1St = et (1)

where Ft and St are contemporaneous cash andfutures prices at time t; α0 and β1 are parametersand et is the classical error term (deviation fromequilibrium). According to Engle and Granger(1987), if Ft and St are nonstationary (see end note2) but the deviations et, are stationary, then St andFt are cointegrated (see end note 1) and equilib-rium exists between Ft and St. For Ft and St to becointegrated, they must be integrated of the firstorder. Performing unit root test on each univariateprice series determines the order of integration. Ifeach series is nonstationary in the levels, but thefirst differences and deviations et, are stationary,the prices are cointegrated of order (1,1), denotedCI(1,1) with β1 as the cointegrating coefficient. Anerror correction model exists for each series whichis not subject to spurious results. Ordinary leastsquares (OLS) is inappropriate if futures or spotprices are non stationary because the standarderrors are not consistent.

Cointegration implies that each series can be rep-resented by an error correction model that in-cludes last period�s equilibrium error as well aslagged values of the first differences of each vari-able. Hence, temporal causality can be assessedby examining the statistical significance and rela-tive magnitudes of the error correction coefficientsand the coefficients on the lagged variables. In thisstudy, the error correction model can be writtenas:Rf,t = α0f+α1f (Ft�1-St�1)+β1fRf,t�1+β2fRs,t�1+εft (2)

Rs,t = α0s+α1s (Ft�1-St�1)+β1sRs,t�1+β2sRs,t�1+εst (3)

where Rf,t is Nifty futures returns and Rs,t is NiftyIndex returns, α1f and α1s are the error correctionterms and βs represent short run effects.

Each of the above two equations is interpreted ashaving two parts. The first part is the equilibriumerror. This measures how the left hand side vari-able adjusts to the previous period�s deviation fromlong run equilibrium. The remaining portions ofthe equations are the lagged first differences whichrepresent short run effects of the previous period�s


5

move the influence of factors other than the im-pact of index futures on volatility. In this processit is identified that market proxy such as a broadindex and returns on any one of the week dayscould also influence volatility. Therefore, weekdays returns are also used in the model to elimi-nate likely predictability effect of these on indexreturns and consequently on volatility. To incor-porate weekly returns dummies are used fromMonday to Friday one indicating returns of therespective day and zero absence of the day.

Data Source and Time PeriodIndex futures on S&P CNX Nifty and BSE Sensexstarted trading on National Stock Exchange (NSE)and on The Stock Exchange, Mumbai (BSE) re-spectively in June 2000. Volumes traded on BSEare negligible and they account for less than 1% ofthe total number of contracts traded on NSE andBSE put together. Therefore, for the purpose ofthe research study of price discovery only Indexfutures on S&P CNX Nifty are considered. Dailyclosing values of Index futures and BSE 100 In-dex are considered from June 2000 till October2002. Trading activity slowly picked up in Indexfutures and peaked in September 2001. Thereaf-ter with some fluctuations the activity has beenvery high. Number of contracts traded varied be-tween 1,00,000 to 1,50,000 (Chart 1) per monthduring September 2001 to October 2002. The studyperiod is divided into two sub-periods on the basisof low volumes (June 2000 to August 2001) andhigh volumes (September 2001 to October 2002).The distinction is made to assess the impact ofvolume (liquidity) on long run price equilibrium.Returns are calculated as log of ratio of presentday�s price to previous day�s price. Data are ob-tained from NSE website of NSE and Bloombergfor S&P CNX Nifty and BSE100 respectively.

Second part of this study deals with volatilitymodeling, assessing its impact on cash market andrecommending policy directions. It is intended tomeasure the impact of introduction of Index fu-tures on the volatility. Past studies (Thiripal Rajuand Patil, 2002) have indicated that Indian stockindices have a character of time varying volatility.

change in price. If α1f is statistically insignificantthe current period change in the futures price doesnot respond to last period�s deviation from longrun equilibrium. If both α1f and β2f are statisticallyinsignificant then the spot market price does notGranger cause futures market price.

Both the dependent and explanatory variablesbehaviour varies over time. If both dependent andindependent variables are nonstationary then theestimates of simple regression are incorrect andthe results will mislead. Therefore, it is necessaryto test whether the variables are stationary or not.Some of the most widely used techniques to teststationarity are Dickey Fuller test and AugmentedDickey Fuller test and Phillip Perron test. In thisstudy Augmented Dickey Fuller test has been usedto test for the unit root in variables. The resultsare presented in Table No. 4. The hypothesis ofunit root has been rejected at 1% significant level.

To examine the effect of futures trading on theunderlying spot market, there is a need to studypre and post futures period�s volatility. This canbe done by using standard deviation of daily logreturns as a measure of volatility. However, if vola-tility is time varying, the above technique cannotbe used. Hence, in this study, the ARCH family ofmodels is employed to study volatility.

For studying the volatility, the following GARCH(1,1) model is used:Rs,t = α1Dmon +α2Dtue + α3Dwed+α4Dthu+α5Dfri+β1Rs,t-1+β1Rm,t+εst (4)

ht = α6+α7 ε2

t-1+β3ht-1+α8D+α9ε2t-1D +β4ht-1D (5)

D is a dummy variable that takes the value 0 prefutures and 1 post futures, Dmon - fri are dummyvariables for returns on Monday - Friday, Rs,t isNifty Index returns and Rm,t is BSE100 Index re-turns, used as a proxy for market wide volatility.The market capitalisation of BSE100 is more than70% of total BSE market capitalisation as com-pared to less than 50% for BSE Sensex. Thoughthere are several other indices such as S&P CNX500, CNX Nifty Junior, BSE-500 and others, allthese suffer from one limitation or the other.Capitalisation of CNX Nifty Junior is very smallwhile S&P CNX 500 and BSE 500 suffer from theproperty of stale prices. Attempts are made to re-

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Therefore, standard regression parameters will notbe able to capture volatility correctly. From Chart2 it is vivid that simple measure of volatility i.e.standard deviation will not be able to say muchabout the impact of Index futures on volatility.Therefore, standard deviation has not been usedto measure and explain the impact of Index fu-tures on cash market volatility. ARCH family tech-niques is expected to capture and model volatilitybetter (Antoniou and Holmes, 1995). There areseveral variations of ARCH models: GARCH,EGARCH, etc. ARCH is found to be inadequate tocapture volatility. GARCH is expected to explainsufficiently the time varying volatility behaviourof cash Index. It is essential to eliminate the im-pact of confounding factors on the volatility ofcash market. For this purpose a market wide rep-resentative variable, BSE100, has been chosen asa representative Index to capture the influence ofthe factors other than Index futures.

Some of the other reasons for choosing BSE100Index are that the other indices constructed andmaintained by India Index Services Limited (IISL)do not have required length of past data. BSE100market capitalisation covers roughly about 70%of the total market capitalization of BSE (as onNovember 14, 2002). Other broader indices suchas BSE200 and BSE500 could consist of more staleprices which could lead to negative serial correla-tion. Negative correlation could in turn lead to bi-ased estimation of parameters. Owing to thesereasons BSE100 has been chosen as a surrogatefor market Index. For the volatility study data fromJanuary 1998 to October 2002, giving 2 ½ years ofdata pre and post futures are used. BSE100 Indexis used as a proxy for market wide volatility.

The contract details for Nifty Index futures areprovided in Table 1. The descriptive statistics forNifty futures returns and Nifty Index returns aregiven in Table 2. First and second moments of boththe series are almost identical. The mean is closeto zero and the standard deviation is 1.4%.

Table 1 : Nifty Index futures contract

Date of Inception June 12, 2000

Underlying S&P CNX Nifty Index

Trading Cycle 3 months

Expiry Every month

Contract size 200

Tick size Re. 0.05

Table 2: Descriptive statistics for daily returns

(June 2000 to October 2002)

Statistic Nifty Futures Nifty Index

Minimum -0.0902 -0.0631

Maximum 0.0599 0.0599

Mean -0.0007 -0.0007

Standard Deviation 0.0143 0.0145

Skewness -0.7623 -0.4665

Kurtosis 4.5630 2.2590

The monthly Nifty futures volume since inceptionis shown graphically in Chart 1. It is evident thatthe volume reached its peak in September 2001and thereafter there have been fluctuations in thevolume traded. However, towards August - Sep-tember 2002 again volumes have almost reachedits earlier peak.

Chart 1: Nifty futures volume

(Number of contracts traded)

Nifty futures volume

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

Jun-0

0

Jul-0

0

Aug-00

Sep-00

Oct-0

0

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00

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00

Jan-0

1

Feb-01

Mar-

01

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May-

01

Jun-0

1

Jul-0

1

Aug-01

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-01

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2

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02

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May-

02

Jun-0

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Month

Vo

lum

e


7

The volatility measured as standard deviation ofdaily log returns in per cent is tabulated below forpre-futures and futures period. From the aboveTable 3 it is clear that volatility has come downafter introducing index futures contracts whencompared to before the pre-introduction period.

Table 3: Daily Return Volatility

(Standard deviation in per cent)

Index Pre-futures (Jan Futures (Jun 00-98-Jun 00) Oct 02)

S&PCNX Nifty 1.96 1.45

BSE 100 2.11 1.68

Sensex 2.03 1.54

The monthly volatility measured as standard de-viation of daily log returns in per cent is shown inChart 2 for pre-futures and futures period. Witha naked eye one cannot certainly state whetherthe volatility fell or rose, as the data move up anddown. Therefore, there is a requirement to go foradvanced econometric techniques to judge thebehaviour of volatility.

Chart 2: Monthly volatility of Nifty, BSE 100 andSensex

Results and AnalysisThe results of the unit root tests for Nifty futuresand Nifty Index are presented in Table 4.

Table 4: Unit root test results

Variable Augmented Significance OptimalDickey-Fuller level numbertest statistic of lags

Nifty futures -2.85 0.18 7

Nifty Index -2.81 0.19 7

Nifty futures -13.30** 0.01 2returns

Nifty Index -8.84** 0.01 6returns

**- Significant at 1% level.

The above results indicate that Nifty futures andNifty Index are not stationary at their levels buttheir returns are stationary. The results of thecointegration tests for Nifty futures and NiftyIndex are presented in Table 5.

Table 5: Cointegration test results

Cointegration Nifty futuresand Index

Cointegrating vector -1.02

Engle Granger 5.72**

p-value 0.01

Optimal number of lags 4

** - Significant at 1% level

The above results indicate that Nifty futures andIndex are cointegrated of order 1. The results ofthe price discovery regression are presented inTables 6, 7 and 8.

Table 6: Price discovery results (Jun 00 - Oct. 02)

Coefficient Value t-statistic Significance

α0f -0.0007 -1.26 0.21

α1f -0.2109* -2.22 0.03

β1f -0.0732 -0.51 0.61

β2f 0.1496 1.06 0.29

α0s -0.0006 -0.99 0.32

α1s -0.0062 -0.06 0.95

β1s 0.0197 0.14 0.89

β2s 0.0938 0.65 0.52

*- Significant at 5% level

Monthly volatility of Nifty, Bse100, Sensex

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Jan-9

8

Mar-

98

May-

98

Jul-9

8

Sep-98

Nov-

98

Jan-9

9

Mar-

99

May-

99

Jul-9

9

Sep-99

Nov-

99

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0

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00

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00

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0

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00

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1

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1

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02

May-

02

Jul-0

2

Sep-02

Month

Mo

nth

ly s

tan

da

rd d

evia

tio

n (

%)

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From the Table 6, it is clear that for the entire pe-riod (June 2000 to October 2002) there is no cau-sality from either futures to spot or vice versa. Also,only the futures market (and not the spot market)responds to a deviation from equilibrium.

Table 7: Price discovery results (June 00 - Aug.01)


α0f -0.0009 -1.12 0.26

α1f -0.0549 -0.45 0.65

β1f -0.3789 -1.16 0.25

β2f 0.4809 1.69 0.09

α0s -0.0009 -1.05 0.29

α1s 0.1604 1.22 0.22

β1s 0.4101 1.28 0.20

β2s -0.2894 -0.76 0.45

From the Table 7, it is clear that for the period(June 2000 to August 2001) there is no causalityfrom either futures to spot or vice versa. Also, nei-ther the futures market nor the spot market re-sponds to a deviation from equilibrium.

Table 8: Price discovery results (Sep. 01 - Oct. 02)


α0f -0.0008 -1.05 0.29

α 1f -0.4788** -3.65 0.01

β 1f 0.4314* 1.96 0.05

β2f -0.4140* -2.19 0.03

α0s -0.0005 -0.71 0.47

α1s -0.2838* -2.17 0.03

β1s -0.6324** -3.42 0.01

β2s 0.7140** 3.27 0.01

* - Significant at 5% level ** - Significant at 1% level

From the Table 8, it is clear that for the period(September 2001 to October 2002) there is cau-sality from both futures to spot and vice versa.Also, both the futures market and the spot mar-ket respond to a deviation from equilibrium.

The results for the GARCH (1,1) model for theperiod January 1998 to October 2002 are pre-sented in Table 9.

Table 9: Volatility results (Jan. 98 - Oct. 02)


α1 -0.0005 -0.56 0.57

α2 -0.0007 -0.74 0.46

α3 0.0028** 3.38 0.01

α4 0.0004 0.50 0.62

α5 -0.0008 -0.84 0.39

β1 0.0470 1.71 0.09

β2 0.2916** 8.93 0.01

α6 0.0167* 2.16 0.03

α7 0.0244 1.87 0.06

β3 0.9272** 30.43 0.01

α8 0.0083 0.84 0.40

α9 0.2288** 3.75 0.01

β4 -0.2892** -4.61 0.01


From the Table 9, it is clear that volatility has re-duced post futures since β4 is significantly nega-tive. The result is important in light of the signifi-cance of β2 which indicates that market volatilityhas been accounted for properly. NSE used to fol-low accounting period settlement (see end note 3)starting from Wednesday and ending on the fol-lowing Tuesday. Wednesday being the first day itis advantageous for traders to buy/sell and keepthe position open till next Tuesday. Investors getlongest possible period without full investment.Other major Stock Exchange, BSE used to followMonday to Friday accounting period settlement.Owing to this different accounting period settle-ment there were arbitrage opportunities available.It was observed that investors shift their positionsfrom other exchanges to NSE on Wednesday dueto the above mentioned reasons (Thiripal Raju andPatil, 2003). Therefore, it could be possible thatWednesday returns are found to be positive andsignificant. The study period vastly comes fromaccounting period settlement. Therefore, the in-fluence of Wednesday is observed.

The results for the GARCH (1,1) model for theperiod March 1999 to August 2001 are presentedin Table 10.


9

Table 10: Volatility results (Mar. 99 - Aug. 01)


α1 -0.0004 -0.37 0.57

α2 -0.0008 -0.66 0.46

α3 0.0037** 3.50 0.01

α4 0.0002 0.19 0.62

α5 -0.0004 -0.38 0.39

β1 0.0249 0.56 0.57

β2 0.6049** 11.63 0.01

α6 -0.0005 -0.11 0.91

α7 -0.0040 -0.21 0.83

β3 0.9989** 1414.61 0.01

α8 0.0059 1.32 0.19

α9 0.1800** 2.74 0.01

β4 -0.1883** -3.50 0.01


From the Table 10, it is clear that volatility has re-duced post futures since β4 is significantly nega-tive. The result is important in light of the signifi-cance of β2 which indicates that market volatilityhas been accounted for properly.

Analysis of Results and Recommendations

Price discoveryTables 5, 6, 7 and 8 present results of co-integra-tion and price discovery (equations 1, 2 and 3).Table 5 gives information flow from one marketto another. Engle and Granger methodology hasbeen used to find out co-integration of futures andcash market. Null hypothesis is that both the mar-kets are independent (not co-integrated). Resultsindicate (Table 5) null hypothesis is rejected at 1%level. This means that both the markets are inte-grated. Information flows from one market toanother market. The results are very useful toregulators as well as to market participants. Anyregulatory initiative on futures market will haveits desired impact on cash market. Therefore, regu-lators can take actions in the futures market suchas reduction in contract size, changes to marginsand others which will have their impact on the cashmarket. Market participant such as investors can

use these results to predict impact of shocks tothe futures market on cash market.

Tables 6, 7 and 8 present the results of price dis-covery. Excepting coefficient α1f all other coeffi-cients are found statistically insignificant even at5% level. This indicates information gets reflectedfirst in the futures market. From the results it isvery difficult to say how much time it takes to goto cash market. One of the constraints of the datais that daily close values are used whereas the in-formation might get transmitted much faster. Thisparticular aspect can be stated more authorita-tively only if high frequency data is used for thispurpose. High frequency data is currently notavailable for spot market Index in India, thereforethey could not be employed in the equation.

VolatilityTables 9 and 10 provide coefficients, t statistics andsignificance levels of coefficients for two differ-ent periods. First period considers pre and futuresperiod data from January 1998 to October 2002.This has equal windows before and after intro-duction of futures. The second period which is thesub-period of the first one takes into account whenIndex futures were less popular. This division hasbeen considered to examine whether there is anyperceptible change in the volatility due to changein liquidity. Table 9 depicts the data of first periodand Table 10 for the second period. From Table 9it is clear that benchmark Index, BSE100, constantof GARCH model, lag of square of error term,dummy of lag of square of error term, dummy oflag of variance are found significant at 5% level, infact the constant is significant at 1% level also.Since lag of variance has negative significant co-efficient that indicates introduction of futures re-duced volatility in the cash market. Second periodalso exhibit identical behaviour. β4 is negative andsignificant. Only difference is that the magnitudeand reduction of volatility is slightly lower. Thiscould be attributed to some extent to less liquid-ity that was prevalent in the first period. In otherwords it can be said that higher liquidity is ex-pected to decrease volatility. Regulator should takeall necessary steps to further enhance liquidity inthe futures market.

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Volatility has been found reduced after the intro-duction of Index futures. The following sugges-tions may be implemented to further improve ef-ficiency, liquidity and reduce volatility : a) Futurescontracts on more number of indices can be in-troduced b) Mini size (smaller value contracts)may be permitted c) Efforts may be made to lookat margin imposition system and reduce marginswithout compromising on the integrity of the mar-ket and d) Right now institutional participationappear to be negligible in the total turnover, there-fore, efforts should be made to enhance their rolein derivatives participation.

End Notes

1. Cointegration - Suppose Xt and Yt are two non-stationary series. In general we would expect thata combination of Xt and Yt is also non-stationary.However, a particular combination may be sta-tionary. If such a combination exists, we say thatXt and Yt are cointegrated. Two cointegrated se-ries will thus not drift far apart overtime, e.g. fu-tures and spot prices, consumption and income(Ramanathan, 2002). The econometric techniqueregression assumes that mean values are station-ary (do not change much) over any study period.If the mean values of a parameter keep changingfrom period to period then estimated coefficientswill not provide unbiased estimates. Therefore, itis necessary to test the stationarity of the depen-dent and independent variables.

2. Stationarity - Broadly speaking a data series issaid to be stationary if its mean and variance areconstant (non-changing) over time and the valueof covariance between two time periods dependsonly on the distance or lag between the two timeperiods and not on the actual time at which thecovariance is computed (Gujarati, 1995). The cor-relation between a series and its lagged values areassumed to depend only on the length of the lagand not on when the series started. This propertyis known as stationarity and any series obeyingthis is called a stationary time series. It is also re-ferred to as a series that is integrated of order zeroor as I(0) (Ramanathan, 2002).

3. Accounting period settlement - Under account-ing period settlement all transactions (purchases

and sales) of Wednesday to Tuesday are clearedand settled in a batch mode. Therefore, purchasesand sales of day one can be kept open till closehours of following Tuesday without having takendelivery/given delivery. The financial implicationof this process are quite different from rollingsettlement T+5 or T+3 therefore, stock prices areexpected to behave differently on different days.

References

1. Antoniou A and P Holmes (1995), Futures trad-ing, information and spot price volatility : evidencefor the FTSE 100 stock Index and futures con-tract using GARCH, Journal of Banking and Fi-nance, Vol 19, p 117 - 129

2. Booth G G, R W So and Y Tse (1999), Price Dis-covery in the German equity Index derivativesmarkets, The Journal of Futures Markets, Vol 19,No. 6, p 619 - 643

3. Chan K, K C Chan and G A Karolyi (1991), Intraday volatility in the stock Index and stock Indexfutures markets, Review of Financial Studies, Vol4, p 657 - 683

4. Edwards F R (1988), Does futures trading increasestock market volatility ?, Financial Analysts Jour-nal, Jan/Feb, p 63 - 69

5. Engle R F and C W J Granger (1987), Cointegrationand error correction : representation, estimationand testing, Econometrica, Vol 55, p 251 - 276

6. Gregory K and T Michael (1996), Temporal rela-tionships and dynamic interactions between spotand futures markets, The Journal of Futures Mar-kets, Vol 16, No 1, p 55 - 69

7. Gujarati Damodar N (1995), Basic Econometrics,3rd edition, McGraw Hill Inc.

8. Harris L H (1989), The October 1987 S&P 500 stockfutures basis, Journal of Finance, Vol 44, p 77 - 99

9. Kamara A, T Miller and A Siegel (1992), The ef-fects of futures trading on the stability of the S&P500 returns, The Journal of Futures Markets, Vol12, p 645 - 658

10. Kawaller I G, P D Koch and T W Koch (1987), Thetemporal relationship between S&P 500 futuresand the S&P 500 Index, Journal of Finance, Vol42, p 1309 - 1329

11. Pizzi M A, A J. Economopoulos and H M O�Neill(1998), An Examination of the Relationship be-tween Stock Index Cash and Futures Markets : A


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Co-integration Approach, The Journal of FuturesMarkets, Vol 18, No. 3, p 297 - 305

12. Ramanathan Ramu (2002), Introductory Econo-metrics with Applications, 5th edition, ThomsonLearning Inc.

13. Roope M and R Zurbruegg (2002) The intra dayprice discovery process between the Singaporeexchange and Taiwan futures exchange, The Jour-nal of Futures Markets, Vol 22, No. 3, p 219 - 240

14. Ross S A (1989), Information and volatility : theno arbitrage martingale approach to timing andresolution irrelevancy, Journal of Finance, Vol 44,p 1 - 17

15. Stoll H R and R Whaley (1990), The dynamics ofstock Index and stock Index futures returns, Jour-

nal of Financial and Quantitative Analysis, Vol 25,p 441 - 468

16. Thiripal Raju M and Prabhakar R Patil (2002),Index futures: Volatility changes - Indian case,Udyog Pragati, The Journal for Practising Manag-ers, Vol 26, p 51 - 66

17. Thiripal Raju M and Prabhakar R Patil (2003),Impact of Rolling Settlement on Day-of-the WeekEffect, Forthcoming Working Paper

18. Wahab M and M Lashgari (1993), Price dynamicsand error correction in stock Index and stockIndex futures markets: A cointegration approach,Journal of Futures Markets, Vol 13, No. 7, p 711 -742

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The facility of buying back of shares by thelisted companies was ushered in the Indiansecurities market in 1998 end. The first com-

pany, which took the lead and initiated the pro-cess, was Fortune Financials and since then manycompanies have completed their buy back offers.As stipulated in the Regulations, companies maybuy back their shares by any of the followingmethods:

u Through the fixed price tender offer on pro-portionate basis

u Through book building route (called reversebook building)

u Through open market purchase

While in case of fixed price tender offer, the pur-chase price per share is fixed by the company andis disclosed to the investors, in the book buildingcase, it is determined through free interaction ofdemand and supply forces. In the third methodi.e. open market purchase, purchase price is themarket price of the share and varies from trans-action to transaction.

Takeover regulations also provide for the fixedprice tender offers i.e. an acquirer can invite in-vestors to offer their shares to the acquirer at thepre-determined fixed price. Indian securities mar-ket has witnessed large number of fixed price take-over cases.

This paper aims to instigate the companies, com-ing out with the fixed price buy back/tender of-fers, to issue put warrants to the investors on pro-portionate basis. Put warrants are essentially theput options (option to sell), which offer the rightto the investors to sell their shares to the companyback/acquirer at a specific price (strike price ofoptions). Because there is a specific price on the

Put Warrants on Fixed Price Buyback/Takeover OffersMANISH BANSAL*

*Assistant General Manager, SEBI. The views expressed and the approach suggested in this paper are of the author and not necessarily ofSEBI.

put option, it is a perfectsubstitute to the fixedprice offers in the prevail-ing form. But, the opera-tional mechanism of theproduct would be differ-ent and would offer hostof advantages to the investors, issuers andmarket.

Value Drivers

The value drivers of the proposed put optionsapproach are:

Consistent PricingIt may be observed from any buyback/takeoveroffer in the past that whenever the buyback/ten-der offer price has been higher than the actualstock price in the cash market, price of the stockgoes up and then after the offer is complete, itcomes down. It creates enormous inconsistencyin the price of the stock. Let us look at some of therecent cases.

Reliance Industries made a tender offer for theshares of the IPCL for Rs. 231 per share, whichtook place in August 2002. Price of the IPCL wasaround Rs. 50-60 in the month of January 2002,went up to touch Rs. 150 - 160 in the month ofJune - August 2002, and then came down sharplyto Rs. 70 or so after the offer. It may be seen fromthe price pattern in Chart 1.

Similarly, Bajaj Auto came out with a buybackoffer at Rs. 400 per share. Offer opened on Sep-tember 18, 2000. Prices of the stock were consis-tent till August end then after the closure of theoffer stock went down drastically. The price pat-tern of the stock may be observed from Chart 2.


13

The aforesaid pricing pattern before the comple-tion of the offer is the product of the arbitragetransactions. Arbitrage opportunities arise whenthe buy back/tender offer price is higher than thecurrent market price. Some arbitragers buy thestock from the market, register the shares in theirname before record date for the purpose and thentender the shares in the buy back/tender offer.This results in a cool profit for these arbitragers.

Chart 1: Price Pattern of IPCL

Chart 2: Price Pattern of Bajaj Auto

It may be argued that because of the arbitragersin the system, price of stock should go up and al-most touch the tender offer price. But it does nothappen practically because of the risk involved inthe arbitrage transaction. Strictly speaking, it is nota pure arbitrage deal where the profits are lockedout-rightly. It is a risk arbitrage deal becausearbitragers do carry the risk of non-acceptance

or part acceptance of their shares by the com-pany/acquirer in case of over subscription. Thisresults in the risk to them, assuming that the mar-ket price after the buy back/acquisition is gener-ally lower than the repurchase price. This phenom-enon prevents the cash market price to actuallytouch the buy back/tender offer price. Therefore,the price of the stock goes up but to discount forthe risk involved in the arbitrage it would alwaysbe significantly less than the buyback/tenderoffer price.

Offering put option would offer the market withthe consistency in the stock prices by absorbingthe difference between the cash price and thebuyback/tender offer price. These options/war-rants would get listed and traded in the market.As they would trade to capture the difference be-tween the cash and the tender offer price, thiswould eliminate the price rise and fall in the stock,which would result in consistency in the price ofthe stocks.

For example, assume a stock is trading at Rs. 100,and the buy back/takeover offer price of the stockis Rs. 120. In the present scenario the price of thestock would go up to touch 120. Alternatively, putoption/warrant issued for the purpose would cap-ture the difference of Rs. 20 and would theoreti-cally trade at Rs. 20. Practically this warrant wouldalways trade at a price slightly lower than the Rs.20 for liquidity considerations, transaction cost inthe arbitrage and the profit to the arbitragers. Asthe price difference between the cash and the ten-der offer price is captured by the warrant, thiswould result in the consistency of the cash mar-ket prices.

This would offer the better price alignment to themarket because arbitragers would be better offin terms of not carrying the risk of non-acceptanceor part acceptance of their shares by the company.This would happen because they would buy stocksand the corresponding number of put warrantsand then tender them to the company in exactnumbers. Investors also would be able to extractthe best from the offer without leaving any val-ues on the street.

IP C L

0

2 0

4 0

6 0

8 0

10 0

12 0

14 0

16 0

18 0

21/10/2002

9/10/2002

27/9/2002

18/9/2002

6/9/2002

28/8/2002

19/8/2002

7/8/2002

29/7/2002

18/7/2002

8/7/2002

27/6/2002

18/6/2002

7/6/2002

29/5/2002

20/5/2002

9/5/2002

29/4/2002

18/4/2002

9/4/2002

28/3/2002

18/3/2002

7/3/2002

26/2/2002

15/2/2002

6/2/2002

28/1/2002

17/1/2002

8/1/2002

D AT E

Pri

ce

C los e

B a ja j Au to

0

50

1 0 0

1 5 0

2 0 0

2 5 0

3 0 0

35 0

4 0 0

4 5 0

1/12/2000

23/11/2000

15/11/2000

7/11/2000

30/10/2000

20/10/2000

12/10/2000

4/10/2000

25/9/2000

15/9/2000

7/9/2000

29/8/2000

21/8/2000

10/8/2000

2/8/2000

25/7/2000

17/7/2000

7/7/2000

29/6/2000

21/6/2000

13/6/2000

5/6/2000

26/5/2000

18/5/2000

10/5/2000

2/5/2000

20/4/2000

11/4/2000

3/4/2000

24/3/2000

14/3/2000

6/3/2000

D ATE

Pri

ce

C los e

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Immediate Availability of FundsAnother advantage to the investors in the put op-tion/warrant approach would be the immediateavailability of the funds, which may be done bymaking these put options American type i.e. exer-cisable any time till the maturity. In this case, therewould be no requirement for the company to waitfor releasing the payment till the closure of theoffer, which was mainly for the decision of theacceptance process, in case of over subscriptionof the offer. It may be noted that there would notbe any issue of the over subscription as the shareswould always accompany the already issued putwarrants. Thus, the investors would be benefitedby the early payment on their tenders in compari-son to the fixed price tender offer otherwise.

Cost SavingsIn a typical buy back offer, the number of sharesto be accepted by the company are fixed and dis-closed in the offer document. If the shares ten-dered by the public are more than the numberoutlined, as stipulated in the regulations, the com-pany needs to accept the shares on pro rata basis.These pro rata calculations often suggest the ac-ceptance of odd number of shares.

For electronic holding, there is no issue if the oddnumber of shares is returned to the investors asany number of shares may be traded in the mar-ket. But for the holders of the physical shares thecompanies have to issue fresh share certificateswith smaller denominations. This entails cost andat the same time puts these physical share hold-ers into trouble because of their odd lot holdings.In the proposed structure of the warrants, thisproblem would be solved to a large extent as theinvestors may either sell their warrants withoutselling the shares or buy the warrants to cover upfor the deficiencies without losing the values. Forinstance, investor holding the 100 shares and 20warrants may simply sell the 20 warrants at themarket rate or buy the further 80 warrants fromthe market and tender his whole 100 shares in thebuyback/tender offer.

Flexibility to InvestorsIn the proposed structure, an investor alreadyknows that to be eligible to tender a specific num-ber of shares, he needs the corresponding num-ber of warrants. So, he may buy the additionallyrequired number of warrants from the market, ifhe desires to tender all the shares held by him.Alternatively, he may decide to sell his rights (war-rants) in the market and continue with the shareswithout loosing the values occurring to him by thecompany�s buy back move or he may partially sellthe warrants and partly exercise them. Therefore,this proposal would offer the tremendous flexibil-ity to the investors in terms of the operationaldimension.

Other NuancesIn case of buy back of shares, if promoters don�tintend to participate in the buy back process, is-suance of the put warrants to the investors can beincreased accordingly. Similarly, in case of thetakeovers, the issuance of the put warrants to theinvestors would increase to the extent of the eq-uity stake with the acquirers. Further, investorsmay always be allowed to apply for the shareswithout the put warrants but those shares wouldbe accepted only when some investors don�t exer-cise their rights. This acceptance of the additionalshares would take place on proportionate basis.

It is envisaged that a company has two sets of in-vestors - investors with depository account andinvestors having shares in physical form. For those,who have demat holding, company may directlycredit the warrants in their depository accountsand inform them along with letter of offer. Forinvestors holding the shares in physical form, war-rants may be dispatched along with the letter ofoffer. While tendering the shares, demat accountholders may directly transfer the shares along withthe required number of put options to the demataccount opened by the company for the buy backpurpose and physical documents may be sent tothe merchant banker/registrar of the company.

The company would have to list the warrants onstock exchanges. This will be the additional costto the company.


15

End NoteIt can be easily discerned from the above that putwarrants approach to the fixed price buyback/takeover offers imparts advantages of better val-ues distribution among the investors, convenienceand better consistency in the stock prices, over theprevailing practice. Therefore, it would be inter-

esting to explore this put option route for the fixedprice buyback/takeover offers. Put warrants arewidely acknowledged as the instruments for thefixed price buy back/takeover offers in the devel-oped markets like U.S. and U.K. Indeed, sizableportion of the fixed price buy back takes place inthese markets through the put warrants.

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A growing literature suggests that stock mar-kets provide impetus for economic growth.A well-functioning stock market helps the

growth process in an economy by increasing sav-ings, making increased savings available for invest-ment, allocating investment resources efficientlyand ensuring better utilisation of the existing re-sources. It encourages savings by providing thehouseholds with an additional instrument whichmay better meet their risk-return preferences andliquidity needs. It channelises savings to firm in-vestments by allowing the investors to trade inownership of funds to meet the liquidity needs. Itallocates resources to most productive investmentand hence helps to generate higher returns fromthe same stock of investments. It monitors the useof resources constantly and effectively andthereby provides incentives to managers of re-sources to make best use. The prime objective ofthis paper is to assess if the stock markets in Indiaare importantly linked to economic growth.

Theoretical FrameworkThe early authors of economics used the subjectof stock markets as the case examples in their dis-cussions of competitive market conditions. Sub-sequently, the subject was expanded to the role ofprices in the stock market in allocation of re-sources by providing incentives for accumulationand employment of capital. Specifically, Green-wood and Smith (1996) indicated that large stockmarkets can lower the cost of mobilising savingsand thereby facilitate investment in most produc-tive technologies. Bencivenga, Smith and Starr(1996) and Levine (1991) argue that stock marketliquidity - the ability to trade equity easily - is im-portant for growth. Moreover, many profitable

investments require long-term capital and the sav-ers do not wish to relin-quish their control of sav-ings for long period. Insuch case liquid equitymarkets ease this tension by providing an asset tosave that can be quickly and inexpensivelyencashed. On the other hand, the firms have thepermanent access to capital raised through equityissues. Also, Kyle (1984) and Holmstrom and Tirole(1995) argue that liquid stock markets can increaseincentives to get information about firms and im-prove corporate governance. Then, Obstfeld (1994)shows that international risk sharing through in-ternationally integrated stock markets improvesresource allocation and can accelerate the rate ofeconomic growth. Levine and Zervos (1996) ex-amine the empirical relationship between stockmarket development and long-run growth andfound that a strong/robust relationship exists be-tween stock market development and economicgrowth. Levine (1991) and Bencivenga et al (1991)derive models where more liquid stock marketsreduce the disincentives to investing in long dura-tion projects because investors can easily sell theirstake in the project if they need their savings be-fore the project matures. So enhanced liquidityfacilitates investment in longer-run, higher returnprojects that boost productivity growth. Similarly,Michael B. Devereux and Gregor W. Smith (1994)and Maurice Obstfeld (1994) show that greaterinternational risk sharing through internationallyintegrated stock markets induces a portfolio shiftfrom safe, low-return investments to high returninvestments, thereby accelerating productivitygrowth. Levine and Zervos (1998) in their study

Stock Market Development and EconomicGrowth: The Evidence from IndiaSARAT MALIK*

*Assistant Director, SEBI. The views expressed and the approach suggested in this paper are of the author and not necessarily of SEBI.


17

found stock market liquidity is positively and sig-nificantly correlated with current and future ratesof economic growth, capital accumulation andproductivity growth. Raymond Atje and Jovanovic(1993) in their cross-country study of stock mar-kets and economic growth found that there existsa significant correlation between growth over theperiod 1980-1988 and the value of stock markettrading for 40 countries. Rajan and Zingales (1998)show that in countries with well-developed finan-cial systems and industries that are naturallyheavy users of external finance grow relativelyfaster than other industries. World Bank researchgroup in their studies with cross-country data alsofound that stock market is positively and robustlyassociated with long-run growth. However, Singh(1997) emphasized that stock market develop-ments after financial liberalisation are very un-likely to help on achieving rapid industrialisationand faster long-term growth in most developingcountries. He attributes the reasons for inherentvolatility and ambiguousness of stock market pric-ing process as guide to inefficient investment allo-cation. These studies indicate a relationship be-tween stock market and economic growth. Thepresent study attempts to find out whether sucha relationship exists in Indian context.

Analytical Framework

In order to examine empirical relationship be-tween stock market development and economicgrowth, this study uses three different stock mar-ket indicators and three different growth variables,as explained below:

Stock Market Development Indicators

i. Market Size: The ratio of market capitalisationdivided by Gross Domestic Product (GDP) isused to measure size of the stock market.Market capitalisation equals the total marketvalue of all listed shares. In terms of economicsignificance, the assumption underlining theuse of this variable as an indicator of stockmarket development is that the size of thestock market is positively correlated with theability to mobilise capital and diversify risk.

ii. Stock Market Liquidity: Liquidity refers to thefacilities for investors to alter their portfoliosquickly and cheaply. It makes the investmentless risky and facilitates more profitable in-vestment in the longer run. This liquiditymeasure complements the measure of stockmarket size since markets may be large butinactive. Liquidity may influence growth byeasing investment in large, long-term projectsby promoting acquisition of informationabout firms and managers. The variation inthe degree of liquidity affect the price discov-ery process and deficiency of the market. Forsimplicity, the liquidity of the market is thesituation in which large trade in shares canbe transacted without having any materialimpact on the prices of shares. A comprehen-sive measure of liquidity would quantify allthe costs associated with the trading of sharesincluding the time-cost and the uncertaintyof finding the counterparties and settlementof trades.

The liquidity is measured in terms of traded valueratio and turnover ratio. The traded value ratioindicates volume of trading in relation to the sizeof the economy whereas turnover ratio showstrading in relation to the size of the market. Tradedvalue ratio is defined as the total value of tradedshares in the stock market divided by GDP. An-other measure of liquidity is the turnover ratiowhich equals to the value of total shares tradeddivided by market capitalisation. A small but ac-tive market will have small market capitalisationbut high turnover ratio which complements totaltraded value ratio. Although total traded valueratio captures trading compared with the size ofthe economy, turnover ratio measures the trad-ing related to the size of the stock market. To putit differently, a small liquid market will have a bet-ter turnover ratio but the small total traded valueratio. Thus, by incorporating information on mar-ket capitalisation, total traded value ratio and turn-over ratio, we can provide a more comprehensivepicture of stock market development.

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Growth Variables

(i) Bank Credit : In macro-economic theory, theincrease in the amount of credit meant for invest-ment purposes creates more output. This alsoleads to monetary expansion in the economy. Butthe impact on prices of such expansion isneutralised by the increase in overall output whichthe credit expansion helps to generate. This de-pends on the elasticity of output with respect tocredit and elasticity of price with respect to moneyas well as output. Again these elasticities them-selves depend upon the structure of productionand the flexibility of supply responses.

(ii) Money Supply : As per general practice, thebroad money (M3) is considered as a measure ofliquidity helping all economic activities for deve-lopment and growth. The total money supply in-fluences the economic system through the provi-sion of credit availability under transmissionmechanism.The use of M3 as an indirect growthvariable in this model is based on the argument ofthe relationship between money, output and prices.The demand function of real money balances runsas follows:

M/P = f(Y r, i)

Where M stands for nominal money held by thepublic, P for price level, Y r for real income andi for interest rate. It is possible to build into such aformulation the lagged impact of the factors in-fluencing money holding.

The observed relationships between money, out-put and prices in India suggest a basis for deter-mining the range of targets for monetary growth.The level of M3 is determined on the basis of de-sired growth in output, the tolerable level of rateof increase in prices and the expected income elas-ticity of demand for money. The rate of monetaryexpansion varies from year to year dependingupon the anticipated rate of growth in real out-put, emerging trends in economy like trends inagricultural output, industrial output, infrastruc-ture and prices. The growth is dependent on theavailability of credit based on the interest ratedetermined by level of M3 in the economy. It isoften argued that curtailing money supply growthmight adversely affect output. The creation of

output itself is associated with the growth in creditand money supply and it is hard to determine theprecise rate of growth in credit and money supplywhich permits desired output creation withoutaffecting price stability. These arguments lead topolicy prescriptions in the area of removing sup-ply bottlenecks (which might well result in addi-tional credit creation and hence growth in moneysupply) on the one hand and demand managementon the other in order to contain rise in general pricelevel while attempting to achieve the desired levelof growth in output.

To test the proposition of a possible link betweenmoney supply and stock market, M3 has beentaken as one of the growth measures having anindirect impact via channels of transmission in thismodel.

(iii) Index of Industrial Productions: A wide spreadliterature examines the role of equity financing tocorporates investment and its contribution in in-dustrial development. In developing countries,corporates/companies in the industrial sector aremoving towards equity financing rather than debtfinancing because the cost of equity capital is morefavourable than that of debt financing. Hence,Index of Industrial Production (IIP) is used as agrowth variable in place of GDP. It measures thecorporate performance in terms of their growthand how the stock market development has beenable to meet financial needs in India.

Data and Methodology

Monthly data mainly secondary in nature are usedfor each variable from the period April, 1993 toMarch, 2002. The starting month and year are se-lected taking into account the availability ofmonthly data in the stock market. Stock marketdata are directly taken from the Stock Exchange,Mumbai as it represents the Indian stock marketin totality during the period of our analysis. Thedata relating macro-economic growth variableshave been collected from different issues of RBImonthly bulletin and other RBI publications. Forthe estimation of market capitalisation ratio andthe value traded ratio on monthly basis, the dataon IIP have been used as a proxy for the GDP asthe later is not available on monthly basis.


19

Before examining the casual link between stockmarket indicators and growth variables, the cor-relation between those variables have been exam-ined for testing the casual link. In studying thecasual link between different variables, recent eco-nomic techniques of co-integration and Granger�sBlock Causality in a VaR framework have beenused. The co-integration of variables under con-sideration suggests the existence of a long run re-lationship between them. This means they cannotdrip further away from each other arbitrarily andany deviations of the variables from a long-runequilibrium path will be corrected. Generallyspeaking, the co-integration analysis involves twosteps viz. integration test and co-integration test.The first step in testing co-integration is to estab-lish the order of the integration or the stationaryproperties of the variables concerned. It may bementioned that the variable is set to be integratedof the order d, written I(d) if it requires differencingd times to achieve stationarity. As the levels of mostvariables are widely noted to be I(1), the integra-tion tests focus on whether the variables containa unit root which can be achieved by standardDickey-Fuller (DF) and Augmented Dickey-Fuller(ADF) test.

Once the order of integration is established foreach variable, the second step applies co-integra-tion tests to examine whether the integrated se-ries share a long-run equilibrium relationship.Briefly, the variables such as IIP and M3 are set tobe co-integrated, if they are nonstationary, inte-grated of the same order and get their linear com-bination is stationary.

