contentsccmrm.org/wp-content/uploads/2015/03/fact-book-2007.pdf · contents ii section iv capital...

C O N T E N T S

i

SECTION I NATIONAL STOCK EXCHANGE

Genesis ............................................................................................. 1

Ownership and Management ....................................................... 2

Market Segments and Products ................................................... 2

Achievements/Milestones ............................................................ 4

Facts and Figures ............................................................................ 6

Technology Application Systems ................................................ 7

NSE Family ..................................................................................... 9

NSCCL.................................................................................. 9

NSDL .................................................................................. 10

NSE Infotech Services Ltd. ............................................ 10

NSE.IT ................................................................................ 10

IISL ...................................................................................... 11

NCDEX.............................................................................. 11

SECTION II MEMBERSHIP ADMINISTRATION

Eligibility Criteria ......................................................................... 17

Trading Membership ................................................................... 17

Clearing Membership .................................................................. 18

Growth and Distribution of Members .................................... 18

Transaction Charges .................................................................... 19

SECTION III LISTING OF SECURITIES

Benefits of Listing on NSE ....................................................... 25

CM Segment .................................................................................. 25

Listing Criteria ................................................................... 26

Listing Agreement ............................................................ 26

Shareholding Pattern ........................................................ 26

Listing Fees ........................................................................ 26

Compliance by Listed Companies ................................. 27

Disclosure by Listed Companies .................................... 27

De-listing ............................................................................ 27

WDM Segment ............................................................................. 28

C O N T E N T S

ii

SECTION IV CAPITAL MARKET SEGMENT

Trading Mechanism ..................................................................... 37

On-Line IPOs ............................................................................... 37

Market Performance .................................................................... 37

Trading Volume ................................................................. 37

Internet Trading ................................................................ 38

Liquidity .............................................................................. 38

Distribution of Turnover ................................................ 39

Market Capitalisation ........................................................ 39

Sectoral Distribution ........................................................ 39

Indices ............................................................................................ 39


Clearing & Settlement ................................................................. 40

Settlement Agencies ......................................................... 41

Settlement Cycles .............................................................. 42

Settlement Statistics .......................................................... 42

Risk Management System ........................................................... 42

Capital Adequacy .............................................................. 43

Margin Requirements ....................................................... 43

Categorisation of newly listed securities ...................... 43

VaR Based Margins ........................................................... 43

Extreme Loss Margin ....................................................... 44

Mark-to-Market Margins ................................................. 44

Index-based Circuit Filters .............................................. 45

Settlement Guarantee Fund ............................................ 45

Surveillance ................................................................................... 46

On-line Monitoring ........................................................... 46

Investigation and Inspection ........................................... 46

SECTION V WHOLESALE DEBT MARKET SEGMENT


Market Performance .................................................................... 66

Turnover ............................................................................. 66

Market Capitalisation ........................................................ 66


Settlement ...................................................................................... 67

Constituent SGL Facility ............................................................ 67

C O N T E N T S

iii

FIMMDA MIBID/MIBOR ....................................................... 68

Zero Coupon Yield Curve .......................................................... 68

NSE-VaR System ......................................................................... 69

GOI-Bond Index ......................................................................... 69

SECTION VI F&O SEGMENT


Contract Specification ................................................................. 89

Selection Criteria for Stocks and Indices ................................. 90

Internet Trading ........................................................................... 91

Trading Value ................................................................................ 92


Clearing and Settlement .............................................................. 93

Clearing Mechanism ......................................................... 93

Settlement Mechanism ..................................................... 93

Settlement of Custodial Participant (CP) Deals .......... 96

Settlement Statistics .......................................................... 96

Risk Management System ........................................................... 97

NSE-Span ...................................................................................... 98

Margins ........................................................................................... 98

SECTION VII INVESTOR GRIEVANCES, ARBITRATION

Investor Grievances ................................................................... 113

Arbitration ................................................................................... 114

