June 2016

G L O B A L N E W S

R E G U L A T O R Y N E W S

World Federation of Exchanges (WFE) has released a report on small and medium enterprise (SME) exchanges:

growth, WFE has released a report on SME exchanges highlighting factors such as (a) tailored listing, (b) disclosure requirements and (c) methods on enhancing secondary market liquidity. The report also suggest that issues beyond the market design (such as ongoing outreach and education of SMEs) are critical success factors to support SME development.

The markets that were interviewed for the report are: the Bombay Stock Exchange SME market (BSE SME); the Korea Exchange KOSDAQ market (KOSDAQ); the Shenzhen Stock Exchange ChiNext market (ChiNext), and the Euronext EnterNext. Based on the potentially new approaches that the exchanges are following, the insights are summarized below:

1. The report argues that considerations such as tailored listing requirements and manageable costs are necessary for success of SMEs, but the appropriate balance between issuer access and investor protection is less clear and will likely vary from one market to another. 2. policy environment will determine the nature of SME exchange. 3. In jurisdictions where capital markets are under-developed, the exchange may have to play a much larger role in vetting companies and monitoring their ongoing compliance than in markets where there are high-quality intermediaries.

Restriction on redemption in mutual funds:As per the current regulations, the restriction on redemption under any scheme of the mutual fund can be made after taking approval from the Board of Directors of the Asset Management Company (AMC) and the trustees. The provisions are general in nature and hence lead to discretionary disclosures and practices in the industry. In order to bring more clarity and to protect the interests of the investors, SEBI has mandated that the following requirements shall be observed before imposing restriction on redemptions:1. Events of systemic crisis: Restriction on redemption of mutual funds may be imposed in circumstances which might lead to systemic crisis. • Liquidity issues: SEBI has instructed that restriction on redemption may be imposed only when market • Market failure/exchange closure: When markets are affected by unexpected events which impact the functioning of exchanges or the regular course of transactions.2. days period. 3. Any imposition of restriction would require approval of board of AMCs and trustees and the same should be informed to SEBI.4. Procedure to be applied when imposing restriction on redemption: • No redemption requests upto INR 2 lakhs shall be subject to redemption restrictions • restriction and restriction shall be applied on the excess amount.

M A R K E T R E V I E W

NSE MARKET STATISTICS NSE's GLOBAL RANKINGS

Nifty

DJIA

Nikkei

Hang Seng Nasdaq

CNX IT CNX Bank Nifty CNX Petrochemicals

CNX FMCG

CNX Pharmaceuticals CNX Finance CNX Nifty

CNX Infrastructure

Prepared by Economic Policy & ResearchNational Stock Exchange of India Ltd.Exchange Plaza, Bandra Kurla Complex, Bandra (E) Mumbai - 400051. Tel No: 022-26598163

For detailed NSE Newsletter or for e-subscription, log on to www.nseindia.com>Research>Publications> NSE Newsletter.Disclaimer:The views expressed in the published articles are those of respective authors and do not necessarily reflect views of NSE.NSE does not guarantee accuracy of data used in Newsletter and accepts no responsibility whatsoever for any consumption of their use.

Rank th 8nd 2st 1th 7

Source : WFE (Rankings done for the period Jan - Dec 2014). Rankings for single stock futures, stock index options and stock index futures is based on number of contracts traded.

Parameters Single Stock Options Single Stock Futures Index Options Index Futures

June 2016

Performance of select sectoral indices vis-a-vis Nifty(Rebased to 100 for March 31, 2014)

Performance of select global indices vis-a-vis Nifty(Rebased to 100 for March 31, 2014)