Unit Root Tests: Some Explanations

Time series theories starts by considering the datagenerating mechanism, which should be able togenerate all the statistical properties of the series,or at least the conditional mean, variance and tem-poral autocorrelations, i.e. �linear properties� of theseries, conditional upon past data. A series is sta-tionary, called I(0), denoting �integrated of zero�,when the linear properties exist and are time-in-variant. Some series needs to be differenced onceto achieve these properties and these are calledintegrated of order one, denoted I(1). More gener-

ally, if a series needs differencing d times to be-come I(0), it is called integrated of order d, denotedI(d).There are many substantial differences be-tween two series, I(0) and I(1). An I(0) series has amean and there is a tendency for the series to re-turn to the mean, so that it tends to fluctuatearound the mean, crossing that value frequentlyand with rare extensive excursions [Granger(1986)]. In an I(0) series autocorrelations declinerapidly as lag increases. On the other hand, an I(1)process without drift is relatively smooth, deviateswidely and only rarely returns to an earlier value.

For testing co-integration, it is necessary to ascer-tain that the concerned series are not I(0) and theorder of the concerned series should be the same.To verify this, the Dickey-Fuller (DF) and the Aug-mented Dickey-Fuller (ADF) unit root tests areemployed.

DF and ADF TestsThe Dickey-Fuller unit root test (without trend)procedure requires estimation of the followingequation:

p

∆Xt = µt + βXt-1 +Σ γj ∆Xt�j + et �(A.1)j =1

where, p is selected to be large enough to ensurethat the residual et is empirical white noise, ∆ dif-ference operator, β and γ are parameters. The�test-statistic� is the ratio of β to its calculated stan-dard error obtained from an ordinary least squares(OLS) regression. The null hypothesis is: Xt is I(1)or integrated of order one. This is rejected if thetest-statistic of β is negative and significantly dif-ferent from zero. It should be noted that the test-statistic does not have the usual t-distribution. TheTables on significance levels have been providedby Dickey and Fuller (1979). This test procedureis also known as the ADF test. The DF test forms aspecial case of ADF test when the summation partin the right hand side of equation (A.1) deleted orwhen γj = 0.

Co-integration Test in a Multivariate SystemSince the present study deals with multivariateregression analysis, the co-integration testing pro-cedure suggested by Johansen (1988), and

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Johansen and Juselius (1992) is appropriate. If wehave a vector zt of �n� potentially endogenous vari-ables, then it is possible to specify the followingvector auto regression (VaR) mode involving upto k-lags of Zt:

Zt = A1Zt�1 +. . .+AkZt�k + ut �(A.2)

ut ≈ IN(0, Σ)where Zt is (n×1) and each of Ai is an (n× n) matrixof parameters.

The Johansen estimation method is based on theerror-correction representation of the VaR(k)model with Gaussian errors. Equation (A.2) canbe reformulated into a vector error-correction(VECM) from:

∆Zt = T1∆Zt�1 +. . .+Tk�1∆Zt�k+1+ΠZt�k+BXt +ut �(A.3)

where, Zt is an n ×1 vector of I(1) variables, Xt isan s ×1 vector of I(0) variables, T1, T2, ...Tk-1, Π aren× n matrices of unknown parameters, B is an n × smatrix. The Ti and Π contain information of theshort and long-run adjustment to changes in Zt.The Johansen Maximum Likelihood (ML) proce-dure estimates equation (A.3) subject to the hy-pothesis that Π has a reduced rank, r<n.

The matrix Π can also be expressed as:

Π = αβ' �(A.4)

where, α represents the speed of adjustment todisequilibrium, while β is a matrix of long-run co-efficients such that the term β' Zt-k embedded in(A.3) represents up to (n-1) co-integration relation-ships in the multivariate model which ensure thatthe Zt converge to their long-run steady-state so-lutions. In this approach Zt is assumed to be a vec-tor of nonstationary I(1) variables, then allthe terms in (A.3) which involve ∆Zt-i are I(0) whileΠZt-k must also be stationary for ut ~ I(0) to bewhite-noise.

In the Johansen-Juselius (JJ) method the idea ofco-integration is to search for linear combinationsof the Zt that are I(0). In other words, testing forco-integration amounts to a consideration of therank of Π, i.e., finding the number of r linearly in-dependent columns in Π. If Π has full rank, i.e., ifthere are r =n linearly independent columns then

the variables in Zt are I(0). If the rank of Π is zerothen there are no co-integration relationships. If Πhas reduced rank, i.e., r ≤ (n-1), then co-integratingvectors are also present. In the testing procedurethe hypotheses are:

H0: r=0 (no co-integrating vectors present), and thealternative,

H1: r ≤ (n-1) [(n-1) co-integrating vectors arepresent].

Empirical Results

Correlations

Table 1 presents the correlations which are worthhighlighting. The index of industrial production(IIP), bank credit (BCD) and money supply (M3)are highly correlated. For further analysis threegrowth variables [(market capitalisation ratio(MCAPR), value traded ratio (VTR) and turnoverratio (TOR)] are used independently with the threestock market indicators. All the stock markets vari-ables are positively correlated with the growthvariables.

Table 1: Correlation Test

Correlation IIP BCD M3 MCAPR VTR TOR

IIP 1.00

BCD 0.97 1.00

M3 0.96 0.99 1.00

MCAPR 0.37 0.31 0.37 1.00

VTR 0.64 0.64 0.66 0.67 1.00

TOR 0.61 0.60 0.61 0.63 0.99 1.00

Dynamic Analysis in a co-integrated VaR frame-work

The DF and ADF tests results for the six series arepresented in Table 2 and Table 3. As may be seenthat the test of unit roots shown in Table 3 as perthe methodology indicated earlier shows that theseries IIP, BCD, MCAP, TOR and VTR contain oneunit roots. They are all non-stationary in levels atI (1) and MCAP is only stationary at I(0). However,all the variables are stationary as per the DF Testsafter first differences and near stationary as perthe ADF Tests. Thus, it is concluded that all vari-ables are stationary at first differences (Table 3).


21

Table 2: Tests for Stationarity-Dickey Fuller (DF)and Augmented Dickey Fuller (ADF) Tests at Log-Levels

Variable DF-Statistic ADF-Statistic (lag)

Without With Without WithTrend Trend Trend Trend

LIIP -1.84 -5.17 -2.85 (12) -1.82 (12)

LM3 -0.33 -3.3 -0.92 (9) -1.59 (8)

LBCD -0.75 -3.32 -1.26 (12) -3.01 (1)

LMCAP -2.89 -2.86 -3.13 (2) -3.10 (2)

LTOR -2.21 -5.54 -1.79 (12) -2.54 (12)

LVTR -1.97 -2.41 -1.44 (2) -1.57 (2)

Note : The estimated DF and ADF statistic are based on AkaikeInformation Criterion (AIC). The 95% critical value for theADF statistic is -2.89 for the regression without a trend and-3.46 for the regression with a trend.

Table 3 : Tests for Stationarity-Dickey Fuller (DF)and Augmented Dickey Fuller (ADF) Tests at Log-First-Differences

Variable DF-Statistic ADF-Statistic (lag)

Without With Without WithTrend Trend Trend Trend

LIIP -14.98 -14.90 -2.48 (12) -3.08 (12)

LM3 -8.42 -10.14 -0.65 (12) -3.21 (11)

LBCD -11.03 -11.13 -2.65 (11) -5.81 (7)

LMCAP -10.48 -10.44 -5.95 (3) -6.95 (2)

LTOR -9.95 -9.91 -4.39 (8) -4.22 (7)

LVTR -10.09 -10.06 -3.02 (10) -3.07 (10)

Note: The estimated DF and ADF statistics are based on AkaikeInformation Criterion (AIC). The 95% critical value for theADF statistic is -2.89 for the regression without a trend and-3.46 for the regression with a trend.

The number of co-integration factors i.e. numberof long-run relationship is investigated by usingJohansen�s maximum likelihood method. TheEigen value and trace tests results are summarisedin Tables 4 to 7. An unrestricted VaR model wasestimated using equation for MCAP, TOR, VTR,M3, BCD and IIP. By using Schwartz Baysian Cri-teria (SBC) the order of VaR model was found tobe one. As noted earlier, in an unrestricted VaRmodel, the block causality can be examined by theF² test which is equivalent to Granger (1969) Cau-sality. The co-integration test results show that

there is a long-run relationship between eachgrowth variable with the three stock market indi-cators and all growth variables with all stock mar-ket indicators. The results of Johansen maximumlikelihood co-integration test for the IIP and threestock market development indicator variables aregiven in Table 4. The order of auto regressions arealternatively sets 2, 3 and 4. The results indicatethat the null hypothesis of no-integration is re-jected at 95% critical value. At this point it is con-cluded that three of four are co-integrating vec-tors. Thus the index of industrial production is co-integrated with any of the stock market develop-ment variables.

Table 4 : Co-integration Results of the VaR Modelon Maximum Eigenvalue and Trace of the Sto-chastic Matrix of IIP

Null Alterna- Maximum 95% criticaltive Eigenvalue value

R=0 r=1 28.73 28.27

R=1 r=2 17.42 22.04

R=2 r=3 8.41 15.87

R=3 r=4 5.27 9.16

Trace of the Stochastic Matrix

R=0 r≥1 59.84 53.48

R≤1 r≥2 31.11 34.87

R≤2 r≥3 13.68 20.18

R≤3 r≥4 5.27 9.16

Table 5 : Co-integration Results of the VaR Modelon Maximum Eigenvalue and Trace of the Sto-chastic Matrix of M3


R=0 r=1 44.83 28.27

R=1 r=2 24.68 22.04

R=2 r=3 10.18 15.87

R=3 r=4 4.25 9.16


R=0 r≥1 83.95 53.48

R≤1 r≥2 39.12 34.87

R≤2 r≥3 14.44 20.18

R≤3 r≥4 4.25 9.16

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Johansen maximum likelihood co- integration testresults for money supply (M3) and stock marketdevelopment indicators are given in Table 5. Theresults show that the null hypothesis of no inte-gration at 95% of the critical value and the threestock market indicators are co-integrated withmoney supply i.e. broad money (M3).

Table 6 indicates the results of Johansen�s maxi-mum likelihood co-integration test results for bankcredit and three stock market indicators. The re-sults show that null hypothesis of no co-integra-tion is rejected at 95% level of significance andthere is at least one co-integrating vector. Thusthe bank credit through commercial sectors is co-integrated with any of the three stock market de-velopment indicators i.e. market capitalisation ra-tio, value traded ratio and turnover ratio.

Table 6 : Co-integration Results of the VaR Modelon Maximum Eigenvalue and Trace of the Sto-chastic Matrix of BCD


R=0 r=1 26.60 28.27

R=1 r=2 24.15 22.04

R=2 r=3 13.11 15.87

R=3 r=4 5.30 9.16


R=0 r≥1 69.18 53.48

R≤1 r≥2 42.57 34.87

R≤2 r≥3 18.42 20.18

R≤3 r≥4 5.30 9.16

Table 7 : Co-integration Results of the VaR Modelon Maximum Eigenvalue and Trace of the Sto-chastic Matrix of AMIE


R=0 r=1 57.63 40.53

R=1 r=2 41.92 34.40

R=2 r=3 22.78 28.27

R=3 r=4 18.37 22.04


R=0 r≥1 154.43 102.56

R≤1 r≥2 96.80 75.98

R≤2 r≥3 54.88 53.48

R≤3 r≥4 32.10 34.87

AMEI = All Macro-economic Indicators.

Table 7 indicates the co-integration results of VaRmodel based on Johansen maximum likelihood co-integration test results. The order of the auto-re-gressions are alternatively set to 1, 2 & 3. The re-sults indicate that the null hypothesis of no co-in-tegration is rejected at 95% critical value. Thus, itis concluded that there are co-integrating vectorsand all growth variables like IIP, bank credit,money supply are co-integrated with all stockmarket indicators.

Conclusion

The aim of this paper was to examine the rela-tionship between stock markets and economicgrowth in India. The data and the results suggestthat stock market development remain positivelyand significantly correlated with economic growth.In this regard, various tests conducted to evalu-ate the role that may be played by the stock mar-ket development indicators i.e. market capitali-sation, value traded ratio and turnover ratio withmacro-economic growth variables like IIP, M3 andbank credit of the Indian economy found thatthere exists a long-term relationship. While exist-ing studies focused mainly on one way relation-ship between stock market development and eco-nomic growth, the present findings extended em-pirical implementation to show the both wayrelationship. The results which are consistent withtheories suggest that there is a relationship be-tween stock market development and economicgrowth in India. It is also found that index of in-dustrial production and bank credit are signifi-cantly linked to stock market development indi-cators and stock market is an integral part ofgrowth process. The empirical extension by thispaper is important for the policy makers to pre-dict and plan for the future path of stock market


23

development and also the path of long-run eco-nomic growth.

References

1. Atje Raymond and Jovanovic Boyan (1993), �StockMarkets and Development�, European EconomicReview, April, 37 (2/3)

2. Bencivenga Valerie R. and Smith Bruce D. (1991),�Financial Intermediation and EndogenousGrowth�, Review of Economic Studies, April, 58(2), pp. 195-209

3. Bencivenga Valerie R., Smith Bruce D., and StarrRoss M. (1996), �Equity Markets, TransactionCosts, and Capital Accumulation: An Illustration�,World Bank Economic Review

4. Devereux Michael B. and Smith Gregor W. (1994),�International Risk Sharing and EconomicGrowth�, International Economic Review, August,35(4), pp. 535-50

5. Fisher S. (1993), �The Role of MacroeconomicFactors in Growth�, Journal of Monetary Econom-ics, December, 32(3) pp. 485-511

6. Greenwood Jeremy and Smith Bruce, (1996), �Fi-nancial Markets in Development, and the Devel-opment of Financial Markets�, Journal of Eco-nomic Dynamics and Control

7. King Robert G. And Levine Ross (1993a),�Finance and Growth: Schumpeter Might BeRight�, Quarterly Journal of Economics, August,108(3), pp. 717-38

8. King Robert and Ross Levine (1993b),�Finance, Entrepreneurship and Growth: Theory

and Evidence�, Journal of Monetary Economics,December, pp. 513-42

9. Kyle Albert S. (1984), �Market Structure, Informa-tion, Futures Markets, and Price Formation�, inInternational Agricultural Trade: Advanced Read-ings in Price Formation, Market Structure, andPrice Instability, edited by Gary G. Storey, An-drew Schmitz and Alexander H. Sarris, Boul-der, Colorado, Westview

10. Levine Ross (1991), �Stock Markets, Growth, andTax Policy�, Journal of Finance, September, 46(4),pp. 1445-65

11. Levine Ross (1997), �Financial Development andEconomic Growth: Views and Agenda�, Journalof Economic Literature, June, pp.688-726

12. Levine Ross and Zervos Sara (1998) �Stock mar-kets, Banks, Economic Growth�, The AmericanEconomic Review, June

13. Levine Ross (1988), �The Legal Environment,Banks, and Long run Economic Growth�, Journalof Money, Credit and Banking, August

14. Obstfeld Maurice (1994), �Risk-Taking, Global Di-versification, and Growth�, American EconomicReview, December, 84(5), pp. 1310-1329

15. Singh A. (1997), �Stock Markets, Financial Liber-alization and Economic Development�, EconomicJournal, May

16. Schumpeter Joseph A. (1932), �The Theory of Eco-nomic Development�, translated by RedversOPIE, Cambridge, MA: Harvard U. Press

17. World Bank Development Report various issues(World Bank, Washington, DC.)

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Significance of Securities Market in the Growthof an Economy: An Indian ContextG. N. BAJPAI*

I thank the organizers of this programme foraffording me an opportunity to reiterate thesignificance of a very vital segment of the

economy, i.e. the securities market.

It is needless to say that the financial markets(banks and the securities markets) finance eco-nomic growth. They channelise savings to invest-ments and thereby decouple these two activities.As a result, savers and investors are not con-strained by their individual abilities, but by theeconomy�s ability to invest and save respectively,which inevitably enhances savings and investmentin the economy. To the extent the growth of aneconomy depends on the rate of savings and in-vestment, financial markets promote economicgrowth.

The banks and securities markets are two com-peting mechanisms to channel savings to invest-ment. The securities markets score over banks inthe allocational efficiency, as it allocates savingsto those investments which have potential to yieldhigher returns. This inevitably leads to higher re-turns to savers on their savings and higher pro-ductivity on investments to enterprises. Hence tothe extent economic growth depends on the rateof return on investments, securities market pro-motes economic growth.

With this brief background, I propose to talk firstabout functions of the securities market, then itsrole and importance in the growth of an economy,then how a liberalized securities market promoteseconomic growth, then talk about its significancein the Indian economy and finally, significance ofthe market in the growth of Indian economy.

Functions of SecuritiesMarket

The securities market al-lows people to do morewith their savings thanthey would otherwise. Italso allows people to do more with their ideas andtalents than would otherwise be possible. Thepeople�s savings are matched with the best ideasand talents in the economy. Stated formally, thesecurities market provides a linkage between thesavings and the preferred investment across theentities, time and space. It mobilizes savings andchannelises them through securities into preferredenterprises.

The securities market enables all individuals, irre-spective of their means, to share the increasedwealth provided by competitive enterprises. Thesecurities market allows individuals who can notcarry an activity in its entirety within their re-sources to invest whatever is individually possibleand preferred in that activity carried on by anenterprise. Conversely, individuals who can notbegin an enterprise they like can attract enoughinvestment from others to make a start and con-tinue to progress and prosper. In either case, indi-viduals who contribute to the investment sharethe fruits.

The securities market also provides a market placefor purchase and sale of securities and therebyensures transferability of securities, which is thebasis for the joint stock enterprise system. The li-quidity available to investors does not inconve-nience the enterprises that originally issued the

Speeches

*S. D. Gupte Memorial Lecture delivered by Shri G. N. Bajpai, Chairman, SEBI at Mumbai on March 13, 2003. This lecture heavily borrowsfrom the Indian Securities Market Review, 2002, a publication of NSE and an article �Securities Market Reforms in a Developing Country�by M. S. Sahoo, published in Chartered Secretary, November 1997.


25

securities to raise funds. The existence of the se-curities market makes it possible to satisfy simul-taneously the needs of the enterprises for capitaland of investors for liquidity.

The liquidity the market confers and the yieldpromised or anticipated on security encouragespeople to make additional savings out of currentincome. In the absence of the securities market,the additional savings would have been consumedotherwise. Thus the provision of securities mar-ket results in net savings.

The securities market enables a person to allocatehis savings among a number of investments. Thishelps him to diversify risks among many enter-prises, which increases the likelihood of long-termoverall gains.

Securities Market and Economic Growth

I strongly believe that a well functioning securi-ties market is conducive to sustained economicgrowth. There have a number of studies, startingfrom World Bank and IMF to various scholars,which have established robust relationship notonly one way, but also the both ways, between thedevelopment in the securities market and the eco-nomic growth. An important study by Ross Levineand Sara Zervos (1996) finds that the stock mar-ket development is highly significant statisticallyin forecasting future growth of per capita GDP.Their regressions forecast that if Mexico or Brazilwere to obtain stock markets as advanced asMalaysia, then they might obtain an additional percapita GDP growth per year of 1.6%. This happens,as market gets disciplined/developed/efficient, itavoids the allocation of scarce savings to low yield-ing enterprises and forces the enterprises to focuson their performance which is being continuouslyevaluated through share prices in the market andwhich faces the threat of takeover. Thus securi-ties market converts a given stock of investibleresources to a larger flow of goods and services.

The securities market fosters economic growth tothe extent that it�(a) augments the quantities ofreal savings and capital formation from any givenlevel of national income, (b) increases net capital

inflow from abroad, (c) raises the productivity ofinvestment by improving allocation of investiblefunds, and (d) reduces the cost of capital.

It is reasonable to expect savings and capital ac-cumulation and formation to respond favourablyto developments in securities market. The provi-sion of even simple securities decouples individualacts of saving from those of investment over bothtime and space and thus allows savings to occurwithout the need for a concomitant act of invest-ment. If economic units rely entirely on self-fi-nance, investment is constrained in two ways: bythe ability and willingness of any unit to save, andby its ability and willingness to invest. The unequaldistribution of entrepreneurial talents and risktaking proclivities in any economy means that atone extreme there are some whose investmentplans may be frustrated for want of enough sav-ings, while at the other end, there are those whodo not need to consume all their incomes but whoare too inert to save or too cautious to invest thesurplus productively. For the economy as a whole,productive investment may thus fall short of itspotential level. In these circumstances, the securi-ties market provides a bridge between ultimatesavers and ultimate investors and creates the op-portunity to put the savings of the cautious at thedisposal of the enterprising, thus promising to raisethe total level of investment and hence of growth.The indivisibility or lumpiness of many potentiallyprofitable but large investments reinforces thisargument. These are commonly beyond the fi-nancing capacity of any single economic unit butmay be supported if the investor can gather andcombine the savings of many. Moreover, the avail-ability of yield bearing securities makes presentconsumption more expensive relative to futureconsumption and, therefore, people might be in-duced to consume less today. The composition ofsavings may also change with fewer saving beingheld in the form of idle money or unproductivedurable assets, simply because more divisible andliquid assets are available.

The securities market facilitates the internationali-sation of an economy by linking it with the rest of

SPEECHES



the world. This linkage assists through the inflowof capital in the form of portfolio investment.Moreover, a strong domestic stock market perfor-mance forms the basis for well performing domes-tic corporate to raise capital in the internationalmarket. This implies that the domestic economyis opened up to international competitive pres-sures, which help to raise efficiency. It is also verylikely that existence of a domestic securities mar-ket will deter capital outflow by providing attrac-tive investment opportunities within domesticeconomy.

Any financial development that causes investmentalternatives to be compared with one another pro-duces allocational improvement over a system ofsegregated investment opportunities. The benefitsof improved investment allocation is such thatMcKinnon defines economic development asreduction of the great dispersion in social rate ofreturn to existing and new investments underdomestic entrepreneurial control. Instead ofemphasising scarcity of capital, he focuses on theextraordinary distortions commonly found in thedomestic securities markets of the developingcountries. The distortions in the real sectors suchas monopoly power, tariff protection, import quo-tas, credit rationing and so forth add salt to in-jury. In the face of great discrepancies in rate ofreturn, the accumulation of capital does not con-tribute much to development. A developed secu-rities market successfully monitors the efficiencywith which the existing capital stock is deployedand thereby significantly increases the averagereturn.

In as much as the securities market enlarges thefinancial sector, promoting additional and moresophisticated financing, it increases opportunitiesfor specialisation, division of labour and reductionsin costs in financial activities. The securities mar-ket and its institutions help the user in many waysto reduce the cost of capital. They provide a con-venient market place to which investors and issu-ers of securities go and thereby avoid the need tosearch a suitable counterpart. The market pro-vides standardised products and thereby cuts the

information costs associated with individual in-struments. The market institutions specialise andoperate on large scale which cuts costs throughthe use of tested procedures and routines.

There are also other developmental benefits asso-ciated with the existence of a securities market.First, the securities market provides a fast-ratebreeding ground for the skills and judgementneeded for entrepreneurship, risk bearing, port-folio selection and management. Second, an ac-tive securities market serves as an �engine� of gen-eral financial development and may, in particu-lar, accelerate the integration of informal finan-cial systems with the institutional financial sector.Securities directly displace traditional assets suchas gold and stocks of produce or, indirectly, mayprovide portfolio assets for unit trusts, pensionfunds and similar FIs that raise savings from thetraditional sector. Third, the existence of securi-ties market enhances the scope, and provides in-stitutional mechanisms, for the operation of mon-etary and financial policy.

While the above indicate that the securities mar-ket promotes economic growth, it is not one wayrelation. The economic growth also promotes se-curities market, which I am not discussing now.

Liberalised Securities Market and EconomicGrowth

Now let me explain how a liberalized securitiesmarket helps promote economic growth. The moreliberalized a securities market is, the better is itsimpact on economic growth. Interventions in thesecurities market were originally designed to helpgovernments expropriate much of the seigniorageand control and direct the flow of funds forfavoured uses. These helped governments to tapsavings on a low or even no-cost basis. In someeconomies governments used to allocate fundsfrom the securities market to competing enter-prises and decide the terms of allocation. The re-sult was channelisation of resources to favoureduses rather than sound projects. In such circum-stances accumulation of capital per se meant little,where rate of return on some investments were


27

negative while extremely remunerative invest-ment opportunities were foregone. This kept theaverage rate of return from investment lower thanit would otherwise have been and, given the costof savings, the resulting investment was less thanoptimum. This led mainstream developmenteconomists to argue that liberalization of securi-ties market is the road to higher levels of domes-tic savings/investment and more efficient alloca-tion of capital.

The implication of intervention is illustrated in fig-ure 1. The vertical axis represents cost of capitaland rate of return on investment and the horizon-tal axis represents the amount of capital raisedfrom the securities market. With intervention, thedemand for investment is represented by DdD,which indicates lower average rate of return cor-responding to sub-optimal resource allocation. Asthe level of investment increases to OD, the maxi-mum permitted by the authorities, the averagerate of return decreases as relatively less remu-nerative investments are approved. SS representsthe supply of capital. This results in an investmentof K. If, however, intervention is withdrawn, rateof return will go up causing a shift in demand forinvestment schedule to D1D1, which will be down-ward sloping throughout. This would result inhigher investment and consequently income whichwould shift supply schedule of capital to S1S1. Theinvestment would further increase to K* and rateof return would improve to r*. Rate of return im-proves because removal of intervention ratios outlow yielding investments. As the cost of capital goesup, the entrepreneurs are likely to switch to lesscapital-intensive technologies. Such technologiesmay not only raise the average productivity ofcapital, but also represent appropriate technologyprovided by relative availability and cost of labourand capital in the economy. Letting rate of returnbe determined by the market mechanism wouldreduce or even eliminate the costs involved incredit rationing arrangements and thereby en-hance the efficiency of the economy as a whole.High rate of return would stimulate demand forfinancial assets and expand financial sector.

Figure 1 : Effect of liberalisation of Securities Market

One of the bitter fruits of intervention has beenthe shrinkage of the securities market. When sub-ject to effective expropriation through suppressedreturn on investment, people naturally seek aproper reward elsewhere, either through capitalflight, through a retreat to underground orthrough the hoarding of goods. People keep theirsavings out of the markets. The underground sec-tor allocates the resources, but relatively ineffi-ciently. Another major consequence has been in-sulation of developing countries from internationalcapital markets. The domestic market is shieldedfrom competition.

Misallocation of resources can result because ofdistorting interventions or the presence of mar-ket failure either in the goods market or in thesecurities market, which are interlinked. Improve-ment in allocation efficiency, therefore, requiresremoval of distortions from both the markets.

Significance in Indian Economy

Three main sets of entities depend on securitiesmarket. While the corporates and governmentsraise resources from the securities market to meettheir obligations, the households invest their sav-ings in the securities. I will now dish out a few sta-tistics, mostly taken from the Indian SecuritiesMarket Review, a publication of the National StockExchange, to indicate the level of significance.While corporate sector and governments together

D1

D

d

r�

S S1

K

O D K�

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and

Cost of

capital

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d

SPEECHES



raised a total of Rs. 226,911 crore from the securi-ties market during 2001-02, there are about 20million investors who have invested in the securi-ties. Tables 1 and 2 indicate the significance of thesecurities market in Indian economy.

Table 1 : Dependence on Securities Market

Year Share (%) of Securities Market in

External Fiscal Deficit Fiscal Deficit FinancialFinance of Central of State Savingsof Corpo- Government Government of House-rates holds

1990-91 19.35 17.9 13.6 14.4

1991-92 19.17 20.7 17.5 22.9

1992-93 33.38 9.2 16.8 17.2

1993-94 53.23 48.0 17.6 14.0

1994-95 44.99 35.2 14.7 12.1

1995-96 21.67 54.9 18.7 7.7

1996-97 22.12 30.0 17.5 6.9

1997-98 28.16 36.5 16.5 4.5

1998-99 27.05 60.9 14.1 4.2

Year Share (%) of Securities Market in

External Fiscal Deficit Fiscal Deficit FinancialFinance of Central of State Savingsof Corpo- Government Government of House-rates holds

1999-00 33.58 67.1 13.9 7.3

2000-01 31.39 61.4 13.8 4.3

2001-02 NA 69.4 15.2 NA

Source : Economic Intelligence Service-Corporate Sector,CMIE & RBI (Copies from Indian Securities Market Review,a publication of NSEIL).

The Indian economy witnessed a descent growthof 6% per year in 1990s against euphemisticallydescribed as Hindu Growth Rate of 3.5% over pre-ceding four decades. This was possible by contri-butions mostly by the organised secondary andtertiary sectors (industry and service). The secu-rities market helped these organized sectors, cor-porate and government, to raise resources torealise a growth rate of 6%. Of late the activity inthe securities market has slowed down, so also thelevel of activity in the economy.

Table 2 : Resource Mobilisation from the Primary Market

(Rs. crore)

Issues 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000- 01 2001-02

Corporate Securities 14,219 16,366 23,537 44,498 48,084 36,689 37,147 42,125 60,192 72,450 78,396 74,403

Domestic Issues 14,219 16,366 23,286 37,044 41,974 36,193 33,872 37,738 59,044 68,963 74,199 72,061

Non-Govt. PublicCompanies 4,312 6,193 19,803 19,330 26,417 16,075 10,410 3,138 5,013 5,153 4,890 5,692

PSU Bonds 5,663 5,710 1,062 5,586 3,070 2,292 3,394 2,982 - - - �

Govt. Companies - - 430 819 888 1,000 650 43 - - - 350

Banks & FIs - - 356 3,843 425 3,465 4,352 1,476 4,352 2,551 1,472 1,070

Private Placement 4,244 4,463 1,635 7,466 11,174 13,361 15,066 30,099 49,679 61,259 67,836 64,950

Euro Issues - - 702 7,898 6,743 1,297 5,594 4,009 1,148 3,487 4,197 2,342

Government Securities 11,558 12,284 17,690 54,533 43,231 46,783 42,688 67,386 106,067 113,336 128,483 152,508

Central Government 8,989 8,919 13,885 50,388 38,108 40,509 36,152 59,637 93,953 99,630 115,183 133,801

State Governments 2,569 3,364 3,805 4,145 5,123 6,274 6,536 7,749 12,114 13,706 13,300 18,707

Total 25,777 28,650 41,227 99,031 91,315 83,472 79,835 109,511 166,259 185,786 206,879 226,911

Source: RBI. (Copied from Indian Securities Market Review,a publication of NSEIL)

Corporate Sector: The 1990s witnessed emergenceof the securities market as a major source of fi-nance for trade and industry. A growing numberof companies are accessing the securities market

rather than depending on loans from FIs/banks.The corporate sector is increasingly depending onexternal sources for meeting its funding require-ments. There appears to be growing preferencefor direct financing (equity and debt) to indirectfinancing (bank loan) within the external sources.


29

According to CMIE data, the share of capital mar-ket based instruments in resources raised exter-nally increased to 53% in 1993-94, but declinedthereafter to 31% by 2000-01.

Average annual capital mobilisation from the pri-mary market, which used to be about Rs.70 crorein the 1960s and about Rs.90 crore in the 1970s,increased manifold during the 1980s, with theamount raised in 1990-91 being Rs. 4,312 crore. Itreceived a further boost during the 1990s with thecapital raised by non-government public compa-nies rising sharply to Rs. 26,417 crore in 1994-95.

The market appears to have dried up in the late1990s due to inter-play of various factors. Thecorporates have shifted focus to other avenues forraising resources like private placement wherecompliance is much less. Available data, althoughscanty, indicate that private placement has becomea preferred means of raising resources by the cor-porate sector. Private placement contributedabout Rs. 65,000 crore during 2001-02. The cor-porate sector raised a total Rs. 74,403 crore dur-ing 2001-02 from the securities market.

The market is getting institutionalised as peopleprefer mutual funds as their investment vehicle,thanks to evolution of a regulatory framework formutual funds. The net collections by mutual fundspicked up during 1990s and increased to Rs. 19,953crore during 1999-2000. Starting with an assetbase of Rs. 25 crore in 1964, the total assets undermanagement at the end of January 2003 wasRs. 121,806 crore.

Governments : Along with increase in fiscal defi-cits of the governments, the dependence on mar-ket borrowings to finance fiscal deficits has in-creased over the years. During the year 1990-91,the State Governments and the Central Govern-ment financed nearly 14% and 18% respectively oftheir fiscal deficit by market borrowing. In per-centage terms, dependence of the State Govern-ments on market borrowing did not increase muchduring the decade 1991-2001. In case of CentralGovernment, it increased to 69.4% by 2001-02. TheCentral Government and the State Governmentstogether borrowed Rs. 110,510 crore from

market during 2001-02 against Rs. 10,557 crore in1990-91.

The primary issues of the Central Governmenthave increased many-fold during the decadeof 1990s from Rs. 8,989 crore in 1990-91 toRs. 133,801 crore in 2001-02. The issues by StateGovernments increased by about five times fromRs. 2,569 crore to Rs. 18,707 crore during the sameperiod.

Households: According to RBI data, householdsector accounted for 89% of gross domestic sav-ings during 2000-01. They invested only 4% of theirsavings in securities, including government secu-rities and units of mutual funds during 2000-2001.The share of financial savings of the householdsector in securities (shares, debentures, public sec-tor bonds and units of UTI and other mutual fundsand government securities) is estimated to havegone down from 22.9% in 1991-92 to 4.3% in 2000-01.

Investor Population: The Society for Capital Mar-ket Research and Development carries out peri-odical surveys of household investors to estimatethe number of investors. Their first survey car-ried out in 1990 placed the total number of shareowners at 90-100 lakh. Their second survey esti-mated the number of share owners at around 140-150 lakh as of mid-1993. Their third survey esti-mates the number of shareowners at around 2crore at 1997 end.

According to the SEBI-NCAER survey of Indianinvestors conducted in early 1999, an estimated12.8 million, or 7.6%, of all Indian households rep-resenting 19 million individuals had directly in-vested in equity shares and or debentures as atthe end of financial year 1998-99. An estimated 15million, or nearly 9%, of all households represent-ing at least 23 million unit holders had invested inunits of mutual funds.

Disinvestment ProgrammeThe disinvestment programme in India would nothave been successful if it did not have a well de-veloped securities market. So far, Government ofIndia has been able to disinvest to the tune of over

SPEECHES



Rs. 31,000 crore, including about Rs. 5,000 duringthe current fiscal.

Reforms in Securities Market

With the objectives of improving market effi-ciency, enhancing transparency, preventing unfairtrade practices and bringing the Indian market upto international standards, a package of reformsconsisting of measures to liberalise, regulate anddevelop the securities market was introduced. Thepractice of allocation of resources among differ-ent competing entities as well as its terms by acentral authority was discontinued. The issuerscomplying with the eligibility criteria were allowedfreedom to issue the securities at market deter-mined rates. The secondary market overcame thegeographical barriers by moving to screen basedtrading. All kinds of securities - debt and equity,government and corporate - are traded on ex-change side by side. Trades enjoyed counter-partyguarantee. The trading cycle shortened to a dayand trades are settled within 3 working days, whileall deferral products were banned. Physical secu-rity certificates almost disappeared. A variety of

derivatives were permitted. Corporate governancehas improved significantly. As a result of thesereforms, the market design has changed drasti-cally for better as may be seen from Table 3. Thishas boosted the confidence of international inves-tors in Indian securities market. Indian market isgetting integrated with the global market thoughin a limited way through euro issues. Since 1992,when they were permitted access, Indian compa-nies have raised about Rs. 37,000 crore throughADRs/GDRs. More than 500 FIIs are currentlyregistered with SEBI. They have made net cumu-lative investments of about US $ 16 billion by theend of February 2003. One can gauge the extentof reforms in the securities market from thechange in transactions costs. The market impactcost of transactions in equity on stock exchangeshas reduced from 0.75% in mid-1993 to 0.10% inJanuary 2003. The brokerage has reduced from3% to 0.15%. Lower transaction cost means higherattraction for investors in securities and issuersof securities to participate in the market on a largerscale.

Table 3 : Elements of Market Design in Indian Securities Market, 1992 and 2003

Features 1992 2003

Regulator No Specific Regulator, A specialized regulator for securities market (SEBI) vestedbut Central Government with powers to protect investors� interest and to develop andoversight regulate securities market. SROs strengthened.

Intermediaries Some of the intermediaries A variety of specialized intermediaries emerged. They are(stock brokers, authorized registered and regulated by SEBI (also by SROs). They as wellclerks and remisiers) regulated as their employees are required to follow a code of conductby the SROs. and are subject to a number of compliances.

Access to Granted by Central Eligible issuers access the market after complying with theMarket Government issue requirements.

Pricing of Determined by Central Determined by market, either by the issuer through fixed priceSecurities Government or by the investors through book building

Access to No access Corporates allowed to issue ADRs/GDRs and raise ECBs.International ADRs/GDRs have two way fungibilty. FIIs allowed trade inmarket Indian market. MFs also allowed to invest overseas

Corporate Very little emphasis Emphasis on disclosures, accounting standards and corporateCompliance governance

Mutual Funds Restricted to public Open to private sector and emergence of a variety of fundssector and schemes


31

Trading Open outcry, Available at the Screen based trading system, Orders are matched on price-Mechanism trading rings of the exchanges, time priority, Transparent, Trading platform accessible from

Opaque, Auction/negotiated all over countrydeals

Aggregation Fragmented market through Order flow observed. The exchanges have open electronicorder flow geographical distance. Order consolidated limit order book (OECLOB).

flow unobserved.

Anonymity in Absent CompleteTrading

Settlement Bilateral Clearing House of the Exchange or the Clearing CorporationSystem is the central counter-party

Settlement 14 day account period settle- Rolling settlement on T+3 basisCycle ment, but not adhered to

always

Counter-party Present Absentrisk

Form of Physical Mostly ElectronicSettlement

Basis of Bilateral Netting Multilateral Nettingsettlement

Transfer of Cumbersome. Transfer by Securities are freely transferable. Transfers are recordedsecurities endorsement on security electronically in book entry form by depositories.

and registration by issuer

Risk No focus on risk Comprehensive risk management system encompassingManagement management capital adequacy, limits on exposure and turnover, VaR based

margining, client level gross margining, on-line position moni-toring etc.

Derivatives Absent Exchange traded futures and Options available onTrading two indices and select securities

Features 1992 2003

Market is efficient means the enterprises that dowell in the real sectors are rewarded with fundsfor growth and expansion. All these inevitably leadto higher economic growth.

Road Ahead for Securities MarketThe securities market promotes economic growth.More efficient is the securities market, the greateris the promotion effect on economic growth. It is,therefore, necessary to ensure that our securitiesmarket is efficient, transparent and safe. In thisdirection, SEBI has been working since its incep-tion and would continue to work to continuouslyimprove market design to bring in further effi-ciency and transparency to market and makeavailable newer and newer products to meet the

varying needs of market participants, while pro-tecting investors in securities. The aim is to makeIndian securities market a model for other juris-dictions to follow and make SEBI the most dy-namic and respected regulator globally. Some ofthe initiatives on which SEBI is working are:

a. Introducing exchange traded interest ratederivatives

b. Promoting an index to comprehensively re-flect the level of corporate governance

c. Setting up a central listing authority todynamise listing requirements

d. Facilitating demutualization of stock ex-changes

SPEECHES



e. Building a cadre of securities market profes-sionals through training and certification

f. Constructing a central registry of securitiesmarket participants and professionals

g. Rationalising margin trading, securities lend-ing and short selling

h. Promoting secondary market for corporatedebt securities

i. Implementing market wide straight throughprocessing from trade initiation to settlement

j. Operationalising T+1 rolling settlement

k. Reviewing all regulations of SEBI and codeof conduct for intermediaries

l. Providing a legal framework for centralcounter-party

m. Consolidation of exchanges and other mar-ket participants

n. Benchmarking Indian securities market withbest in the World

I am sure, these measures would definitely im-prove efficiency of the market leading to highereconomic growth.

■■


33

The code of conduct for sub-brokers isprescribed in Regulation 15 of the SEBI(Stock Brokers and Sub-brokers) Regula-

tions, 1992. In view of the changed market struc-ture, a need was felt for a review of the regula-tions, including the code of conduct. An internalgroup of SEBI has proposed the following code ofconduct for sub-brokers:

A. General : A sub-broker shall maintain high stan-dards of integrity, promptitude and fairness andact with due skill, care and diligence in the con-duct of securities business.

B. Duty to the Investor : A sub-broker, in his deal-ings with the clients and the general investing pub-lic, shall faithfully and promptly place the ordersfor buying and selling of securities. He shallpromptly inform his client about the execution ornon-execution of an order and promptly makepayment in respect of securities sold and arrangefor prompt delivery of securities purchased by cli-ents. He shall promptly redress the grievances ofits investors as soon as brought to its knowledge.He shall not (a) match the purchase and sale or-ders of his clients and each order must invariablybe routed through a member-broker of the stockexchange with whom he is affiliated, (b) encour-age sales or purchases of securities with the soleobject of generating brokerage, (c) charge fromhis clients a brokerage (including the brokeragecharged by the broker) exceeding two and halfpercentage of the trade executed price, (d) discloseor discuss or make improper use of the details ofdealings in securities and other information of aconfidential nature of the client which it comes toknow in its business relationship, (e) deal or trans-act business knowingly, directly or indirectly orexecute an order for a client who has failed tocarry out his commitments in relation to securi-ties and is in default with another broker or sub-broker, (f) make a recommendation to any clientwho might be expected to rely thereon to acquire,dispose of, retain any securities unless he has rea-sonable grounds for believing that the recommen-

dation is suitable for sucha client upon the basis ofthe facts, if disclosed bysuch a client as to his ownsecurity holdings, finan-cial situation and objec-tives of such investment,and (g) render, directlyand indirectly any invest-ment advice about anysecurity in the publicly accessible media, whetherreal-time or non-real-time, unless a disclosure ofhis interest including his long or short position inthe said security has been made, while renderingsuch advice.

C. Sub-Brokers vis-a-vis Stock Brokers : A sub-broker shall co-operate with his broker. He shallpromptly replace/and rectify documents whichare declared as bad delivery as per the prevailingnorms and make available documents as calledfor by broker for enquiries relating to fulfilmentof all contracts and also present the same for in-spection as and when called for by broker. He shallextend fullest co-operation to his stock-broker inprotecting the interests of their clients. He shallnot advertise his business publicly unless permit-ted by the stock exchange and not resort to unfairmeans of inducing clients from other brokers/Sub-brokers.