SECTION VIII KNOWLEDGE INITIATIVE

NSE's Certification in Financial Markets .............................. 119

NCFM Online Payment System .............................................. 120

NCFM Tests conducted at international locations .............. 120

NSE Research Initiative ............................................................ 120

C O N T E N T S

iv

TABLES

Section I 1. Shareholders of NSEIL .......................................... 12

2. Board of Directors ................................................... 12

3. Executive Committees ............................................. 13

4. List of Cities and VSATs at the end

of March 2007 .......................................................... 14

Section II 1a. Eligibility Criteria for Membership ....................... 20

1b Requirements for Professional Clearing

Membership ............................................................... 21

2. Growth and Distribution of Members ................. 21

Section III 1. Companies Listed/Permitted to Trade/Available

for Trading on the CM Segment ............................ 29

2. Listing Criteria for Companies on CM Segment

of NSE ....................................................................... 31

3. Shareholding Pattern at the end of

December 2006 of Companies Listed on NSE .. 32

4. Eligibility Criteria for Securities on

WDM Segment ......................................................... 33

5. Securities Available for Trading on

WDM Segment ......................................................... 34

Section IV 1. Business Growth of CM Segment ........................ 47

2. Percentage Share of Top 'N' Securities/Members

in Turnover ................................................................ 49

3. '50' Most Active Securities during 2006-07

in terms of Trading Value ....................................... 50

4. Market Capitalisation of Securities in

CM Segment .............................................................. 51

5. Top '50' Companies by Market Capitalisation

as on March 31, 2007 ............................................... 52

6. Top '50' Companies by Trading Value and Market

Capitalisation at NSE ............................................... 53

7. Composition of S&P CNX NIFTY as on

March 31, 2007 .......................................................... 54

C O N T E N T S

v

8. Composition of CNX NIFTY Junior as on

March 31, 2007 .......................................................... 55

9. Industry-wise Weightages of S&P CNX NIFTY

Securities .................................................................... 56

10. S&P CNX NIFTY Index ........................................ 57

11. CNX NIFTY Junior Index ..................................... 58

12. Settlement Cycle in CM Segment .......................... 60

13. Settlement Statistics in CM Segment .................... 61

Section V 1. Business Growth of WDM Segment .................... 70

2. WDM Transactions in Government Securities ... 73

3. Security-wise and Participant-wise Distribution

of WDM Trades ....................................................... 76

4. Share of Top 'N' Securities/Trading Members/

Participants in Turnover in WDM Segment ........ 79

5. Market Capitalization of WDM Securities .......... 80

6. FIMMDA NSE MIBID/MIBOR Rates .............. 83

7. 1-day Value-at-Risk for GOI Securities Traded

as on March 31, 2007 ............................................... 85

Section VI 1. Contract Specification for F&O .......................... 100

2. Business Growth of Futures & Options Market

Segment .................................................................... 102

3. Segment-wise Contribution of Top 'N'

Members ................................................................... 105

4. Settlement Statistics in the F&O Segment ......... 105

5. List of Securities on which futures & Options

are available along with their market lot as

on 5th July, 2007 ..................................................... 107

6. List of Indices on which Futures & Options

are available along with their Market lot ............. 110

Section VII 1. Receipts and Disposal of Investor Grievances . 115

2. Status Report of Arbitration Matters ................. 115

Section VIII 1. NCFM Modules ...................................................... 121

2. Studies under the NSE Research Initiative ........ 121

C O N T E N T S

vi

CHARTS

Section IV 1. Business Growth of CM Segment ........................ 49

2. Movement of Sectoral Indices: 2006-07 .............. 60

Section V 1. Business Growth of WDM Segment .................... 85

2. Overnight MIBID/MIBOR Rates, 2006-07 ........ 86

3. ZCYC Curve, 2006-07 ............................................. 86

Section VI 1. Business Growth of F&O Segment .................... 110

Conventions

-- indicates data are not available or not applicable.

'One million' is equal to ten lakh.

'One billion' is equal to a thousand million or one hundred crore.