Capital Market Segment

TOTALInterest Rate Futures Currency F&O Equity F&O WDM CM 387648.00

57311.586376128.14

426596.5423130.76 449,727

309480.0064419.16

5395271.88348330.8030288.87 378,620

-13.3020.74-9.79

-26.92-5.84

-25.59

17620.002605.07

289824.0119,390.751,051.40

330,491

97,40,551

60,07,916.00 -- -- -- --

Trading Value ( crore)` '00 Avg. Daily Trading Value ( crore)` '00

Segments Percentage "Average Change over daily "Market Turnover (`crore) last month turnover" Capitalisation” Apr-16 May-16 (`crore) (`crore)

80

90

100

110

120

130

150

140

Mar

-15

Apr

-15

May

-15

Jun-

15

Jul-1

5

Aug

-15

Sep

-15

Oct

-15

Nov

-15

May

-14

Jul-1

4

Sep

-14

Oct

-14

Nov

-14

Dec

-14

Dec

-15

Apr

-14

Jun-

14

Aug

-14

Jan-

15

Feb-

16

Mar

-16

Apr

-16

May

-16

Jan-

16

Feb-

15

Mar

-15

Apr

-15

May

-15

Jun-

15

Jul-1

5

Aug

-15

Sep

-15

Oct

-15

Nov

-15

May

-14

Jul-1

4

Sep

-14

Oct

-14

Nov

-14

Dec

-14

Dec

-15

Apr

-14

Jun-

14

Aug

-14

Jan-

15

Feb-

16

Mar

-16

Apr

-16

May

-16

Jan-

16

Feb-

15

70

90

130

150

170

190

210

230

110

Avg.

Dai

ly T

radi

ng V

alue

75

100

125

150

175

200

225

250

0

1000

2000

3000

4000

5000

Trad

ing

Valu

e

Jul-1

4A

ug-1

4S

ep-1

4O

ct-1

4N

ov-1

4D

ec-1

4Ja

n-15

Feb-

15M

ar-1

5A

pr-1

5M

ay-1

5Ju

n-15

Jul-1

5A

ug-1

5S

ep-1

5O

ct-1

5N

ov-1

5D

ec-1

5Ja

n-16

Feb-

16M

ar-1

6A

pr-1

6M

ay-1

6

Currency F&O

Avg.

Dai

ly T

radi

ng V

alue

0

50

100

150

200

250

300

400

350

0

1000

2000

3000

4000

5000

6000

Trad

ing

Valu

e

Jul-1

4A

ug-1

4S

ep-1

4O

ct-1

4N

ov-1

4D

ec-1

4Ja

n-15

Feb-

15M

ar-1

5A

pr-1

5M

ay-1

5Ju

n-15

Jul-1

5A

ug-1

5S

ep-1

5O

ct-1

5N

ov-1

5D

ec-1

5Ja

n-16

Feb-

16M

ar-1

6A

pr-1

6M

ay-1

6

F&O Segment

Avg.

Dai

ly T

radi

ng V

alue

0

500

1000

1500

2000

2500

3000

3500

0

10000

20000

30000

40000

50000

60000

70000

Trad

ing

Valu

e

Jul-1

4A

ug-1

4S

ep-1

4O

ct-1

4N

ov-1

4D

ec-1

4Ja

n-15

Feb-

15M

ar-1

5A

pr-1

5M

ay-1

5Ju

n-15

Jul-1

5A

ug-1

5S

ep-1

5O

ct-1

5N

ov-1

5D

ec-1

5Ja

n-16

Feb-

16M

ar-1

6A

pr-1

6M

ay-1

6

WDM Segment

Avg.

Dai

ly T

radi

ng V

alue

0

100

200

300

400

500

700

800

900

600

0

5

10

15

20

25

35

40

45

30

Trad

ing

Valu

e

Jul-1

4A

ug-1

4S

ep-1

4O

ct-1

4N

ov-1

4D

ec-1

4Ja

n-15

Feb-

15M

ar-1

5A

pr-1

5M

ay-1

5Ju

n-15

Jul-1

5A

ug-1

5S

ep-1

5O

ct-1

5N

ov-1

5D

ec-1

5Ja

n-16

Feb-

16M

ar-1

6A

pr-1

6M

ay-1

6