D. Sub-Brokers vis-a-vis Regulatory Authorities :A sub-broker shall not indulge in dishonourable,disgraceful or disorderly or improper conduct onthe stock exchange nor shall it wilfully obstructthe business of the stock exchange. It shall com-ply with the rules, bye-laws and regulations of thestock exchange and circulars, notices, and otherinstructions issued by the Board and the relevantStock Exchange(s). He shall not indulge in manipu-lative, fraudulent or deceptive transactions. It shallalso not indulge/float schemes or spread newswith a view to distorting market equilibrium ormaking personal gains. He shall not create falsemarket either singly or in concert with others or

I. Code of Conduct for Sub-Brokers



indulge in any act detrimental to the public inter-est or which leads to interference with the fair andsmooth functions of the market mechanism of thestock exchanges. He shall not involve himself inexcessive speculative business in the market be-yond reasonable levels not commensurate with hisfinancial soundness.

Ref: Discussion Paper on Code of Conductfor Sub-Brokers, available at http://www.sebi.gov.in.

II. Corporate GovernanceCorporate governance is the acceptance by man-agement of the inalienable rights of shareholdersas the true owners of the corporation and of theirown role as trustees on behalf of the sharehold-ers. It is about commitment to values, about ethi-cal business conduct and about making a distinc-tion between personal and corporate funds in themanagement of a company.

SEBI felt a need to review the existing code oncorporate governance from two perspectives, (a)to evaluate the adequacy of the existing practices,and (b) to further improve the existing practices,and constituted a committee on corporate gover-nance, comprising representatives from the stockexchanges, chambers of commerce, investor as-sociations and professional bodies under the Chair-manship of Shri N. R. Narayana Murthy. The termsof reference of the Committee are: to review theperformance of corporate governance; and to de-termine the role of companies in responding torumour and other price sensitive information cir-culating in the market, in order to enhance thetransparency and integrity of the market.

The key issues debated by the Committee and therelated recommendations are presented below:

A. Audit Committeesa. Review of information by audit committees:

Audit committees of publicly listed compa-nies should be required to review (i) Finan-cial statements and draft audit report, includ-ing quarterly/half-yearly financial informa-tion; (ii) Management discussion and analy-

sis of financial condition and results of op-erations; (iii) Reports relating to compliancewith laws and to risk management; (iv) Man-agement letters/letters of internal controlweaknesses issued by statutory/internal au-ditors; and (v) Records of related party trans-actions.

b. Financial literacy of members of the auditcommittee: All audit committee membersshould be �financially literate� and at least onemember should have accounting or relatedfinancial management expertise.

B. Audit Reports and Audit Qualificationsa. Disclosure of accounting treatment: In case a

company has followed a treatment differentfrom that prescribed in an accounting stan-dard, management should justify why theybelieve such alternative treatment is morerepresentative of the underlying businesstransaction. Management should also clearlyexplain the alternative accounting treatmentin the footnotes to the financial statements.

b. Audit qualifications: Companies should beencouraged to move towards a regime of un-qualified financial statements. This recom-mendation should be reviewed at an appro-priate juncture to determine whether the fi-nancial reporting climate is conducive to-wards a system of filing only unqualified fi-nancial statements.

C. Related Party Transactionsa. Basis for related party transactions: A state-

ment of all transactions with related partiesincluding their bases should be placed beforethe independent audit committee for formalapproval/ratification. If any transaction is noton an arm�s length basis, management shouldprovide an explanation to the audit commit-tee justifying the same.

b. Definition of �related party�: The term �relatedparty� shall have the same meaning as con-tained in Accounting Standard 18, RelatedParty Transactions, issued by the Institute ofChartered Accountants of India.


35

D. Risk Managementa. Board disclosures: Procedures should be in

place to inform Board members about therisk assessment and minimisation procedures.These procedures should be periodically re-viewed to ensure that executive managementcontrols risk through means of a properlydefined framework. Management shouldplace a report before the entire Board of Di-rectors every quarter documenting the busi-ness risks faced by the company, measuresto address and minimize such risks, and anylimitations to the risk taking capacity of thecorporation. This document should be for-mally approved by the Board.

b. Training of Board members: Companiesshould be encouraged to train their Boardmembers in the business model of the com-pany as well as the risk profile of the busi-ness parameters of the company, their re-sponsibilities as directors, and the best waysto discharge them.

E. Proceeds from Initial Public Offeringsa. Use of proceeds : Companies raising money

through an Initial Public Offering (�IPO�)should disclose to the Audit Committee, theuses/applications of funds by major category(capital expenditure, sales and marketing,working capital, etc.), on a quarterly basis. Onan annual basis, the company shall prepare astatement of funds utilised for purposes otherthan those stated in the offer document/pro-spectus. This statement should be certified bythe independent auditors of the company. Theaudit committee should make appropriaterecommendations to the Board to take upsteps in this matter.

F. Code of ConductWritten code for executive management : It shouldbe obligatory for the Board of a company to laydown the code of conduct for all Board membersand senior management of a company. This codeof conduct shall be posted on the website of thecompany. All Board members and senior manage-ment personnel shall affirm compliance with the

code on an annual basis. The annual report of thecompany shall contain a declaration to this effectsigned off by the CEO and COO.

G. Nominee DirectorsExclusion of nominee directors from the defini-tion of independent directors: There shall be nonominee directors. Where an institution wishes toappoint a director on the Board, such appointmentshould be made by the shareholders. An institu-tional director, so appointed, shall have the sameresponsibilities and shall be subject to the sameliabilities as any other director. Nominee of theGovernment on public sector companies shall besimilarly elected and shall be subject to the sameresponsibilities and liabilities as other directors.

H. Non-Executive Director CompensationLimits on compensation paid to independent di-rectors: All compensation paid to non-executivedirectors may be fixed by the Board of Directorsand should be approved by shareholders in gen-eral meeting. Limits should be set for the maxi-mum number of stock options that can be grantedto non-executive directors in any financial yearand in aggregate. The stock options granted to thenon-executive directors shall vest after a periodof at least one year from the date such non-ex-ecutive directors have retired from the Board ofthe Company. Companies should publish theircompensation philosophy and statement of en-titled compensation in respect of non-executivedirectors in their annual report. Alternatively, thismay be put up on the company�s website and ref-erence drawn thereto in the annual report. Com-panies should disclose on an annual basis, detailsof shares held by non-executive directors, includ-ing on an �if-converted� basis. Non-executive di-rectors should be required to disclose their stockholding (both own or held by/for other personson a beneficial basis) in the listed company inwhich they are proposed to be appointed as direc-tors, prior to their appointment. These detailsshould accompany their notice of appointment.

I. Independent DirectorsDefinition of independent directors: The term �in-dependent director� is defined as a non-executive




director of the company who (i) apart from re-ceiving director remuneration, does not have anymaterial pecuniary relationships or transactionswith the company, its promoters, its senior man-agement or its holding company, its subsidiariesand associated companies; (ii) is not related to pro-moters or management at the board level or atone level below the board; (iii) has not been anexecutive of the company in the immediately pre-ceding three financial years; (iv) is not a partneror an executive of the statutory audit firm or theinternal audit firm that is associated with the com-pany, and has not been a partner or an executiveof any such firm for the last three years; (v) is nota supplier, service provider or customer of thecompany. This should include lessor-lessee typerelationships also; and (vi) is not a substantialshareholder of the company, i.e. owning two per-cent or more of the block of voting shares. Theconsiderations as regards remuneration paid toan independent director shall be the same as thoseapplied to a non-executive director.

J. Whistle Blower Policya. Internal policy on access to audit committees:

Personnel who observe an unethical or im-proper practice (not necessarily a violation oflaw) should be able to approach the auditcommittee without necessarily informingtheir supervisors. Companies shall take mea-sures to ensure that this right of access is com-municated to all employees through meansof internal circulars, etc. The employment andother personnel policies of the company shallcontain provisions protecting �whistle blow-ers� from unfair termination and other un-fair prejudicial employment practices.

b. Whistle blower policy: Companies shall annu-ally affirm that they have not denied any per-sonnel access to the audit committee of thecompany (in respect of matters involving al-leged misconduct) and that they have pro-vided protection to �whistle blowers� fromunfair termination and other unfair or preju-dicial employment practices. The appoint-ment, removal and terms of remuneration ofthe chief internal auditor must be subject to

review by the Audit Committee. Such affir-mation shall form a part of the Board reporton Corporate Governance that is required tobe prepared and submitted together with theannual report.

K. Subsidiary CompaniesAudit committee requirements: The provisionsrelating to the composition of the Board of Direc-tors of the holding company should be made ap-plicable to the composition of the Board of Direc-tors of subsidiary companies. At least one inde-pendent director on the Board of Directors of theparent company shall be a director on the Boardof Directors of the subsidiary company. The Au-dit Committee of the parent company shall alsoreview the financial statements, in particular theinvestments made by the subsidiary company. Theminutes of the Board meetings of the subsidiarycompany shall be placed for review at the Boardmeeting of the parent company. The Board reportof the parent company should state that they havereviewed the affairs of the subsidiary companyalso.

L. Evaluation of Board PerformanceMechanism for evaluating non-executive boardmembers: The performance evaluation of non-executive directors should be by a peer group com-prising the entire Board of Directors, excluding thedirector being evaluated; and peer group evalua-tion should be the mechanism to determinewhether to extend/continue the terms of appoint-ment of non-executive directors.

M. Analyst ReportsDisclosures in reports issued by security analysts:SEBI should make rules for (i) Disclosure in thereport issued by a security analyst whether thecompany that is being written about is a client ofthe analyst�s employer or an associate of theanalyst�s employer, and the nature of services ren-dered to such company, if any; and (ii) Disclosurein the report issued by a security analyst whetherthe analyst or the analyst�s employer or an associ-ate of the analyst�s employer hold or held (in the12 months immediately preceding the date of the


37

report) or intend to hold any debt or equity in-strument in the issuer company that is the sub-ject matter of the report of the analyst.

The key mandatory recommendations focus onstrengthening the responsibilities of audit commit-tees; improving the quality of financial disclosures,including those related to related party transac-tions and proceeds from initial public offerings;requiring corporate executive boards to assess anddisclose business risks in the annual reports ofcompanies; introducing responsibilities on boardsto adopt formal codes of conduct; the position ofnominee directors; and stock holder approval andimproved disclosures relating to compensationpaid to non-executive directors. Non-mandatoryrecommendations include moving to a regimewhere corporate financial statements are notqualified; instituting a system of training of boardmembers; and the evaluation of performance ofboard members.

Ref: Report of the SEBI Committee on Cor-porate Governance, available at http://www.sebi.gov.in.

III. Exchange Traded InterestRate Derivatives in IndiaThe SEBI Group on Secondary Market Risk Man-agement met on 12th March, 2003 to design therisk containment measures for the exchange-traded interest rate derivatives. The outcome ofthis meeting is a Consultative Document whichcontains a time-table for introduction of exchange-traded interest rate derivatives, a road map forintroduction of additional products, risk contain-ment measures for the initial set of derivatives,organizational and structural issues, etc. The sa-lient features of the document are summarisedbelow:

a. Exchange-traded derivatives would providethe household sector, along with the finan-cial and corporate sectors, greater access tointerest rate risk management tools.

b. The futures as well as options could belaunched on a notional ten year treasury bondas the 10-year bonds provide the most liquid

underlying market in government securitiesas of date. These contracts would initially besettled on cash basis and could be upto amaximum maturity of one year. In the short-term interest rate segment, the futures andoptions could be introduced on notionalT-Bills with a maturity of 91 days, again oncash-settled basis.

c. The interest rate futures could be traded onthe stock exchanges with two decimal quotesto begin with. The Group considered the ne-cessity and time-frame for software changesto implement four-decimal quotes, and de-cided that four decimal quotes be introducedwithin a time-frame of 6 months.

d. Presently the zero coupon yield curve (ZCYC)was not fully accurate and this would resultin basis risk involved in hedging with prod-ucts based on ZCYC. But such basis risk couldnot be considered a show stopper since allhedges involve some degree of basis risk.Moreover, using an imperfect hedge was pref-erable to not being able to hedge at all. TheGroup was of the view that development of amore acceptable ZCYC would take about 3months time, further one month time is nec-essary for back testing and regulatory reviewand another 2 months time for softwareimplementation. Therefore, the Group desiredthat an improved yield curve be implementedwithin 6 months, and provided quantitativebenchmarks for the ZCYC.

e. The Group observed that the research wasstill going on in the field of volatility dynam-ics of interest rates in India and the resultingmargining requirements, and that the devel-opment of a more elaborate model of inter-est rate dynamics could take two to threemonths.

f. Till such time a better model is made avail-able, the Group recommended that the ex-change-traded interest rate futures and op-tions on the ten year notional governmentbond and on notional 91 days T-bills belaunched with a risk containment system thatproduces significant over-margining (by mak-




ing only parameter changes to the equitymarket margining system) but achieves theregulatory standards of market safety. Suchover-margining would compensate for modelrisk.

g. The Group decided that interest rate deriva-tive products should be traded on the exist-ing equity derivative exchanges under the ex-isting market structure. The risk containmentmeasures applicable to interest rate deriva-tives shall also be on the same lines as appli-cable to equity derivatives.

Ref: Report of the SEBI Group on SecondaryMarket Risk Management on Exchange-traded Interest rate Derivatives in India, avail-able at http://www.sebi.gov.in.

IV. Review of SEBI (DIP)Guidelines 2000The Primary Market Advisory Committee of SEBIhad set up a Group to review the present eligibil-ity norms and suggest changes, if any. The Groupsubmitted the report to the Committee, which ac-cepted the recommendations, with some modifi-cations. The following is a summary of the rec-ommendation of the Group:

A. Eligibility Norms for Initial Public Offering ofEquity: (1) A company can make an IPO, subjectto the condition that as on date of filing of the draftoffer document with SEBI, (a) the company shallhave Net Tangible Assets of at least Rs. 3 crore ineach of the preceding 2 full years (of 12 monthseach), of which not more than 50% is held in mon-etary assets, (provided that if more than 50% areheld in monetary assets, the company should havefirm commitments to deploy such excess mon-etary assets in its business/project.), (b) The com-pany shall have a Net Worth of at least Rs. 1 crorein each of the preceding 2 full years (of 12 monthseach), (c) In case the issuer company has changedits name within the last one year, at least 50% ofthe revenue for the preceding 1 full year shall beaccounted for by the activity suggested by the newname, and (d) The issue size shall not exceed 5times the pre-issue net worth of the company.

(2) In case any of the criteria (a, b, c and d) aboveis not met, the company can make an IPO, subjectto the condition that (a) The issue shall be madeonly through the book-building process, with atleast 40% of the issue size allotted to the QualifiedInstitutional Buyers, failing which the full subscrip-tion monies shall be refunded or (b) The �project�should have at least 15% participation by FIs/scheduled commercial banks, of which at least 10%should come from the appraiser(s). Further, theminimum post-issue face value capital of the com-pany shall be Rs. 10 crore, or there shall be a com-pulsory market-making for at least 2 years fromthe date of listing of the shares. In addition, thecompany shall also satisfy the criteria of havingat least 1000 allottees in its issue.

B. Eligibility Norms for Issues of Equity Sharesother than IPOs: There shall not be any entry re-strictions on any further issue, whether public orrights, by an already listed company, except in thecircumstances: (a) In case the issue size in a fur-ther public issue is more than 5 times the pre-is-sue net worth, the issuer company shall be re-quired to comply with the eligibility criteria speci-fied at A (1) or (2) above. (b) In case there is achange in the name of the issuer company withinthe last 1 year (reckoned from the date of filing ofthe offer document) and the revenue accountedfor by the activity suggested by the new name isless than 50% of its total revenue in the preceding1 full-year period, the issuer company shall be re-quired to comply with the criteria specified at (A)(2) above. The aforesaid Eligibility Norms shall alsoapply to Offers for Sale made by unlisted compa-nies, to the extent applicable.

C. Eligibility Norms for Issues of Instruments otherthan Equity Shares: The recommendations per-taining to equity shares should apply mutatismutandis to all convertible instruments. In the caseof issuance of debt instruments, the following ad-ditional norms should also be stipulated: (a) Theissue of debt instrument should receive at leastan �investment grade� rating, (ii) The companyshould have 2 credit ratings, irrespective of theissue size, (iii) The company should not be in thelist of willful defaulter of RBI, as on date of filingdraft offer document with SEBI, (iv) The company


39

should not be in default of any public debenturesin terms of either interest or principal, and (v) Thedebentures should be fully secured. In terms ofnumber of allottees, it should be 50 (as against 1000in case of equity issues). The requirement of 20%promoters� contribution in the case of debt issuesshould be deleted. The continuous disclosures interms of listing agreement may be filed withEDIFAR. The prior consent of NCD holders forchange in shareholding pattern, capital structureetc. may be deleted.

D. Other Related Issues: Other recommendationsinclude:

a. Even in respect of rights issues of upto Rs.50lakh, the offer document must be preparedin compliance with SEBI DIP Guidelines andfiled with SEBI for information purpose onlyand put on SEBI Website.

b. The following may be added to the list of QIBs:(a) Pension funds, provident funds, superan-nuation funds and gratuity funds. (With mini-mum corpus under management of Rs. 25crore), (ii) Port trusts (With minimum corpusunder management of Rs. 25 crore), (iii) Port-folio managers registered with SEBI (With

minimum corpus under management ofRs. 25 crores) and (iv) Insurance companiesregistered with IRDA.

c. Only such banks as fall in the list of sched-uled commercial banks as defined by RBIshould be allowed to appraise and participatein such projects.

d. The QIB requirement may be diluted to 40%across all book-building issues, not only incase of mandatory book-building. The exist-ing SEBI guidelines require mandatory par-ticipation from QIBs to the extent of 60% incase of companies not fulfilling the eligibilitycriteria. Even in case of companies which ful-fil the eligibility criteria and wish to make theissue through book-building mechanism, thecompanies are required to allocate 25% toretail investors and 15% to non-institutionalinvestors, thereby leaving 60% available forallocation to QIBs. This should be broughtdown to 40%.

Ref: Review of SEBI (DIP) Guidelines -Proposals - Series II, available at http://www.sebi.gov.in.

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SEBI had put up a discussion paper on �Codesof Conduct for regulated entities� on itswebsite. In connection with the code of con-

duct for the Foreign Institutional Investors, SEBIreceived certain queries in particular with regardto clause 8 (d) of the codes of conduct: �It shallnot deal with any derivative instruments issuedoutside India where in underlying is/are Indiansecurities either directly or indirectly.� It is herebyclarified that this discussion paper does not intendto suggest any policy change, so far as FIIs areconcerned and the present set of policies and prac-tices will continue.

Ref: Press Release No. 57 dated March 3, 2003.

II. Report on CorporateGovernanceSEBI released the report of the Committee onCorporate Governance constituted by SEBI un-der the chairmanship of Shri N R NarayanaMurthy and placed it on its website for public com-ments. The summary of the report is publishedelsewhere in this bulletin.


III. Review of SEBI (DIP)Guidelines 2000SEBI released a discussion paper, entitled �Reviewof SEBI (DIP) Guidelines 2000- Proposals - SeriesII� containing the recommendations made by thePrimary Market Advisory Committee of SEBI,which was set up by SEBI to advise SEBI on mat-ters relating the primary market. The recommen-dations cover the eligibility norms for public/rightsissues of securities, both through IPOs and fur-ther offerings and other incidental matters. Thepaper has been hosted on the website for the pur-pose of eliciting public comments. The summaryof the paper is published elsewhere in this bulle-tin.


IV. GoverningBoard ofAhmedabadStock ExchangeSEBI, by Order issuedunder section 11 of theSecurities Contracts(Regulation) Act, 1956,superseded the Governing Board of theAhmedabad Stock Exchange (ASE), with effectfrom March 25, 2003 and appointed Shri P KGhosh IAS (Retd.) as the administrator of the ex-change to exercise and perform all the powers andduties of the Board.

During the course of inspection, SEBI had ob-served that a parallel exchange/Market appearedto exist at the Stock Exchange in the form of anunofficial market with open out-cry and the samewas conducted at the ground floor of the premises.SEBI had advised the Stock Exchange to takeimmediate steps to stop the unofficial market. Theexchange was also advised to investigate the mat-ter and take immediate action against the mem-bers if any involved in the unofficial market. Theexchange was also advised to send a status reporton action taken to SEBI latest by September 02,2002. The Stock Exchange vide its letter datedAugust 30, 2002, informed that the exchange wasinitiating an enquiry into the matter and wouldsubmit a report within a short time. Thus, the ex-change has shown disregard to the deadline givenby SEBI to investigate the matter and submit thestatus report on unofficial market by September02, 2002 as advised by SEBI.

Subsequently, on September 19, 2002, SEBI con-ducted a surprise inspection of ASE. The inspect-ing officer of SEBI observed that an unofficialmarket in an open out-cry fashion was being heldwithin the stock exchange premises and membersof the exchange were also participating in thesame. Further, the inspecting officer mentioned

I. Codes of Conduct for Regulated Entities


41

that (a) ASE had not taken any steps to stop theunofficial market despite instructions from SEBI,and (b) ASE submitted a false report to SEBI thatthe unofficial market was not conducted withinthe official premises of the stock exchange andthat members of ASE were not participating insuch unofficial market.

SEBI, therefore, was of the opinion that the Boardhas failed to ensure proper governance, implemen-tation of the provisions of the Securities Contracts(Regulation) Act, 1956, Bye-Laws of the Exchangeand SEBI direction/Guidelines. In view of theabove serious deficiencies, SEBI issued a noticeunder Sec. 11 of the Securities Contracts (Regu-lation) Act, 1956 to the Governing Board of ASEas to why they should not be superceded. An op-portunity of hearing was given on November 20,2002. However, it was observed that the Govern-ing Board had not rectified or addressed the is-sues. The Governing Board has failed to ensureproper governance, implementation of the provi-sions of the Securities Contracts (Regulation) Act,1956, Bye-laws of the Exchange and SEBI Direc-tives. As a result of this, the confidence of the in-vestors in transparent and impartial working ofthe stock exchange has been impaired.

Therefore, it was felt that it is essential to adoptimmediate measures to ensure the safety and in-tegrity of the stock exchange and further to en-sure that transactions on ASE are carried out asper the regulatory framework and the interest ofthe investors are not jeopardized further. Accord-ingly SEBI superceded the Governing Board ofASE.


V. Investor GrievancesDuring March 2003, SEBI received 1427 griev-ances against listed companies. During the sameperiod, 6205 grievances were reported redressed.These redressed grievances include grievancesbrought forward from the previous periods. Thedetails of grievances received and addressed aregiven below:

Type of Grievances GrievancesGrievance Received Redressed

I 33 855

II 282 509

III 468 2743

IV 539 1654

V 105 444

Total 1427 6205

Note: Type I: Non-receipt of refund orders/allotment lettersetc.

Type II: Non-receipt of dividend.

Type III: Non-receipt of share certificates/bonus shares.

Type IV: Non-receipt of debenture certificates/interest ondebentures/redemption amount of debentures/interest ondelayed payment of interest on debentures/redemptionamount of debentures.

Type V: Non-receipt of right forms/interest on delayed re-ceipt of refund order.

Ref: Press Releases No. 74 dated March 24,2003 and No. 84 dated April 4, 2003.

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PRESS RELEASES


It has been decided to shorten the settlementcycle from the existing T+3 rolling settlementto T+2 rolling settlement w.e.f. April 1, 2003.

After detailed deliberations with various marketparticipants, a time schedule for the implementa-tion of T+2 rolling settlement beginning from April1, 2003 was prescribed by SEBI on January 3, 2003.A summary of the time schedule is as follows:

Sl. No. Day Time Description of activity

1 T Trade Day

2 T+1 By 11:00 Confirmation of all tradesa.m. (including custodial trades).

Facility of an exceptional win-dow for late confirmationswould be made available bythe exchanges.

By 1:30 Processing and downloadingp.m. of obligation files to brokers/

custodians

3 T+2 By 11:00 Pay-in of securities and fundsa.m.

By 1:30 Pay-out of securities and fundsp.m.

The Depositories shall adhere to the following ac-tivities as per the prescribed time to implementthe above time schedule for T+2 rolling settlement.The Depositories would, in turn, advise the Deposi-tory Participants (DPs) to adhere to the designatedactivities within the prescribed time limits andtherefore, the earlier Circular No. D&CC/FITTC/CIR - 07/2002 dated April 8, 2002 stands modifiedw. e. f. April 1, 2003 as under:

1. DPs shall accept instructions for pay-in ofsecurities from clients in the physical form atleast upto 4 p.m. and in electronic form at leastupto 6 p.m. on T+1.

2. DPs shall complete execution of pay-in in-structions latest by 10:30 a. m. on T+2.

3. Depositories would download the processedpay-in files to the exchange/Clearing House/Clearing Corporation latest by 11:00 a.m. onT+2.

4. Pay-out of securitiesby the exchange/Clearing House/Clearing Corporationto the Depositories by1:30 p.m. on T+2.

5. Pay-out of securitiesto be completed bythe Depositories by2:00 p.m. on T+2.

6. All instructions received by the DepositoryParticipants must have an execution date. Theexecution date can be current date or futuredate. Instructions will be valid till the pay-indeadline or till �end of day� (EOD) of the ex-ecution date, whichever is earlier. DPs wouldbring this to the notice of the client while ac-cepting instructions. In case the account doesnot have sufficient balance before pay-indeadline or till EOD, such instructions will fail.

Further in order to ensure the smooth implemen-tation of T+2 rolling settlement by April 1, 2003and to facilitate the implementation of T+1 roll-ing settlement from April 1, 2004, the Deposito-ries shall initiate the following steps:

1. Implementation of real time online connec-tivity between the Depositories.

2. Depositories would be required to design asystem so that the exchanges/ClearingHouse/Clearing Corporation would be ableto implement a system of online transmissionof client-wise pay-in obligations to the deposi-tory so that the depository in turn coulddownload the security pay-in instructions toDPs in respect of the investor maintainingaccount with them.

3. Depositories are also required to put up sys-tems to facilitate settlement of transactionsby the Clearing House/Clearing Corporationarising out of securities lending and borrow-ing to meet shortages of pay-in obligations.

I. Calendar for T+2 Rolling SettlementCirculars

&Guidelines


43

The Custodians shall adhere to the following ac-tivities for implementation of T+2 rolling settle-ment w.e.f. April 1, 2003:

1. Confirmation of the institutional trades by thecustodians latest by 11.00 a.m. on T+1. Anexception window would be provided by theexchanges for late confirmations for an ad-ditional fee but in any case the confirmationshould be made before 1:00 p.m. on T+1.

2. The Custodians shall issue instructions in thephysical form upto 4 p.m. and in electronicform upto 6 p.m. on T+1 to the DPs for pay-in of securities.

3. Pay-in to be made before 10:30 a.m. on T+2.

Ref: Circular Nos. DCC/FITTC/CIR-19 and20/2003 dated March 4, 2003.

II. Risk Management for T+2Rolling SettlementThe SEBI constituted Group on Secondary Mar-ket Risk Management discussed the issue of therationalisation of the margining structure in theshortened T+2 rolling settlement. The Group heldvarious meetings and pursuant to the deliberationsof the Group, the stock exchanges shall follow riskmanagement structure given below w.e.f. April 01,2003:

A. Categorisation of stocks for imposition of mar-gins1. The risk containment measures for the scripswould be based on their volatility and liquidity.The scrips would be classified into three groups.

2. The stocks which have traded at least 80% (+/-5%) of the days for the previous eighteen monthsfrom (1st July 2001) shall constitute the Group Iand Group II.

3. Out of the scrips identified above, the scripshaving mean impact cost of less than or equal to1% shall be categorised under Group I and thescrips where the impact cost is more than 1, shallbe categorised under Group II.

4. The remaining stocks would fall into the GroupIII.

5. The impact cost shall be calculated at 15th ofeach month on a rolling basis considering the orderbook snapshots of the previous six months. On thebasis of the impact cost so calculated, the scripsshall move from one group to another group fromthe 1st of the next month.

B. Calculation of mean impact cost6. The mean impact cost for the purposes of clas-sification of the scrips in the two Groups viz. GroupI&II would be calculated in the following manner:

i. Impact cost shall be calculated by taking foursnapshots in a day from the order book inthe past six months. These four snapshotsshall be randomly chosen from within fourfixed ten-minutes windows spread throughthe day.

ii. The impact cost shall be the percentage pricemovement caused by an order size of Rs.1Lakh from the average of the best bid andoffer price in the order book snapshot. Theimpact cost shall be calculated for both, thebuy and the sell side in each order book snap-shot.

iii. The computation of the impact cost adoptedby the Exchange would be disseminated onthe website of the exchange.

iv. The Exchanges shall use a common method-ology for carrying out the calculations formean impact cost. The details of calculationmethodology and relevant data shall be madeavailable to the public at large through thewebsite of the Exchanges. Any change in themethodology for the computation of impactcost would also be disseminated by the Ex-change.

C. VaR based margins7. For the stocks in Group I, the VaR margin willbe scrip VaR (3.5 sigma) computed in a mannerspecified for the scrip on which stock futures aretraded.

8. On the stocks in Group II where the impact costis more than 1, the VaR margin shall be higher ofscrip VaR (3.5 sigma) or three times the index VaR,and it shall be scaled up by root 3.




9. For the stocks in Group III, the VaR marginwould be equal to five times the index VaR andscaled up by root 3.

10. For the purposes of determining the marginsfor Group II & Group III, the minimum Index VaRwould continue to be taken as 5% as at present.

11. The volatility estimates for the scrips and theindex for the VaR shall be computed on the pricedifferential of 2 days. The VaR calculated by anexchange at the end of the previous day would beused for the purpose of margin calculations forthe transactions carried out on the day.

D. Mark-to-Market Margin12. In addition to the collection of the VaR basedmargins, the exchanges shall continue to collectmark-to-market margin.

E. Additional Margin13. The existing 12% additional margin would bephased out progressively. With effect from April01, 2003, this additional margin shall be reducedto 6%. This additional margin shall be further re-duced on the implementation of advance collec-tion of VaR based margins.

F. Collection of Margins14. All these margins would be collected on T+1basis.

G. Ad hoc/Special Margin15. The exchanges should at their discretion mayimpose additional margin/ad hoc margin/specialmargin on scrips wherever necessary to containthe risk in the market.

H. Gross Exposure Limits16. The existing provision in respect of capital ad-equacy and the gross exposure limits shall con-tinue to apply.

I. Dissemination to the Market17. The VaR calculations will be based either onBSE Sensex or S & P CNX Nifty and would bedisseminated by the BSE and NSE daily on theirwebsites by 6:30 pm in a downloadable format.

18. Other stock exchanges could make their ownVaR calculations or freely adopt the VaR calcula-tions available on the sites of BSE and NSE. It willbe mandatory for BSE/NSE to provide real timeSensex/Nifty/scrip data free. It will also be man-datory for all the stock exchanges to have real timeinformation of Sensex/Nifty/scrip data eitherfrom the respective exchange or through a ven-dor.

The stock exchanges should ensure that the abovemargin structure is implemented on April 01, 2003and the exchanges have tested the software andremove any glitches in its operation well beforethe above deadline to avoid any problems in thelive environment.

While the above risk management measures it isexpected to contain risk in the system. However,the efficacy of the same would be dependent onmonitoring, surveillance and timely collection ofmargin by the stock exchanges. For the risk con-tainment measures to be successful, the exchangesmust continue to strengthen their monitoring andsurveillance of broker positions/client positionsvis-a-vis adequate capital/margins and adherenceto exposure limits and collection system and totake such timely actions as are expected of themin their functioning as public institutions and self-regulatory organisations.

The exchanges are advised to take steps to imple-ment the above and confirm the same to SEBIbefore March 31, 2003.

Ref: Circular No. SMD/Policy/Cir-9/2003dated March 11, 2003.

III. Cancellation of Certificate ofRegistration of brokersThis is issued to streamline the process of cancel-lation of registration certificates granted to bro-kers under Regulation 6 of the SEBI (Stock-bro-kers and Sub-brokers) Regulations, 1992 in caseof surrender of membership. In case the rules/bye-laws of your exchange provide for surrenderof membership and you accept such surrendersafter following due process, you are requested to


45

follow the following procedure for the purpose ofcancellation of certificate of registration.

2. You should send a communication to SEBI re-questing for issue of �No Due Certificate� and can-cellation of certificate of registration of the bro-ker, with a confirmation that as on the date ofcommunication,

a. the broker, as a member of your exchange,does not owe any amount to SEBI,

b. the broker has been disabled from trading onyour exchange,

c. the broker is not connected with any of thedefaulting members of any exchange,

d. the broker has submitted an undertaking tothe exchange that he would be liable for allliabilities/obligations (including monetarypenalties, if any) for violation of provision ofthe SEBI Act and the SEBI (Stock-brokersand Sub-brokers) Rules and Regulations,1992.

e. no complaint/arbitration/disciplinary pro-ceeding is pending against the broker, and

f. no investigation/inquiry by any exchange ispending against the broker.

This communication should be accompanied by

i. the original certificate of registration for can-cellation (indemnity on stamp paper of appro-priate value in case certificate is lost),

ii. the turn over details in compliance with thecircular dated September 30, 2002, as modi-fied from time to time, and

iii. a confirmation on points (a) to (f).

3. Based on the information and documents avail-able with SEBI, it may cancel the certificate ofregistration and issue No Due Certificate, subjectto the condition that the broker/exchange remitsthe fees, that may accrue from the date of yourcommunication till the date of cancellation of reg-istration by SEBI and subject to furnishing anundertaking to pay any fees/interest to be pay-able by such member as and when called from bySEBI to pay. Until SEBI�s dues are fully paid, thesecurity deposit of the member should not be re-leased by the exchange.

Ref: Circular No. SMD/NDC/MSS/3998/2003dated March 11, 2003

IV. Monthly Reporting FormatAs the risk containment measures and eligibilitycriteria for selection of stocks for derivatives trad-ing have undergone a change, the monthly report-ing format stands modified in the following as-pects:

1. Trading Statistics as given in Table I shall begiven for Futures and Options contracts tradedon all stocks and indices.

2. Table II giving the details of the Price ScanningRange shall now be replaced with the followingtable and the information shall be given for allderivative contracts traded in the exchange.

II. Price Scanning Range and Volatility During the Previous Month:

Name of the Average Maximum Minimum Average Maximum Minimum Impact Costunderlying scanning scanning scanning volatility volatility volatility for the current

range (in % range (in % range (in % (in % (in % (in % month (in %terms) terms) terms) terms) terms) terms) terms)

III. Compliance of the eligibility criteria of thestocks from amongst top 500 stocks in terms ofaverage daily market capitalisation and averagedaily traded value in the previous six months

3. Table III showing the compliance of the eligibil-ity criteria of the stocks on which futures andoptions are traded shall be replaced with thefollowing tables:




The stock exchanges are requested to submit themodified Monthly Activity Report after incorpo-rating the above changes starting from themonthly report for the month of March 2003.

Ref: Circular No. SMD/DC/5413/2003 datedMarch 12, 2003.

V. Electronic Data InformationFiling and RetrievalSEBI vide circular SMD/Policy/Cir-17/2002 datedJuly 03, 2002 provided that the list of companieswhich are required to file documents/statementson-line shall be specified by SEBI from time totime. In view of the above, it has now been de-cided to make the requirement of filing of specificdocuments/statements applicable to further 500companies, selected on the basis of market capi-talization and turnover. These companies wouldbe required to upload all the Statements/Infor-mation as mentioned in our circular SMD/Policy/Cir-13/2002 dated June 20, 2002, on the EDIFARweb site with effect from quarter ending March30, 2003.

Further, any new company which gets listed in theexchanges shall also be required to upload finan-cial statements/documents on-line in the EDIFARweb site.

The stock exchanges are advised to communicatethe above decisions to the notice of the compa-nies mentioned in the list and to further advisethem about the filing on EDIFAR web site.

Ref: Circular No. SMD/Policy/Cir - 10/2003dated March 17, 2003.

VI. Unique Client Code forMutual Funds and FIIsThis circular is being issued in exercise of powersconferred by section 11(1) of the Securities andExchange Board of India Act, 1992, read with sec-tion 10 of the Securities Contracts (Regulation) Act1956, to protect the interests of investors in secu-rities and to promote the development of, and toregulate the securities market.

Please refer to SEBI circular No. SMDRP/POLICY/CIR-5/2003 dated February 12, 2003

A. Applicability of the Eligibility Criteria for Stocks on which Derivatives are Traded

Name of the Quarter Whether the If no, for If the stock has notunderlying on Sigma order stock is how many been eligible for 3which Futures size (Rs.) fulfilling the consecutive months consecutivelyand options are eligibility months has including the currentavailable for criteria in the the stock month, state thetrading current month? not been action taken

(Y/N) eligible?

B. Median Quarter Sigma Order Size for other Stocks

Name of the stock (list Median Quarter sigma Whether the stock Number of monthsall stocks from amongst order size required to is eligible for the scrip has beenthe Top 500 stocks in cause a change in the derivatives trading eligibleterms of average daily stock price equal to in the current month?market capitalization and one-quarter of a (Y/N)average daily traded value standard deviationin the previous six months) over the last six

months


47

regarding the activity schedule for the implemen-tation of the T+2 rolling settlement at the ex-changes w.e.f. April 01, 2003 and Para No. 6 of thecircular relating to client code.

As agreed, in the meeting with stock exchanges,depositories, market participants and RBI held onMarch 24, 2003 to take stock of the preparednessof the exchanges, depositories and the marketparticipants in implementing the T+2 rolling settle-ment, it has been decided that the exchangeswould generate a unique code for Mutual Fundsand each scheme of a Mutual Fund, Foreign Insti-tutional Investors (FIIs) and their sub-accounts.As this would require the exchanges to put in placeadequate systems and carry out software changes,the exchanges are provided with three monthstime to implement the system. Till such time thepresent practice of putting client IDs at the timeof order entry in case of FIIs and mutual fundsshall continue.

The exchanges are directed to make necessaryamendments to the bye-laws, rules and regulationsfor the implementation of the above decision im-mediately.

The exchanges are directed to bring the provisionsof this circular to the notice of the member bro-kers/clearing members of the exchange and alsoto disseminate the same on the website for easyaccess to the investors.

The exchanges are also directed to communicateto SEBI, the status of the implementation ofthe provisions of this circular in Section II, itemNo. 13 of the Monthly Development Report for themonth of March 2003.

Ref: Circular No. SMD/SE/11/2003/31/03dated March 31, 2003.

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I. Supersession of Governing BoardTHE GAZETTE OF INDIA

EXTRAORDINARYPART - II SECTION - 3 SUB-SECTION (ii)

PUBLISHED BY AUTHORITYSECURITIES AND EXCHANGE BOARD OF INDIA

NOTIFICATIONMumbai, the 25th day of March, 2003

Order under Section 11 of the Securities Contracts(Regulation) Act, 1956 Superseding the Govern-ing Board of Ahmedabad Stock Exchange�S.O. 314 (E). In the course of Annual Inspection ofthe Ahmedabad Stock Exchange (hereinafter re-ferred to as �ASE�) conducted by the Securitiesand Exchange Board of India (hereinafter referredto as �SEBI�) on August 05, 2002, it was, inter alia,observed that members of ASE were carrying onunofficial trading in securities in the Stock Ex-change premises. Thereupon, vide letter datedAugust 26, 2002, SEBI advised ASE to take imme-diate steps to stop the unofficial trading in securi-ties and to investigate and take necessary stepsagainst members of the exchange who were in-volved in the said trading. SEBI also advised ASEto submit a report on the action taken by them.ASE vide letter dated August 30, 2002, informedthat they are initiating enquiry into the matter andshall submit a report in the matter. ASE also in-formed that they have issued a circular warningmembers to refrain from unofficial trading. Sub-sequently, on September 17, 2002, ASE submitteda report on the unofficial trading to SEBI. The saidreport of ASE was annexed as Annexure A to theShow-Cause Notice dated 25.9.2002.

2.0 The said report of ASE dated September 17,2002, stated that:

(a) There is no unofficial market operationalwithin the official premises of the Stock Ex-change, Ahmedabad and that there is no as-sembly of members/non-members eitherduring the trading hours or after closure ofthe trading session for any such activity.

(b) In one open space inKamadhenu Com-plex, Panjarapole,where the Stock Ex-change is located,there is a regular as-sembly of persons af-ter close of tradingsession.

(c) An official of the exchange deputed to observethe activities during the unofficial tradingsession reported that -

- members of their exchange were notparticipating in the unofficial market

- a number of other persons who are notconnected with the exchange do partici-pate in the said market

- the duration of the session is around onehour everyday and the process of settle-ment among participants is payment andreceipt in cash directly.

(d) The reasons for participation by persons insuch unofficial market was stated to be -

- They have no access to the equity andderivatives market.

- They want to avoid the cost of transac-tion, margining and risk management.

- They have confidence in each other andhence have no problem in settlement.

- They are not registered with SEBI asstock brokers or sub-brokers and so areable to avoid all regulatory compliance.

- Option contracts are not available in ASEwhereas these persons have been oper-ating a unique type of options contractcalled �phatak�.

(e) The unofficial market is not carried on forpurchase or sale of securities and is thereforenot reflected in the equity trading system of

Notifications


49

the exchange at any time. The options con-tracts are not settled by way of delivery,rather, they are always settled by way of pricedifference in cash. These contracts are notidentical or similar to regular purchase andsale of shares and therefore there is no threatto market integrity.

(f) The trading methodology of the unofficialmarket is termed in the local language as�Phatak� which means derivatives contractsand �Phatak� consists of three different typesof transactions namely - Jota, Bhav Bhav andTeji Mandi.

3.0 Subsequently, on September 19, 2002, SEBIconducted a surprise inspection of ASE. The in-specting officer of SEBI observed that an unoffi-cial market in an open outcry fashion was beingheld within the stock exchange premises and mem-bers of the exchange were also participating in thesame. When confronted by the inspecting officerwith the observation that unofficial trading wasgoing on in the premises of the exchange by themembers of the exchange, the Executive Directorof ASE issued a letter to SEBI on the same dayconfirming that an unofficial market for JotaPhatak was going on as observed by him also onthat day.

3.1 In his report dated September 20, 2002 (an-nexed as Annexure B to the Show-Cause Noticedated 25.9.2002) the inspecting officer has men-tioned that:

(a) ASE has not taken any steps to stop the unof-ficial market despite instructions from SEBIvide letter dated August 26, 2002.

(b) ASE has submitted a false report to SEBI videtheir letter dated September 17, 2002 that -

- The unofficial market was not conductedwithin the official premises of the StockExchange

- Members of ASE are not participating insuch unofficial market

4.0 Thereafter, vide letter dated September 20,2002, ASE informed SEBI that they have lodged acomplaint with the Ellis Bridge Police Station witha request to do the needful to prohibit the illegal

transactions. However, they failed to confirm thatunofficial trades in the premises of the stock ex-change were prohibited.