National Stock Exchange 1

1

National Stock Exchange of India

Genesis

NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993.

It started operations in June 1994, with trading on the Wholesale Debt Market Segment.

Subsequently it launched the Capital Market Segment in November 1994 as a trading platform

for equities and the Futures and Options Segment in June 2000 for various derivative

instruments.

NSE has been able to take the stock market to the doorsteps of the investors. The technology

has been harnessed to deliver the services to the investors across the country at the cheapest

possible cost. It provides nation-wide screen-based automated trading system with a high

degree of transparency and equal access to investors irrespective of geographical location.

The high level of information dissemination through on-line system has helped in integrating

retail investors on a nation-wide basis. The standards set by the exchange in terms of market

practices, products, technology and service standards have become industry benchmarks

and are being replicated by other market participants.

Within a very short span of time, NSE has been able to achieve all the objectives for which

it was set up. It has been playing a leading role as a change agent in transforming the Indian

Capital Markets to its present form.

For over a decade it has been playing the role of a catalytic agent in reforming the markets in

terms of market microstructure and in evolving the best market practices keeping in mind

the stake holders. The Exchange is set up on a demutualised model wherein the ownership,

management and trading rights are in the hands of three different sets of people. This has

completely eliminated any conflict of interest. This has helped NSE to aggressively pursue

policies and practices within a public interest framework. NSE's nationwide, automated trading

system has helped in shifting the trading platform from the trading hall in the premises of

the exchange to the computer terminals at the premises of the trading members located at

different geographical locations in the country and subsequently to the personal computers

in the homes of investors and even to hand held portable devices for the mobile investors.

It has been encouraging corporatisation of membership in securities market. It has also

proved to be instrumental in ushering in scrip-less trading and providing settlement guarantee

for all trades executed on the Exchange. Settlement risks have also been eliminated with

NSE's innovative endeavors in the area of clearing and settlement viz., establishment of the

clearing corporation (NSCCL), setting up a settlement guarantee fund (SGF), reduction of

settlement cycle, implementing on-line, real-time risk management systems, dematerialisation

and electronic transfer of securities to name few of them. In order to take care of investor's

interest, it has also created an investor protection fund that would help investors who have

incurred financial damages due to default of brokers.

11111

2

Ownership and Management

The NSE is owned by a set of leading financial institutions, banks, insurance companies

and other financial intermediaries. It is managed by professionals, who do not directly or

indirectly trade on the Exchange. The trading rights are with trading members who offer

their services to the investors. The Board of NSE comprises of senior executives from

promoter institutions and eminent professionals, without having any representation from

trading members.

While the Board deals with the broad policy issues, the Executive Committees (ECs), which

include trading members, formed under the Articles of Association and the Rules of NSE

for different market segments, set out rules and parameters to manage the day-to-day affairs

of the Exchange. The ECs have constituted several committees, like Committee on Trade

Related Issues (COTI), Committee on Settlement Issues (COSI) etc., comprising mostly of

trading members, to receive inputs from the market participants and implement suggestions

which are in the best interest of the investors and the market. The day-to-day management

of the Exchange is delegated to the Managing Director and CEO who is supported by a

team of professional staff. Therefore, though the role of trading members at NSE is to the

extent of providing only trading services to the investors, the Exchange involves trading

members in the process of consultation and participation in vital inputs towards decision

making.

Tables 1-1 to 1-3 gives the composition of ownership (shareholders), the composition of its

Board of Directors and the Executive Committees.

