Download - 030513_2035194_01
Securities And Exchange Board of India
MARCH 2003 VOL. 1 PART 3
SECURITIES AND EXCHANGE BOARD OF INDIA
C:\SEBI-BULLETIN\INI-MAR TAN-14 O.P> 22-4-2003\O.P> 26-4-2003 2
SEBI MONTHLY BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 2
This monthly Journal is normally published in the third week of thesucceeding month. Non-receipt of part must be notified within 60 daysof the due date.
SEBI does not accept any responsibility for accuracy of data/information/interpretation/opinion published in this Journal and acceptsno responsibility whatsoever for any consequence of their use. SEBIhas no objection to the material published herein being reproduced,provided an acknowledgement of the same is made.
Annual subscription in India for 2003 issues is Rs. 960 (inclusive ofpostage) and abroad US $ 40 (Air Mail). The price of a single copy inIndia is Rs. 100 and abroad US $ 4. Concessional subscription ratefor the year 2003 for public libraries and educational institutions inIndia is Rs. 875. The concessional rate is also available to whole timeteachers and research students in Economics, Commerce, Statisticsand Business Management in Universities and Colleges in India,provided the request to that effect is forwarded through the head ofthe respective institution. Cheques/drafts should be drawn on Delhi infavour of Taxmann Allied Services (P.) Ltd.
Address your subscription correspondence to
Taxmann Allied Services (P.) Ltd.,59/32, New Rohtak Road,New Delhi - 110005.Phone : 25743692Fax : 25725041, 25420777Email : [email protected]
The SEBI Bulletin can also be accessed through the internet athttp://www.sebi.gov.in
Printed and Published by Amit Bhargava on behalf of Taxmann AlliedServices Pvt. Ltd. and Printed at Tan Prints (India) Pvt. Ltd., 44 KM.Mile Stone, National Highway, Rohtak Road, Village Rohad, Distt.Jhajjar (Haryana) and Published at 59/32, New Rohtak Road, NewDelhi-110 005.
C:\SEBI-BULLETIN\INI-MAR TAN-14 O.P> 22-4-2003\O.P> 26-4-2003 3
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-
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 6
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 7
4 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 8
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-
ARTICLES
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 9
6 SECURITIES AND EXCHANGE BOARD OF INDIA
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
Nov-
00
Dec-
00
Jan-0
1
Feb-01
Mar-
01
Apr-01
May-
01
Jun-0
1
Jul-0
1
Aug-01
Sep-01
Oct
-01
Nov-
01
Dec-
01
Jan-0
2
Feb-02
Mar-
02
Apr-02
May-
02
Jun-0
2
Jul-0
2
Aug-02
Sep-02
Month
Vo
lum
e
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 10
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
Jan-0
0
Mar-
00
May-
00
Jul-0
0
Sep-00
Nov-
00
Jan-0
1
Mar-
01
May-
01
Jul-0
1
Sep-01
Nov-
01
Jan-0
2
Mar-
02
May-
02
Jul-0
2
Sep-02
Month
Mo
nth
ly s
tan
da
rd d
evia
tio
n (
%)
ARTICLES
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 11
8 SECURITIES AND EXCHANGE BOARD OF INDIA
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)
Coefficient Value t-statistic Significance
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)
Coefficient Value t-statistic Significance
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)
Coefficient Value t-statistic Significance
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
* - Significant at 5% level ** - Significant at 1% level
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 12
9
Table 10: Volatility results (Mar. 99 - Aug. 01)
Coefficient Value t-statistic Significance
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
* - Significant at 5% level ** - Significant at 1% level
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.
ARTICLES
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 13
10 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 14
11
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
■■
ARTICLES
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 15
12 SECURITIES AND EXCHANGE BOARD OF INDIA
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 16
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
ARTICLES
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 17
14 SECURITIES AND EXCHANGE BOARD OF INDIA
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 18
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.
■■
ARTICLES
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 19
16 SECURITIES AND EXCHANGE BOARD OF INDIA
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 20
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.