5.0 Besides the failure to prohibit unofficial trad-ing, in a matter where SEBI had initiated Enquiryproceedings against 20 brokers for indulging inunauthorized carry forward transactions, ASEreferred the matter to the Disciplinary ActionCommittee and levied a penalty of Rs.1000.00 eachon them.

6.0 In view of the report of the inspecting officerand the failure of ASE to curb the unofficial trad-ing in the premises of the stock exchange, a show-cause notice was issued on September 25, 2002under section 11 of the Securities Contracts (Regu-lation) Act, 1956 (hereinafter referred to as�SCRA�) to the Governing Board of ASE advisingthem to show cause why appropriate action in-cluding supersession should not be taken againstthem. Alongwith the said show-cause notice thereport of the ASE, the report of the inspecting of-ficer submitted on 20.09.2002, SEBI warning let-ters dated April 24, 2002 and July 05, 2002 (an-nexed as Annexure C and Annexure D to ShowCause Notice 25.9.2002) were also sent to the Gov-erning Board of ASE.

7.0 The Governing Board of ASE submitted theirreply to the said show-cause notice vide their let-ter dated October 9, 2002. In the reply, they statedinter alia that:

(i) In order to prevent any unofficial transactionswithin the vicinity of the exchange, ASE hasfiled a police complaint and requested policeauthorities to take appropriate action underlaw to prohibit such illegal activities relatingto unofficial transactions.

(ii) The exchange has taken due precaution toprevent any unofficial transactions within thepremises of the exchange.

(iii) In order to have an impartial check on thebehaviour of members as well as their finan-cial transactions, the governing board in itsmeeting held on 26.7.2002 decided to conductinspection of accounts of the members byM/s C R Sharedalal & Co who are indepen-dent auditors.


NOTIFICATIONS


(iv) They do not have any concrete evidence ofthe participation of brokers of their exchangein the unofficial market within the officialpremises of the stock exchange.

(v) The decision to impose penalty on the 20 bro-kers against whom Enquiry has been initiatedby SEBI was taken by the Disciplinary ActionCommittee. However, the Governing Boardwill be more vigilant in future.

(vi) ASE has not obtained permission to trade inderivatives and therefore have not launchedtrading in derivatives. They do not offer fa-cility to trade in derivatives either to mem-bers or non-members. Further, ASE ensuresthat none of the floor transactions enteredinto outside the premises can be entered inthe trading system of ASE because of theprice-time priority maintained by the system.

7.1 In view of the above, ASE have submitted thatthey have taken sufficient precautions to stop theunofficial trading in securities by virtue of whichsuch trading has practically stopped, that tradingin derivatives is not carried out in ASE and there-fore, there is no violation of the SCRA, that noundesirable transactions in securities are beingcarried out to the knowledge of the GoverningBoard of ASE and hence they have submitted thatthey have never allowed any such transaction.

8.0 The Governing Board of ASE also sought apersonal hearing before me in this regard. Personalhearing was granted to members of the Govern-ing Board on November 20, 2002. They submittedin their reply dated 9.10.2002 that they have fileda police complaint and are taking all necessaryaction to prohibit unofficial trading in securities.In view of the submission made by the GoverningBoard in their reply that unofficial trading hadstopped, an inspection team was deputed by SEBIon November 15, 2002, to confirm the veracity ofthe said submission. The inspecting team duringthe inspection on 15.11.2002 found that an openoutcry system of trading was being carried out bymembers at the basement and near HDFC Bankin the premises of ASE. The members of the saidinspecting team were present during the personalhearing as on 20.11.02 before me in case the mem-

bers of the Governing Board desired to put anyquestions to the said inspecting team. The inspect-ing team stated before me and members of theGoverning Board that during the said inspectionon 15.11.2002, they had observed that unofficialtrading was taking place in the premises of ASEeven during trading hours. It was submitted onbehalf of the Governing Board that the allegedtransactions were outside the stock exchange andit was not possible for them to monitor the same.

9.0 I find that unofficial trading in the premises ofASE was observed during inspections carried outby SEBI on 5.8.02 and 19.9.02 the same was alsocorroborated by the Executive Director of thestock exchange vide his letter dated 19.9.02. Thesame was brought to the notice of officials of ASEand they were advised to take steps to prohibitthe same. The Officials of ASE promised to takesteps to curb the unofficial trading and in theirreply dated 9.10.2002, the Governing Board statedthat the exchange has taken due precaution toprevent any unofficial transactions within the pre-mises of the exchange. They have also stated thatthey do not have any concrete evidence of partici-pation of their members in the unofficial marketand that the exchange has put in place a strongmechanism to prevent and curb any such prac-tices and that the said unofficial trade has practi-cally stopped. However, the inspection team de-puted by SEBI during their visit to the Exchangepremises on 15.11.2002 observed that unofficialtrading in open outcry system was taking place inthe premises and that members of the exchangewere involved in the same.

10.0 In this regard, it would be appropriate to re-fer to relevant provisions of the law. Section 16 ofthe SCRA provides that:

�16(1) if the Central Government is of the opin-ion that it is necessary to prevent undesirablespeculation in specified securities in any stateor area, it may by notification in the officialgazette declare that no person in the state orarea specified in the notification shall, save withthe permission of the Central Government (orSEBI/RBI), enter into any contract for the saleor purchase of any security specified in the


51

notification except to the extent and in themanner, if any, specified therein.

(2) All contracts in contravention of the provi-sions of sub-section (1) entered into after thedate of notification issued thereunder shall beillegal.�

In accordance with the above, a notificationNo. SO 184(E) was published in the Gazette ofIndia on March 01, 2000 stating that

�in exercise of the powers conferred by sub-section (1) of section 16 of the Securities Con-tracts (Regulation) Act, 1956 read with Gov-ernment of India Notification No. 573(E) dated30th July, 1992 and Notification No. 183 (E)dated 1st March, 2000 issued under section 29Aof the said Act, the Securities and ExchangeBoard of India (hereinafter referred to as �theBoard�) being of the opinion that it is neces-sary to prevent undesirable speculation in se-curities in the whole of India, hereby declarethat no person in the territory to which the saidAct extends, shall, save with the permission ofthe Board, enter into any contract for sale orpurchase of securities other than such spotdelivery contract or contract for cash or handdelivery or special delivery or contract in de-rivatives as is permissible under the said Actor the Securities and Exchange Board ofIndia, Act, 1992 and the Rules and Regulationsmade under such Acts and Rules, Regulationsand Bye-laws of a recognized Stock Exchange:

Provided that any contract for sale or purchaseof government securities, gold related securi-ties, money market securities and ready for-ward contracts in debt securities entered intoon the recognized stock exchange shall be en-tered into in accordance with -

(a) the rules or regulations or the bye-lawsmade under the Securities Contracts(Regulations) Act, 1956 (42 of 1956) orthe Securities and Exchange Board ofIndia Act, 1992 (15 of 1992) or the direc-tions issued by the Securities and Ex-change Board of India under the saidActs;

(b) the rules made or guidelines or directionsissued under the Reserve Bank of IndiaAct, 1934 (2 of 1934) or the BankingRegulation Act, 1949 (10 of 1949) or theForeign Exchange Regulation Act, 1973(46 of 1973) by the Reserve Bank of In-dia;

(c) The provisions contained in the notifica-tions issued by the Reserve Bank of In-dia under the Securities Contract (Regu-lations) Act, 1956 (42 of 1956)�

10.1 I also find that ASE in its letter dated Sep-tember 17, 2002 has admitted to an unofficialmarket in derivatives also being carried on in thepremises of the Stock Exchange. In their complaintto the Ellis Bridge Police Station dated 20.9.2002,the stock exchange has mentioned that some un-scrupulous persons are carrying out illegal trans-actions in securities within the premises of thestock exchange and that the same is a cognizableoffence under the SCRA. In this regard, Section18A of the SCRA states that notwithstanding any-thing contained in any other law for the time be-ing in force, contracts in derivatives shall be legaland valid if such contracts are: (a) traded on a rec-ognized stock exchange; (b) settled on a clearinghouse of the recognized stock exchange in accor-dance with the rules and bye-laws of such stockexchange.

10.2 I find that the unofficial market was carriedon in the premises where ASE is located in con-travention of the provisions of Sections 16 and 18Aof the SCRA. I find that although in their replydated 9.10.2002, ASE has submitted that they havetaken all necessary steps to prevent any illegal trad-ing, during the inspection by SEBI officials on15.11.2002 it was observed that the illegal tradingwas still being carried on. By allowing the unoffi-cial trade to continue despite directives from SEBIto prohibit the same, ASE has failed to ensure com-pliance with the said provisions of SC(R)A. Thesubmission that it is not possible for ASE to moni-tor such transactions as it is outside the stock ex-change is not tenable. The finding in precedingparas, particularly in para 9.0 shows that unoffi-cial transaction was taking place in within the pre-


NOTIFICATIONS


mises of the exchange and some of the memberswere also involved in the same. Even if it is pre-sumed as contended by noticees that such trans-actions were outside the stock exchange, in viewof the provisions of Sections 16, 18A, 19 of SC(R)Act and notification issued under Section 16, it isthe duty of the Exchange to prevent such trans-actions.

11.0 I find that the exchange has not complied withthe directives/circulars etc. of SEBI within thestipulated time-frame and has shown disregard todeadlines set by SEBI in complying with its direc-tives. In this regard, I also note that SEBI has is-sued two warning letters dated April 24, 2002 &July 05, 2002 in the current financial year for nonimplementation of system based gross margin incash market and disruption in trading.

12.0 I find that ASE failed to comply with the or-der issued by SEBI under section 8 of SC(R) Actdated January 10, 2002 wherein the exchange wasdirected to amend their Rules, Articles etc. withina period of two months to give effect to the segre-gation of ownership and trading membership frommanagement of stock exchange. Thereupon SEBIwas constrained to amend the rules of ASE videnotification dated April 16, 2002 to give effect tothe same.

13.0 It may be observed that the Joint Parliamen-tary Committee in its report which was laid be-fore Parliament on 19.12.2002, has also observedthat illegal financing in various forms appear tobe resurfacing in exchanges like Ahmedabad. Syn-chronized deals and gathering of brokers at fixedtime on a particular day in a week in trading hallof the exchange/corridors of the exchange to fixbadla charges is common knowledge. There isneed for SEBI to take immediate action.

14.0 I find that no effective steps have been takenby the Governing Board in respect of filing an FIRbefore the Police Authorities and in taking disci-plinary action against members of the exchangefound to be involved in the unofficial transactions.ASE, vide their letter dated 30.12.2002, sent in re-ply to SEBI�s letter dated 23.10.2002, have statedthat when the ED of the Stock Exchange met theStation in charge (SHO) of Ellis Bridge Police Sta-

tion to convert their complaint into an FIR, theSHO advised them to submit a detailed note onthe relevant sections under which the FIR shouldbe registered and also to explain whether suchoffence is cognizable under Law. The ED alsostated that he would be able to forward the copyof FIR registered with the Police to SEBI latest by01.01.2003. However, the copy of the FIR is yet tobe received by SEBI.

The ED in his letter has also stated that it wouldbe difficult to initiate any disciplinary proceedingsagainst persons found to be standing in the corri-dor of the stock exchange on 19.09.2002, sincethere was a lack of identification and evidence. Inthis regard, I note that the ED in his letter dated19.09.2002 had stated that among other persons afew brokers were also found to be standing in thecorridor where the unofficial market for tradingjota phatak contracts was going on.

It is evident from the above that the stock ex-change authorities and the Governing Board havefailed to effectively follow up the complaint withthe police to ensure action against persons in-volved in the illegal transactions and also failed toensure that appropriate disciplinary action is takenagainst members of the stock exchange who werefound to be involved in the said illegal transac-tions.

15.0 In view of the above facts, I am convincedthat the Governing Board of ASE has failed toensure proper governance and implementation ofthe provisions of the SCRA and SEBI directives.

16.0 The Governing Board of ASE has been in-formed that unofficial trading is being carried onin and near to their premises. One step which theASE has taken is to inform the police. During thehearing also, on behalf of ASE it was mentionedthat beyond this what could they do to curb theunofficial badla? If SEBI has to make suggestionsand bring it to the notice of the exchange thatunofficial badla is being carried on in or near totheir premises, then surely, it is possible for a stockexchange which is a regulatory body to regulateand control the contracts under SC(R) Act and byelaws of the Exchange to ensure that such activi-ties are not carried on in their vicinity. The Stock


53

Exchanges need to put security guards in place,have continuous monitoring by dedicated offic-ers, warn brokers, take action, all to ensure thatthere is no unofficial badla. A Governing bodywhich cannot even think of ways and means toensure that illegal activities are not being carriedon does not deserve to continue. Unofficial badlaworks not only to the detriment of stock brokers,but also to the detriment of investors and the se-curities market. Therefore, I am of the opinion thatit is essential that immediate measures are takento ensure the safety and integrity of the marketand to restore the confidence of investors in thefunctioning of the Stock Exchange.

17.0 SEBI is mandated to ensure that the systemsand the procedures on an exchange are such thatthe transactions are carried on in a lawful man-ner and without affecting the interest of investors.In order to ensure that such systemic improve-ments take place on ASE it is necessary that thepersons who have failed to take effective action

need to be excluded from governance of the ex-change and an independent and impartial personis appointed.

18.0 In view of the above and in exercise of thepowers conferred on me under Section 11 of theSecurities Contracts (Regulation) Act, 1956 readwith Government of India Notification No. S.O.573dated July 30, 1993 and Section 4(3) of the Securi-ties and Exchange Board of India Act, 1992, Ihereby supersede the Governing Board ofAhmedabad Stock Exchange with effect fromMarch 25, 2003 for a period of one year and ap-point Shri P K Ghosh as an administrator to exer-cise and perform all the powers and duties of theGoverning Board. Shri P K Ghosh may take theassistance of such persons as he deems necessaryin discharge of his duties as administrator.

[F. No. SEBI/LE/2096/03]

G. N. BAJPAI

Chairman■■


NOTIFICATIONS


The gist of important orders delivered by the Se-curities Appellate Tribunal (SAT) during March2003 is as follows:

I. Appeal No. 40/2001 in the matter of NEPCIndia Limited and Others Vs. SEBI

This appeal was directed against theRespondent�s order dated 2.7.2001. By thesaid order S/Shri Ravi Prakash Khemka,

Raj Kumar Khemka, Ratan Kumar Khemka,Tirupathi Kumar Khemka and Madhu SudanKhemka (the acquirers) along with their groupcompanies were debarred from accessing the capi-tal market for a period of 5 years. The order wasissued under section 11B read with section 4(3)and section 27 of the Securities and ExchangeBoard of India Act, 1992 (the Act).

The acquirers in the wake of substantial acquisi-tion of shares/control of M/s. Damania AirwaysLtd. (name changed to Skyline NEPC Ltd.), as re-quired under the provisions of the Securities andExchange Board of India (Substantial Acquisitionof Shares and Takeovers) Regulations, 1994 (Take-over Regulations) made a public announcementto acquire 64,66,800 fully paid up equity shares ofRs.10 each representing 20% of the voting capitalof Skyline NEPC Ltd. The offer was to remain openfrom 1.2.1996 to 29.2.1996. The offer price wasRs.35.25 per share. The total consideration pay-able for 64,66,800 shares was Rs.22.80 crore. Theoffer closed on 29.2.1996. Pursuant to the offer,several shareholders of the said company offeredthe shares held by them. In terms of regulation22, person(s) acquiring shares is required within aperiod of four weeks from the date of closure ofthe offer to complete all procedures relating to theoffer including payment of consideration to theshareholders who have accepted the offer. How-ever, a number of shareholders did not receive theconsideration for the shares tendered by them inresponse to the public offer made by the acquirers.Even though the acquirers had promised to paythe purchase consideration to the shareholders

by 28.3.1996, they failed todo so. They sought time by45 days to make balancepayments by writing to theRespondent on 22.5.1996.The Respondent informedthem that there was noprovision in the TakeoverRegulations, for extendingtime for making payments and directed to com-plete the payment due to the shareholders and alsoto pay interest @ 15% for the period of delay. Butthe acquirers failed to comply with the said direc-tions. It was in the said context that the Respon-dent passed the impugned order. Since the Re-spondent treated the Appellants also as default-ers, they filed the present appeal claiming to beaggrieved by the Respondent�s order.

While upholding the impugned order the SATmade the following observations:

i. The failure to pay the purchase considerationfor the shares purchased from the sharehold-ers who responded to the public offer is a veryserious charge which tantamounts to cheat-ing. Criminal law is not short of provisions todeal with matters of cheating deceiving etc.It is not known as to what action the Respon-dent has taken against those responsible forthe same. It is also noted that the paymentwas due to the shareholders on 28.3.1996!Seven years are over by now. However, sinceit is not a matter which the Tribunal is calledupon to adjudicate in the present appeal, Irefrain from making any observation thereon.

ii. The consequences of the impugned order areserious. But then, there is no doubt in mymind in the facts and circumstances of thecase as emerged in the proceedings, that se-vere deterrent action is called for againstthose who caused grief to the gullible inves-tors. Shareholders have been taken for a ride.It is noted that the five acquirers referred to

Securities Appellate Tribunal Orders


55

in the Respondent�s order have decided notto contest the order in the appeal. They havethus impliedly accepted the finding arrivedand the decision made by the Respondent inthe impugned order.

iii. The basic question which requires to be con-sidered is as to whether the show-cause no-tice served on the five acquirers can betreated as sufficient notice to the Appellants.In this context it is noted that in the letter ofoffer the five persons have been shown asofferors. These five offerors are in the admin-istration and management of the Appellants.It is seen that the five acquirers are in theBoard of Directors of the three Appellants. Itis also seen that despite the claim that theAppellants were not served with any show-cause notice by the Respondent, the Appel-lants had challenged the show-cause noticedated 14.3.1997 issued by the Respondent ina Writ Petition in the Hon�ble Madras HighCourt. This goes to prove that the Appellantswere fully aware of the said show-causenotice. ��.. Therefore, it is clear that theAppellants were aware that in the absence ofany extended stay, they were exposed to fur-ther proceedings pursuant to the said noticeand they could have, if they so desired, basedon the knowledge of the show-cause noticewhich they opted to challenge by filing W.P.,represented before the Respondent. But theydeliberately opted to keep quiet.

iv. It is seen from the impugned order that thereis enough material to show that the �direct-ing mind and will� of the Appellants was theacquirers on whom the notice was served.Since the Appellants were aware of the no-tice and that the notice referred to the namesof the parties to whom the consequenceswould visit, and that since the Appellants�names were there, it was for the Appellantsto participate in the proceeding and put forththeir defence. It is seen from the order thatnone of the noticees formally responded tothe notice by filing specific replies and thatcould be the reason for the Appellants� non-

participation in the proceedings before theRespondent.

v. I do not consider that by not addressing thenotice specifically to the Appellants, any preju-dice has been caused to the Appellants. Thefact is that despite the clear knowledge of thenotice, the Appellants preferred to abstainfrom the proceedings. It was not that theywere unaware of the charges. For the reasonsbest known to them they decided not to par-ticipate in the proceedings, though they pre-ferred to challenge the notice before anotherforum - Hon�ble Madras High Court. The or-der arising out of the adjudication of theshow-cause notice was also challenged bythem in the present appeal. But they did notconsider it necessary to answer the show-cause notice!

vi. The Hon�ble Supreme Court in Managing Di-rector ECIL v. B. Karunakar (1993) 4 SCC 727observed in the context of a challenge madealleging non-compliance of the principles ofnatural justice in a domestic enquiry on theground that the enquiry report was not madeavailable to the delinquent officer, that theCourt or Tribunal should not mechanicallyset aside the order of punishment on theground that the report was not furnished.Whether in fact prejudice has been causedto an employee or not on account of the de-nial to him of the report has to be seen andconsidered on the facts and circumstances ofeach case. Where even after furnishing thereport, no different consequence would havefollowed, the court observed, it would be aperversion of justice to permit the employeeto resume duty and get all the consequentialbenefits. It amounts to rewarding the dishon-est and the guilty and thus to straighten theconcept of justice to illogical and exasperat-ing limits. It amount to an �unnatural expan-sion of natural justice� which in itself is anti-thetical to justice. It is only if the Courts orTribunals finding that the furnishing of thereport would have made a difference to theresult in the case, that it would set aside theorder of punishment.


LEGAL ROUND UP


vii. I am not stating a general principle that no-tice to the director of a company is also no-tice to the company in all cases. In the factsand circumstances of the present case, thereis sufficient evidence to establish that thenotice addressed to the Appellants� directorshad actually reached the Appellants and theAppellants had taken cognizance of the no-tice and acted thereon. In that view of thematter the Appellants submission that theimpugned order was passed without noticeto the Appellants and it was in violation of theprinciples of natural justice is not acceptable.

viii. Let us not forget that the soul of natural jus-tice is �fair play in action.� The purpose of fol-lowing the principles of natural justice is forprevention of miscarriage of justice andhence the observance thereof is the pragmaticrequirement of fair play in action. In the Ap-pellants� case from the facts of the case I findthat it was a self denial of natural justice bythe Appellants rather than the denial of natu-ral justice by the Respondent.

ix. In the light of the proven facts of the casethat the shareholders of Damania Airwayshaving been deprived of the money legiti-mately due to them, the Respondent felt thatthe persons responsible for the same shouldnot be allowed to repeat such �performance�and felt the need to prevent them from re-peating such activities. With that object inview the Respondent has issued the impugnedorder, under section 11B which in my view isa preventive measure taken to protect theinterest of the investors and therefore per-missible in terms of section 11B.

II. Appeal No. 40/2002 in the matter of Far EastInvestments Limited & Others Vs. SEBI & Oth-ersThis appeal is directed against the order dated24.5.2002 made by an adjudicating officer ap-pointed by SEBI imposing a monetary penalty ofone lakh fifty thousand rupees on the Appellants,holding them guilty of violating regulation 7 of theSEBI (Substantial Acquisition of Shares and Take-overs) Regulations, 1997.

On 13.2.2001, Far East acquired 10,00,000 shares,out of the total of 12,13,59,000 equity shares com-prising the paid up capital of GTB. This resulted inFar East�s holding in GTB increasing to 5.11%. FarEast was already holding 52,00,000 shares in GTBon 13.2.2001. European Investments was holding52,30,000 shares representing 4.30% of the paid upcapital of GTB on 13.2.2001. The combined hold-ing of these two companies on 13.2.2001 was1,14,30,000 shares, which accounted for 9.42% ofthe paid up capital of GTB. SEBI viewed that theAppellants were acting in concert. In that view ofthe matter SEBI felt that the Appellants were re-quired to comply with the disclosure requirementsas per regulation 7. Regulation 7 of the TakeoverRegulations requires the acquirer acquiring morethan 5% shares in a listed company to disclose theaggregate of his holding to the concerned com-pany within four working days of the acquisition.In this context, SEBI decided to refer the matterfor adjudication and for the purpose appointed anadjudicating officer. The adjudicating officer is-sued notice to the Appellants asking them to showcause as to why monetary penalty as provided insection 15A(b) of the SEBI Act, 1992 should notbe imposed on them. The Appellants respondedthat they had not violated the provisions of theRegulations/the Act. But the adjudicating officerviewed differently. He held the Appellants guiltyof violating the provisions of regulation 7 and im-posed one lakh fifty thousand rupees as monetarypenalty vide his order dated 24.5.2002.

While setting aside the order of the adjudicatingofficer, the SAT inter alia has made followingobservations:

i. It is on record that the entire beneficial inter-est in these two companies is held by distinctpersons. This fact remains undisputed. SEBIhas not brought any evidence on record toshow that the beneficial owners of the twocompanies are in any way inter related�.. Inthis context only on the basis of the fact thatPCL was the management company of boththe Appellants and that PCL�s directors werethe directors of the Appellants etc. by itselfdoes not prove that they are connected orgroup companies in reality to be considered


57

as persons acting in concert, especially in thelight of the rebuttal made by the Appellants.�In my view there is no evidence to showthat both the Appellants were acting in con-cert.

ii. In that view of the matter the percentageholding of European Investments being only4.30% of GTB�s capital and hence below the5% bench mark provided in regulation 7, thesaid Appellant was not required to make dis-closure under regulation 7 and as such therewas no failure on its part in this regard andsection 15A(b) did not attract. Therefore,there is no justification for imposing penaltyon the said Appellant.

iii. As far as Far East is concerned it is on recordthat it was holding 0.11% in excess over thebench mark holding of 5% from 13.2.2001 to7.3.2001. In this connection it is to be notedthat the excess holding was just 0.11%, thattoo for a period of about 3 weeks, that ac-cording to the Appellant immediately on re-ceipt of information from GTB of the fact thatit was holding 0.11% in excess, the next day itdisposed of 2 lakh shares.

iv. On a perusal of the observation made by theAdjudicating officer it is clear that he wasconcerned mainly because of the 9.42% hold-ing of shares which is far exceeding 5% pro-vided in regulation 7 and in that context heheld the Appellants guilty. It appears that theadjudicating officer has rightly ignored 0.11%excess holding by itself as a failure to war-

rant any penalty as such, though he has re-corded the failure on the part of the Appel-lant to make disclosure of the same. His em-phasis is that both the Appellants acted in con-cert and the combined holding was in excessby 4.42%. �.. Thus it is clear that whatweighed in the mind of the adjudicating of-ficer was the Appellants� holding 9.42% (i.e.4.42% in excess of the prescribed limit) inGTB�s capital for the purpose of impositionof penalty and not the insignificant excessholding of 0.11% by Far East.

v. Even if it is assumed that the Far East wasguilty of failure to disclose its holding on ac-quiring 0.11% shares in GTB for a period of 3weeks, still in my view taking into consider-ation the facts of the case and the authoritiescited by both sides, it is difficult to hold thatthe said failure warranted imposition of pen-alty. There is nothing on record to show thatthe Appellants �had acted deliberately in de-fiance of law or was guilty of conduct contu-macious or dishonest or acted in consciousdisregard of its obligation�. The failure to dis-close the excess holding of 0.11% lasting overa period of 3 weeks in my view has in no waydefeated the purpose of regulation 7 as statedby the adjudicating officer in the impugnedorder.

For the reasons inter alia stated hereinabove thatallowed the appeal.

The full version of these orders are available athttp://www.sebi.gov.in

■■


LEGAL ROUND UP


1A. Draft Offer Documents Received duringMarch, 2003

1B. Observations Issued on Draft Offer Docu-ments during March, 2003

2A. Open Offers under SEBI Takeover Code dur-ing March, 2003

2B. Buyback Announcements during March,2003

3. Penal Orders Issued by SEBI Chairman dur-ing March, 2003

Statistical Tables1. SEBI Registered Market Intermediaries/Par-

ticipants

2. Offer Documents Received and ObservationsIssued by SEBI

3. Capital Raised from the Primary Market

4. Industry-wise Classification of Capital Raisedfrom Primary Market

5. Sector-wise and Region-wise Distribution ofCapital Mobilised from the Primary Market

6. Size-wise Classification of Capital Raisedfrom Primary Market

7. Growth and Distribution of Turnover on CashSegments of Exchanges

8. Cash Segment of BSE

9. Cash Segment of NSE

10. Trends in Cash Segment of BSE, March, 2003

11. Trends in Cash Segment of NSE, March, 2003

12. Turnover and Market Capitalisation at BSEand NSE, March 2003

13. Movement of Indices at BSE, March, 2003

14. Movement of Indices at NSE, March, 2003

15. BSE Sensex, March, 2003

16. S&P CNX Nifty, March, 2003

17. Movement in DSE and MSE Share PriceIndex, March, 2003

18. Volatility of Major Indices

19. City-wise Distribution of Turnover on CashSegments of BSE and NSE

20. Advances/Declines in cash Segments ofExchanges (No. of Securities)

21. Trading Frequency in cash Segment of BSEand NSE

22. Percentage Share of Top �N� Securities/Mem-bers in Turnover in cash Segment

23. Settlement Statistics for cash Segmenmt ofBSE

24. Settlement Statistics for cash Segment ofNSE

25. Derivative Segments at BSE

26. Derivative Segments at NSE

27. Derivatives Trading at BSE, March, 2003

28. Derivatives Trading at NSE, March, 2003

29. Settlement Statistics in Derivative Segment

30. Trends in FII Investment

31. Daily Trends in Foreign Institutional Invest-ment, March, 2003

32. Trends in Mutual Funds Resource Mobili-sation

33A. Scheme-wise Resource Mobilisation byMutual Funds

Annexures


59

33B.Scheme-wise Resource Mobilisation byMutual Funds

34. Trends in Transactions on Stock Exchangesby Mutual Funds

35. Substantial Acquisition of Shares and Take-overs

36. Progress of Dematerialisation at NSDL andCDSL

37. Receipt and Redressal of Investor Grievances

38. Assets under the Custody of Custodians

39. Ratings Assigned for Corporate Debt Securi-ties (Maturity ≥ 1 year)

40. Review of Accepted Ratings of CorporateDebt Securities (Maturity ≥ 1 year)

N.B.:1. NA = Not Applicable/Available.

2. 1 crore = 10 million = 100 lakh.

3. The total provided in the Annexures and Sta-tistical Tables may not always match with thesum total of the break-ups due to decimal dif-ferences.


ANNEXURES & STATISTICAL TABLES



Ann

exur

e 1A

: Dra

ft O

ffer

Doc

umen

ts R

ecei

ved

duri

ng M

arch

, 200

3

Sl.

No.

Com

pany

Lea

d M

anag

erT

ype

of I

ssue

Typ

e of

Issu

e P

rice

(R

s.)

Issu

e S

ize

Pro

mot

ers

Inst

rum

ent

(Fac

e V

alue

+(R

s. m

n.)

Pre

miu

m)

1M

/s. A

mtr

ex H

itac

hiM

/s. I

nd G

loba

lR

igh

tsE

quit

y10

+ 2

127

3*H

itac

hi H

ome

& L

ife

App

lianc

es L

td.

Cor

pora

te F

inan

ceS

olu

tion

s In

c.*H

itac

hi In

dia

Pvt

. Ltd

.

Ann

exur

e 1B

: Obs

erva

tion

s Is

sued

on

Dra

ft O

ffer

Doc

umen

ts d

urin

g M

arch

200

3

Sl.

No.

Com

pany

Lea

d M

anag

erT

ype

of I

ssue

Typ

e of

Issu

e P

rice

(R

s.)

Issu

e S

ize

Dat

e of

Fin

al(P

re-I

ssue

)In

stru

men

t(F

ace

Val

ue+

(Rs.

mn.

)O

bser

vati

onP

rem

ium

)

Nil

61

Ann

exur

e 2A

: Ope

n O

ffer

s un

der

SE

BI

Tak

eove

r co

de d

urin

g M

arch

, 200

3*

Sl.

No.

Tar

get

Com

pany

Acq

uire

rO

ffer

Off

er C

losi

ngO

ffer

Siz

e O

ffer

Pri

ceO

peni

ngD

ate

No.

of

% o

f E

quit

y(R

s.)

Dat

eS

hare

sC

apit

al

1M

/s. B

SE

L I

nfor

mat

ion

Sys

tem

M/s

. Con

tact

Con

sult

ancy

Ser

vice

s3-

Feb

-03

4-M

ar-0

32,

030,

000

10.0

18.6

Ltd

.P

vt L

td.

2M

/s. K

apil

Cot

ex L

td.

M/s

. S.R

.V.T

elec

om P

vt L

td.

4-F

eb-0

35-

Mar

-03

48,0

0020

.015

.0

3M

/s. P

arry

Agr

o In

dust

ries

Ltd

.M

/s. N

ew A

mba

di I

nves

tmen

ts P

vt L

td.

18-F

eb-0

319

-Mar

-03

867,

472

23.1

70.0

4M

/s. S

hant

ivija

y Je

wel

s L

td.

M/s

. Shr

i B

imal

chan

d G

odha

, Raj

rani

18-F

eb-0

319

-Mar

-03

300,

200

10.0

23.0

God

ha, P

K G

odha

5M

/s. B

alw

as E

-Com

Ind

ia L

tdM

/s. I

T P

eopl

e P

riva

te L

td.

18-F

eb-0

319

-Mar

-03

2,77

1,00

027

.22.

5(G

loba

l E-C

om (

Indi

a) P

vt L

td)

6M

/s. K

wal

ity

Dai

ry (

Indi

a) L

td.

M/s

. Gu

lsha

n D

hing

ra, K

rish

an D

hing

ra,

19-F

eb-0

320

-Mar

-03

3,18

0,80

017

.52.

0N

ares

h D

hing

ra

7M

/s. A

ce I

ndia

Ltd

.V

ed P

Nar

ula

21-F

eb-0

322

-Mar

-03

632,

180

20.0

2.7

8M

/s. M

JP L

easi

ng L

td.

M/s

. Con

cept

Com

mu

nica

tion

Ltd

.25

-Feb

-03

26-M

ar-0

347

,690

20.0

20.0

9M

/s. E

iche

r L

td (

Roy

al E

nfie

ldM

/s. E

iche

r G

oode

arth

Ltd

.26

-Feb

-03

27-M

ar-0

34,

047,

375

20.0

30.0

Mot

ors

Ltd

.)

* O

ffer

s w

hich

clo

sed

duri

ng M

arch

200

3.

Ann

exur

e 2B

: Buy

back

Ann

ounc

emen

ts d

urin

g M

arch

, 200

3

Sl.

No.

Com

pany

Mod

e of

Buy

back

Max

imum

Max

imum

Dat

e of

Dat

e of

Dat

e of

pric

eC

onsi

dera

tion

Fil

ing

open

ing

clos

ing

paya

ble

(Rs.

)P

ayab

leof

off

erof

off

er(R

s. m

n.)

1M

/s. S

ai I

nfo

Ltd

.T

end

er O

ffer

(10

%)

1251

.50

27-M

ar-0

328

-Apr

-03

12-M

ay-0

3


ANNEXURES


Ann

exur

e 3:

Pen

al O

rder

s Is

sued

by

SE

BI

Cha

irm

an d

urin

g M

arch

, 200

3

Sl.

Ord

er D

ate

Nam

e of

Ent

ity

Typ

e of

Ent

ity

Vio

lati

on(s

)P

unis

hmen

t/D

irec

tion

No. 1

10.0

3.20

03S

hri

Bas

anti

Lal

Cha

irm

an, M

andu

Cre

ated

fal

se m

arke

t in

the

sha

res

ofD

ebar

red

from

dea

ling

in s

ecu

riti

es a

ndK

akre

cha

Indu

stri

es L

td.

Man

du I

ndu

stri

es L

td. w

ith

a vi

ew t

oac

cess

ing

capi

tal m

arke

t fo

r 2

year

sbe

nefi

t

210

.03.

2003

Shr

i M

adhu

suda

n Ja

inM

anag

ing

Dir

ecto

r,C

reat

ed f

alse

mar

ket

in t

he s

hare

s of

Deb

arre

d fr

om d

ealin

g in

sec

uri

ties

and

Man

du I

ndu

stri

esM

andu

Ind

ust

ries

Ltd

. wit

h a

view

to

acce

ssin

g ca

pita

l mar

ket

for

2 ye

ars

Ltd

.b

enef

it

310

.03.

2003

Shr

i M

ilan

Sha

hD

irec

tor,

Ana

gram

Indu

lged

in

circ

ula

r an

d co

llusi

ve t

radi

ngD

irec

ted

not

to a

ssoc

iate

wit

h an

y ca

pita

lS

ecu

riti

es L

td.

in t

he s

crip

of

Kam

al O

vers

eas

Ltd

. and

mar

ket

inte

rmed

iary

in a

ny p

osit

ion

for

atte

mpt

ed t

o de

frau

d N

SC

CL

1 ye

ar w

itho

ut

prio

r pe

rmis

sion

of

SE

BI

413

.03.

2003

M/s

. Spr

ingf

ield

Bro

ker

Vio

late

d an

d no

t co

mpl

ied

wit

h pr

ovis

ions

Su

spen

ded

for

1 m

onth

Sec

uri

ties

Ltd

.of

Cod

e of

Con

duct

514

.03.

2003

M/s

. Gol

den

Tre

esC

ISF

ailu

re t

o re

dres

s gr

ieva

nces

of

inve

stor

s,D

irec

ted

to w

ind

up

the

exis

ting

sch

emes

and

Pla

ntat

ion

Ltd

.,to

app

ly f

or r

egis

trat

ion

and

to f

ile in

for-

refu

nd t

he m

oney

alo

ngw

ith

retu

rns

due

toA

hmed

abad

mat

ion

wit

h S

EB

I in

vest

ors

wit

hin

1 m

onth

620

.03.

2003

Pra

shan

t Ja

inB

roke

rsC

ondu

ctin

g ill

egal

and

una

uth

oris

ed c

arry

Su

spen

ded

trad

ing

acti

viti

es t

ill c

ompl

etio

nM

/s. S

. K. J

ain

Sha

refo

rwar

d tr

ansa

ctio

nsof

pro

ceed

ings

und

er r

ule

11

of S

C(R

)A o

rB

roke

rs P

vt. L

td.

pend

ency

of

the

enqu

iry

und

er S

EB

IM

/s. A

poor

va S

ecu

riti

esR

egu

lati

ons

Pra

deep

K. B

ansa

lM

/s. A

jay

Sec

uri

ties

Pvt

. Ltd

.M

/s. S

ande

ep M

itta

l &C

o.M

/s. H

anu

priy

a S

ecu

ri-

ties

Pvt

. Ltd

. May

ank

Goe

lM

/s. R

ajra

tan

Fin

anci

alS

ervi

ces

Pvt

. Ltd

. C. M

.S

eth

iM

/s. N

avin

Sec

uri

ties

Dee

p K

um

ar A

garw

alM

/s. S

uni

l B

ros.

M/s

. Vin

od &

Co.

724

.03.

2003

M/s

. Jan

arak

sha

Gre

enC

ISF

aile

d to

com

ply

wit

h S

EB

I or

der

dire

ctin

gC

ompa

ny, p

rom

oter

s, d

irec

tors

and

per

sons

For

ests

Ltd

.th

e co

mpa

ny t

o re

fund

the

mon

ey c

olle

cted

in c

harg

e of

bu

sine

ss d

ebar

red

from

ass

o-u

nder

the

sch

eme

ciat

ing

wit

h a

ny

capi

tal

mar

ket

int

er-

med

iary

or

acti

vity

, de

alin

g in

sec

uri

ties

,op

erat

ing

in

the

ca

pita

l m

arke

t a

ndac

cess

ing

the

capi

tal m

arke

t fo

r 5

year

s


638

25.0

3.20

03M

/s. T

oubr

o In

fote

ch &

Cor

pora

te,

Fai

lure

to

com

ply

wit

h pr

ovis

ions

of

SE

BI

Com

pany

, cha

irm

an, p

rom

oter

s, d

irec

tors

Indu

stri

es L

td.

Cha

irm

an,

Dis

clos

ure

and

Inv

esto

r P

rote

ctio

nde

barr

ed f

rom

ass

ocia

ting

wit

h an

y ca

pita

lS

hri K

anw

ar D

eep

Sin

ghP

rom

oter

s an

dG

uid

elin

es a

nd C

ompa

nies

Act

mar

ket

inte

rmed

iary

or

acti

vity

and

fro

mS

hri

Rav

inde

r S

ingh

Dir

ecto

rsde

alin

g in

sec

uri

ties

and

acc

ess

capi

tal

Maj

or G

urg

eet

Sin

ghm

arke

t fo

r 5

year

s; C

ompa

ny d

irec

ted

toS

hri

Ser

gio

Cor

eno

refu

nd t

he m

oney

rai

sed

in t

he is

sue

wit

hS

hri S

. L. B

alu

jain

tere

st a

t th

e ra

te o

f 10

per

cen

t to

inve

stor

sw

ithi

n 2

mon

ths

925

.03.

2003

Ahm

edab

ad S

tock

Sto

ck E

xcha

nge

Fai

lure

to

ensu

re p

rope

r go

vern

ance

and

Su

pers

eded

the

Gov

erni

ng B

oard

of

the

Exc

hang

eim

plem

enta

tion

of

the

prov

isio

ns o

f th

eE

xcha

nge

for

one

year

and

app

oint

edS

CR

A a

nd S

EB

I di

rect

ives

.S

hri P

K G

hosh

as

an a

dmin

istr

ator

to

exer

cise

and

per

form

all

the

pow

ers

and

duti

es o

f th

e G

over

ning

Boa

rd

1028

.03.

2003

M/s

. Man

yog

Su

b-B

roke

rN

ot c

auti

ous

in m

aint

aini

ng h

igh

stan

dard

War

ned

to b

e m

ore

cau

tiou

s in

its

deal

ings

Inve

stm

ents

Pvt

. Ltd

.of

inte

grit

y an

d fa

irne

ss a

nd d

id n

ot a

ctw

ith

secu

riti

es a

nd a

dher

e to

pro

visi

ons

wit

h du

e sk

ill, c

are

and

dilig

ence

in c

on-

of S

C(R

)R a

nd S

EB

I A

ctdu

ct o

f in

vest

men

t bu

sine

ss

Sl.

Ord

er D

ate

Nam

e of

Ent

ity

Typ

e of

Ent

ity

Vio

lati

on(s

)P

unis

hmen

t/D

irec

tion

No.


ANNEXURES


Tab

le 1

: SE

BI

Reg

iste

red

Mar

ket

Inte

rmed

iari

es/P

arti

cipa

nts

Mar

ket

Par

tici

pant

sA

s on

31s

t M

arch

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Sto

ck E

xcha

nges

(C

ash

Mar

ket)

2122

2222

2222

2323

2323

23

Sto

ck E

xcha

nges

(D

eriv

ativ

es M

arke

t)N

AN

AN

AN

AN

AN

AN

A2

22

2

Bro

kers

(C

ash

Seg

men

t)5,

290

6,41

36,

711

8,47

68,

867

9,00

59,

069

9,19

29,

782

9,68

79,

519

Cor

pora

te B

roke

rs (

Cas

h S

egm

ent)

NA

143

616

1,91

72,

360

2,97

63,

173

3,31

63,

808

3,86

23,

835

Su

b-b

roke

rs (

Cas

h S

egm

ent)

NA

202

876

NA

1,79

83,

760

4,58

95,

675

9,95

712

,208

13,2

91

Bro

kers

(D

eriv

ativ

e)N

AN

AN

AN

AN

AN

AN

AN

A51

970

579

5

For

eign

Ins

titu

tion

al I

nves

tors

1815

830

836

743

949

645

050

652

749

050

2

Cu

stod

ian

sN

AN

AN

AN

AN

AN

AN

A15

1412

11

Dep

osit

orie

sN

AN

AN

AN

A1

12

22

22

Dep

osit

ory

Par

tici

pant

sN

AN

AN

AN

A28

5296

191

335

380

438

Mer

chan

t B

anke

rs74

422

790

1,01

21,

163

802

415

186

233

145

124

Ban

kers

to

an I

ssu

eN

AN

A70

7780

7266

6869

6867

Un

der

wri

ters

NA

NA

3640

3843

1742

5754

43

Deb

entu

re T

rust

ees

NA

NA

2023

2732

3438

3740

35

Cre

dit

Rat

ing

Age

ncie

sN

AN

AN

AN

AN

AN

AN

A4

44

4

Ven

ture

Cap

ital

Fu

nds

NA

NA

NA

NA

NA

NA

NA

NA

3534

43

For

eign

Ven

ture

Cap

ital

Inv

esto

rsN

AN

AN

AN

AN

AN

AN

AN

A1

26

Reg

istr

ars

to a

n Is

sue

& S

hare

Tra

nsfe

r A

gent

sN

A10

026

433

438

633

425

124

218

616

114

3

Por

tfol

io M

anag

ers

2840

6113

1616

1823

3947

54

Mu

tual

Fu

nds

NA

1222

2737

3841

3839

3838

Col

lect

ive

Inve

stm

ent

Sch

emes

NA

NA

NA

NA

NA

NA

NA

00

00

App

rove

d In

term

edia

ries

(S

tock

Len

ding

Sch

emes

)N

AN

AN

AN

A1

14

68

104


65Table 2 : Offer Documents Received and Observations Issued by SEBI

(Rs. mn.)