Market Segments and Products

NSE provides a trading platform for of all types of securities for investors under one roof

– Equity, Corporate Debt, Central and State Government Securities, T-Bills, Commercial

Paper (CPs), Certificate of Deposits (CDs), Warrants, Mutual Funds (MFs) units, Exchange

Traded Funds (ETFs), Derivatives like Index Futures, Index Options, Stock Futures, Stock

Options. The Exchange provides trading in 3 different segments viz., Wholesale Debt Market

(WDM) segment, Capital Market (CM) segment and the Futures & Options (F&O) segment

The Wholesale Debt Market segment provides the trading platform for trading of a wide

range of debt securities which includes State and Central Government securities, T-Bills,

PSU Bonds, Corporate debentures, CPs, CDs etc. However, along with these financial

instruments, NSE has also launched various products e.g. FIMMDA-NSE MIBID/MIBOR

owing to the market need. A reference rate is said to be an accurate measure of the market

price. In the fixed income market, it is the interest rate that the market respects and closely

matches. In response to this, NSE started computing and disseminating the NSE Mumbai

Inter-bank Bid Rate (MIBID) and NSE Mumbai Inter-Bank Offer Rate (MIBOR). Owing

to the robust methodology of computation of these rates and its extensive use, this product

3

has become very popular among the market participants. Keeping in mind the requirements

of the banking industry, FIs, MFs, insurance companies, who have substantial investments

in sovereign papers, NSE also started the dissemination of its yet another product, the ‘Zero

Coupon Yield Curve’. This helps in valuation of sovereign securities across all maturities

irrespective of its liquidity in the market. The increased activity in the government securities

market in India and simultaneous emergence of MFs (Gilt MFs) had given rise to the need

for a well defined bond index to measure the returns in the bond market. NSE constructed

such an index, the ‘NSE Government Securities Index’. This index provides a benchmark for

portfolio management by various investment managers and gilt funds.

The Capital Market segment offers a fully automated screen based trading system, known

as the National Exchange for Automated Trading (NEAT) system. This operates on a price/

time priority basis and enables members from across the country to trade with enormous

ease and efficiency. Various types of securities e.g. equity shares, warrants, debentures etc.

are traded on this system. The average daily turnover in the CM Segment of the Exchange

during 2006-07 was nearly Rs. 7,812 crs. (US $ 1,792 million).

Futures & Options segment of NSE provides trading in derivatives instruments like Index

Futures, Index Options, Stock Options, Stock Futures and Futures on interest rates. Though

only seven years into its operations, the futures and options segment of NSE has made a

mark for itself globally. In the Futures and Options segment, trading in S&P CNX Nifty

Index, CNX IT index, Bank Nifty Index, CNX Nifty Junior, CNX 100 index and 188 single

stocks are available. The average daily turnover in the F&O Segment of the Exchange during

2006-07 was nearly Rs. 29,543 cr. (US $ 6,778 million).

The statistical details of these segments are presented below:

Market Segments - Selected Indicators

Segment At end of March 2007 2006-07

No. of No. of Market Trading Trading

Members Securities/ Capitalisation Volume Volume

Contracts (Rs. crore) (Rs. crore) (US $

Available million)

CM 1,002 1,084a 3,367,350 1,945,287 446,269

WDM 63 3,252 1,784,801 219,106 50,265

F&O 845 13,041b -- 7,356,271c 1,687,605

Total 1,009d 17,377 5,152,151 9,520,664 2,184,140

a Excludes suspended securities.b Includes 3 Nifty futures, 3 CNX IT Futures, 3 bank nifty, 334 nifty index options,462 stock futures, 360 CNX IT

options ,458 bank index options, 11,400 stock option and 18 interest rate futures contractsc Includes notional turnover [(Strike Price + Premium) × Quantity] in case of index options and stock options.d Do not add up to total because of multiple membership.

4

Contd...

The year 2006-07 witnessed a total trading volume of Rs. 9,520,664 crore (US $ 2,184,140 million)

as against Rs. 6,869,332 crore (US $ 1,575,896 million) in the preceding year.

Achievements/Milestones

Month/Year Event

November 1992 Incorporation

April 1993 Recognition as a stock exchange.

June 1994 WDM segment goes live.

November 1994 CM segment goes live through VSAT.

March 1995 Establishment of Investor Grievance Cell.

April 1995 Establishment of NSCCL, the first Clearing Corporation.

July 1995 Establishment of Investor Protection Fund.