ARTICLES
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 21
18 SECURITIES AND EXCHANGE BOARD OF INDIA
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 22
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
ARTICLES
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 23
20 SECURITIES AND EXCHANGE BOARD OF INDIA
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).
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 24
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
Null Alterna- Maximum 95% criticaltive Eigenvalue value
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
Trace of the Stochastic Matrix
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
ARTICLES
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 25
22 SECURITIES AND EXCHANGE BOARD OF INDIA
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
Null Alterna- Maximum 95% criticaltive Eigenvalue value
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
Trace of the Stochastic Matrix
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
Null Alterna- Maximum 95% criticaltive Eigenvalue value
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
Trace of the Stochastic Matrix
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 26
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.)
■■
ARTICLES
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 27
24 SECURITIES AND EXCHANGE BOARD OF INDIA
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 28
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 29
26 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 30
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�
D1
S
S1
Investment
ROR
and
Cost of
capital
S
d
SPEECHES
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 31
28 SECURITIES AND EXCHANGE BOARD OF INDIA
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 32
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 33
30 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 34
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 35
32 SECURITIES AND EXCHANGE BOARD OF INDIA
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.
■■
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 36
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 37
34 SECURITIES AND EXCHANGE BOARD OF INDIA
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 38
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 39
DISCUSSION PAPERS/COMMITTEE REPORTS
36 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 40
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-
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 41
DISCUSSION PAPERS/COMMITTEE REPORTS
38 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 42
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.
■■
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 43
DISCUSSION PAPERS/COMMITTEE REPORTS
40 SECURITIES AND EXCHANGE BOARD OF INDIA
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.
Ref: Press Release No. 72 dated March 21, 2003.
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.
Ref: Press Release No. 75 dated March 25, 2003.
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 44
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.
Ref: Press Release No. 77 dated March 26, 2003.
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.
■■
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 45
PRESS RELEASES
42 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 46
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 47
CIRCULARS & GUIDELINES
44 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 48
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:
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 49
CIRCULARS & GUIDELINES
46 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 50
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.
■■
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 51
CIRCULARS & GUIDELINES
48 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 52
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 53
NOTIFICATIONS
50 SECURITIES AND EXCHANGE BOARD OF INDIA
(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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 54
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-
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 55
NOTIFICATIONS
52 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 56
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■■
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 57
NOTIFICATIONS
54 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 58
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 59
LEGAL ROUND UP
56 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 60
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
■■
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 61
LEGAL ROUND UP
58 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 62
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 63
ANNEXURES & STATISTICAL TABLES
60 SECURITIES AND EXCHANGE BOARD OF INDIA
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 64
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 65
ANNEXURES
62 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 66
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 67
ANNEXURES
64 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 68
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 69
STATISTICAL TABLES
66 SECURITIES AND EXCHANGE BOARD OF INDIA
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
.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 70
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 71
STATISTICAL TABLES
68 SECURITIES AND EXCHANGE BOARD OF INDIA
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
.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 72
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 73
STATISTICAL TABLES
70 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 74
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 75
STATISTICAL TABLES
72 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 76
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 77
STATISTICAL TABLES
74 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 78
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 79
STATISTICAL TABLES
76 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 80
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 81
STATISTICAL TABLES
78 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 82
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 83
STATISTICAL TABLES
80 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 84
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 85
STATISTICAL TABLES
82 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 86
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 87
STATISTICAL TABLES
84 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 88
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 89
STATISTICAL TABLES
86 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 90
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 91
STATISTICAL TABLES
88 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 92
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 93
STATISTICAL TABLES
90 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 94
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 95
STATISTICAL TABLES
92 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 96
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.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 97
STATISTICAL TABLES
94 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 98
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 99
STATISTICAL TABLES
96 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 100
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 101
STATISTICAL TABLES
98 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 102
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
.
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 103
STATISTICAL TABLES
100 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 104
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 105
STATISTICAL TABLES
102 SECURITIES AND EXCHANGE BOARD OF INDIA
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 106
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
SEBI BULLETIN ■ VOL. 1 ■ PART 3 ■ MARCH 2003 ■ 107
STATISTICAL TABLES