Year/Month Documents Received Observations Issued

No. Amount No. Amount

1994-95 2612 427293 1973 353723

1995-96 2523 261089 1964 248228

1996-97 787 161256 815 183733

1997-98 114 125005 103 117067

1998-99 60 48021 55 18027

1999-2000 165 89670 125 120255

2000-01 197 131756 181 111597

Apr-01 2 50026 1 142

May-01 2 126 3 53277

Jun-01 0 0 1 7

Jul-01 2 944 1 119

Aug-01 7 8033 5 7728

Sep-01 4 15084 4 953

Oct-01 2 477 2 15328

Nov-01 2 8371 0 0

Dec-01 3 667 3 8818

Jan-02 2 3561 4 421

Feb-02 4 4159 4 5488

Mar-02 4 2334 0 0

2001-02 34 93782 28 92279

Apr-02 0 0 5 4938

May-02 0 0 1 18

Jun-02 3 3299 0 0

Jul-02 2 193 1 2700

Aug-02 3 16032 0 0

Sep-02 4 29109 4 20210

Oct-02 3 215 0 0

Nov-02 2 323 3 181

Dec-02 5 20895 5 20702

Jan-03 2 323 2 762

Feb-03 3 255 2 310

Mar-03 1 273 0 0

2002-03 28 70917 23 49821


STATISTICAL TABLES


Tab

le 3

: C

apit

al r

aise

d fr

om t

he P

rim

ary

Mar

ket

(Am

ount

in R

s. m

n.)

Yea

r/M

onth

Tot

alC

ateg

ory-

wis

eIs

sue

Typ

eIn

stru

men

t-w

ise

Pub

licR

ight

sLi

sted

IPO

sE

quit

ies

CC

PS

Bon

dsO

ther

s

At

Par

At

Prem

ium

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

1992

-93

1,01

618

6,90

652

860

,608

488

126,

298

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

1993

-94

1,14

324

3,72

077

315

4,49

137

089

,229

451

165,

084

692

78,6

3660

838

,076

383

92,2

041

179

19,9

1214

293

,510

1994

-95

1,69

227

6,32

51,

342

210,

445

350

65,8

8045

311

0,60

71,

239

165,

718

942

55,2

9165

112

4,40

87

1,24

30

013

595

,383

1995

-96

1,72

520

8,03

71,

426

142,

395

299

65,6

4136

898

,795

1,35

710

9,24

11,

181

49,5

8248

097

,267

81,

452

620

,856

6338

,881

1996

-97

882

142,

760

751

115,

568

131

27,1

9216

783

,257

717

59,5

8669

734

,326

148

44,1

185

749

1054

,000

299,

566

1997

-98

111

45,7

0062

28,6

1949

17,0

8059

35,2

2452

10,4

7564

2,71

433

16,1

033

101

415

,500

1011

,283

1998

-99

5855

,865

3250

,189

265,

675

4051

,822

184,

042

201,

970

206,

598

378

010

44,5

006

2,01

6

1999

-200

093

78,1

6865

62,5

6528

15,6

0242

50,9

7751

27,1

9030

7,86

252

37,7

980

010

32,0

002

508

2000

-01

151

61,0

7812

453

,784

277,

294

3733

,854

114

27,2

2384

8,17

854

24,0

762

1,42

110

27,0

401

363

Apr

-01

152

152

00

00

152

152

00

00

00

00

May

-01

151

00

01

510

151

00

00

00

00

00

01

510

Jun-

011

4,00

01

4,00

00

01

4,00

00

00

00

00

01

4,00

00

0

Jul-0

12

4,07

71

4,00

01

772

4,07

70

00

00

00

02

4,07

70

0

Aug

-01

34,

182

34,

182

00

14,

000

218

21

371

145

00

14,

000

00

Sep-

014

10,7

841

4,00

03

6,78

44

10,7

840

01

680

00

02

6,55

91

4,15

8

Oct

-01

119

00

01

190

119

00

00

01

190

00

00

00

Nov

-01

45,

634

14,

000

31,

634

45,

634

00

175

41

503

00

24,

377

00

Dec

-01

48,

300

48,

300

00

26,

500

21,

800

110

00

00

02

6,50

01

1,70

0

Jan-

023

14,6

682

14,3

401

328

26,

328

18,

340

00

18,

340

00

16,

000

132

8

Feb-

024

8,99

92

8,50

02

499

48,

999

00

249

90

00

02

8,50

00

0

Mar

-02

714

,035

413

,645

339

06

12,3

901

1,64

50

04

2,03

50

03

12,0

000

0

2001

-02

3575

,431

2065

,018

1510

,413

2863

,413

712

,018

71,

509

811

,213

00

1656

,012

46,

696

Apr

-02

00

00

00

00

00

00

00

00

00

00

May

-02

22,

461

00

22,

461

22,

461

00

00

22,

461

00

00

00

Jun-

021

2,10

01

2,10

00

00

01

2,10

00

01

2,10

00

00

00

0

Jul-0

22

2,07

81

2,00

01

782

2,07

80

01

780

00

01

2,00

00

0

Aug

-02

12,

880

12,

880

00

00

12,

880

00

12,

880

00

00

00

Sep-

020

00

00

00

00

00

00

00

00

00

0

Oct

-02

34,

018

24,

000

118

23,

018

11,

000

21,

018

00

00

13,

000

00

Nov

-02

26,

350

26,

350

00

12,

500

13,

850

00

13,

850

00

12,

500

00

Dec

-02

361

90

03

619

361

90

01

124

136

00

00

01

134

Jan-

032

7,00

02

7,00

00

02

7,00

00

00

00

00

02

7,00

00

0

Feb-

036

5,35

43

4,55

73

797

44,

797

255

71

156

41,

198

00

14,

000

00

Mar

-03

47,

844

27,

500

234

44

7,84

40

01

491

295

00

27,

500

00

2002

-03

2640

,703

1436

,387

124,

312

2030

,316

610

,387

61,

425

1113

,144

00

826

,000

213

4

Not

e : I

nstr

um

ent-

wis

e br

eak

up

may

not

tal

ly t

o th

e to

tal n

um

ber

of is

sues

, as

for

one

issu

e th

ere

cou

ld b

e m

ore

than

one

inst

rum

ents

.


67

Tab

le 4

: In

dust

ry-w

ise

Cla

ssif

icat

ion

of C

apit

al R

aise

d fr

om P

rim

ary

Mar

ket

(Am

ount

in R

s. m

n.)

Indu

stry

2000

-01

2001

-02

2002

-03

Mar

-02

Mar

-03

No.

Am

ount

No.

Am

ount

No.

Am

ount

Ban

kin

g/F

Is13

31,3

9314

51,4

2013

3442

710

420

7500

Cem

ent

& C

onst

ruct

ion

282

32

266

130

40

0

Ch

emic

al5

315

31,

868

115

60

0

Ele

ctro

nic

s4

694

00

00

00

En

gin

eeri

ng

223

34

7,59

72

960

0

En

tert

ain

men

t13

4,57

70

02

243

00

Fin

ance

104,

399

132

81

295

029

5

Foo

d P

roce

ssin

g0

00

00

00

0

Hea

lth

Car

e4

476

00

273

50

0

Info

rmat

ion

Tec

hn

olog

y89

8,03

56

380

322

7311

649

Pap

er &

Pu

lp0

00

00

035

000

Pla

stic

140

00

121

750

0

Pow

er0

00

00

00

0

Pri

nti

ng

110

80

00

00

0

Tel

ecom

mu

nic

atio

n2

9,22

21

8,34

00

00

0

Tex

tile

00

21,

264

00

00

Oth

ers

576

22

3,96

80

00

0

Tot

al15

161

,078

3575

,431

2640

,703

14,0

367,

844


STATISTICAL TABLES


Tab

le 5

: S

ecto

r-w

ise

and

Reg

ion-

wis

e D

istr

ibut

ion

of C

apit

al M

obil

ised

fro

m t

he P

rim

ary

Mar

ket

(Am

ount

in R

s. m

n.)

Yea

r/M

onth

Tot

alS

ecto

r-w

ise

Reg

ion-

wis

e

Pri

vate

*P

ubli

cN

orth

ern

Eas

tern

Wes

tern

Sou

ther

n

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

1992

-93

1,01

618

6,90

6N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

1993

-94

1,14

324

3,72

0N

AN

AN

AN

A31

458

,282

9413

,521

503

145,

585

232

26,3

32

1994

-95

1,69

227

6,32

51,

684

262,

702

813

,623

399

65,5

3717

822

,157

740

108,

242

375

80,3

89

1995

-96

1,72

520

8,03

71,

718

166,

388

741

,649

467

51,0

9216

814

,164

680

108,

113

410

34,6

67

1996

-97

882

142,

760

872

102,

410

1040

,350

221

33,8

0711

47,

669

360

90,4

1018

710

,874

1997

-98

111

45,7

0010

538

,521

67,

179

183,

017

2611

,642

4623

,911

217,

130

1998

-99

5855

,865

5755

,161

170

310

1,71

210

2,65

529

48,5

629

2,93

4

1999

-200

093

78,1

6891

76,1

672

2,00

013

18,9

997

1,05

546

52,3

4527

5,76

6

2000

-01

151

61,0

7814

858

,925

32,

152

102,

073

92,

403

4341

,053

8915

,546

Apr

-01

152

152

00

00

00

00

152

May

-01

151

01

510

00

00

00

151

00

0

Jun-

011

4,00

01

4,00

00

00

00

01

4,00

00

0

Jul-

012

4,07

72

4,07

70

00

00

01

4,00

01

77

Au

g-01

34,

182

34,

182

00

00

00

14,

000

218

1

Sep

-01

410

,784

410

,784

00

00

00

410

,784

00

Oct

-01

119

01

190

00

00

00

119

00

0

Nov

-01

45,

634

45,

634

00

00

00

45,

634

00

Dec

-01

48,

300

35,

800

12,

500

00

21,

800

26,

500

00

Jan-

023

14,6

683

14,6

680

01

8,34

00

02

6,32

80

0

Feb

-02

48,

999

36,

499

12,

500

131

00

38,

968

00

Mar

-02

714

,035

49,

616

34,

420

11,

645

00

38,

509

33,

881

2001

-02

3575

,431

3066

,011

59,

419

310

,016

21,

800

2359

,423

74,

191

Apr

-02

00

00

00

00

00

00

00

May

-02

22,

461

22,

461

00

00

00

22,

461

00

Jun-

021

2,10

01

2,10

00

00

00

01

2,10

00

0

Jul-

022

2,07

81

781

2,00

01

780

01

2,00

00

0

Au

g-02

12,

880

00

12,

880

00

00

12,

880

00

Sep

-02

00

00

00

00

00

00

00

Oct

-02

34,

018

118

24,

000

00

21,

018

13,

000

00

Nov

-02

26,

350

00

26,

350

00

00

12,

500

13,

850

Dec

-02

361

93

619

00

00

00

113

42

484

Jan-

032

7,00

01

4,00

01

3,00

00

00

02

7,00

00

0

Feb

-03

65,

354

65,

354

00

00

115

61

4,00

04

1,19

8

Mar

-03

47,

844

34,

344

13,

500

00

00

27,

500

234

4

2002

-03

2640

,703

1818

,973

821

,730

178

31,

174

1333

,575

95,

876

*Joi

nt S

ecto

r Is

sues

, if

any,

hav

e be

en c

lubb

ed w

ith

priv

ate

sect

or f

or t

he r

espe

ctiv

e pe

riod

.


69

Tab

le 6

: S

ize-

wis

e C

lass

ific

atio

n of

Cap

ital

Rai

sed

from

Pri

mar

y M

arke

t

(Am

ount

in R

s. m

n.)

Yea

r/M

onth

Tot

al≥≥≥≥ ≥

10 m

n. -

< 5

0 m

n.≥≥≥≥ ≥

50 m

n. -

< 1

00 m

n.≥≥≥≥ ≥

100

mn.

- <

500

mn.

≥≥≥≥ ≥ 50

0 m

n. -

< 1

000

mn.

≥≥≥≥ ≥100

0 m

n.

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

No.

Am

ount

1992

-93

1,01

618

6,90

6N

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

1993

-94

1,14

324

3,72

0N

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

1994

-95

1,69

227

6,32

585

325

,686

442

30,3

3030

563

,564

5135

,842

4112

0,90

4

1995

-96

1,72

520

8,03

71,

066

31,8

3041

828

,326

175

33,4

3843

29,3

3923

85,1

05

1996

-97

882

142,

760

547

17,5

9621

514

,725

8716

,711

149,

083

1984

,645

1997

-98

111

45,7

0052

1,21

626

1,76

615

3,67

56

4,20

412

34,8

38

1998

-99

5855

,865

1534

99

631

142,

965

95,

812

1146

,109

1999

-200

093

78,1

6819

525

151,

051

266,

290

149,

965

1960

,336

2000

-01

151

61,0

7866

1,85

925

1,65

434

7,64

08

5,06

918

44,8

56

Apr

-01

152

00

152

00

00

00

May

-01

151

00

00

00

01

510

00

Jun-

011

4,00

00

00

00

00

01

4,00

0

Jul-

012

4,07

70

01

770

00

01

4,00

0

Au

g-01

34,

181

137

00

114

50

01

4,00

0

Sep

-01

410

,784

00

168

00

00

310

,716

Oct

-01

119

00

00

01

190

00

00

Nov

-01

45,

634

00

00

137

72

1,25

71

4,00

0

Dec

-01

48,

300

00

00

110

00

03

8,20

0

Jan-

023

14,6

680

00

01

328

00

214

,340

Feb

-02

48,

999

131

00

146

80

02

8,50

0

Mar

-02

714

,035

19

00

238

10

04

13,6

45

2001

-02

3575

,431

377

319

68

1,99

43

1,76

718

71,4

01

Apr

-02

00

00

00

00

00

00

May

-02

22,

461

00

00

128

60

01

2,17

5

Jun-

021

2,10

00

00

00

00

01

2,10

0

Jul-

022

2,07

80

01

780

00

01

2,00

0

Au

g-02

12,

880

00

00

00

00

12,

880

Sep

-02

00

00

00

00

00

00

Oct

-02

34,

018

118

00

00

00

24,

000

Nov

-02

26,

350

00

00

00

00

26,

350

Dec

-02

361

90

00

03

619

00

00

Jan-

032

7,00

00

00

00

00

02

7,00

0

Feb

-03

65,

354

00

00

51,

354

00

14,

000

Mar

-03

47,

844

149

00

129

50

02

7,50

0

2002

-03

2640

,703

266

178

102,

554

00

1338

,005


STATISTICAL TABLES


Tab

le 7

: G

row

th a

nd D

istr

ibut

ion

of T

urno

ver

on C

ash

Seg

men

ts o

f E

xcha

nges

(Rs.

mn.

)

Sto

ck E

xcha

nges

1992

-93

1993

- 9

419

94 -

95

1995

- 9

619

96 -

97

1997

- 9

819

98 -

99

1999

- 2

000

2000

- 0

120

01 -

02

2002

-03

Ahm

edab

ad22

1,83

023

5,40

012

4,51

720

6,26

241

0,65

331

1,16

829

9,27

837

5,65

654

0,35

5.2

146,

438.

415

4,58

6.4

Ban

galo

re7,

300

23,1

607,

120

8,97

043

,890

86,3

7077

,490

11,1

506,

000.

070

0.0

0.0

Bhu

bane

shw

ar18

,986

8,14

13,

026

2,10

92,

306

2,02

573

568

10.

10.

00.

0

Cal

cutt

aN

A57

6,41

052

8,72

062

1,49

01,

054,

811

1,78

7,78

81,

728,

180

3,57

1,66

73,

550,

353.

027

0,74

7.0

65,2

28.0

Coc

hin

651

3,81

86,

143

2,87

31,

519

1,64

396

365

825

7.7

19.4

0.0

Coi

mba

tore

269

20,5

1831

,918

50,0

7047

,983

42,7

387,

690

777

0.0

0.0

0.0

Del

hi74

,130

120,

985

91,4

4510

0,83

048

9,92

167

9,35

850

6,51

294

5,27

782

9,96

7.6

55,2

63.3

111.

0

Gau

hati

4,42

64,

519

2,85

36,

160

4,83

91,

200

517

00.

50.

30.

6

Hyd

erab

ad6,

760

9,84

511

,605

11,0

734,

800

18,6

0912

,699

12,3

659,

777.

941

2.6

45.8

ICS

EN

AN

AN

AN

AN

AN

AN

A2,

737

2,36

7.7

696.

153

1.3

Jaip

ur

2,95

86,

163

8,78

610

,478

15,1

924,

525

628

210.

00.

00.

0

Lu

dhia

na10

,500

31,5

0049

,750

48,4

9052

,740

83,1

6060

,700

68,7

2091

,540

.09,

640.

00.

0

Mad

hya

Pra

desh

3,56

41,

320

1,18

32,

018

5313

910

023

.915

9.3

0.0

Mad

ras

34,0

6646

,177

61,1

7132

,592

39,1

2124

,585

7,39

35,

005

2,18

4.2

483.

175

6.4

Mag

adh(

Pat

na)

NA

19,3

827,

968

16,2

9027

,550

3,23

06

9015

.81.

11.

8

Man

galo

re11

91,

076

615

387

3,79

93,

138

112

10.

00.

00.

0

Mu

mba

i45

6,95

884

5,36

067

7,48

750

0,64

21,

241,

904

2,07

1,12

93,

107,

497

6,86

4,27

610

,000

,315

.43,

072,

923.

63,

140,

732.

1

NS

EN

AN

A18

,050

672,

870

2,95

4,03

03,

701,

930

4,14

4,74

08,

390,

515

13,3

95,1

02.5

5,13

1,67

3.9

6,17

9,88

7.0

OT

CE

I16

384

3,65

02,

241

2,18

72,

832

1,97

836

,034

1,25

7.9

37.9

0.9

Pu

ne7,

519

34,5

9036

,720

70,9

6010

0,84

286

,245

48,2

7160

,898

61,7

05.3

11,7

10.4

0.4

SK

SE

2,65

06,

136

3,29

14,

525

3,95

017

10

00.

00.

00.

0

Utt

ar P

rade

sh55

,080

67,8

9079

,230

123,

730

160,

700

152,

090

184,

290

238,

760

251,

120.

013

3,49

0.0

147,

633.

5

Vad

odar

a16

,810

37,5

1038

,550

25,1

9043

,440

45,7

7017

,490

1,59

020

.020

0.0

26.0

Sou

rce

: Var

iou

s E

xcha

nges


71

Tab

le 8

: C

ash

Seg

men

t of

BS

EM

onth

/Yea

rN

o. o

fN

o. o

fN

o. o

fN

o. o

fN

o. o

fN

o. o

fT

rade

dT

urno

ver

Ave

rage

Ave

rage

Dem

atD

emat

Mar

ket

BSE

Sen

sex

#B

SE-1

00 I

ndex

##

Com

-C

ompa

nies

Scri

psT

radi

ngSc

rips

Tra

des

Qua

ntit

y(R

s. m

n.)

Dai

lyT

rade

Secu

riti

esT

urno

ver

Cap

ital

isat

ion

Hig

hLo

wC

lose

Hig

hLo

wC

lose

pani

esP

erm

itte

d*Li

sted

*D

ays

Tra

ded

(Lak

h)(L

akh)

Tur

nove

rsi

zeT

rade

d(R

s. m

n.)

(Rs.

mn.

)*Li

sted

*(R

s. m

n.)

(Rs.

)(L

akh)

1992

-93

2,86

10

NA

192

NA

126

3503

145

6958

2380

36,3

16N

AN

A1,

881,

460

4546

.58

2184

.67

2280

.52

2048

.97

988.

7010

21.4

0

1993

-94

3,58

50

NA

218

NA

123

7583

484

5360

3878

68,8

75N

AN

A3,

680,

710

4299

.36

1980

.06

3778

.99

2073

.32

911.

5318

29.5

3

1994

-95

4,70

20

NA

231

NA

196

107,

248

677,

487

2,93

334

,501

NA

NA

4,68

8,37

046

43.3

132

28.9

432

60.9

621

92.7

415

70.0

916

05.5

7

1995

-96

5,60

30

NA

232

NA

171

77,1

8550

0,64

22,

158

29,2

19N

AN

A5,

637,

480

3611

.56

2820

.26

3366

.61

1691

.63

1298

.02

1549

.25

1996

-97

5,83

20

6,66

324

06,

325

155

80,9

261,

241,

904

5,17

580

,221

NA

NA

5,05

1,37

041

31.2

227

13.1

233

60.8

918

65.2

912

02.9

314

63.6

9

1997

-98

5,85

30

6,81

524

43,

971

196

85,8

772,

071,

129

8,48

810

5,84

8N

AN

A6,

302,

210

4605

.41

3164

.66

3892

.75

2007

.06

1381

.59

1697

.14

1998

-99

5,84

90

6,96

924

34,

457

354

129,

272

3,10

7,49

712

,788

87,6

96N

AN

A6,

195,

320

4322

.00

2741

.22

3739

.96

1908

.73

1226

.67

1651

.37

1999

-00

5,81

50

8,02

825

14,

330

740

208,

635

6,86

4,27

627

,348

92,7

04N

AN

A9,

128,

420

6150

.69

3183

.47

5001

.28

3906

.41

1379

.71

2902

.20

2000

-01

5,86

90

9,82

625

13,

927

1,42

825

8,51

110

,000

,315

39,8

4270

,023

NA

NA

5,71

5,53

055

42.8

134

36.7

536

04.3

830

55.1

416

33.9

016

91.7

1

Apr

-01

5,87

40

9,91

219

2,12

795

13,9

6523

8,76

212

,566

25,0

39N

AN

A5,

677,

287

3676

.82

3096

.51

3519

.16

1756

.14

1435

.94

1682

.01

May

-01

5,87

40

9,97

222

2,30

612

018

,125

318,

683

14,4

8626

,637

NA

NA

5,95

9,38

437

59.9

634

20.1

436

31.9

118

30.9

816

43.8

017

63.3

5

Jun-

015,

830

010

,137

212,

356

105

15,4

0725

4,50

812

,119

24,2

90N

AN

A5,

532,

300

3651

.32

3287

.94

3456

.78

1773

.78

1549

.39

1630

.02

Jul-0

15,

830

010

,309

222,

485

789,

933

172,

440

7,83

822

,110

NA

NA

5,31

5,76

435

13.7

932

41.6

633

29.2

816

44.8

015

23.7

515

64.4

6

Aug

-01

5,80

30

10,3

2321

2,51

779

10,2

4217

4,44

18,

307

22,0

58N

AN

A5,

230,

365

3359

.07

3241

.12

3244

.95

1591

.87

1532

.94

1534

.73

Sep-

015,

804

010

,346

202,

427

9510

,968

215,

932

10,7

9722

,679

NA

NA

4,56

2,63

432

67.9

325

94.8

728

11.6

015

42.6

712

09.9

313

12.5

0

Oct

-01

5,80

50

10,3

4221

2,54

810

012

,223

219,

215

10,4

3921

,966

NA

NA

4,81

8,51

030

83.6

527

18.4

129

89.3

514

27.2

912

57.3

213

89.1

7

Nov

-01

5,79

10

10,3

8520

2,71

110

716

,749

244,

017

12,2

0122

,749

NA

NA

5,35

7,23

733

77.8

130

03.9

532

87.5

616

05.9

413

95.2

015

57.0

1

Dec

-01

5,79

50

13,7

7419

3,21

812

019

,256

300,

330

15,8

0724

,930

NA

NA

5,32

3,28

035

00.2

031

00.5

732

62.3

316

93.6

514

80.0

115

57.2

2

Jan-

025,

796

08,

606

232,

000

144

21,0

0339

1,69

017

,030

27,2

35N

AN

A5,

443,

968

3466

.73

3236

.76

3311

.03

1653

.18

1547

.47

1592

.27

Feb-

025,

798

07,

296

202,

042

121

18,3

1628

5,71

614

,286

23,5

22N

AN

A5,

967,

163

3758

.11

3290

.00

3562

.31

1813

.25

1599

.35

1707

.72

Mar

-02

5,78

20

7,32

119

2,11

311

216

,009

257,

190

13,5

3622

,895

NA

NA

6,12

2,24

137

58.2

734

54.2

734

69.3

517

98.3

417

03.4

217

16.2

8

2001

-02

5,78

20

7,32

124

75,

347

1,27

718

2,19

63,

072,

924

12,4

4124

,060

NA

NA

6,12

2,24

137

59.9

625

94.8

734

69.3

518

30.9

812

09.9

317

16.2

8

Apr

-02

5,78

45

7,39

422

2,09

713

518

,340

288,

745

13,1

2521

,388

NA

NA

6,25

5,86

635

38.4

932

96.8

833

38.1

617

63.4

916

49.3

216

71.6

3

May

-02

5,78

45

7,45

822

2,11

813

921

,794

281,

378

12,7

9020

,201

NA

NA

6,05

0,65

334

78.0

230

97.7

331

25.7

317

35.7

815

72.3

715

96.7

1

Jun-

025,

786

57,

579

202,

240

129

27,1

3423

3,19

811

,660

18,0

54N

AN

A6,

377,

530

3377

.88

3148

.57

3244

.70

1714

.03

1612

.40

1650

.34

Jul-0

25,

711

67,

319

232,

363

145

28,3

7526

7,23

711

,619

18,4

4728

,320

266,

795

5,84

0,41

933

66.7

429

32.3

529

87.6

516

98.3

114

76.1

815

06.2

3

Aug

-02

5,71

06

7,32

421

2,30

411

515

,623

237,

797

11,3

2420

,670

15,6

0323

7,62

26,

053,

027

3185

.08

2931

.78

3181

.23

1582

.53

1482

.39

1580

.55

Sep-

025,

711

67,

327

202,

263

106

15,6

0324

4,10

112

,205

23,0

0415

,561

243,

168

5,70

2,73

532

27.6

229

73.9

729

91.3

616

00.8

214

66.7

614

73.8

8

Oct

-02

5,65

46

7,27

821

2,22

511

415

,833

276,

409

13,1

6224

,319

15,8

0327

5,87

85,

637,

501

3038

.92

2828

.48

2949

.32

1508

.49

1411

.32

1458

.78

Nov

-02

5,64

96

7,27

319

2,24

296

13,6

2225

9,81

413

,674

26,9

9413

,603

259,

542

6,01

2,89

432

45.9

829

28.6

332

28.8

215

97.1

414

51.5

315

94.0

3

Dec

-02

5,65

06

7,27

921

2,30

712

318

,703

305,

816

14,5

6324

,842

18,6

6030

4,96

36,

281,

974

3413

.83

3186

.62

3377

.28

1676

.23

1571

.27

1664

.67

Jan-

035,

651

127,

403

232,

311

130

19,3

7630

8,98

113

,434

23,7

3219

,292

308,

076

6,11

4,71

834

16.9

231

99.1

832

50.3

816

86.2

315

77.9

116

00.8

7

Feb-

035,

647

127,

355

192,

221

9514

,334

234,

610

12,3

4824

,610

14,2

9323

3,89

36,

198,

726

3341

.61

3218

.37

3283

.66

1650

.78

1587

.74

1628

.72

Mar

-03

5,65

012

7,36

320

2,19

185

12,6

6520

2,64

710

,132

23,8

2412

,514

200,

993

5,72

1,97

433

11.5

730

39.8

330

48.7

216

42.9

814

96.5

915

00.7

2

2002

-03

5,65

012

7,36

325

12,

679

1,41

322

1,40

13,

140,

732

12,5

1322

,226

NA

NA

5,72

1,97

435

38.4

928

28.4

830

48.7

217

63.4

914

11.3

215

00.7

2

*At

the

end

of t

he p

erio

d.#

BS

E S

ense

x co

mm

ence

d fr

om J

anu

ary

2, 1

986.

## B

SE

-100

Ind

ex c

omm

ence

d fr

om A

pril

3, 1

984.

Sou

rce

: BS

E


STATISTICAL TABLES


Tab

le 9

: C

ash

Seg

men

t of

NS

E

Mon

th/Y

ear

No.

of

No.

of

No.

of

No.

of

No.

of

No.

of

Tra

ded

Tur

nove

rA

vera

geA

vera

geD

emat

Dem

atM

arke

tS&

P C

NX

Nif

ty I

ndex

#C

NX

Nif

ty J

unio

r In

dex

##C

om-

Com

-C

om-

Tra

ding

Com

-T

rade

sQ

uant

ity

(Rs.

mn.

)D

aily

Tra

de S

ize

Secu

ritie

sT

urno

ver

Cap

itali-

Hig

hLo

wC

lose

Hig

hLo

wC

lose

pani

espa

nies

pani

esD

ays

pani

es(L

akh)

(Lak

h)T

urno

ver

(Rs.

)T

rade

d(R

s. m

n.)

satio

nLi

sted

*P

erm

itte

d*A

vaila

ble

Tra

ded

(Rs.

mn.

)(L

akh)

(Rs.

mn.

)*fo

rT

radi

ng*

@

Nov

94-

Mar

95

135

543

678

102

NA

31,

391

18,0

5017

056

,310

NA

NA

3,63

3,50

0N

AN

AN

AN

AN

AN

A

1995

-96

422

847

1,26

924

6N

A66

39,9

1267

2,87

02,

760

101,

505

NA

NA

4,01

4,59

010

67.4

981

3.12

985.

30N

AN

AN

A

1996

-97

550

934

1,48

425

0N

A26

413

5,56

12,

954,

030

11,7

6011

2,08

6N

AN

A4,

193,

670

1203

.11

775.

4396

3.30

1208

.87

907.

0210

32.9

5

1997

-98

612

745

1,35

724

4N

A38

113

5,68

53,

701,

930

15,2

0097

,054

NA

NA

4,81

5,03

012

97.1

092

9.05

1116

.90

1395

.25

1016

.65

1339

.40

1998

-99

648

609

1,25

425

1N

A54

616

5,32

74,

144,

740

16,5

1075

,954

8,54

223

8,18

04,

911,

751

1247

.15

800.

1010

78.0

520

79.1

011

77.2

020

69.2

0

1999

-00

720

479

1,15

225

4N

A98

424

2,70

48,

390,

515

33,0

3085

,244

153,

772

7,11

7,05

710

,204

,257

1818

.15

916.

0015

28.4

553

65.9

016

31.9

036

95.7

5

2000

-01

785

320

1,02

925

11,

201

1,67

632

9,53

613

,395

,102

533,

669

86,9

8030

7,22

212

,643

,372

6,57

8,47

016

36.9

510

98.7

511

48.2

037

71.8

015

70.2

016

01.8

0

Apr

-01

790

319

1,03

119

951

114

20,7

8235

6,16

018

,750

31,1

3320

,735

356,

051

6,53

7,20

011

71.8

510

00.1

011

25.2

516

38.0

513

62.5

015

25.2

0

May

-01

789

318

1,03

022

954

141

25,7

1548

3,29

021

,970

34,2

7625

,714

483,

290

5,92

4,37

012

07.0

010

96.2

511

67.9

016

76.2

514

72.4

016

27.1

5

Jun-

0179

029

21,

001

2196

313

322

,336

427,

830

20,3

7332

,151

21,9

3542

6,25

45,

697,

965

1175

.80

1060

.05

1107

.90

1638

.90

1397

.60

1415

.40

Jul-0

178

529

499

422

924

9913

,142

272,

278

12,3

7627

,476

13,1

3727

2,26

65,

742,

599

1127

.15

1046

.90

1072

.85

1438

.25

1304

.25

1342

.55

Aug

-01

786

293

994

2193

111

215

,937

294,

172

14,0

0826

,350

15,9

3129

4,15

05,

752,

425

1084

.00

1051

.75

1053

.75

1370

.25

1275

.20

1277

.35

Sep-

0178

829

398

720

917

135

17,3

4235

3,23

017

,660

26,0

9517

,342

353,

227

5,09

1,05

010

59.9

084

9.95

913.

8512

92.0

010

38.7

510

84.4

0

Oct

-01

789

292

986

2191

714

119

,799

353,

260

16,8

2025

,088

19,7

9635

3,24

05,

358,

460

1000

.95

884.

6597

1.90

1206

.65

1044

.90

1174

.20

Nov

-01

788

268

956

2092

015

325

,349

421,

320

21,0

7027

,572

25,2

9542

1,21

05,

813,

860

1097

.60

973.

5510

67.1

513

76.7

511

73.3

513

34.1

5

Dec

-01

788

268

956

1989

517

731

,777

544,

680

28,6

7030

,834

31,7

7554

4,64

65,

529,

080

1132

.65

1010

.45

1059

.05

1415

.85

1215

.45

1298

.30

Jan-

0279

419

989

323

896

213

34,3

8468

7,19

029

,880

32,2

4434

,219

686,

063

5,63

6,83

011

21.7

510

52.0

510

75.4

013

58.5

512

73.8

013

48.5

5

Feb-

0279

119

888

920

840

177

28,5

5249

5,64

024

,782

27,9

4428

,547

495,

640

6,21

5,23

012

05.9

510

69.4

011

42.0

516

17.0

513

50.6

014

95.5

5

Mar

-02

793

197

890

1984

015

723

,294

442,

625

23,2

9628

,111

23,2

9144

2,62

46,

368,

610

1201

.10

1117

.85

1129

.55

1611

.20

1489

.25

1566

.95

2001

-02

793

197

890

247

1,01

91,

753

278,

408

5,13

1,67

420

,776

29,2

7027

7,71

75,

128,

660

6,36

8,61

012

07.0

084

9.95

1129

.55

1676

.25

1038

.75

1566

.95

Apr

-02

800

173

865

2284

320

128

,798

533,

200

24,2

4026

,512

28,7

8253

3,15

96,

495,

510

1153

.30

1073

.30

1084

.50

1658

.50

1564

.15

1607

.75

May

-02

798

172

863

2282

121

735

,303

549,

791

24,9

9025

,384

35,3

0354

9,79

16,

316,

092

1136

.55

1020

.10

1028

.80

1665

.15

1448

.35

1497

.10

Jun-

0279

917

084

820

825

189

38,5

1944

2,41

122

,120

23,3

7838

,519

442,

411

6,59

9,91

011

02.0

510

29.2

510

57.8

016

82.0

014

97.9

016

17.4

0

Jul-0

279

916

384

123

820

211

36,8

2151

3,98

422

,350

24,3

1136

,821

513,

984

6,08

6,43

010

87.4

094

3.60

958.

9016

90.3

514

29.0

514

55.8

5

Aug

-02

799

161

839

2180

619

126

,000

461,

131

21,9

6024

,090

26,0

0046

1,13

16,

326,

180

1012

.75

935.

5510

10.6

015

17.3

514

33.0

514

52.6

0

Sep-

0280

116

184

020

806

185

25,5

8146

4,98

623

,249

25,1

7725

,581

464,

986

5,99

6,03

210

24.6

596

0.20

963.

1514

68.8

512

55.2

012

57.8

5

Oct

-02

803

119

803

2177

020

126

,458

519,

022

24,7

1525

,806

26,4

5851

9,02

26,

067,

880

983.

6092

0.10

951.

4013

21.0

012

31.9

512

55.3

0

Nov

-02

805

118

788

1976

717

523

,631

513,

515

27,0

3029

,354

23,6

3151

3,51

56,

453,

880

1057

.40

946.

4010

50.1

513

40.8

512

43.1

513

37.1

0

Dec

-02

809

116

788

2176

221

933

,022

619,

733

29,5

1028

,236

33,0

2261

9,73

36,

728,

620

1103

.95

1034

.10

1093

.50

1435

.20

1337

.20

1413

.05

Jan-

0381

411

278

923

763

239

36,3

3664

7,62

228

,158

2,70

536

,336

647,

622

5,72

2,76

611

05.6

010

26.2

010

41.8

514

62.9

013

53.7

513

76.8

5

Feb-

0381

810

778

819

760

191

28,6

8148

2,89

225

,420

25,2

7328

,681

482,

892

5,81

9,84

610

75.5

010

34.1

010

63.4

014

15.6

513

33.7

513

87.1

0

Mar

-03

818

107

788

2076

217

724

,917

431

,599

21,5

8024

,378

24,9

1743

1,59

95,

371,

330

1070

.85

974.

1097

8.20

1409

.30

1255

.35

1259

.55

2002

-03

818

107

788

251

899

2,39

836

4,06

56,

179,

887

24,6

2125

,776

364,

049

6,17

9,83

65,

371,

330

1153

.30

920.

1097

8.20

1690

.35

1231

.95

1259

.55

*At

the

end

of t

he p

erio

d.@

Exc

lude

s su

spen

ded

com

pani

es.

# S

&P

CN

X N

ifty

Ind

ex c

omm

ence

d fr

om N

ovem

ber

3, 1

995.

## C

NX

Nif

ty J

uni

or c

omm

ence

d fr

om N

ovem

ber

4, 1

996.

Sou

rce

: NS

E


73

Tab

le 1

0 : T

rend

s in

Cas

h S

egm

ent

of B

SE

, Mar

ch 2

003

Mon

th/Y

ear

No.

of

No.

of

No.

of

No.

of

No.

of

Tra

ded

Tur

nove

rA

vera

geD

emat

Dem

atM

arke

tB

SE

Sen

sex

#B

SE

-100

Ind

ex #

#

Com

pani

esC

ompa

nies

Scr

ips

Scr

ips

Tra

des

Qua

ntit

y(R

s. m

n.)

Tra

deS

ecur

itie

sT

urno

ver

Cap

ital

isat

ion

Hig

hL

owC

lose

Hig

hL

owC

lose

Lis

ted*

Per

mit

ted*

Lis

ted*

Tra

ded

(Lak

h)(L

akh)

Siz

e (R

s.)

Tra

ded

(Rs.

mn.

)(R

s. m

n.)*

(Lak

h)

3-M

ar-2

003

5,64

712

7,35

51,

600

4.64

648

12,0

0925

,878

646

11,9

846,

202,

123

3311

.57

3274

.64

3277

.27

1642

.98

1622

.48

1623

.63

4-M

ar-2

003

5,64

712

7,35

51,

628

3.97

529

8,96

922

,564

525

8,96

26,

133,

515

3272

.19

3240

.16

3244

.80

1620

.51

1604

.32

1606

.16

5-M

ar-2

003

5,64

712

7,35

51,

600

4.73

660

11,1

7223

,608

654

11,1

426,

100,

378

3235

.85

3190

.06

3226

.10

1601

.65

1580

.67

1598

.59

6-M

ar-2

003

5,64

712

7,35

51,

630

4.62

640

10,9

8623

,773

639

10,9

796,

037,

094

3252

.28

3186

.43

3190

.35

1607

.41

1579

.68

1581

.92

7-M

ar-2

003

5,64

712

7,35

51,

605

4.47

597

10,0

2222

,420

593

9,98

75,

950,

050

3182

.16

3142

.89

3153

.06

1577

.26

1556

.65

1561

.84

10-M

ar-2

003

5,64

612

7,35

51,

529

4.23

563

9,63

222

,796

560

9,60

35,

891,

539

3162

.27

3115

.32

3125

.88

1565

.62

1542

.75

1546

.71

11-M

ar-2

003

5,64

612

7,35

51,

577

5.01

717

11,0

5222

,079

712

11,0

465,

922,

012

3159

.48

3100

.14

3154

.91

1558

.45

1531

.61

1555

.85

12-M

ar-2

003

5,64

712

7,35

61,

599

4.96

718

10,8

3821

,830

712

10,7

785,

873,

139

3158

.98

3106

.85

3110

.08

1561

.17

1535

.36

1536

.69

13-M

ar-2

003

5,64

712

7,35

61,

633

4.74

702

11,4

8324

,221

690

11,2

645,

867,

639

3127

.30

3086

.43

3108

.24

1545

.52

1525

.78

1536

.06

17-M

ar-2

003

5,64

712

7,35

61,

569

4.06

614

9,80

524

,135

611

9,77

75,

827,

736

3115

.14

3049

.05

3084

.91

1538

.58

1509

.54

1526

.16

19-M

ar-2

003

5,64

712

7,35

71,

570

3.94

629

9,66

024

,495

626

9,64

45,

862,

597

3128

.83

3103

.87

3121

.18

1546

.73

1533

.66

1540

.62

20-M

ar-2

003

5,64

712

7,35

71,

570

5.15

850

13,4

6326

,151

846

13,4

165,

951,

292

3197

.66

3118

.32

3192

.93

1575

.28

1538

.03

1572

.37

21-M

ar-2

003

5,64

812

7,35

81,

636

4.67

677

11,9

5825

,580

674

11,9

335,

974,

944

3209

.46

3179

.79

3200

.15

1582

.74

1570

.82

1578

.10

22-M

ar-2

003

5,64

812

7,35

81,

346

2.19

332

5,45

024

,830

331

5,42

66,

008,

366

3225

.26

3208

.58

3218

.73

1591

.11

1583

.31

1588

.48

24-M

ar-2

003

5,64

912

7,36

11,

614

3.58

543

9,04

625

,286

539

8,98

55,

896,

948

3216

.07

3137

.56

3140

.36

1588

.21

1552

.68

1553

.67

25-M

ar-2

003

5,65

012

7,36

21,

597

4.32

635

10,7

4424

,859

625

10,5

535,

892,

174

3143

.02

3102

.65

3140

.42

1554

.62

1534

.98

1553

.09

26-M

ar-2

003

5,65

012

7,36

21,

685

4.35

795

11,1

1725

,528

777

10,8

635,

884,

632

3165

.38

3139

.65

3143

.58

1565

.06

1552

.05

1553

.63

27-M

ar-2

003

5,65

012

7,36

21,

472

3.54

556

8,13

322

,952

538

8,01

35,

855,

961

3146

.29

3115

.06

3116

.79

1556

.29

1539

.72

1540

.44

28-M

ar-2

003

5,65

012

7,36

21,

496

4.10

637

8,67

721

,172

611

8,37

05,

848,

316

3130

.33

3099

.00

3115

.44

1545

.12

1531

.14

1536

.02

31-M

ar-2

003

5,65

012

7,36

31,

431

3.76

623

8,43

122

,398

605

8,26

65,

721,

974

3106

.93

3039

.83

3048

.72

1529

.72

1496

.59

1500

.72

Mar

-03

5,65

012

7,36

32,

191

85.0

612

665

202,

647

23,8

2412

,514

200,

993

5,72

1,97

433

11.5

730

39.8

33,

048.

7216

42.9

814

96.5

915

00.7

2

*At

the

end

of t

he p

erio

d.

# B

SE

Sen

sex

com

men

ced

from

Jan

uar

y 2,

198

6.

## B

SE

-100

Ind

ex c

omm

ence

d fr

om A

pril

3, 1

984.

Sou

rce

: BS

E


STATISTICAL TABLES


Tab

le 1

1 : T

rend

s in

Cas

h S

egm

ent

of N

SE

, Mar

ch 2

003

Mon

th/Y

ear

No.

of

No.

of

No.

of

No.

of

No.

of

Tra

ded

Tur

nove

rA

vera

geD

emat

Dem

atM

arke

tS

&P

CN

X N

ifty

Ind

ex #

CN

X N

ifty

Jun

ior

Inde

x ##

Com

pani

esC

ompa

nies

Com

pani

esC

ompa

nies

Tra

des

Qua

ntit

y(R

s. m

n.)

Tra

de S

ize

Sec

urit

ies

Tur

nove

rC

apit

alis

atio

nH

igh

Low

Clo

seH

igh

Low

Clo

seL

iste

d*P

erm

itte

d*A

vaila

ble

for

Tra

ded

(Lak

h)(L

akh)

(Rs.

)T

rade

d(R

s. m

n.)

(Rs.

mn.

)*T

radi

ng*

@(L

akh)

03-M

ar-2

003

NA

NA

NA

716

101,

325

24,7

4525

,620

1,32

524

,745

5,82

0,58

110

70.8

510

57.5

510

58.8

514

09.3

013

87.6

013

89.2

5

04-M

ar-2

003

NA

NA

NA

718

81,

073

18,9

1023

,200

1,07

318

,910

5,75

4,06

510

58.7

010

45.2

010

46.6

013

91.5

513

69.8

013

78.5

0

05-M

ar-2

003

NA

NA

NA

722

101,

295

23,7

3424

,528

1,29

523

,734

5,71

9,02

010

46.5

510

29.9

010

40.7

013

77.0

513

52.3

513

70.8

5

06-M

ar-2

003

NA

NA

NA

707

101,

298

22,4

9323

,513

1,29

822

,493

5,67

0,21

210

40.7

510

29.5

510

31.2

513

73.3

513

59.7

513

61.9

5

07-M

ar-2

003

NA

NA

NA

715

91,

173

20,7

2722

,290

1,17

320

,727

5,58

0,88

510

31.0

510

14.3

010

17.1

013

56.2

013

30.5

013

36.7

5

10-M

ar-2

003

NA

NA

NA

703

91,

127

20,3

5922

,929

1,12

720

,359

5,52

0,12

310

21.5

010

04.3

510

06.7

013

39.4

513

04.8

013

08.6

0

11-M

ar-2

003

NA

NA

NA

712

101,

494

23,5

2723

,038

1,49

423

,527

5,55

3,59

010

16.7

099

8.95

1014

.55

1320

.60

1291

.15

1317

.75

12-M

ar-2

003

NA

NA

NA

712

101,

452

22,8

2723

,150

1,45

222

,827

5,51

1,49

610

17.7

510

00.0

510

01.7

013

33.7

013

09.5

513

10.8

0

13-M

ar-2

003

NA

NA

NA

718

101,

392

22,6

1722

,967

1,39

222

,617

5,49

8,00

710

06.4

099

4.20

999.

6513

17.9

512

97.9

513

06.0

0

17-M

ar-2

003

NA

NA

NA

716

81,

117

18,7

0222

,846

1,11

718

,702

5,46

2,63

610

00.8

598

2.70

993.

0012

99.6

512

86.0

012

97.4

5

19-M

ar-2

003

NA

NA

NA

707

81,

240

21,1

1426

,071

1,24

021

,114

5,49

9,29

310

11.4

599

2.90

1003

.90

1316

.35

1297

.65

1300

.90

20-M

ar-2

003

NA

NA

NA

705

111,

703

29,2

5227

,212

1,70

329

,252

5,58

2,09

810

28.9

010

01.7

510

25.2

513

22.8

512

94.2

013

19.5

5

21-M

ar-2

003

NA

NA

NA

706

101,

341

26,7

2626

,791

1,34

126

,726

5,61

6,07

610

33.7

010

22.0

510

30.5

513

35.8

513

21.2

513

30.0

0

22-M

ar-2

003

NA

NA

NA

663

454

910

,563

26,2

1254

910

,563

5,64

4,50

610

39.8

010

30.6

010

37.1

513

48.4

013

39.7

513

45.6

5

24-M

ar-2

003

NA

NA

NA

697

81,

009

20,2

0726

,821

1,00

920

,207

5,54

1,84

710

38.5

510

11.9

510

13.9

013

47.7

013

13.4

513

15.9

5

25-M

ar-2

003

NA

NA

NA

704

91,

212

23,6

0225

,515

1,21

223

,602

5,53

0,07

510

13.5

099

8.40

1011

.30

1315

.60

1292

.60

1313

.45

26-M

ar-2

003

NA

NA

NA

708

91,

289

21,9

0524

,810

1,28

921

,905

5,53

3,37

110

19.9

010

04.8

510

13.8

513

32.4

013

07.8

513

12.0

5

27-M

ar-2

003

NA

NA

NA

684

81,

211

20,3

4225

,754

1,21

120

,342

5,49

1,31

310

13.9

099

9.60

1002

.70

1315

.90

1306

.05

1308

.55

28-M

ar-2

003

NA

NA

NA

698

91,

423

20,5

2122

,735

1,42

320

,521

5,48

4,22

610

06.3

099

6.75

1000

.60

1314

.40

1295

.65

1299

.15

31-M

ar-2

003

NA

NA

NA

705

81,

195

18,7

2622

,513

1,19

518

,726

5,37

1,33

210

00.6

097

4.10

978.

2012

95.7

512

55.3

512

59.5

5

Mar

-03

NA

NA

NA

762

177

24,9

17 4

31,5

9924

,378

24,9

1743

1,59

95,

371,

330

1070

.85

974.

1097

8.20

1409

.30

1255

.35

1259

.55

*At

the

end

of t

he p

erio

d.

@ E

xclu

des

susp

ende

d co

mpa

nies

.

# S

&P

CN

X N

ifty

Ind

ex c

omm

ence

d fr

om N

ovem

ber

3, 1

995.

## C

NX

Nif

ty J

uni

or c

omm

ence

d fr

om N

ovem

ber

4, 1

996.

Sou

rce

: NS

E


75

Tab

le 1

2 : T

unov

er a

nd M

arke

t C

apit

alis

atio

n at

BS

E a

nd N

SE

, Mar

ch 2

003

(Am

ount

in R

s. m

n.)

Dat

eT

urno

ver

Mar

ket

Cap

ital

isat

ion

BS

EN

SE

BS

EN

SE

Sen

sex

BS

E-1

00T

otal

A#

B#

S&

PC

NX

Tot

alC

#D

#S

ense

xB

SE

-100

Tot

alE

#F

#S

&P

CN

XT

otal

G#

H#

CN

XN

ifty

CN

XN

ifty

Nif

tyJu

nior

Nif

tyJu

nior

3-M

ar-2

003

4849

.90

7822

.20

1200

8.80

40.3

965

.14

15,3

421,

501

24,7

4562

.00

6.07

2,68

8,51

64,

214,

765

6,20

2,12

343

.35

67.9

63,

417,

591

351,

015

5,82

0,58

158

.72

6.03

4-M

ar-2

003

3665

.20

6196

.70

8968

.80

40.8

769

.09

11,6

311,

817

18,9

1061

.51

9.61

2,67

2,84

14,

177,

811

6,13

3,51

543

.58

68.1

13,

378,

131

348,

289

5,75

4,06

558

.71

6.05

5-M

ar-2

003

5044

.60

7950

.60

1117

1.80

45.1

571

.17

15,4

472,

006

23,7

3465

.09

8.45

2,65

7,43

84,

159,

948

6,10

0,37

843

.56

68.1

93,

370,

058

332,

216

5,71

9,02

058

.93

5.81

6-M

ar-2

003

4319

.90

7473

.80

1098

6.20

39.3

268

.03

12,7

122,

672

22,4

9356

.51

11.8

82,

627,

987

4,11

6,57

66,

037,

094

43.5

368

.19

3,33

9,54

733

4,11

95,

670,

212

58.9

05.

89

7-M

ar-2

003

4350

.50

7148

.10

1002

2.00

43.4

171

.32

13,2

691,

628

20,7

2764

.02

7.85

2,59

7,27

14,

064,

318

5,95

0,05

043

.65

68.3

13,

293,

602

325,

625

5,58

0,88

559

.02

5.83

10-M

ar-2

003

4151

.20

6902

.60

9632

.20

43.1

071

.66

13,2

822,

000

20,3

5965

.24

9.83

2,57

4,96

04,

025,

014

5,89

1,53

943

.71

68.3

23,

259,

944

321,

031

5,52

0,12

359

.06

5.82

11-M

ar-2

003

4577

.10

7858

.20

1105

2.40

41.4

171

.10

14,5

332,

301

23,5

2761

.77

9.78

2,59

8,87

64,

048,

798

5,92

2,01

243

.89

68.3

73,

285,

403

323,

287

5,55

3,59

059

.16

5.82

12-M

ar-2

003

4416

.40

7239

.70

1083

7.90

40.7

566

.80

13,7

462,

065

22,8

2760

.22

9.05

2,56

1,94

93,

998,

958

5,87

3,13

943

.62

68.0

93,

243,

776

321,

574

5,51

1,49

658

.85

5.83

13-M

ar-2

003

4844

.80

7982

.50

1148

2.60

42.1

969

.52

14,2

192,

063

22,6

1762

.87

9.12

2,56

0,43

13,

997,

320

5,86

7,63

943

.64

68.1

23,

237,

162

318,

242

5,49

8,00

758

.88

5.79

17-M

ar-2

003

4875

.20

7147

.40

9804

.90

49.7

272

.90

12,8

371,

251

18,7

0268

.64

6.69

2,54

1,21

33,

971,

574

5,82

7,73

643

.61

68.1

53,

215,

654

318,

310

5,46

2,63

658

.87

5.83

19-M

ar-2

003

4973

.40

7215

.70

9660

.40

51.4

874

.69

15,1

131,

370

21,1

1471

.58

6.49

2,57

1,08

74,

009,

198

5,86

2,59

743

.86

68.3

93,

250,

955

357,

050

5,49

9,29

359

.12

6.49

20-M

ar-2

003

6468

.70

9449

.20

1346

3.50

48.0

570

.18

19,3

342,

190

29,2

5266

.09

7.49

2,63

0,19

24,

091,

836

5,95

1,29

244

.20

68.7

63,

320,

242

362,

166

5,58

2,09

859

.48

6.49

21-M

ar-2

003

4708

.40

7945

.70

1195

7.90

39.3

766

.45

17,2

251,

728

26,7

2664

.45

6.46

2,63

6,14

34,

106,

753

5,97

4,94

444

.12

68.7

33,

337,

439

365,

044

5,61

6,07

659

.43

6.50

22-M

ar-2

003

2027

.60

3524

.90

5450

.20

37.2

064

.67

6,33

075

010

,563

59.9

27.

102,

651,

447

4,13

3,75

86,

008,

366

44.1

368

.80

3,35

8,78

936

9,32

85,

644,

506

59.5

16.

54

24-M

ar-2

003

4332

.10

6272

.10

9045

.90

47.8

969

.34

13,8

911,

046

20,2

0768

.74

5.18

2,58

6,89

04,

043,

171

5,89

6,94

843

.87

68.5

63,

283,

478

361,

281

5,54

1,84

759

.25

6.52

25-M

ar-2

003

4376

.20

7157

.60

1074

3.50

40.7

366

.62

15,0

401,

875

23,6

0263

.72

7.94

2,58

6,93

64,

041,

668

5,89

2,17

443

.90

68.5

93,

275,

053

360,

590

5,53

0,07

559

.22

6.52

26-M

ar-2

003

3689

.70

6795

.60

1111

7.00

33.1

961

.13

12,5

722,

332

21,9

0557

.39

10.6

42,

589,

543

4,04

3,06

95,

884,

632

44.0

168

.71

3,28

3,24

136

0,21

45,

533,

371

59.3

46.

51

27-M

ar-2

003

3670

.20

5691

.50

8132

.70

45.1

369

.98

13,6

821,

878

20,3

4267

.26

9.23

2,56

7,47

24,

008,

748

5,85

5,96

143

.84

68.4

63,

247,

157

359,

248

5,49

1,31

359

.13

6.54

28-M

ar-2

003

3380

.80

5473

.20

8677

.50

38.9

663

.07

11,5

781,

908

20,5

2156

.42

9.30

2,56

6,36

53,

997,

229

5,84

8,31

643

.88

68.3

53,

240,

400

356,

675

5,48

4,22

659

.09

6.50

31-M

ar-2

003

3949

.80

5849

.20

8431

.20

46.8

569

.38

12,0

741,

461

18,7

2664

.48

7.80

2,51

1,40

93,

905,

339

5,72

1,97

443

.89

68.2

53,

167,

623

345,

495

5,37

1,33

258

.97

6.43

A#

=%

age

sha

re o

f S

ense

x se

curi

ties

in t

otal

BS

E t

urn

over

E#

=%

age

sha

re o

f S

ense

x se

curi

ties

in t

otal

BS

E M

arke

t C

apit

alis

atio

n.

B#

=%

age

sha

re o

f B

SE

-100

Ind

ex s

ecu

riti

es in

tot

al B

SE

tu

rnov

er.

F#

=%

age

sha

re o

f B

SE

-100

Ind

ex s

ecu

riti

es in

tot

al B

SE

Mar

ket

Cap

ital

isat

ion

C#

=%

age

sha

re o

f S

&P

CN

X N

ifty

sec

uri

ties

in t

otal

NS

E t

urn

over

.G

#=

% a

ge s

hare

of

S&

P C

NX

Nif

ty s

ecu

riti

es in

tot

al N

SE

Mar

ket

Cap

ital

isat

ion.

D#

=%

age

sha

re o

f C

NX

Nif

ty J

uni

or s

ecu

riti

es in

tot

al N

SE

tu

rnov

er.

H#

=%

age

sha

re o

f C

NX

Nif

ty J

uni

or s

ecu

riti

es in

tot

al N

SE

Mar

ket

Cap

ital

isat

ion.

Sou

rce

: BS

E a

nd N

SE


STATISTICAL TABLES


Tab

le 1

3 : M

ovem

ent

of I

ndic

es in

BS

E, M

arch

200

3

Dat

eB

SE

Sen

sex

BS

E 1

00D

olle

x 20

0*

Ope

nH

igh

Low

Clo

seO

pen

Hig

hL

owC

lose

Clo

se

3-M

ar-2

003

3301

.67

3311

.57

3274

.64

3277

.27

1637

.11

1642

.98

1622

.48

1623

.63

136.

00

4-M

ar-2

003

3271

.06

3272

.19

3240

.16

3244

.80

1620

.51

1620

.51

1604

.32

1606

.16

134.

55

5-M

ar-2

003

3233

.43

3235

.85

3190

.06

3226

.10

1601

.65

1601

.65

1580

.67

1598

.59

133.

91

6-M

ar-2

003

3252

.28

3252

.28

3186

.43

3190

.35

1607

.41

1607

.41

1579

.68

1581

.92

132.

41

7-M

ar-2

003

3182

.16

3182

.16

3142

.89

3153

.06

1577

.26

1577

.26

1556

.65

1561

.84

130.

53

10-M

ar-2

003

3152

.90

3162

.27

3115

.32

3125

.88

1561

.42

1565

.62

1542

.75

1546

.71

129.

41

11-M

ar-2

003

3117

.49

3159

.48

3100

.14

3154

.91

1542

.40

1558

.45

1531

.61

1555

.85

130.

18

12-M

ar-2

003

3151

.60

3158

.98

3106

.85

3110

.08

1555

.03

1561

.17

1535

.36

1536

.69

128.

79

13-M

ar-2

003

3113

.35

3127

.30

3086

.43

3108

.24

1538

.82

1545

.52

1525

.78

1536

.06

128.

68

17-M

ar-2

003

3115

.14

3115

.14

3049

.05

3084

.91

1538

.58

1538

.58

1509

.54

1526

.16

127.

81

19-M

ar-2

003

3103

.87

3128

.83

3103

.87

3121

.18

1533

.66

1546

.73

1533

.66

1540

.62

128.

61

20-M

ar-2

003

3118

.80

3197

.66

3118

.32

3192

.93

1538

.33

1575

.28

1538

.03

1572

.37

130.

38

21-M

ar-2

003

3195

.66

3209

.46

3179

.79

3200

.15

1575

.07

1582

.74

1570

.82

1578

.10

131.

15

22-M

ar-2

003

3208

.58

3225

.26

3208

.58

3218

.73

1583

.31

1591

.11

1583

.31

1588

.48

131.

84

24-M

ar-2

003

3216

.07

3216

.07

3137

.56

3140

.36

1588

.21

1588

.21

1552

.68

1553

.67

129.

44

25-M

ar-2

003

3122

.70

3143

.02

3102

.65

3140

.42

1547

.65

1554

.62

1534

.98

1553

.09

129.

36

26-M

ar-2

003

3148

.07

3165

.38

3139

.65

3143

.58

1555

.58

1565

.06

1552

.05

1553

.63

129.

49

27-M

ar-2

003

3138

.89

3146

.29

3115

.06

3116

.79

1551

.26

1556

.29

1539

.72

1540

.44

128.

76

28-M

ar-2

003

3115

.37

3130

.33

3099

.00

3115

.44

1539

.73

1545

.12

1531

.14

1536

.02

128.

43

31-M

ar-2

003

3106

.93

3106

.93

3039

.83

3048

.72

1529

.72

1529

.72

1496

.59

1500

.72

125.

87

*Dol

lex

200

is c

alcu

late

d at

the

end

of

trad

ing

sess

ion,

hen

ce o

pen,

hig

h, lo

w a

re n

ot a

vaila

ble.

Sou

rce

: BS

E


77

Tab

le 1

4 : M

ovem

ent

of I

ndic

es in

NS

E, M

arch

200

3

Dat

eS

&P

CN

X N

ifty

CN

X N

ifty

Jun

ior

S&

P C

NX

Def

ty

Ope

nH

igh

Low

Clo

seO

pen

Hig

hL

owC

lose

Ope

nH

igh

Low

Clo

se

3-M

ar-0

310

63.5

510

70.8

510

57.5

510

58.8

514

01.0

014

09.3

013

87.6

013

89.2

577

2.90

778.

2076

8.55

769.

50

4-M

ar-0

310

58.7

010

58.7

010

45.2

010

46.6

013

89.4

513

91.5

513

69.8

013

78.5

076

9.70

769.

7075

9.90

760.

90

5-M

ar-0

310

46.5

510

46.5

510

29.9

010

40.7

013

77.0

513

77.0

513

52.3

513

70.8

576

1.05

761.

0574

8.90

756.

75

6-M

ar-0

310

40.3

010

40.7

510

29.5

510

31.2

513

73.3

513

73.3

513

59.7

513

61.9

575

6.65

757.

0074

8.80

750.

05

7-M

ar-0

310

31.0

510

31.0

510

14.3

010

17.1

013

56.2

013

56.2

013

30.5

013

36.7

575

0.05

750.

0573

7.90

739.

90

10-M

ar-0

310

17.1

010

21.5

010

04.3

510

06.7

013

32.3

013

39.4

513

04.8

013

08.6

073

9.60

742.

8073

0.35

732.

05

11-M

ar-0

310

06.6

510

16.7

099

8.95

1014

.55

1301

.30

1320

.60

1291

.15

1317

.75

732.

1573

9.45

726.

5573

7.90

12-M

ar-0

310

14.2

510

17.7

510

00.0

510

01.7

013

19.4

513

33.7

013

09.5

513

10.8

073

7.55

740.

1072

7.20

728.

40

13-M

ar-0

310

01.5

010

06.4

099

4.20

999.

6513

14.3

513

17.9

512

97.9

513

06.0

072

8.25

731.

8072

2.95

726.

90

17-M

ar-0

399

9.70

1000

.85

982.

7099

3.00

1299

.65

1299

.65

1286

.00

1297

.45

726.

8072

7.65

714.

4572

1.95

19-M

ar-0

399

3.35

1011

.45

992.

9010

03.9

013

06.0

013

16.3

512

97.6

513

00.9

072

2.05

735.

2072

1.70

729.

70

20-M

ar-0

310

03.4

510

28.9

010

01.7

510

25.2

513

00.8

013

22.8

512

94.2

013

19.5

572

9.05

747.

5572

7.85

744.

90

21-M

ar-0

310

25.5

510

33.7

010

22.0

510

30.5

513

21.2

513

35.8

513

21.2

513

30.0

074

4.20

750.

1074

1.65

747.

85

22-M

ar-0

310

30.6

010

39.8

010

30.6

010

37.1

513

39.7

513

48.4

013

39.7

513

45.6

574

8.95

755.

6574

8.95

753.

75

24-M

ar-0

310

37.1

510

38.5

510

11.9

510

13.9

013

47.7

013

47.7

013

13.4

513

15.9

575

3.70

754.

7573

5.40

736.

85

25-M

ar-0

310

13.5

010

13.5

099

8.40

1011

.30

1302

.25

1315

.60

1292

.60

1313

.45

736.

8573

6.85

725.

8573

5.25

26-M

ar-0

310

11.5

510

19.9

010

04.8

510

13.8

513

14.4

513

32.4

013

07.8

513

12.0

573

6.20

742.

3073

1.30

737.

85

27-M

ar-0

310

13.9

010

13.9

099

9.60

1002

.70

1311

.50

1315

.90

1306

.05

1308

.55

738.

7073

8.70

728.

2573

0.50

28-M

ar-0

310

02.8

010

06.3

099

6.75

1000

.60

1306

.85

1314

.40

1295

.65

1299

.15

730.

9073

3.45

726.

5072

9.30

31-M

ar-0

310

00.6

010

00.6

097

4.10

978.

2012

95.7

512

95.7

512

55.3

512

59.5

572

9.15

729.

1570

9.80

712.

80

Sou

rce

: NS

E


STATISTICAL TABLES


Table 15 : BSE Sensex, March 2003

Sl. No. Name of Issued Market Weightage Beta R2 Average Monthly ImpactSecurity Capital Capitalisation (%) Daily Return Cost (%)

(Rs. mn.) (Rs. mn.) Volatility (%) (%)

1 A.C.C. 1,709 23,672 0.94 0.54 0.36 1.86 (10.09) 0.19

2 BAJAJ AUTO 1,012 48,533 1.93 0.70 0.66 1.59 (7.11) 0.42

3 BHEL 2,448 54,679 2.18 0.87 0.02 1.82 6.36 0.22

4 BSES LTD. 1,378 29,675 1.18 0.09 0.54 1.72 (5.96) 1.63

5 CASTROL 1,236 23,455 0.93 0.05 0.02 1.14 (1.63) 0.83

6 CIPLA 600 42,847 1.71 0.37 0.60 1.32 (7.12) 0.38

7 COLGATE PA 1,360 16,523 0.66 (0.07) 0.19 0.73 (8.16) 1.57

8 DR.REDDY�S 382 70,114 2.79 0.21 0.00 0.92 4.54 0.21

9 GLAXO LTD 745 21,743 0.87 0.25 0.51 1.19 (5.72) 0.95

10 GRASIM IND 917 30,315 1.21 0.11 0.68 1.00 (5.41) 0.98

11 GUJ. AMB. CE 1,552 24,791 0.99 0.41 0.19 1.26 (0.87) 0.67

12 HCL TECHNO 577 43,707 1.74 2.03 0.66 2.94 (13.55) 0.31

13 HDFC LTD. 2,441 80,974 3.22 0.11 0.44 1.67 (11.55) 0.57

14 HERO HONDA 399 37,621 1.50 1.57 0.36 3.48 (15.59) 0.24

15 HINDALCO 925 49,428 1.97 1.10 0.74 1.61 (12.53) 1.35

16 HIND. LEVER 2,201 325,674 12.97 0.79 0.62 1.72 (6.14) 0.11

17 HIND. PETRO 3,393 99,882 3.98 0.18 0.46 1.04 (8.99) 0.09

18 ICICI BANK 6,130 82,116 3.27 0.75 0.63 1.46 (10.34) 0.33

19 INFO. TECH 331 267,587 10.65 1.59 0.17 2.27 (5.69) 0.03

20 ITC LTD. 2,475 155,809 6.20 0.24 0.06 0.94 (3.07) 0.18

21 LARSEN & T 2,486 45,910 1.83 0.57 0.77 1.03 (7.77) 0.17

22 MAHA.TELE 6,300 60,512 2.41 0.18 0.02 1.45 (4.57) 0.51

23 NESTLE (I) 964 51,558 2.05 (0.14) 0.07 0.94 (0.05) 1.33

24 RANBAXY LB 1,855 115,804 4.61 0.65 0.10 1.99 1.71 0.14

25 RELIANCE 13,964 386,029 15.37 1.52 0.76 1.98 (5.95) 0.04

26 SATYAM COM 629 55,658 2.22 2.16 0.89 2.87 (21.53) 0.04

27 STATE BNK 5,263 142,048 5.66 0.92 0.90 1.29 (5.55) 0.07

28 TATA ENGG 3,198 49,774 1.98 0.99 0.35 1.62 (4.48) 0.20

29 TATA STEEL 3,678 49,190 1.96 1.19 0.90 1.90 (10.89) 0.08

30 ZEE TELE. 413 25,782 1.03 1.50 0.77 2.21 (25.60) 0.20

Total 70,960 2,511,410 100.00 1.00 - - (7.15) NA

*Beta & R2 are calculated for the period February 1, 2002 to February 28, 2003. Beta measures the degree to which any portfolio of stocksis affected as compared to the effect on the market as a whole. The coefficient of determination (R2) measures the strength of relationshipbetween two variables the return on a security versus that of the market.

*Volatility is the standard deviation of the daily returns for the period February 1, 2003 to February 28, 2003.

*Impact cost is calculated as the difference between actual buy price and ideal buy price, divided by ideal buy price, multiplied by 100. Henceideal price is calculated as (best buy + best sell)/2. It is calculated for a month for the portfolio size of Rs. 2 lakh.

Source : BSE


79Table 16 : S&P CNX Nifty, March 2003

Sl. No. Name of Issued Market Weightage Beta R2 Average Daily Monthly ImpactSecurity Capital Capitalisation (%) Volatility Return Cost (%)

(Rs. mn.) (Rs. mn.) (%) (%)

1 ABB 424 12,132 0.38 0.39 0.04 1.73 (9.81) 0.19

2 ACC 1,709 23,673 0.75 0.88 0.26 1.84 (10.15) 0.07

3 BAJAJ AUTO 1,012 48,568 1.53 0.75 0.17 1.54 (6.93) 0.11

4 BHEL 2,448 54,618 1.72 0.69 0.14 1.93 5.63 0.09

5 BPCL 3,000 66,585 2.10 1.05 0.13 2.01 (0.83) 0.07

6 BRITANNIA 259 12,880 0.41 0.07 0.01 0.70 (4.24) 0.21

7 BSES 1,377 29,672 0.94 0.34 0.05 1.79 (6.00) 0.21

8 CASTROL 1,235 23,441 0.74 0.30 0.07 1.06 (2.01) 0.17

9 CIPLA 600 42,808 1.35 0.34 0.06 1.30 (7.35) 0.10

10 COLGATE 1,360 16,557 0.52 0.07 0.00 0.76 (8.11) 0.14

11 DABUR 286 10,187 0.32 0.52 0.12 1.58 (18.70) 0.20

12 DIGITALEQP 330 19,863 0.63 1.75 0.41 2.10 (7.47) 0.04

13 DR REDDY 383 70,112 2.21 0.74 0.16 0.93 4.56 0.07

14 GLAXO 745 21,762 0.69 0.19 0.01 1.10 (5.89) 0.17

15 GRASIM 917 30,288 0.96 0.47 0.11 1.02 (5.87) 0.12

16 GUJ AMB CEM 1,552 24,830 0.78 0.57 0.17 1.21 (1.05) 0.13

17 HCLTECH 577 43,563 1.38 1.78 0.32 2.89 (13.98) 0.11

18 HDFC 2,442 80,930 2.55 0.23 0.02 1.48 (11.59) 0.11

19 HDFC BANK 2,820 66,154 2.09 0.24 0.03 1.77 (6.12) 0.16

20 HERO HONDA 399 37,581 1.19 0.82 0.12 3.17 (15.61) 0.08

21 HINDALCO 925 49,437 1.56 0.27 0.05 1.02 (8.97) 0.12

22 HIND LEVER 2,201 326,555 10.31 0.98 0.37 1.56 (12.40) 0.12

23 HIND PETRO 3,393 100,034 3.16 1.30 0.14 1.69 (6.11) 0.06

24 ICICI BANK 6,130 81,993 2.59 0.73 0.10 1.38 (10.42) 0.10

25 IND HOTEL 451 8,227 0.26 0.49 0.09 2.04 (11.44) 0.17

26 INFOSYS TCH 331 268,320 8.47 1.52 0.49 2.21 (5.43) 0.04

27 IPCL 2,482 20,801 0.66 0.57 0.03 1.54 (7.61) 0.13

28 ITC 2,475 155,499 4.91 0.64 0.16 0.94 (3.46) 0.07

29 L&T 2,487 45,890 1.45 0.63 0.21 1.02 (7.98) 0.07

30 M&M 1,105 10,971 0.35 1.30 0.34 1.41 (9.85) 0.11

31 MTNL 6,300 60,449 1.91 0.76 0.08 1.40 (4.81) 0.14

32 NESTLE 964 51,708 1.63 0.12 0.01 0.88 0.22 0.22

33 NIIT 386 3,728 0.12 2.34 0.36 3.08 (29.00) 0.07

34 NOVART IND 159 6,959 0.22 0.50 0.09 0.90 (8.04) 0.25

35 ORIENT BANK 1,925 12,342 0.39 0.61 0.08 2.89 10.52 0.16

36 RANBAXY 1,855 115,656 3.65 0.58 0.12 1.88 1.39 0.08

37 RELIANCE 13,964 388,333 12.26 1.30 0.48 1.82 (5.65) 0.06

38 SATYAM COMP 629 55,768 1.76 2.09 0.62 2.71 (21.58) 0.05

39 SBIN 5,263 142,101 4.49 0.78 0.27 1.21 (5.79) 0.06

40 SCI 2,823 14,285 0.45 1.37 0.15 2.57 (15.67) 0.10

41 SMITKLBECH 454 9,841 0.31 0.19 0.02 1.69 (8.41) 0.33

42 SUN PHARMA 468 25,400 0.80 0.26 0.03 1.94 (3.43) 0.29

43 TATA CHEM 1,806 11,055 0.35 1.11 0.19 1.57 (4.90) 0.14

44 TATA POWER 2,035 23,030 0.73 0.92 0.35 1.42 (7.44) 0.11

45 TATA TEA 562 10,634 0.34 0.88 0.25 1.53 6.47 0.10

46 TELCO 3,198 49,784 1.57 1.35 0.38 1.61 (4.60) 0.07

47 TISCO 3,681 49,220 1.55 1.18 0.37 1.80 (11.10) 0.06

48 VSNL 2,850 20,848 0.66 0.67 0.09 1.64 (18.45) 0.14

49 WIPRO 465 286,854 9.06 1.73 0.40 1.90 (16.06) 0.09

50 ZEE TELE 413 25,699 0.81 1.77 0.36 2.22 (26.05) 0.09

Total 96,057 3,167,623 100 1.00 � 1.09 (8.01) 0.09

*Beta & R2 are calculated for the period February 1, 2002 to February 28, 2003. Beta measures the degree to which any portfolio of stocksis affected as compared to the effect on the market as a whole. The coefficient of determination (R2) measures the strength of relationshipbetween two variables the return on a security versus that of the market.*Volatility is the standard deviation of the daily returns for the period February 1, 2003 to February 28, 2003.*Impact cost is calculated as the difference between actual buy price and ideal buy price, divided by ideal buy price, multiplied by 100. Henceideal price is calculated as (best buy + best sell)/2. It has been calculated for the month based on a portfolio value of 50 lakh invested inproportion to their weights in index.Source : NSE


STATISTICAL TABLES


Table 17 : Movement in DSE and MSE Share Price Index, March 2003

Trading Days DSE MSE

Open High Low Close Open High Low Close

3-Mar-03 826.94 826.94 826.94 826.94 3580.42 3580.42 3575.42 3575.42

4-Mar-03 826.94 826.94 826.94 826.94 3575.42 3575.42 3566.42 3566.42

5-Mar-03 826.94 826.94 826.94 826.94 3566.42 3566.42 3560.74 3560.74

6-Mar-03 826.94 826.94 826.94 826.94 3560.74 3560.74 3549.53 3549.53

7-Mar-03 826.94 826.94 826.94 826.94 3549.53 3549.53 3539.24 3539.24

10-Mar-03 826.94 827.30 826.94 827.30 3539.24 3539.24 3530.83 3530.83

11-Mar-03 827.30 827.30 827.30 827.30 3530.83 3541.49 3530.83 3541.49

12-Mar-03 827.30 827.30 827.30 827.30 3541.49 3541.49 3528.49 3528.49

13-Mar-03 827.30 832.43 823.83 832.43 3528.49 3528.49 3528.49 3528.49

17-Mar-03 832.43 832.43 832.43 832.43 3528.49 3528.49 3521.49 3521.49

19-Mar-03 832.43 832.43 832.43 832.43 3521.49 3533.49 3521.49 3533.49

20-Mar-03 832.43 832.43 832.43 832.43 3533.49 3552.18 3533.49 3552.18

21-Mar-03 832.43 832.43 832.43 832.43 3552.18 3557.79 3552.18 3557.79

24-Mar-03 832.43 832.43 832.43 832.43 3557.79 3557.79 3537.23 3537.23

25-Mar-03 832.43 832.43 832.43 832.43 3537.23 3537.23 3537.23 3537.23

26-Mar-03 832.43 832.43 831.44 831.44 3537.23 3540.55 3537.23 3540.55

27-Mar-03 831.44 831.44 803.43 803.43 3540.55 3540.55 3532.14 3532.14

28-Mar-03 803.43 803.43 803.43 803.43 3532.14 3532.14 3532.14 3532.14

31-Mar-03 803.43 803.43 803.43 803.43 3532.14 3532.14 3515.31 3515.31

Source : Delhi Stock Exchange and Madras Stock Exchange


81

Tab

le 1

8 : V

olat

ility

* of

Maj

or I

ndic

es

(In

perc

ent)

Mon

th/Y

ear

Sen

sex

BS

E-1

00 I

ndex

Dol

lex-

200

S&

P C

NX

Nif

tyC

NX

Nif

ty J

unio

rS

&P

CN

X D

efty

DS

E I

ndex

MS

E I

ndex

Apr

-01

2.41

2.77

2.74

2.17

2.39

2.25

1.56

1.42

May

-01

0.94

1.07

1.04

0.87

1.18

0.87

0.72

0.61

Jun

-01

1.28

1.44

1.37

1.24

1.28

1.25

1.09

0.70

Jul-

011.

181.

101.

080.

991.

151.

020.

890.

64

Au

g-01

0.71

0.69

0.67

0.55

0.57

0.56

0.75

0.31

Sep

-01

2.73

2.82

2.95

2.49

2.67

2.55

2.24

1.42

Oct

-01

1.44

1.37

1.33

1.17

0.96

1.20

1.16

0.73

Nov

-01

1.29

1.27

1.19

1.20

0.96

1.20

1.00

0.57

Dec

-01

1.33

1.52

1.52

1.18

1.76

1.19

0.75

0.89

Jan

-02

0.92

1.00

0.99

0.97

0.88

0.95

0.76

0.71

Feb

-02

1.51

1.69

1.87

1.21

1.65

1.21

0.95

1.25

Mar

-02

1.32

1.13

1.23

1.14

1.07

1.15

0.91

0.67

2001

-02

1.50

1.60

1.62

1.40

1.58

1.42

1.56

0.91

Apr

-02

0.99

1.07

1.22

1.08

0.93

1.07

0.75

0.75

May

-02

1.55

1.42

1.37

1.31

1.71

1.29

0.42

0.89

Jun

-02

1.17

1.11

1.19

1.10

1.30

1.12

0.42

0.77

Jul-

021.

071.

091.

150.

991.

441.

000.

320.

60

Au

g-02

0.91

0.85

0.76

0.83

1.01

0.82

0.12

0.51

Sep

-02

0.82

0.71

0.69

0.71

1.34

0.72

0.30

0.37

Oct

-02

0.97

0.85

0.90

0.82

1.00

0.80

0.01

0.51

Nov

-02

0.68

0.58

0.55

0.67

0.59

0.66

0.07

0.44

Dec

-02

0.84

1.06

0.98

0.94

1.10

0.92

0.59

0.42

Jan

-03

0.71

0.73

0.73

0.78

1.03

0.77

0.70

0.37

Feb

-03

0.79

0.81

0.84

0.89

1.21

0.93

0.24

0.33

Mar

-03

1.12

1.04

0.89

1.09

1.15

1.09

0.80

0.28

2002

-03

1.01

0.99

0.98

0.99

1.23

0.99

0.47

0.58

*Vol

atili

ty is

cal

cula

ted

as t

he s

tand

ard

devi

atio

n of

the

nat

ura

l log

of

retu

rns

in in

dice

s fo

r th

e re

spec

tive

per

iod.

Sou

rce

: BS

E, N

SE

, DS

E a

nd M

SE


STATISTICAL TABLES


Table 19 : City-wise Distribution of Turnover on Cash Segments of BSE and NSE

(% share in turnover)

Sl. No. Stock Exchange City BSE NSE

2000-01 2001-02 2002-03 2000-01 2001-02 2002-03

1 Ahmedabad 0.74 0.97 2.34 2.68 2.49 2.28

2 Bangalore 0.15 0.30 0.44 1.69 2.79 2.52

3 Baroda 0.29 0.54 0.82 0.73 0.62 0.68

4 Bhubaneshwar NA NA 0.02 0.04 0.07 0.05

5 Chennai 0.19 0.16 0.26 3.40 3.56 3.59

6 Cochin 0.16 0.27 0.12 0.75 0.79 0.88

7 Coimbatore NA 0.04 0.04 0.59 0.60 0.55

8 Delhi 0.28 1.31 2.14 17.03 19.40 18.38

9 Gauhati NA NA 0.03 0.11 0.12 0.05

10 Hyderabad NA 0.13 0.13 2.30 2.85 3.2

11 Indore 0.11 0.18 0.63 1.13 1.08 0.85

12 Jaipur 0.19 0.23 0.71 1.06 1.16 1.33

13 Kanpur NA 0.26 0.41 0.55 0.95 0.75

14 Kolkata 0.72 0.84 1.36 8.25 9.15 12.03

15 Ludhiana NA 0.01 0.24 0.18 0.53 0.44

16 Mumbai 89.86 84.01 77.56 48.35 40.20 40.01

17 Patna NA NA 0.03 0.08 0.11 0.12

18 Pune 0.69 0.60 0.35 1.07 1.03 1.06

19 Mangalore NA NA 0.12 0.09 0.12 0.12

20 Rajkot 0.26 0.32 1.37 0.38 0.29 0.27

21 Others 6.36 9.83 10.88 9.56 12.51 10.84

Total 100.00 100.00 100.00 100.00 100.00 100.00

Source : BSE, NSE


83Table 20 : Advances/Declines in cash segment of exchanges (No. of Securities)

Month/Date BSE NSE

Advances Declines Advance/ Advances Declines Advance/Decline DeclineRatio Ratio

Apr-01 433 1541 0.28 372 421 0.88May-01 1076 783 1.37 426 401 1.06

June-01 748 1035 0.72 328 474 0.69

July -01 424 1307 0.32 395 525 0.75Aug-01 547 1129 0.48 480 488 0.98

Sep-01 417 1199 0.35 432 541 0.80

Oct-01 756 815 0.93 527 446 1.18Nov-01 1277 275 4.64 597 458 1.30

Dec-01 957 571 1.68 481 551 0.87

Jan-02 390 1097 0.36 342 372 0.92Feb-02 815 630 1.29 361 361 1.00

Mar-02 673 767 0.88 342 374 0.91

Apr-02 1021 407 2.51 381 354 1.08May-02 938 483 1.94 329 412 0.80

Jun-02 1055 358 2.95 412 352 1.17

Jul-02 1018 393 2.59 304 464 0.66Aug-02 106 1300 0.08 355 376 0.94

Sep-02 284 1106 0.26 302 419 0.72

Oct-02 266 1110 0.24 301 369 0.82Nov-02 717 645 1.11 374 297 1.26

Dec-02 1072 294 3.65 323 357 0.91

Jan-03 903 1363 0.66 389 420 0.93Feb-03 612 1563 0.39 303 361 0.84

3-Mar-2003 637 772 0.83 269 392 0.69

4-Mar-2003 407 1059 0.38 132 551 0.24

5-Mar-2003 439 972 0.45 160 519 0.31

6-Mar-2003 486 943 0.52 218 442 0.49

7-Mar-2003 335 1119 0.30 99 584 0.17

10-Mar-2003 382 997 0.38 137 532 0.26

11-Mar-2003 671 716 0.94 332 329 1.01

12-Mar-2003 654 752 0.87 308 360 0.86

13-Mar-2003 604 835 0.72 249 412 0.60

17-Mar-2003 442 975 0.45 166 511 0.32

19-Mar-2003 656 706 0.93 352 309 1.14

20-Mar-2003 827 577 1.43 461 202 2.28

21-Mar-2003 799 634 1.26 412 246 1.67

22-Mar-2003 730 474 1.54 413 210 1.97

24-Mar-2003 388 1050 0.37 119 550 0.22

25-Mar-2003 525 884 0.59 223 433 0.52

26-Mar-2003 526 972 0.54 223 425 0.52

27-Mar-2003 645 639 1.01 269 347 0.78

28-Mar-2003 575 747 0.77 266 373 0.71

31-Mar-2003 332 950 0.35 136 536 0.25

Mar-03 433 1633 0.27 247 413 0.60

Source : BSE, NSE


STATISTICAL TABLES


Table 21 : Trading Frequency in cash segment of BSE & NSE

Month/Year BSE NSE

Scrips Scrips % of Traded Companies Companies % of TradedListed* Traded to Listed Avaliable for Traded to Available

Trading* for Trading

Apr-01 9912 2127 21.46 1,031 951 92.24May-01 9972 2306 23.12 1,030 954 92.62June-01 10137 2356 23.24 1,001 963 96.20July -01 10309 2485 24.11 994 924 92.96Aug-01 10323 2517 24.38 994 931 93.66Sep-01 10346 2427 23.46 987 917 92.91Oct-01 10342 2548 24.64 986 917 93.00Nov-01 10385 2711 26.10 956 920 96.23Dec-01 13774 3218 23.36 956 895 93.62Jan-02 8606 2000 23.24 893 896 100.00Feb-02 7296 2042 27.99 889 840 94.49Mar-02 7321 2113 28.86 890 840 94.38Apr-02 7394 2097 28.36 865 843 97.46May-02 7458 2118 28.40 863 821 95.13Jun-02 7579 2240 29.56 848 825 97.29Jul-02 7319 2363 32.29 841 820 97.50Aug-02 7324 2304 31.46 839 806 96.07Sep-02 7327 2263 30.89 840 806 95.95Oct-02 7278 2225 30.57 803 770 95.89Nov-02 7273 2242 30.83 788 767 97.34Dec-02 7279 2307 31.69 788 762 96.70Jan-03 7403 2311 31.22 789 763 96.70Feb-03 7355 2221 30.20 788 760 96.453-Mar-03 7355 1600 21.75 NA NA NA4-Mar-03 7355 1628 22.13 NA NA NA5-Mar-03 7355 1600 21.75 NA NA NA6-Mar-03 7355 1630 22.16 NA NA NA7-Mar-03 7355 1605 21.82 NA NA NA10-Mar-03 7355 1529 20.79 NA NA NA11-Mar-03 7355 1577 21.44 NA NA NA12-Mar-03 7356 1599 21.74 NA NA NA13-Mar-03 7356 1633 22.20 NA NA NA17-Mar-03 7356 1569 21.33 NA NA NA19-Mar-03 7357 1570 21.34 NA NA NA20-Mar-03 7357 1570 21.34 NA NA NA21-Mar-03 7358 1636 22.23 NA NA NA22-Mar-03 7358 1346 18.29 NA NA NA24-Mar-03 7361 1614 21.93 NA NA NA25-Mar-03 7362 1597 21.69 NA NA NA26-Mar-03 7362 1685 22.89 NA NA NA27-Mar-03 7362 1472 19.99 NA NA NA28-Mar-03 7362 1496 20.32 NA NA NA31-Mar-03 7363 1431 19.44 NA NA NAMar-03 7363 2191 29.76 788 762 96.70

*At the end of the period, Includes listed/permitted to trade companies but excludes suspended companies.Source : BSE, NSE


85

Tab

le 2

2 : P

erce

ntag

e S

hare

of

Top

�N� S

ecur

itie

s/M

embe

rs in

Tur

nove

r in

Cas

h S

egm

ent

Mon

th/Y

ear

BS

EN

SE

No.

of

Sec

urit

ies/

Mem

bers

No.

of

Sec

urit

ies/

Mem

bers

510

2550

100

510

2550

100

Sec

urit

ies

1992

-93

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

1993

-94

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

1994

-95

NA

NA

NA

NA

NA

48.7

755

.92

68.9

881

.14

91.0

7

1995

-96

NA

NA

NA

NA

NA

82.9

886

.60

90.8

993

.54

95.8

7

1996

-97

72.8

781

.68

88.1

091

.06

93.4

184

.55

91.9

695

.70

97.0

398

.19

1997

-98

67.0

979

.91

89.0

093

.72

96.8

372

.98

85.1

792

.41

95.7

697

.90

1998

-99

48.8

064

.51

81.0

789

.40

95.3

552

.56

67.1

184

.71

92.0

395

.98

1999

-00

36.9

555

.10

77.7

587

.29

92.9

539

.56

59.2

282

.31

88.6

993

.66

2000

-01

49.9

970

.35

87.7

094

.04

97.4

552

.15

72.9

088

.93

94.5

797

.46

2001

-02

30.6

743

.94

66.2

481

.66

91.5

144

.43

62.9

282

.24

91.5

695

.91

2002

-03

37.7

253

.27

74.3

886

.19

93.2

640

.58

55.4

177

.80

89.1

695

.38

Mem

bers

1992

-93

5.73

10.3

922

.30

36.4

056

.37

NA

NA

NA

NA

NA

1993

-94

6.15

10.5

821

.05

35.3

055

.93

NA

NA

NA

NA

NA

1994

-95

4.59

8.46

17.8

529

.59

48.1

718

.19

26.6

044

.37

61.7

181

.12

1995

-96

7.23

12.2

324

.06

37.8

855

.62

10.6

516

.56

28.6

141

.93

58.5

9

1996

-97

11.8

218

.28

31.3

245

.55

64.1

75.

9410

.08

19.6

730

.57

45.9

5

1997

-98

13.7

321

.06

33.7

547

.75

65.2

16.

2910

.59

18.8

129

.21

44.2

4

1998

-99

9.78

16.0

428

.31

44.0

064

.30

7.73

11.9

620

.77

31.6

647

.02

1999

-00

8.42

14.3

025

.90

40.7

459

.98

7.86

12.9

922

.78

34.4

149

.96

2000

-01

7.87

13.5

625

.70

40.4

059

.90

7.78

12.7

623

.00

33.8

648

.79

2001

-02

8.45

14.7

828

.83

45.3

065

.75

7.14

12.2

923

.63

36.3

253

.40

2002

-03

13.6

520

.78

35.7

952

.85

72.5

510

.26

16.4

129

.07

42.4

959

.15

Sou

rce

: BS

E, N

SE


STATISTICAL TABLES


Tab

le 2

3 : S

ettl

emen

t S

tati

stic

s fo

r C

ash

Seg

men

t of

BS

E

Mon

th/Y

ear

No.

of

Tra

ded

Del

iver

ed%

of

Tur

nove

rD

eliv

ered

% o

fD

eliv

ered

% o

f D

emat

Del

iver

ed%

of

Dem

atSh

ort

% o

fU

nrec

tifi

ed%

of

Fund

sSe

curi

ties

Tra

deT

rade

sQ

uant

ity

Qua

ntit

yD

eliv

ered

(R

s. m

n.)

Val

ueD

eliv

ered

Qua

ntit

yD

eliv

ered

Val

ue in

Del

iver

edD

eliv

ery

Shor

tB

adU

nrec

tifi

edP

ay-in

Pay

-inG

uara

ntee

(Lak

h)(L

akh)

(Lak

h)Q

uant

ity

(Rs.

mn.

)V

alue

to

in D

emat

Qua

ntit

yD

emat

Val

ue(A

ucti

oned

Del

iver

yD

eliv

ery

Bad

(Rs.

mn.

)(R

s. m

n.)

Fund

to T

rade

dT

otal

Mod

eto

Tot

alM

ode

to T

otal

quan

tity

)to

(Auc

tion

edD

eliv

ery

(Rs.

mn.

)*Q

uant

ity

Tur

nove

r(L

akh)

Del

iver

ed(R

s. m

n.)

Del

iver

ed(L

akh)

Del

iver

yqu

anti

ty)

to D

eliv

ery

Qua

ntit

yV

alue

(Lak

h)

1992

-93

125.

8335

031

NA

NA

456,

958

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

1993

-94

122.

7475

834

NA

NA

845,

360

158,

608

18.7

6N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

1994

-95

196.

3710

7,24

844

,696

41.6

867

7,48

726

6,40

739

.32

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

1995

-96

171.

3477

,185

26,7

6334

.67

500,

642

115,

271

23.0

2N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

1996

-97

154.

8180

,926

21,1

8826

.18

1,24

1,90

410

9,93

28.

85N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

1997

-98

195.

6785

,877

24,3

6028

.37

2,07

1,12

922

5,11

910

.87

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

1998

-99

354.

3512

9,27

250

,570

39.1

23,

107,

497

856,

174

27.5

5N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

1999

-00

740.

4520

8,63

594

,312

45.2

06,

864,

276

1,74

7,40

025

.46

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

2000

-01

1,42

8.15

258,

511

86,6

8433

.53

10,0

00,3

151,

669,

409

16.6

9N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

Apr

-01

95.3

513

,965

5,94

742

.59

238,

762

63,0

1826

.39

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

May

-01

119.

6418

,125

4,88

026

.93

318,

683

50,5

5515

.86

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Jun-

0110

4.78

15,4

075,

398

35.0

425

4,50

852

,893

20.7

8N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

Jul-0

177

.99

9,93

33,

787

38.1

317

2,44

038

,357

22.2

4N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

Aug

-01

79.0

810

,242

2,89

028

.22

174,

441

31,6

3518

.13

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Sep-

0195

.21

10,9

683,

305

30.1

321

5,93

234

,098

15.7

9N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

Oct

-01

99.8

012

,223

3,40

427

.85

219,

215

37,3

1317

.02

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Nov

-01

107.

2716

,749

5,66

033

.79

244,

017

48,5

1719

.88

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Dec

-01

120.

4719

,256

5,34

327

.75

300,

330

48,0

6416

.00

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Jan-

0214

3.82

21,0

035,

234

24.9

239

1,69

066

,958

17.0

9N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

Feb-

0212

1.47

18,3

165,

948

32.4

728

5,71

666

,491

23.2

7N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

Mar

-02

112.

3316

,009

5,87

236

.68

257,

190

61,9

0524

.07

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

2001

-02

1,27

7.22

182,

196

57,6

6831

.65

3,07

2,92

459

9,80

319

.52

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Apr

-02

135.

0118

,340

6,65

736

.30

288,

745

52,6

5418

.24

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

May

-02

139.

2921

,794

7,42

534

.07

281,

378

45,9

9116

.34

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Jun-

0212

9.16

27,1

349,

938

36.6

323

3,19

840

,247

17.2

6N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

Jul-0

214

4.87

28,3

759,

837

34.6

726

7,23

743

,165

16.1

5N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

Aug

-02

115.

0515

,623

4,29

827

.51

237,

797

33,5

2314

.10

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Sep-

0210

6.11

15,6

035,

119

32.8

124

4,10

132

,504

13.3

2N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

Oct

-02

113.

6615

,833

3,88

024

.51

276,

409

34,8

5412

.61

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Nov

-02

96.2

513

,622

3,76

727

.65

259,

814

36,6

4214

.10

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Dec

-02

123.

1118

,703

5,89

431

.51

305,

816

47,8

5415

.65

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Jan-

0313

0.19

19,3

766,

078

31.3

730

8,98

158

,363

18.8

9N

AN

AN

AN

AN

AN

AN

AN

AN

AN

AN

A

Feb-

0395

.33

14,3

353,

632

25.3

323

4,61

032

,511

13.8

63,

628

99.8

932

,445

99.8

019

.35

0.53

0.02

0.00

13,4

7932

,511

8,03

5

Mar

-03

85.0

612

,664

3,36

826

.60

202,

647

29,1

0514

.36

3,36

399

.85

29,0

0199

.64

27.5

30.

820.

020.

0014

,163

29,1

057,

483

2002

-03

1,41

322

1,40

169

,893

31.5

73,

140,

732

487,

413

15.5

2N

AN

AN

AN

AN

AN

AN

AN

AN

AN

A7,

483

*Bal

ance

at

the

end

of p

erio

d.S

ourc

e : B

SE


87

Tab

le 2

4 : S

ettl

emen

t S

tati

stic

s fo

r C

ash

Seg

men

t of

NS

E

Mon

th/Y

ear

No.

of

Trad

edD

eliv

ered

% o

fTu

rnov

erD

eliv

ered

% o

fD

eliv

ered

% o

f Dem

atD

eliv

ered

% o

f Dem

atSh

ort

% o

fU

nrec

tifie

d%

of

Fund

sSe

curi

ties

Settl

emen

tTr

ades

Qua

ntity

Qua

ntity

Del

iver

ed (R

s. m

n.)

Val

ueD

eliv

ered

Qua

ntity

Del

iver

edV

alue

inD

eliv

ered

Del

iver

ySh

ort

Bad

Unr

ectif

ied

Pay-

inPa

y-in

Gua

rant

ee(L

akh)

(Lak

h)(L

akh)

Qua

ntity

(Rs.

mn.

)V

alue

toin

Dem

atQ

uant

ityD

emat

Val

ue(A

uctio

ned

Del

iver

yD

eliv

ery

Bad

(Rs.

mn.

)(R

s. m

n.)

Fund

to T

rade

dTo

tal

Mod

eto

Tot

alM

ode

to T

otal

quan

tity)

to(A

uctio

ned

Del

iver

y(R

s. m

n.)*

Qua

ntity

Turn

over

(Lak

h)D

eliv

ered

(Rs.

mn.

)D

eliv

ered

(Lak

h)D

eliv

ery

quan

tity)

to D

eliv

ery

Qua

ntity

Val

ue(L

akh)

Nov

94-

Mar

95

31,

330

688

51.7

417

,280

8,98

051

.98

NA

NA

NA

NA

60.

851.

760.

263,

004

NA

NA

1995

-96

6439

,010

7,26

418

.62

657,

420

117,

750

17.9

1N

AN

AN

AN

A17

92.

4632

.17

0.44

32,5

83N

AN

A

1996

-97

262

134,

317

16,4

5312

.25

2,92

3,14

032

6,40

011

.17

NA

NA

NA

NA

382

2.32

66.2

50.

4072

,121

NA

NA

1997

-98

383

135,

217

22,0

5116

.31

3,70

0,10

059

7,74

816

.15

NA

NA

NA

NA

333

1.51

72.9

00.

3310

8,27

2N

AN

A

1998

-99

550

165,

310

27,9

9116

.93

4,13

5,73

066

2,03

816

.01

6,17

922

.08

115,

712

17.4

830

51.

0969

.73

0.25

121,

754

NA

5,84

0

1999

-00

958

238,

605

48,7

1320

.42

8,03

0,49

782

6,07

010

.29

26,0

6353

.50

670,

474

81.1

663

51.

3011

0.13

0.23

279,

921

797,

828

13,9

10

2000

-01

1614

304,

196

50,2

0316

.50

12,6

38,9

781,

062,

774

8.41

47,2

5794

.13

1,04

2,46

398

.09

339

0.68

11.5

80.

023

459,

367

949,

621

29,1

60

Apr

-01

8716

,323

5,64

334

.57

282,

261

60,8

2921

.55

5,62

099

.59

60,6

9999

.79

160.

280.

040.

0008

19,1

5552

,139

27,5

10

May

-01

155

27,7

646,

428

23.1

551

8,35

073

,711

14.2

26,

405

99.6

473

,531

99.7

615

0.24

0.02

0.00

0319

,758

37,5

1926

,200

Jun-

0112

722

,797

5,13

422

.52

431,

360

59,6

0113

.82

5,11

499

.61

59,4

5499

.75

140.

270.

010.

0002

16,2

6040

,579

24,0

85

Jul-0

197

13,1

492,

971

22.5

929

0,92

037

,210

12.7

92,

964

99.7

637

,170

99.8

921

0.70

0.00

20.

0001

18,3

0040

,205

21,1

00

Aug

-01

111

15,5

123,

018

19.4

628

5,72

039

,620

13.8

73,

006

99.6

039

,510

99.7

231

1.03

0.00

30.

0001

18,4

7035

,313

21,0

20

Sep-

0112

416

,554

3,13

618

.94

337,

180

39,3

3011

.66

3,12

499

.62

39,3

1099

.95

160.

510.

000.

0000

20,6

8038

,074

18,6

95

Oct

-01

145

19,7

753,

485

17.6

235

2,25

042

,470

12.0

63,

477

99.7

742

,450

99.9

540

1.15

0.00

0.00

0019

,540

41,3

6018

,030

Nov

-01

142

22,6

474,

865

21.4

837

4,71

056

,790

15.1

64,

855

99.7

956

,750

99.9

346

0.95

0.00

0.00

0023

,110

54,6

7818

,758

Dec

-01

168

29,2

215,

929

20.2

953

0,97

671

,844

13.5

35,

916

99.7

871

,774

99.9

048

0.81

0.00

0.00

0030

,347

69,2

4418

,761

Jan-

0222

538

,325

5,72

914

.95

713,

290

79,4

0011

.13

5,72

899

.98

79,3

8099

.97

390.

680.

000.

0000

34,4

0078

,486

18,3

65

Feb-

0217

026

,866

6,60

024

.57

488,

230

79,8

2016

.35

6,60

010

0.00

79,8

2010

0.00

390.

590.

000.

0000

30,1

6079

,353

18,6

59

Mar

-02

169

25,7

626,

360

24.6

947

5,96

277

,034

16.1

86,

360

100.

0077

,030

99.9

940

0.62

0.00

0.00

0030

,301

76,5

7717

,880

2001

-02

1,72

027

4,69

559

,299

21.5

95,

081,

208

717,

658

14.1

259

,169

99.7

871

6,87

899

.89

364

0.61

0.08

0.00

0128

0,48

164

3,52

517

,880

Apr

-02

210

30,1

137,

513

24.9

556

1,30

289

,325

15.9

17,

513

100.

0089

,325

100.

0061

0.81

0.00

0.00

0032

,156

88,5

5617

,450

May

-02

211

33,7

858,

317

24.6

253

4,14

587

,320

16.3

58,

317

100.

0087

,320

100.

0055

0.66

0.00

0.00

0031

,617

86,7

5817

,140

Jun-

0219

539

,137

10,2

3226

.14

463,

339

80,0

0517

.27

10,2

3210

0.00

80,0

0510

0.00

640.

620.

000.

0000

27,2

7779

,551

17,1

93

Jul-0

220

636

,835

10,3

4828

.09

502,

623

84,0

7016

.73

10,3

4810

0.00

84,0

7010

0.00

690.

670.

000.

0000

29,4

2083

,577

16,8

88

Aug

-02

193

26,8

225,

085

18.9

645

4,43

053

,115

11.6

95,

085

100.

0053

,115

100.

0030

0.59

0.00

0.00

0021

,522

52,7

4816

,510

Sep-

0218

325

,254

4,43

317

.55

468,

940

52,7

1211

.24

4,43

310

0.00

52,7

1210

0.00

250.

560.

000.

0000

23,3

6452

,355

16,2

89

Oct

-02

201

26,5

914,

601

17.3

051

3,82

057

,340

11.1

64,

601

100.

0057

,340

100.

0021

0.46

0.00

0.00

0025

,990

57,0

4315

,878

Nov

-02

174

23,0

704,

433

19.2

250

1,71

064

,515

12.8

64,

433

100.

0064

,515

100.

0023

0.52

0.00

0.00

0026

,353

64,1

1015

,651

Dec

-02

223

33,7

657,

573

22.4

363

8,72

288

,595

13.8

77,

573

100.

0088

,595

100.

0035

0.46

0.00

0.00

0033

,914

88,2

3315

,665

Jan-

0323

135

,017

8,15

223

.28

628,

151

91,6

9414

.60

8,1

5210

0.00

91,6

9410

0.00

380.

470.

000.

0000

33,5

4991

,279

15,3

28

Feb-

0319

328

,590

6,01

021

.02

487,

172

67,0

9213

.77

6,01

010

0.00

67,0

9210

0.00

230.

390.

000.

0000

26,4

4267

,092

15,2

06

Mar

-03

182

26,4

245,

608

21.2

246

1,34

163

,169

13.6

956

0810

0.00

63,1

6910

0.00

250.

440.

000.

0000

29,3

1663

,169

14,8

67

2002

-03

2,40

336

5,40

382

,305

22.5

26,

215,

694

878,

952

14.1

482

305

100.

0087

8,95

110

0.00

469

0.57

0.00

0.00

0034

0,91

987

4,47

014

,867

*Bal

ance

at

the

end

of p

erio

d.S

ourc

e : N

SE


STATISTICAL TABLES


Tab

le 2

5 : D

eriv

ativ

e S

egm

ents

at

BS

E

Mon

th/Y

ear

No.

of

Inde

x F

utur

esS

tock

Fut

ures

Inde

x O

ptio

nsS

tock

Opt

ions

Tot

alO

pen

Inte

rest

at

the

Tra

ding

end

ofD

ays

No.

of

Tur

nove

rN

o. o

fT

urno

ver

No.

of

Not

iona

lN

o. o

fN

otio

nal

No.

of

Tur

nove

rN

o. o

fT

urno

ver

Con

trac

ts(R

s. m

n.)

Con

trac

ts(R

s. m

n.)

Con

trac

tsT

urno

ver

Con

trac

tsT

urno

ver

Con

trac

ts(R

s. m

n.)

Con

trac

ts(R

s. m

n.)

(Rs.

mn.

)(R

s. m

n.)

Jun-

00 t

o M

ar-0

120

777

743

1672

6N

AN

AN

AN

AN

AN

A77

743

1672

6N

AN

A

Apr

-01

1916

1728

1N

AN

AN

AN

AN

AN

A16

1728

1N

AN

A

May

-01

2265

611

8N

AN

AN

AN

AN

AN

A65

611

8N

AN

A

Jun-

0121

2261

389

NA

NA

447

157

NA

NA

2708

546

NA

NA

Jul-0

122

2417

406

NA

NA

181

6041

682

3014

549

NA

NA

Au

g-01

2129

717

4917

NA

NA

1604

522

2437

521

3375

859

61N

AN

A

Sep

-01

2024

361

3591

NA

NA

113

3717

7936

026

253

3989

NA

NA

Oct

-01

2136

0452

2N

AN

A14

034

733

3965

556

NA

NA

Nov

-01

2033

6052

330

8279

09

023

949

6690

1362

NA

NA

Dec

-01

1981

713

531

9369

70

013

325

4143

857

NA

NA

Jan-

0223

1688

284

4089

1104

30

212

6259

9214

49N

AN

A

Feb

-02

2088

1315

5659

5114

951

068

1814

833

3069

NA

NA

Mar

-02

1924

141

1636

430

00

215

1898

477

NA

NA

2001

-02

247

7955

212

763

1795

145

1623

7278

356

5211

5510

5527

1921

7N

AN

A

Apr

-02

2263

1195

521

527

634

610

7923

8N

AN

A

May

-02

2260

899

4124

1047

10

143

4747

1150

NA

NA

Jun-

0220

752

123

3784

904

00

180

4554

1031

NA

NA

Jul-0

223

549

3209

774

00

194

3282

787

166

34

Au

g-02

211

020

3643

90

022

520

5944

497

21

Sep

-02

206

181

318

10

091

2191

020

245

9

Oct

-02

210

061

113

90

07

261

814

081

20

Nov

-02

190

053

913

10

07

154

613

237

9

Dec

-02

210

059

115

50

020

561

116

052

13

Jan-

0323

3282

454

6636

3710

030

09

336

470

6471

322

65

Feb

-03

1935

869

5894

3413

897

10.

323

060

3951

368

4821

546

Mar

-03

2041

,147

6,50

72,

130

559

4113

330

104

43,6

487,

182

375

71

2002

-03

251

111,

324

18,1

1025

,842

6,44

370

2080

121

213

8,03

724

,784

375

71

Not

e :

1. N

otio

nal T

urn

over

= (

Str

ike

Pri

ce +

Pre

miu

m)

* Q

uan

tity

.2.

Ind

ex F

utu

res,

Ind

ex O

ptio

ns, S

tock

Opt

ions

and

Sto

ck F

utu

res

wer

e in

trod

uce

d in

Ju

ne 2

000,

Ju

ne 2

001,

Ju

ly 2

001

and

Nov

embe

r 20

01, r

espe

ctiv

ely.

Sou

rce

: BS

E


89

Tab

le 2

6 : D

eriv

ativ

e S

egm

ents

at

NS

E

Mon

th/Y

ear

No.

of

Inde

x Fu

ture

sSt

ock

Futu

res

Inde

x O

ptio

nsSt

ock

Opt

ions

Tot

alO

pen

Inte

rest

at

Tra

ding

Cal

lP

utC

all

Put

the

end

of

Day

sN

o. o

fT

urno

ver

No.

of

Tur

nove

rN

o. o

fN

otio

nal

No.

of

Not

iona

lN

o. o

fN

otio

nal

No.

of

Not

iona

lN

o. o

fT

urno

ver

No.

of

Tur

nove

rC

ontr

acts

(Rs.

mn.

)C

ontr

acts

(Rs.

mn.

)C

ontr

acts

Tur

nove

rC

ontr

acts

Tur

nove

rC

ontr

acts

Tur

nove

rC

ontr

acts

Tur

nove

rC

ontr

acts

(Rs.

mn.

)C

ontr

acts

(Rs.

mn.

)(R

s. m

n.)

(Rs.

mn.

)(R

s. m

n.)

(Rs.

mn.

)

Jun-

00 t

oM

ar-0

121

190

,580

23,6

50N

AN

AN

AN

AN

AN

AN

AN

AN

AN

A90

,580

23,6

50N

AN

A

Apr

-01

1913

,274

2,91

7N

AN

AN

AN

AN

AN

AN

AN

AN

AN

A13

,274

2,91

71,

430

319

May

-01

2210

,048

2,30

5N

AN

AN

AN

AN

AN

AN

AN

AN

AN

A10

,048

2,30

52,

033

471

Jun

-01

2126

,805

5,90

2N

AN

A5,

232

1,18

53,

429

766

NA

NA

NA

NA

35,4

667,

854

4,07

190

4

Jul-

0122

60,6

4413

,086

NA

NA

8,61

31,

908

6,22

11,

352

13,

082

2,90

24,

746

1,05

793

,306

20,3

0614

,040

2,94

8

Au

g-01

2160

,979

13,0

46N

AN

A7,

598

1,65

35,

533

1,19

3 3

8,97

18,

437

12,5

082,

633

125,

589

26,9

6219

,096

3,96

1

Sep

-01

2015

4,29

828

,571

NA

NA

12,1

882,

432

8,26

21,

687

64,

344

13,2

2133

,480

6,90

027

2,57

252

,810

16,2

042,

780

Oct

-01

2113

1,46

724

,848

NA

NA

16,7

873,

263

12,3

242,

329

85,

844

16,3

1943

,787

8,01

529

0,20

954

,775

25,0

514,

628

Nov

-01

2012

1,69

724

,835

125,

946

28,1

1414

,994

3,09

97,

189

1,45

311

2,49

923

,722

31,4

846,

379

413,

809

87,6

0160

,414

13,2

91

Dec

-01

1910

9,30

323

,393

309,

755

75,1

4712

,890

2,86

65,

513

1,18

484

,134

19,8

5928

,425

6,74

055

0,02

012

9,18

737

,891

8,02

4

Jan

-02

2312

2,18

226

,598

489,

793

132,

610

11,2

852,

528

3,93

385

313

3,94

738

,361

44,4

9812

,529

805,

638

213,

479

78,3

8417

,753

Feb

-02

2012

0,66

227

,472

528,

947

139,

395

13,9

413,

235

4,74

91,

068

133,

630

36,3

4733

,055

8,64

383

4,98

421

6,15

989

,560

20,1

04

Mar

-02

1994

,229

21,8

4650

3,41

513

9,89

010

,446

2,48

74,

773

1,11

310

1,70

828

,628

37,3

8710

,936

751,

958

204,

899

93,9

1721

,499

2001

-02

247

1,02

5,58

821

4,81

91,

957,

856

515,

155

113,

974

24,6

5761

,926

12,9

9876

8,15

918

7,79

526

9,37

063

,830

4,19

6,87

31,

019,

254

93,9

1721

,499

Apr

-02

2273

,635

16,5

6255

2,72

715

0,65

111

,183

2,60

05,

389

1,21

512

1,22

534

,004

40,4

4311

,704

804,

602

216,

736

66,9

2215

,540

May

-02

2294

,312

20,2

2360

5,28

415

9,81

013

,070

2,94

57,

719

1,68

712

6,86

734

,901

57,9

8416

,432

905,

236

235,

998

55,8

3912

,053

Jun

-02

2099

,514

21,2

2861

6,46

116

1,78

310

,272

2,22

97,

805

1,66

212

3,49

333

,246

48,9

1913

,173

906,

464

233,

320

65,8

3415

,315

Jul-

0223

122,

663

25,1

3378

9,29

021

2,04

716

,637

3,49

87,

688

1,61

615

4,08

943

,406

65,5

3018

,369

1,15

5,89

730

4,06

985

,369

17,9

97

Au

g-02

2115

2,37

529

,778

726,

310

178,

806

15,9

673,

178

10,1

242,

000

147,

646

38,3

6765

,630

17,2

551,

118,

052

269,

383

71,6

5516

,602

Sep

-02

2014

4,30

328

,357

700,

051

175,

011

16,5

783,

318

12,5

432,

507

151,

291

40,1

6080

,038

22,0

511,

104,

804

271,

404

67,2

6113

,858

Oct

-02

2116

4,93

431

,448

856,

930

212,

134

23,6

284,

594

13,9

102,

671

214,

027

55,9

5310

4,65

927

,612

1,37

8,08

833

4,41

313

5,23

930

,228

Nov

-02

1917

5,56

735

,000

970,

251

254,

630

25,4

135,

090

17,1

913,

360

261,

600

71,0

6010

4,52

929

,220

1,55

4,55

139

8,36

094

,615

22,1

34

Dec

-02

2127

7,40

359

,580

1,21

7,87

335

5,31

630

,261

6,60

119

,973

4,27

430

9,57

395

,524

111,

756

34,9

071,

966,

839

556,

201

110,

431

28,9

33

Jan

-03

2325

8,95

555

,570

1,30

4,12

238

2,99

026

,376

5,77

016

,805

3,63

032

2,87

610

1,74

013

2,02

141

790

2,06

1,15

559

1,49

010

0,76

423

,888

Feb

-03

1923

7,80

350

,403

1,19

8,56

432

4,44

826

,501

5,71

117

,681

3,74

926

8,15

676

,444

114,

512

33,1

921,

863,

217

493,

948

109,

192

27,3

78

Mar

-03

2032

5,29

966

,237

1,13

8,98

029

7,69

853

,788

11,1

6535

,739

7,39

725

5,65

871

,634

140,

540

39,1

861,

950,

004

493,

317

97,0

2521

,943

2002

-03

251

2,12

6,76

343

9,51

510

,675

,786

2,86

5,31

926

9,72

156

,710

172,

520

35,7

662,

456,

501

696,

445

1,06

6,56

130

4,89

516

,767

,852

4,39

8,65

097

,025

21,9

43

Not

e:

1. I

ndex

Fu

ture

s, I

ndex

Opt

ions

, Sto

ck O

ptio

ns a

nd S

tock

Fu

ture

s w

ere

intr

odu

ced

in J

une

200

0, J

une

200

1, J

uly

200

1 an

d N

ovem

ber

2001

, res

pect

ivel

y.

2. N

otio

nal T

urn

over

= (

Str

ike

Pri

ce +

Pre

miu

m)

* Q

uan

tity

.

3. O

pen

Inte

rest

(T

urn

over

) =

No.

of

outs

tand

ing

cont

ract

s *

clos

e va

lue

or p

rice

of

the

und

erly

ing.

Sou

rce

: NS

E


STATISTICAL TABLES


Tab

le 2

7: D

eriv

ativ

es T

radi

ng a

t B

SE

, Mar

ch 2

003

Dat

e I

ndex

Fut

ures

Sto

ck F

utur

esIn

dex

Opt

ions

Sto

ck O

ptio

nsT

otal

Ope

n In

tere

st

Cal

lsP

uts

Cal

ls P

uts

at t

he e

nd o

f

No.

of

Tur

nove

rN

o. o

fT

urno

ver

No.

of

Not

iona

lN

o. o

fN

otio

nal

No.

of

Not

iona

lN

o. o

fN

otio

nal

No.

of

Tur

nove

rN

o. o

fT

urno

ver

Con

trac

ts(R

s. m

n.)

Con

trac

ts(R

s. m

n.)

Con

trac

tsT

urno

ver

Con

trac

tsT

urno

ver

Con

trac

tsT

urno

ver

Con

trac

tsT

urno

ver

Con

trac

ts(R

s. m

n.)

Con

trac

ts(R

s. m

n.)

(Rs.

mn.

)(R

s. m

n.)

(Rs.

mn.

)(R

s. m

n.)

3-M

ar-0

3 1

,932

320

124

360

00

0 1

0 2

00

2,0

66 3

57 2

8959

4-M

ar-0

3 1

,584

259

52

150

00

0 1

1 3

00

1,6

47 2

77 2

7857

5-M

ar-0

3 2

,133

344

107

290

00

0 4

0 1

00

0 2

,280

384

344

72

6-M

ar-0

3 1

,866

301

44

130

00

0 2

4 7

00

1,9

34 3

20 4

0881

7-M

ar-0

3 1

,873

297

66

190

0 1

0.3

3 3

0 8

00

1,9

70 3

24 4

2983

10-M

ar-0

3 1

,966

309

84

200

00

00

00

0 2

,050

329

503

93

11-M

ar-0

3 2

,243

352

211

560

00

00

00

0 2

,454

408

456

87

12-M

ar-0

3 2

,501

393

90

280

00

0 2

0 5

00

2,6

11 4

26 3

7575

13-M

ar-0

3 2

,249

350

56

16 2

06

00

118

48

00

2,4

43 4

20 4

2387

17-M

ar-0

3 1

,962

302

33

8 2

06

00

1 0

.40

0 2

,016

316

388

78

19-M

ar-0

3 1

,568

244

17

60

00

0 2

6 6

00

1,6

11 2

56 4

7396

20-M

ar-0

3 2

,590

409

62

150

00

0 1

5 6

00

2,6

67 4

30 4

4591

21-M

ar-0

3 2

,610

416

150

400

00

00

00

0 2

,760

456

441

95

22-M

ar-0

3 1

,305

210

13

40

00

0 1

0 3

00

1,3

28 2

16 4

5396

24-M

ar-0

3 2

,784

441

300

780

00

0 2

2 6

00

3,1

06 5

25 5

0410

4

25-M

ar-0

3 2

,703

423

165

470

00

00

00

0 2

,868

470

476

100

26-M

ar-0

3 2

,614

412

112

290

00

0 1

0.2

60

0 2

,727

440

520

106

27-M

ar-0

3 2

,380

373

337

770

00

00

00

0 2

,717

450

368

76

28-M

ar-0

3 1

,510

235

49

110

00

0 1

0.1

9 1

0 1

,561

247

341

68

31-M

ar-0

3 7

7411

9 5

813

00

00

00

00

832

132

375

71

Mar

-03

41,

147

6,5

07 2

,130

559

40

13

1 0

329

103

1 0

43,

648

7,1

82 3

7571

Sou

rce

: BS

E


91

Tab

le 2

8: D

eriv

ativ

es T

radi

ng a

t N

SE

, Mar

ch 2

003

Dat

eIn

dex

Fut

ures

Sto

ck F

utur

esIn

dex

Opt

ions

Sto

ck O

ptio

nsT

otal

Ope

n In

tere

st a

t th

e

Cal

lsP

uts

Cal

lsP

uts

end

of

No.

of

Tur

nove

rN

o. o

fT

urno

ver

No.

of

Not

iona

lN

o. o

fN

otio

nal

No.

of

Not

iona

lN

o. o

fN

otio

nal

No.

of

Tur

nove

rN

o. o

fT

urno

ver

Con

trac

ts(R

s. m

n.)

Con

trac

ts(R

s. m

n.)

Con

trac

tsT

urno

ver

Con

trac

tsT

urno

ver

Con

trac

tsT

urno

ver

Con

trac

tsT

urno

ver

Con

trac

ts(R

s. m

n.)

Con

trac

ts(R

s. m

n.)

(Rs.

mn.

)(R

s. m

n.)

(Rs.

mn.

)(R

s. m

n.)

3-M

ar-0

311

,935

2,55

262

,108

16,9

372,

164

471

1,10

823

612

,815

3,67

85,

574

1,57

395

,704

25,4

4711

7,07

929

,042

4-M

ar-0

312

,442

2,62

947

,461

13,1

972,

600

560

1,35

928

811

,669

3,40

25,

244

1,56

580

,775

21,6

4112

3,53

830

,226

5-M

ar-0

319

,038

3,97

462

,945

16,5

282,

800

596

2,03

643

015

,455

4,37

36,

966

1,95

010

9,24

027

,852

129,

459

31,5

31

6-M

ar-0

313

,383

2,78

051

,165

13,8

541,

902

403

1,25

526

410

,717

3,03

95,

327

1,52

783

,749

21,8

6713

4,57

232

,291

7-M

ar-0

316

,040

3,28

654

,301

14,3

893,

310

694

2,32

848

815

,172

4,30

68,

728

2,46

299

,879

25,6

2513

8,21

932

,614

10-M

ar-0

319

,508

3,96

050

,665

13,0

432,

794

581

2,02

842

312

,037

3,29

97,

204

1,95

794

,236

23,2

6314

4,13

033

,452

11-M

ar-0

318

,855

3,80

863

,538

16,4

053,

353

691

2,29

047

313

,756

3,81

47,

231

2,06

710

9,02

327

,258

148,

033

34,7

96

12-M

ar-0

317

,556

3,55

161

,222

15,6

832,

616

539

1,62

033

512

,419

3,36

46,

692

1,81

010

2,12

525

,282

149,

198

34,6

70

13-M

ar-0

315

,674

3,14

155

,520

14,0

802,

618

536

1,68

134

512

,680

3,42

37,

911

2,13

196

,084

23,6

5715

2,55

935

,297

17-M

ar-0

315

,074

2,99

151

,417

13,5

362,

930

598

2,47

050

712

,828

3,61

98,

272

2,26

092

,991

23,5

1015

4,48

835

,702

19-M

ar-0

313

,442

2,70

353

,926

14,4

402,

263

463

1,52

631

012

,361

3,60

27,

606

2,19

691

,124

23,7

1415

5,97

536

,632

20-M

ar-0

321

,393

4,34

373

,176

19,0

733,

227

666

2,31

547

316

,267

4,67

28,

840

2,61

512

5,21

831

,842

158,

364

38,5

00

21-M

ar-0

315

,675

3,22

162

,449

17,0

393,

586

744

2,00

741

214

,924

4,46

66,

631

2,01

910

5,27

227

,901

158,

364

38,7

80

22-M

ar-0

37,

436

1,54

128

,161

7,58

72,

106

440

867

179

7,65

12,

163

3,42

098

549

,641

12,8

9415

9,37

839

,389

24-M

ar-0

319

,798

4,04

459

,341

15,4

973,

622

749

1,95

340

312

,280

3,49

57,

139

2,02

510

4,13

326

,212

158,

777

38,2

14

25-M

ar-0

321

,340

4,30

369

,279

18,2

402,

433

499

2,48

551

412

,447

3,50

78,

287

2,30

411

6,27

129

,367

158,

828

37,9

39

26-M

ar-0

322

,290

4,52

860

,376

15,3

681,

868

384

1,30

226

811

,527

3,16

86,

691

1,75

910

4,05

425

,475

160,

969

38,4

74

27-M

ar-0

317

,687

3,56

876

,412

19,2

962,

003

410

1,58

232

714

,193

3,79

810

,162

2,64

712

2,03

930

,047

168,

741

39,7

49

28-M

ar-0

313

,263

2,65

645

,903

11,1

992,

214

454

1,78

237

011

,563

3,01

05,

388

1,40

980

,113

19,0

9887

,932

20,3

95

31-M

ar-0

313

,470

2,65

949

,615

12,3

093,

379

687

1,74

535

212

,897

3,43

67,

227

1,92

388

,333

21,3

6597

,025

21,9

43

Mar

-03

325,

299

66,2

371,

138,

980

297,

698

53,7

8811

,165

35,7

397,

397

255,

658

71,6

3414

0,54

039

,186

1,95

0,00

449

3,31

797

,025

21,9

43

1. N

otio

nal T

urn

over

= (S

trik

e P

rice

+ P

rem

ium

) * Q

uan

tity

.

2. O

pen

Inte

rest

(Tu

rnov

er) =

No.

of

outs

tand

ing

cont

ract

s *

clos

e va

lue

or p

rice

of

the

und

erly

ing.

Sou

rce:

NS

E


STATISTICAL TABLES


Tab

le 2

9: S

ettl

emen

t S

tati

stic

s in

Der

ivat

ives

Seg

men

t(R

s. m

n.)

Mon

th/Y

ear

BS

EN

SE

Inde

x/S

tock

Fut

ures

Inde

x/S

tock

Opt

ions

Tot

alS

ettl

emen

tIn

dex/

Sto

ck F

utur

esIn

dex/

Sto

ck O

ptio

ns T

otal

Set

tlem

ent

MT

MF

inal

Pre

miu

mE

xerc

ise

Gua

rant

eeM

TM

Fin

alP

rem

ium

Exe

rcis

eG

uara

ntee

Set

tlem

ent

Set

tlem

ent

Set

tlem

ent

Set

tlem

ent

Fun

d*S

ettl

emen

tS

ettl

emen

tS

ettl

emen

tS

ettl

emen

tF

und*

Jun-

005

0N

AN

A5

399

20

NA

NA

2N

A

Jul-0

037

1N

AN

A38

435

150

NA

NA

15N

A

Au

g-00

352

NA

NA

3751

88

0N

AN

A8

NA

Sep

-00

431

NA

NA

4454

221

1N

AN

A22

NA

Oct

-00

442

NA

NA

4755

734

3N

AN

A37

NA

Nov

-00

631

NA

NA

6461

147

1N

AN

A47

NA

Dec

-00

401

NA

NA

4160

398

7N

AN

A10

5N

A

Jan-

0168

1N

AN

A69

612

119

1N

AN

A12

0N

A

Feb

-01

852

NA

NA

8867

116

15

NA

NA

167

NA

Mar

-01

840

NA

NA

8465

533

61

NA

NA

336

NA

2000

-01

505

11N

AN

A51

765

584

119

NA

NA

860

NA

Apr

-01

150

NA

NA

1663

580

1N

AN

A81

NA

May

-01

00

NA

NA

063

238

1N

AN

A39

NA

Jun-

018

06.

61.

416

710

490

153

66N

A

Jul-0

18

06.

12.

017

700

671

5914

141

NA

Au

g-01

130

17.1

3.2

3472

146

198

5119

6N

A

Sep

-01

617

13.1

12.1

9367

733

75

156

139

637

NA

Oct

-01

81

2.4

4.0

1564

811

31

180

114

408

NA

Nov

-01

230

2.4

3.0

2964

028

47

246

202

739

NA

Dec

-01

381

1.0

0.1

4162

878

938

175

821,

084

NA

Jan-

0242

22.

00.

446

587

1,12

522

306

178

1,63

0N

A

Feb

-02

252

0.4

0.0

2759

21,

089

122

244

891,

543

NA

Mar

-02

161

0.2

0.1

1749

31,

036

2017

068

1,29

46,

480

2001

-02

258

1551

.326

.235

149

35,

052

219

1,64

893

97,

859

6,48

0

Apr

-02

81

0.2

0.1

948

41,

066

4217

387

1,36

76,

550

May

-02

181

0.0

0.0

1949

71,

665

1821

514

42,

043

6,82

0

Jun-

0210

00.

10.

010

491

1,24

134

197

104

1,57

57,

140

Jul-0

212

00.

10.

012

474

1,60

917

236

107

1,96

97,

250

Au

g-02

80

0.2

0.0

846

61,

021

2920

513

91,

393

8,19

0

Sep

-02

60

0.4

0.0

746

11,

198

1423

313

51,

580

8,22

0

Oct

-02

30

0.1

0.0

445

81,

282

7825

816

61,

785

8,41

9

Nov

-02

30

0.1

0.0

445

51,

109

8733

735

31,

887

9,84

0

Dec

-02

30

0.0

0.1

344

01,

640

5344

616

82,

308

10,7

42

Jan-

0321

10.

10.

022

514

2,18

430

384

229

2,82

713

,154

Feb

-03

141

0.8

0.0

1551

51,

484

1728

913

11,

923

13,7

79

Mar

-03

170

1.5

0.0

1949

51,

879

3833

819

62,

452

13,0

02

2002

-03

122

63.

50.

213

149

517

,379

458

3,31

21,

959

23,1

0913

,002

* B

alan

ce a

t th

e en

d of

per

iod

Sou

rce:

BS

E, N

SE


93Table 30: Trends in FII Investment

Period Gross Gross Sales Net Investment Net Investment** Cumulative NetPurchases (Rs. mn.) (Rs. mn.) (US $ mn.) Investment**(Rs. mn.) (US $ mn.)

1992-93 174 40 134 4 4

1993-94 55,925 4,663 51,262 1,634 1,638

1994-95 76,310 28,348 47,963 1,528 3,167

1995-96 96,935 27,517 69,420 2,036 5,202

1996-97 155,539 69,794 85,745 2,432 7,634

1997-98 186,947 127,372 59,575 1,649 9,284

1998-99 161,150 176,994 -15,844 -386 8,898

1999-2000 568,555 467,335 101,219 2,339 11,237

2000-01 740,506 641,164 99,340 2,160 13,396

Apr-01 50,799 31,011 19,788 425 13,821

May-01 39,760 33,000 6,761 144 13,965

Jun-01 41,189 29,392 11,797 251 14,217

Jul-01 36,650 31,873 4,777 102 14,318

Aug-01 32,485 27,463 5,023 107 14,425

Sep-01 32,201 37,605 -5,405 -113 14,312

Oct-01 38,957 30,113 8,844 186 14,497

Nov-01 39,742 39,705 37 1 14,498

Dec-01 34,554 32,275 2,279 48 14,545

Jan-02 54,460 47,467 6,993 146 14,691

Feb-02 58,162 34,794 23,368 484 15,175

Mar-02 40,241 36,952 3,290 68 15,242

2001-02 499,200 411,650 87,552 1,846 15,242

Apr-02 51,090 52,210 -1,120 -23 15,219

May-02 43,540 43,080 460 9 15,229

Jun-02 33,510 42,170 -8,660 -177 15,052

Jul-02 35,000 32,620 2,380 49 15,101

Aug-02 26,680 24,940 1,740 36 15,136

Sep-02 37,657 34,432 3,224 67 15,203

Oct-02 28,129 36,878 -8,751 -181 15,023

Nov-02 41,353 33,977 7,376 152 15,175

Dec-02 42,873 36,398 6,479 134 15,309

Jan-03 53,145 43,292 9,852 205 15,514

Feb-03 34,707 30,421 4,281 89 15,603

Mar-03 42,917 33,292 9,628 202 15,804

2002-03 470,601 443,710 26,889 562 15,804

** Net Investment in US $ mn. at monthly exchange rate.


STATISTICAL TABLES


Tab

le 3

1: D

aily

Tre

nds

in F

orei

gn I

nsti

tuti

onal

Inv

estm

ent,

Mar

ch 2

003

Day

sE

quit

yD

ebt

Tot

al

Gro

ssG

ross

Net

Net

Gro

ssG

ross

Net

Net

Gro

ssG

ross

Net

Net

Pur

chas

eS

ales

Inve

stm

ent

Inve

stm

ent

Pur

chas

eS

ales

Inve

stm

ent

Inve

stm

ent

Pur

chas

eS

ales

Inve

stm

ent

Inve

stm

ent

(Rs.

mn.

)(R

s. m

n.)

(Rs.

mn.

)(U

S $

mn.

)(R

s. m

n.)

(Rs.

mn.

)(R

s. m

n.)

(US

$ m

n.)

(Rs.

mn.

)(R

s. m

n.)

(Rs.

mn.

)(U

S $

mn.

)

3-M

ar-2

003

3,62

31,

875

1,74

837

267

126

76

3,89

01,

876

2,01

542

4-M

ar-2

003

1,32

11,

076

245

50

00

01,

321

1,07

624

55

5-M

ar-2

003

1,00

91,

312

-303

-61,

179

01,

179

252,

188

1,31

287

618

6-M

ar-2

003

1,12

31,

311

-189

-40

00

01,

123

1,31

1-1

89-4

7-M

ar-2

003

958

975

-17

00

00

095

897

5-1

70

10-M

ar-2

003

1,44

31,

684

-241

-50

00

01,

443

1,68

4-2

41-5

11-M

ar-2

003

1,45

81,

102

356

80

00

01,

458

1,10

235

68

12-M

ar-2

003

1,11

81,

039

792

00

00

1,11

81,

039

792

13-M

ar-2

003

857

997

-141

-30

00

085

799

7-1

41-3

17-M

ar-2

003

1,55

12,

224

-673

-14

00

00

1,55

12,

224

-673

-14

19-M

ar-2

003

1,72

82,

570

-841

-18

1,90

81,

813

952

3,63

64,

383

-746

-16

20-M

ar-2

003

3,31

32,

474

839

180

00

03,

313

2,47

483

918

21-M

ar-2

003

3,42

61,

859

1,56

833

025

0-2

50-5

3,42

62,

109

1,31

828

24-M

ar-2

003

1,71

61,

276

440

93,

400

03,

400

715,

116

1,27

63,

840

80

25-M

ar-2

003

1,98

51,

585

400

80

00

01,

985

1,58

540

08

26-M

ar-2

003

1,11

41,

260

-146

-31,

062

1,70

1-6

40-1

32,

176

2,96

1-7

86-1

7

27-M

ar-2

003

1,45

71,

705

-248

-51,

486

01,

486

312,

943

1,70

51,

238

26

28-M

ar-2

003

2,12

81,

693

436

90

26-2

6-1

2,12

81,

719

410

9

31-M

ar-2

003

2,28

71,

483

805

170

00

02,

287

1,48

380

517

Tot

al33

,614

29,5

014,

117

869,

302

3,79

15,

511

115

42,9

1733

,292

9,62

820

2


95

Tab

le 3

2 : T

rend

s in

Mut

ual F

unds

Res

ourc

e M

obil

isat

ion

(Am

ount

in R

s. m

n.)

Per

iod

Gro

ssR

edem

ptio

n*N

et I

nflo

wA

sset

s at

the

Pvt

. Sec

.P

ubli

c S

ecto

rU

TI

Tot

alP

vt. S

ec.

Pub

lic

Sec

tor

UT

IT

otal

Pvt

. Sec

.P

ubli

c S

ecto

rU

TI

Tot

alE

nd o

f

1993

-94

15,4

9095

,265

510,

000

620,

755

NA

NA

NA

NA

NA

NA

NA

NA

NA

1994

-95

20,8

4021

,430

95,0

0013

7,27

0N

AN

AN

AN

AN

AN

AN

AN

AN

A

1995

-96

3,12

02,

960

59,0

0065

,080

NA

NA

NA

NA

NA

NA

NA

NA

NA

1996

-97

3,46

01,

510

42,8

0047

,770

NA

NA

NA

NA

NA

NA

NA

NA

NA

1997

-98

19,7

403,

320

91,0

0011

4,06

0N

AN

AN

AN

AN

AN

AN

AN

AN

A

1998

-99

78,4

6516

,713

131,

929

227,

107

63,9

3813

,362

159,

304

236,

604

14,5

273,

352

-27,

375

-9,4

9768

1,93

1

1999

-200

043

7,25

738

,171

136,

984

612,

412

285,

592

45,6

2191

,501

422,

714

151,

665

-7,4

4945

,483

189,

699

1,07

9,46

1

2000

-01

750,

091

55,3

5312

4,13

092

9,57

465

1,59

565

,798

120,

900

838,

293

98,4

96-1

0,44

53,

230

91,2

8190

5,86

9

Apr

-01

71,0

403,

442

4,50

078

,982

49,1

241,

998

7,47

058

,592

21,9

161,

444

-2,9

7020

,390

931,

007

May

-01

64,3

037,

462

3,76

075

,525

36,5

553,

738

23,0

2063

,312

27,7

483,

725

-19,

260

12,2

1396

7,95

3

Jun-

0198

,884

13,9

3818

,580

131,

401

67,8

704,

120

22,6

5094

,641

31,0

139,

818

-4,0

7036

,761

979,

528

Jul-

0111

3,29

180

02,

370

116,

461

88,3

395,

931

8,73

010

3,00

024

,952

-5,1

31-6

,360

13,4

6198

9,69

4

Au

g-01

95,0

227,

240

1,67

010

3,93

382

,415

6,15

36,

330

94,8

9812

,607

1,08

7-4

,660

9,03

499

3,35

8

Sep

-01

120,

960

10,8

852,

310

134,

154

145,

717

10,1

914,

260

160,

168

-24,

757

693

-1,9

50-2

6,01

491

8,10

6

Oct

-01

104,

658

6,81

31,

320

112,

791

92,3

786,

047

10,9

5010

9,37

512

,280

766

-9,6

303,

416

945,

701

Nov

-01

103,

317

8,47

01,

200

112,

987

86,4

515,

600

2,76

094

,811

16,8

672,

870

-1,5

6018

,176

998,

413

Dec

-01

153,

142

14,4

152,

870

170,

427

132,

657

10,9

423,

927

147,

525

20,4

863,

473

-1,0

5722

,902

1,01

8,21

8

Jan-

0213

8,11

314

,479

2,53

015

5,12

212

3,06

412

,812

15,6

9415

1,57

015

,049

1,66

6-1

3,16

43,

552

1,04

1,14

9

Feb

-02

188,

064

14,1

643,

060

205,

288

172,

903

13,1

115,

920

191,

935

15,1

611,

052

-2,8

6013

,353

1,06

8,14

1

Mar

-02

227,

188

18,7

122,

260

248,

161

270,

011

26,0

827,

560

303,

653

-42,

822

-7,3

70-5

,300

-55,

492

1,00

5,94

2

2001

-02

1,47

7,98

312

0,81

946

,430

1,64

5,23

21,

347,

484

106,

726

119,

270

1,57

3,48

013

0,49

914

,093

-72,

840

71,7

521,

005,

942

Apr

-02

195,

645

12,2

362,

000

209,

882

173,

739

10,9

267,

490

192,

156

21,9

061,

310

-5,4

9017

,726

1,02

8,30

8

May

-02

163,

851

11,9

442,

070

177,

865

143,

645

10,0

7319

,480

173,

198

20,2

071,

870

-17,

410

4,66

71,

022,

310

Jun-

0216

3,84

112

,220

2,43

017

8,49

116

0,00

212

,623

36,5

8020

9,20

63,

839

-403

-34,

150

-30,

714

1,00

7,03

5

Jul-

0220

4,47

917

,386

3,11

022

4,97

518

4,41

113

,750

6,45

720

4,61

920

,067

3,63

6-3

,347

20,3

561,

023,

936

Au

g-02

191,

894

17,3

163,

923

213,

134

158,

261

12,1

444,

730

175,

135

33,6

335,

173

-807

37,9

981,

076,

211

Sep

-02

219,

133

16,7

378,

299

244,

169

208,

796

15,5

1213

,458

237,

765

10,3

361,

226

-5,1

586,

404

1,06

9,29

5

Oct

-02

250,

370

20,9

7511

,845

283,

190

200,

606

15,4

908,

471

224,

566

49,7

655,

485

3,37

458

,624

1,13

1,52

8

Nov

-02

260,

453

25,1

3510

,118

295,

707

208,

761

17,5

6720

,753

247,

081

51,6

937,

568

-10,

635

48,6

251,

213,

928

Dec

-02

279,

132

24,9

574,

593

308,

682

289,

263

20,0

298,

724

318,

016

-10,

131

4,92

8-4

,131

-9,3

341,

226,

003

Jan-

0331

3,38

133

,653

6,65

935

3,69

328

9,91

435

,902

16,1

0934

1,92

623

,467

-2,2

50-9

,450

11,7

671,

218,

056

Feb

-03

275,

184

18,8

207,

709

301,

714

329,

379

24,9

8611

,786

366,

151

-54,

195

-6,1

66-4

,077

-64,

437

1,17

0,25

3

Mar

-03

323,

591

23,7

698,

202

355,

561

373,

483

30,5

3611

,262

415,

280

-49,

892

-6,7

67-3

,060

-59,

719

1,09

2,99

4

2002

-03

2,84

0,95

523

5,14

970

,958

3,14

7,06

22,

720,

260

219,

538

165,

299

3,10

5,09

812

0,69

415

,611

-94,

341

41,9

641,

092,

994

*Inc

lude

s re

purc

hase

s as

wel

l as

rede

mpt

ion


STATISTICAL TABLES


Tab

le 3

3A :

Sch

eme-

Wis

e R

esou

rce

Mob

ilis

atio

n by

Mut

ual F

unds

(Rs.

mn.

)

Sch

eme

2000

-01

2001

-02

2002

-03

Net

Ass

ets

as o

n

Sal

eP

urch

ase

Net

Sal

eP

urch

ase

Net

Sal

eP

urch

ase

Net

31-M

ar-0

3

Ope

n-e

nd

ed91

1,05

978

7,87

612

3,18

31,

631,

440

1,53

9,24

592

,196

3,14

2,39

33,

020,

523

121,

871

894,

814

Clo

se-e

nd

ed18

,515

50,4

17-3

1,90

213

,792

34,2

35-2

0,44

44,

669

84,5

75-7

9,90

719

8,18

0

Tot

al92

9,57

483

8,29

391

,281

1,64

5,23

21,

573,

480

71,7

523,

147,

062

3,10

5,09

841

,964

1,09

2,99

4

Tab

le 3

3B :

Sch

eme-

Wis

e R

esou

rce

Mob

ilis

atio

n by

Mut

ual F

unds

(Rs.

mn.

)

Sch

eme

2000

-01

2001

-02

2002

-03

Sal

eP

urch

ase

Net

Sal

eP

urch

ase

Net

Sal

eP

urch

ase

Net

A. I

ncom

e/D

ebt

Ori

ente

d S

chem

es (

i+ii

+ii

i+iv

)67

0,46

359

9,55

270

,910

1,62

0,06

51,

489,

420

130,

644

3,09

6,72

23,

038,

916

57,8

06

i.L

iqu

id/M

oney

Mar

ket

3621

1733

6481

2563

610

4546

210

1254

832

914

1950

471

1900

422

5005

0

ii.G

ilt41

605

4472

3-3

117

6438

748

754

1563

352

017

5892

2-6

905

iii.

Deb

t (o

ther

th

an a

ssu

re r

etu

rn)

2606

0020

1727

5887

349

6336

4243

9571

941

1094

234

1008

724

8551

0

iv.

Deb

t (a

ssu

red

ret

urn

)61

4016

622

-104

8213

880

3724

1015

60

7084

9-7

0849

B. G

row

th/E

quit

y O

rien

ted

Sch

emes

(i+

ii)

182,

106

189,

554

-7,4

4820

,398

25,7

46-5

,348

46,3

9645

,963

433

i.E

LS

S2,

140

6,56

3-4

,423

327

3,14

4-2

,817

216

6,78

9-6

,573

ii.O

ther

s17

9,96

618

2,99

1-3

,025

20,0

7122

,602

-2,5

3146

,180

39,1

747,

007

C. B

alan

ced

Sch

emes

77,0

0549

,187

27,8

194,

769

58,3

13-5

3,54

43,

944

20,2

19-1

6,27

5

Tot

al (

A+

B+

C)

929,

574

838,

293

91,2

811,

645,

232

1,57

3,48

071

,752

3,14

7,06

23,

105,

098

41,9

64


97

Tab

le 3

4 : T

rend

s in

Tra

nsac

tion

s on

Sto

ck E

xcha

nges

by

Mut

ual F

unds

(Rs.

mn.

)

Per

iod

Equ

ity

Deb

tT

otal

Gro

ss P

urch

ase

Gro

ss S

ales

Net

Pur

chas

e/S

ales

Gro

ss P

urch

ase

Gro

ss S

ales

Net

Pur

chas

e/S

ales

Gro

ss P

urch

ase

Gro

ss S

ales

Net

Pur

chas

e/S

ales

2000

-01

1737

5820

1428

-276

7013

5122

8488

750

235

3088

8028

6314

2256

5

Apr

-01

7,46

510

,395

-2,9

3014

,645

7,15

07,

495

22,1

1017

,545

4,56

6

May

-01

9,94

414

,732

-4,7

8825

,483

14,0

6811

,414

35,4

2628

,800

6,62

6

Jun

-01

6,58

67,

706

-1,1

2125

,195

18,3

816,

814

31,7

8026

,087

5,69

3

Jul-

014,

753

9,20

2-4

,449

25,5

3514

,763

10,7

7330

,289

23,9

656,

324

Au

g-01

6,43

710

,213

-3,7

7529

,520

17,7

9611

,724

35,9

5728

,009

7,94

9

Sep

-01

8,78

57,

669

1,11

616

,146

18,7

64-2

,618

24,9

3126

,434

-1,5

03

Oct

-01

7,51

414

,258

-6,7

4426

,260

16,4

899,

772

33,7

7530

,747

3,02

8

Nov

-01

10,0

3513

,484

-3,4

5032

,817

16,3

2016

,497

42,8

5129

,804

13,0

47

Dec

-01

13,4

0412

,638

766

26,1

7816

,752

9,42

639

,583

29,3

9110

,192

Jan

-02

17,2

2221

,571

-4,3

4949

,223

28,2

4520

,978

66,4

4549

,816

16,6

29

Feb

-02

17,0

5320

,570

-3,5

1838

,913

30,8

508,

064

55,9

6651

,420

4,54

6

Mar

-02

11,7

8316

,501

-4,7

1825

,659

26,3

65-7

0637

,442

42,8

66-5

,424

2001

-02

120,

981

158,

940

-37,

959

335,

573

225,

942

109,

632

456,

555

384,

882

71,6

73

Apr

-02

13,0

0116

,826

-3,8

2631

,543

17,1

0314

,439

44,5

4333

,930

10,6

14

May

-02

13,6

6215

,062

-1,4

0025

,119

20,8

494,

270

38,7

8135

,911

2,87

0

Jun

-02

10,8

3214

,777

-3,9

4532

,669

23,6

089,

061

43,5

0138

,386

5,11

6

Jul-

0214

,446

17,3

24-2

,878

42,3

2725

,378

16,9

4956

,773

42,7

0214

,072

Au

g-02

10,2

0212

,229

-2,0

2742

,612

27,7

7214

,840

52,8

1440

,000

12,8

14

Sep

-02

9,59

59,

314

281

39,5

2429

,629

9,89

449

,119

38,9

4310

,176

Oct

-02

12,4

7612

,920

-444

55,9

8031

,576

24,4

0468

,457

44,4

9723

,960

Nov

-02

10,5

9413

,949

-3,3

5546

,378

23,8

7522

,503

56,9

7237

,824

19,1

48

Dec

-02

14,1

2414

,099

2440

,215

37,9

622,

252

54,3

3852

,061

2,27

7

Jan

-03

15,3

4219

,372

-4,0

3052

,590

41,0

8511

,505

67,9

3260

,458

7,47

4

Feb

-03

10,7

7710

,466

311

31,1

5336

,120

-4,9

6641

,930

46,5

86-4

,655

Mar

-03

10,1

579,

536

621

26,5

3025

,637

893

36,6

8735

,173

1,51

4

2002

-03

145,

209

165,

876

-20,

667

466,

638

340,

594

126,

044

611,

847

506,

470

105,

377


STATISTICAL TABLES


Tab

le 3

5 : S

ubst

anti

al A

cqui

siti

on o

f S

hare

s an

d T

akeo

vers

(Val

ue

in R

s. m

n.)

Yea

rO

pen

Off

ers

Aut

omat

ic E

xem

ptio

n

Obj

ecti

ves

Tot

alN

umbe

rV

alue

Cha

nge

in C

ontr

ol o

fC

onso

lida

tion

of

Sub

stan

tial

Acq

uisi

tion

Man

agem

ent

Hol

ding

s

Num

ber

Val

ueN

umbe

rV

alue

Num

ber

Val

ueN

umbe

rV

alue

1997

-98

171,

428.

510

3,39

8.3

1395

6.3

405,

783.

193

35,0

22.2

1998

-99

2999

6.8

255,

869.

312

3,27

0.6

6610

,136

.720

118

,881

.0

1999

-200

043

2,60

2.6

971

0.7

231,

299.

975

4,61

3.3

252

46,7

74.0

2000

-01

7011

,404

.25

1,88

9.9

242

4.8

7713

,719

.024

848

,731

.8

2001

-02

5417

,560

.026

18,1

50.0

139

0.0

8136

,100

.027

625

,390

.4

Apr

-02

818

,471

.93

110.

70

0.0

1118

,582

.652

7,25

6.5

May

-02

93,

850.

64

5,07

6.8

10.

814

8,92

8.2

2291

3.5

Jun

-02

215

0.4

62,

269.

70

0.0

82,

420.

110

538.

5

Jul-

023

11,5

57.0

124

.40

0.0

411

,581

.420

1,19

4.9

Au

g-02

52,

046.

31

0.8

00.

06

2,04

7.1

253,

631.

2

Sep

-02

117

.43

2,90

2.8

00.

04

2,92

0.2

285,

988.

3

Oct

-02

0.0

42,

986.

00

0.0

42,

986.

027

1,31

7.7

Nov

-02

391

1.4

451

1.2

00.

07

1,42

2.6

1052

6.1

Dec

-02

334

8.5

42,

048.

50

0.0

72,

397.

012

743.

5

Jan

-03

576

9.8

48,

919.

91

13.4

109,

703.

114

407.

6

Feb

-03

516

.74

226.

70

0.0

924

3.4

977

1.2

Mar

-03

24.

12

654.

90

0.0

465

9.0

999

4.9

2002

-03

4638

,144

.240

25,7

32.6

214

.288

63,8

91.0

238

24,2

83.8


99

Tab

le 3

6 : P

rogr

ess

of D

emat

eria

lisa

tion

at

NS

DL

and

CD

SL

At

the

end

ofN

SD

LC

DS

Lth

e pe

riod

Cos

-C

os-L

ive

DP

s-L

ive

DP

s-M

kt.

Cap

.D

emat

Cos

-C

os-L

ive

DP

s-L

ive

DP

s-M

kt.

Cap

.D

emat

Agr

eem

ent

Loc

atio

ns(R

s. m

n.)*

Qua

ntit

yA

gree

men

tL

ocat

ions

(Rs.

mn.

)#Q

uant

ity

Sig

ned

(mil

lion

Sig

ned

(mil

lion

shar

es)

shar

es)

1996

-97

40

23

24

24

908,

180

22

NA

NA

NA

NA

NA

NA

1997

-98

191

171

49

200

2,88

3,47

01,

763

NA

NA

NA

NA

NA

NA

1998

-99

375

365

84

750

3,96

5,51

07,

109

15

15

NA

NA

NA

NA

1999

-200

091

882

112

41,

425

7,65

8,75

415

,501

541

541

NA

NA

NA

NA

2000

-01

2,82

12,

786

186

1,89

65,

553,

757

37,2

082,

723

2,70

313

713

210

9,06

01,

920

Apr

-01

2,90

92,

848

190

1,90

25,

503,

064

38,0

482,

821

2,80

213

813

290

,530

1,89

0

May

-01

3,01

42,

981

196

2,63

35,

707,

832

38,6

163,

106

3,06

214

514

010

5,37

02,

270

Jun

-01

3,18

33,

154

202

2,63

95,

398,

317

39,9

483,

299

3,27

914

414

810

5,72

02,

290

Jul-

013,

350

3,31

820

32,

651

5,14

8,45

541

,942

3,39

13,

376

142

149

125,

170

2,65

0

Au

g-01

3,44

63,

425

204

2,65

25,

103,

420

42,8

403,

463

3,46

114

115

111

0,41

02,

830

Sep

-01

3,56

13,

506

204

2,65

24,

456,

000

44,0

353,

556

3,54

614

015

112

4,57

02,

990

Oct

-01

3,65

13,

602

205

2,65

34,

748,

980

44,9

343,

758

3,75

114

215

710

7,52

03,

470

Nov

-01

3,74

63,

692

207

2,65

55,

288,

882

45,6

353,

824

3,82

114

116

312

6,13

03,

700

Dec

-01

3,84

73,

760

209

1,65

55,

233,

400

47,0

274,

056

4,03

814

316

812

7,36

03,

720

Jan

-02

4,01

23,

954

210

1,64

85,

363,

152

48,3

404,

177

4,16

814

617

711

9,87

03,

990

Feb

-02

4,12

04,

088

212

1,64

85,

882,

299

49,6

884,

224

4,22

214

617

621

3,88

04,

540

Mar

-02

4,21

04,

172

212

1,64

86,

150,

006

51,6

734,

293

4,28

414

818

124

3,37

04,

820

2001

-02

4,21

04,

172

212

1,64

86,

150,

006

51,6

734,

293

4,28

414

818

124

3,37

04,

820

Apr

-02

4,29

44,

252

213

1,64

96,

276,

870

54,5

444,

361

4,35

614

918

028

5,94

05,

450

May

-02

4,35

54,

324

212

1,64

96,

049,

770

56,7

684,

397

4,39

315

118

731

3,64

05,

260

Jun

-02

4,40

54,

369

212

1,65

06,

429,

628

58,2

794,

428

4,42

815

218

730

2,54

05,

660

Jul-

024,

482

4,43

721

31,

650

5,91

7,32

360

,614

4,46

34,

455

159

192

291,

070

5,85

0

Au

g-02

4,53

34,

500

213

1,71

86,

122,

881

61,6

874,

481

4,47

916

019

730

9,92

06,

240

Sep

-02

4,57

94,

547

213

1,71

85,

725,

208

63,5

534,

499

4,49

416

619

829

8,27

06,

300

Oct

-02

4,63

14,

598

213

1,71

85,

679,

546

64,7

024,

540

4,53

716

920

229

1,05

06,

790

Nov

-02

4,66

54,

631

213

1,71

86,

054,

445

61,4

574,

552

4,54

917

020

230

0,95

07,

020

Dec

-02

4,69

04,

664

212

1,71

76,

298,

920

62,9

394,

562

4,56

217

020

633

9,22

07,

280

Jan

-03

4,71

44,

691

213

1,71

86,

335,

905

64,2

444,

584

4,58

417

420

735

2,35

07,

810

Feb

-03

4,74

44,

705

213

1,71

86,

484,

082

67,6

134,

604

4,60

417

520

837

5,25

08,

040

Mar

-03

4,80

34,

761

213

1,71

86,

005,

389

68,7

574,

628

4,62

817

721

236

1,64

08,

210

2002

-03

4,80

34,

761

213

1,71

86,

005,

389

68,7

574,

628

4,62

817

721

236

1,64

08,

210

Sou

rce

: NS

DL

and

CD

SL

.*M

arke

t ca

pita

lisat

ion

of

com

pani

es t

hat

have

joi

ned

NS

DL

(in

clu

sive

of

both

phy

sica

l and

dem

ater

ialis

ed s

hare

s).

# M

arke

t ca

pita

lisat

ion

of s

ecu

riti

es in

CD

SL

.


STATISTICAL TABLES


Table 37 : Receipt and Redressal of Investor Grievances

Year Grievances Received Grievances Redressed Cumulative

During the year Cumulative During the year Cumulative Redressal Rate (%)

1991-92 18,794 18,794 4,061 4,061 21.61

1992-93 1,10,317 1,29,111 22,946 27,007 20.92

1993-94 5,84,662 7,13,773 3,39,517 3,66,524 51.35

1994-95 5,16,080 12,29,853 3,51,842 7,18,366 58.41

1995-96 3,76,478 16,06,331 3,15,652 10,34,018 64.37

1996-97 2,17,394 18,23,725 4,31,865 14,65,883 80.38

1997-98 5,11,507 23,35,232 6,76,555 21,42,438 91.74

1998-99 99,132 24,34,364 1,27,227 22,69,665 93.24

1999-2000 98,605 25,32,969 1,46,553 24,16,218 95.39

2000-01 96,913 26,29,882 85,583 25,01,801 95.13

2001-02 81,600 27,11,482 70,328 25,72,129 94.86

2002-03 37,434 27,48,916 38,972 26,11,101 94.99


101

Tab

le 3

8 : A

sset

s un

der

the

Cus

tody

of

Cus

todi

ans

(Am

ount

in R

s. m

n.)

Clie

ntFI

Is/S

asF

IM

utua

l Fun

dsN

RIs

OC

Bs

Bro

kers

Cor

pora

tes

Ban

ksFo

reig

nO

ther

sT

otal

At

the

Dep

osito

ries

end

ofN

o.A

mou

ntN

o.A

mou

ntN

o.A

mou

ntN

o.A

mou

ntN

o.A

mou

ntN

o.A

mou

ntN

o.A

mou

ntN

o.A

mou

ntN

o.A

mou

ntN

o.A

mou

ntN

o.A

mou

nt

Apr

-01

1,30

951

4,41

524

1,33

4,72

924

022

5,84

51,

711

1,75

617

419

,303

594

046

394

,295

1042

,150

915

6,04

227

,856

105,

140

31,8

012,

494,

614

May

-01

1,32

154

4,64

426

1,29

7,05

424

225

5,35

41,

724

1,88

314

822

,933

564

046

794

,283

1042

,985

916

7,03

127

,749

133,

177

31,7

012,

559,

982

Jun-

011,

344

539,

881

251,

245,

428

242

268,

473

1,73

81,

898

170

19,1

016

1,13

947

210

5,19

310

71,1

489

155,

577

27,6

2511

7,03

931

,641

2,52

4,87

6

Jul-0

11,

339

517,

251

251,

074,

447

328

269,

305

1,73

51,

832

174

16,0

856

1,08

648

510

1,11

610

43,7

939

152,

080

27,5

7912

4,87

931

,690

2,30

1,87

4

Aug

-01

1,34

251

5,06

025

1,04

5,56

834

429

1,40

21,

741

1,67

217

115

,688

61,

152

483

108,

563

1115

4,83

69

147,

836

27,4

6412

3,19

431

,596

2,40

4,97

0

Sep-

011,

320

427,

270

2497

9,73

434

729

1,02

91,

744

1,47

616

314

,978

572

049

211

3,16

611

61,8

2131

151,

516

27,3

8484

,019

31,5

212,

125,

729

Oct

-01

1,32

647

5,11

324

1,02

0,80

737

530

7,10

71,

760

1,46

216

411

,846

41,

465

495

113,

004

1164

,821

3116

4,54

527

,317

101,

590

31,5

072,

261,

758

Nov

-01

1,35

553

6,35

124

1,06

3,26

138

330

6,10

41,

768

1,75

816

413

,885

41,

393

500

111,

913

1173

,576

3117

1,85

627

,287

159,

120

31,5

272,

439,

216

Dec

-01

1,33

254

2,13

622

1,03

7,03

742

231

2,25

41,

766

1,80

118

113

,543

570

529

109,

735

1389

,722

3116

0,02

427

,177

104,

477

31,4

782,

370,

798

Jan-

021,

375

560,

136

251,

067,

862

435

333,

879

1,78

81,

903

181

14,2

894

053

912

4,44

413

116,

223

3116

3,86

326

,967

116,

072

31,3

582,

498,

671

Feb-

021,

372

611,

562

251,

120,

579

447

357,

341

1,79

61,

733

183

13,0

464

056

012

8,40

114

151,

833

3217

3,17

326

,947

128,

956

31,3

802,

686,

625

Mar

-02

1,35

461

7,52

826

1,10

8,24

345

832

5,70

51,

820

1,84

817

812

,851

40

565

133,

111

1417

7,98

332

172,

971

26,7

8015

2,43

031

,231

2,70

2,66

7

2001

-02

1,35

461

7,52

826

1,10

8,24

345

832

5,70

51,

820

1,84

817

812

,851

40

565

133,

111

1417

7,98

332

172,

971

26,7

8015

2,43

031

,231

2,70

2,66

7

Apr

-02

1,35

859

0,57

926

1,11

0,47

946

431

4,42

11,

832

1,91

117

513

,103

485

056

313

6,18

214

176,

542

3216

6,95

226

,723

148,

443

31,1

912,

659,

462

May

-02

1,32

055

2,90

526

1,09

4,15

246

934

8,48

11,

837

2,74

017

112

,340

460

855

913

8,52

014

179,

300

3316

0,27

126

,742

156,

736

31,1

752,

646,

052

Jun-

021,

314

561,

685

311,

104,

173

432

380,

008

1,83

82,

793

168

12,7

494

490

524

143,

429

1519

3,16

033

161,

485

27,1

0115

6,16

031

,460

2,71

6,13

3

Jul-0

21,

308

517,

612

291,

113,

261

446

397,

803

1,84

32,

555

168

11,1

214

650

529

147,

721

1519

6,09

933

147,

280

29,6

8915

0,45

334

,064

2,68

4,55

6

Aug

-02

1,30

754

6,08

829

1,12

5,64

644

942

6,89

41,

861

2,73

016

810

,585

415

053

214

9,73

815

210,

997

3315

7,72

827

,928

156,

485

32,3

262,

787,

040

Sep-

021,

301

523,

864

311,

096,

407

451

428,

588

1,88

02,

641

169

9,36

84

850

540

150,

176

1320

7,46

933

150,

230

28,1

5215

8,88

732

,574

2,72

8,48

0

Oct

-02

1,30

751

1,14

131

1,08

3,16

943

245

9,80

61,

901

2,63

716

79,

325

445

054

214

4,88

013

206,

604

3314

5,22

928

,302

157,

409

32,7

322,

720,

649

Nov

-02

1,31

057

4,45

432

1,12

9,16

244

048

7,36

81,

909

3,10

116

510

,033

41,

305

548

146,

704

1321

0,93

033

160,

489

28,2

7116

4,97

732

,725

2,88

8,52

2

Dec

-02

1,30

959

3,23

734

1,16

8,71

645

449

0,03

81,

916

3,20

215

610

,038

42,

806

553

154,

734

1321

4,77

533

171,

856

28,2

4216

2,63

232

,714

2,97

2,03

4

Jan-

031,

304

590,

696

331,

152,

741

463

504,

426

1,92

22,

950

156

8,86

94

816

559

141,

088

1321

7,51

933

168,

715

28,2

6117

3,43

232

,748

2,96

1,25

0

Feb-

031,

291

599,

091

3481

3,06

146

541

9,28

91,

936

2,84

215

59,

177

30

576

151,

714

1221

6,67

735

168,

889

28,3

0416

4,65

932

,811

2,54

5,39

9

Mar

-03

1,31

356

1,39

433

1,13

1,54

549

641

3,68

31,

930

2,62

714

111

,357

30

540

134,

979

1220

8,13

733

158,

897

28,0

5116

5,92

532

,552

2,78

8,54

5

2002

-03

1,31

356

1,39

433

1,13

1,54

549

641

3,68

31,

930

2,62

714

111

,357

30

540

134,

979

1220

8,13

733

158,

897

28,0

5116

5,92

532

,552

2,78

8,54

5

Sou

rce

: Var

iou

s C

ust

odia

ns


STATISTICAL TABLES


Tab

le 3

9 : R

atin

gs A

ssig

ned

for

Cor

pora

te D

ebt

Sec

urit

ies

(mat

urit

y >

1 y

ear)

(Am

ount

in R

s. m

n.)

Gra

deIn

vest

men

t G

rade

Non

-Inv

estm

ent

Gra

deT

otal

Hig

hest

Saf

ety

(AA

A)

Hig

h S

afet

y (A

A)

Ade

quat

e S

afet

y (A

)M

oder

ate

Saf

ety

(BB

B)

Per

iod

Num

ber

Am

ount

Num

ber

Am

ount

Num

ber

Am

ount

Num

ber

Am

ount

Num

ber

Am

ount

Num

ber

Am

ount

1999

-00

7797

7,22

557

111,

055

5572

,268

178,

958

147,

231

220

1,17

6,73

7

2000

-01

113

979,

879

9912

8,80

163

148,

898

916

,885

114,

045

295

1,27

8,50

8

Apr

-01

240

,130

712

,970

31,

450

110

01

350

1455

,000

May

-01

510

,852

58,

820

393

00

00

013

20,6

02

Jun

-01

983

,218

935

,650

611

,450

115

00

025

130,

468

Jul-

019

46,0

2713

42,6

478

20,7

004

990

445

038

110,

814

Au

g-01

1639

1,53

223

150,

470

726

,350

41,

490

115

051

569,

992

Sep

-01

1546

,355

1296

,780

89,

270

71,

000

00

4215

3,40

5

Oct

-01

513

,792

75,

426

118,

310

31,

125

00

2628

,653

Nov

-01

1290

,749

59,

720

89,

930

310

,240

00

2812

0,63

9

Dec

-01

1270

,434

85,

850

619

,425

00

110

027

95,8

09

Jan

-02

1050

,708

116,

835

915

,040

150

00

3172

,633

Feb

-02

311

,642

711

,950

341

00

00

013

24,0

02

Mar

-02

814

,428

56,

000

87,

590

210

03

1,86

526

29,9

83

2001

-02

106

869,

867

112

393,

118

8013

0,85

526

15,2

4510

2,91

533

41,

412,

000

Apr

-02

657

,430

36,

800

390

01

441

7014

65,2

44

May

-02

1578

,362

635

,680

47,

250

123

00

026

121,

522

Jun

-02

2011

3,54

06

7,05

01

301

134

120

029

120,

954

Jul-

0216

95,7

459

18,8

507

7,46

64

2,75

00

036

124,

811

Au

g-02

1410

3,32

412

13,1

3713

18,1

502

3,24

01

420

4213

8,27

1

Sep

-02

1283

,854

97,

260

1215

,250

359

00

036

106,

954

Oct

-02

79,

718

96,

420

11,

000

240

51

100

2017

,643

Nov

-02

1544

,114

94,

040

536

,200

13,

000

11,

000

3188

,354

Dec

-02

1841

,659

715

,650

59,

920

12,

000

00

3169

,229

Jan

-03

1034

2,35

09

34,1

004

3,20

01

200

11,

000

2538

0,85

0

Feb

-03

1977

,494

731

,692

130

03

9,48

64

11,8

3634

130,

808

Mar

-03

830

490

914

447

868

522

1270

00

2753

059

2002

-03

160

1,07

8,08

095

195,

126

6410

6,51

822

23,3

4910

14,6

2635

11,

417,

698

Sou

rce

: Var

iou

s C

redi

t R

atin

g A

genc

ies


103

Tab

le 4

0 : R

evie

w o

f A

ccep

ted

Rat

ings

of

Cor

pora

te D

ebt

Sec

urit

ies

(mat

urit

y >

1 y

ear)

(Am

ount

in

Rs.

mn.

)

Gra

deU

pgra

ded

Dow

ngra

ded

Rea

ffir

med

Rat

ing

Wat

chW

ithd

raw

nT

otal

Per

iod

Num

ber

Am

ount

Num

ber

Am

ount

Num

ber

Am

ount

Num

ber

Am

ount

Num

ber

Am

ount

Num

ber

Am

ount

1999

-00

126

22

640

61,

433

00

233

011

2,66

5

2000

-01

61,

551

473

226

33,0

170

06

1,32

542

36,6

25

Apr

-01

84,

251

144,

095

3320

,916

00

395

258

30,2

14

May

-01

133,

166

4614

8,78

680

412,

745

150

102,

243

150

566,

990

Jun

-01

1226

,562

9491

,960

9141

3,41

51

5026

3,85

822

453

5,84

5

Jul-

0112

144,

003

104

84,2

7613

71,

327,

647

52,

067

273,

599

285

1,56

1,59

2

Au

g-01

3356

,220

142

217,

220

216

1,60

3,44

634

62,1

8349

10,3

9347

41,

949,

462

Sep

-01

5610

7,05

612

326

1,35

727

82,

678,

079

2781

,218

115

48,8

1859

93,

176,

527

Oct

-01

00

61,

982

2253

,449

223

65

1,36

835

57,0

35

Nov

-01

00

117,

710

1160

,642

00

894

330

69,2

95

Dec

-01

414

,530

71,

067

2189

,630

116

57

2,02

440

107,

417

Jan

-02

21,

060

724

,132

4818

8,22

014

116,

540

77,

441

7833

7,39

3

Feb

-02

126

815

385,

060

541,

666,

012

31,

800

83,

468

812,

056,

608

Mar

-02

00

2212

7,81

132

105,

882

23,

569

73,

693

6324

0,95

5

2001

-02

141

357,

115

591

1,35

5,45

61,

023

8,62

0,08

390

267,

878

272

88,8

002,

117

10,6

89,3

32

Apr

-02

125

026

33,3

0421

108,

922

10

124,

252

6114

6,72

8

May

-02

019

201,

761

3620

9,73

20

06

9,15

061

420,

643

Jun

-02

31,

050

2147

3,04

855

130,

780

43,

039

93,

447

9261

1,36

4

Jul-

021

200

2352

,680

4021

9,18

23

607

81,

599

7527

4,26

7

Au

g-02

150

017

24,5

8532

414,

706

35,

805

103,

549

6344

9,14

5

Sep

-02

11,

000

82,

678

3537

3,16

36

125,

099

136,

972

6350

8,91

2

Oct

-02

150

1511

8,70

121

95,2

108

61,1

4012

3,50

457

278,

605

Nov

-02

31,

373

857

,830

2414

1,99

23

19,9

5018

33,4

9556

254,

640

Dec

-02

67,

500

729

,691

2831

0,08

92

1,55

010

64,7

8653

413,

616

Jan

-03

21,

500

3431

6,51

437

312,

706

1344

,825

83,

387

9467

8,93

1

Feb

-03

370

012

9,26

951

319,

325

23,

700

1413

3,13

782

466,

130

Mar

-03

42,

331

1134

,165

3016

0,38

90

07

1,73

052

198,

615

2002

-03

2616

,453

201

1,35

4,22

641

02,

796,

194

4526

5,71

512

726

9,00

980

94,

701,

597

Sou

rce

: Var

iou

s C

redi

t R

atin

g A

genc

ies


STATISTICAL TABLES