October 1995 Became largest stock exchange in the country.

April 1996 Commencement of clearing and settlement by NSCCL.

April 1996 Launch of S&P CNX Nifty.

June 1996 Establishment of Settlement Guarantee Fund.

November 1996 Setting up of National Securities Depository Ltd., first depository in

India, co-promoted by NSE.

November 1996 'Best IT Usage' award by Computer Society of India.

December 1996 Commencement of trading/settlement in dematerialised securities.

December 1996 Dataquest award for 'Top IT User'.

December 1996 Launch of CNX Nifty Junior.

November 1997 'Best IT Usage' award by Computer Society of India.

May 1998 Promotion of joint venture, India Index Services & Products Limited

(IISL) (along with CRISIL) for index services.

May 1998 Launch of NSE's Web-site : www.nseindia.com.

July 1998 Launch of 'NSE's Certification Programme in Financial Markets'.

(NCFM) August 1998 'CYBER CORPORATE OF THE YEAR 1998'

award.

April 1999 'CHIP Web Award' by CHIP magazine.

October 1999 Setting up of NSE.IT Ltd.

January 2000 Launch of NSE Research Initiative.

February 2000 Internet Trading in CM segment.

June 2000 Commencement of Derivatives Trading (in Index Futures).

September 2000 Launch of Zero Coupon Yield Curve.

June 2001 Commencement of Trading in Index Options

July 2001 Commencement of Trading in Options on Individual Securities

November 2001 Commencement of Trading in Futures on Individual Securities

December 2001 Launch of NSE VAR for Government Securities

5

January 2002 Launch of Exchange Traded Funds (ETFs).

May 2002 NSE wins the Wharton-Infosys business Transformation Award in

the organization-wide transformation category

October 2002 Launch of Government Securities Index

January 2003 Launch of Retail Debt of Government Securities

August 2003 Launch of Futures and Options on CNX IT Index

June 2004 Launch of STP Interoperability

August 2004 Launch of NSE electronic interface for listed companies

June 2005 Launch of Futures & Options on BANK Nifty Index

August 2006 Setting up of NSE Infotech Services Ltd.

December 2006 'Derivative Exchange of the Year', by Asia Risk magazine

January 2007 Launch of NSE - CNBC TV 18 media centre

March 2007 Launch of Gold BeES- Exchange Traded Fund (ETF).

June 2007 Launch of Futures & Options on CNX 100 and CNX Nifty Junior

index.

Developments during the year.

The year 2006-2007 witnessed significant achievements in the strides of NSE. It started off

with NSE earning the award of the 'Derivatives Exchange of the Year' by Asia Risk Magazine

in December 2006.

In the month of January 2006 ,The Hon'ble Finance Minister Shri. P Chidambaram inaugurated

the NSE-TV18 media centre. The objective of this joint initiative of NSE and TV18 to set up

a media centre was to bring real time linkages between markets, corporates and the investing

community, live from NSE. The Finance Minister sited the numerous advantages of the media

center stating that it would bring the market closer to the investors and would improve the level

of communication between the companies their managements and their shareholders. Further

this would also be beneficial to researchers, regulators and policy makers in informed policy

making.

Launch of Gold ETF's : On March 19, 2007 the first gold ETF in India - Gold BeEs was listed

on the Exchange by Benchmark Asset Management company. Subsequently on April 17, 2007

UTI- Gold Exchange traded fund was listed on the Exchange.

Trading in Index Futures and Options was extended to the indices CNX 100 and CNX Nifty

Junior on June 1, 2007. In recent times, the market has shown a trend of getting broad based.

Currently non-Nifty securities contribute more than 60% of the total market turnover in equities

market. Trading in Nifty Junior and CNX100 Futures & Options would enable the investor to

take a view on companies which are fast growing, dynamic and highly competitive. It would help

them to take an exposure to this dynamic pack of companies. The introduction of these new

Month/Year Event

Contd...

6

index derivatives would give more flexibility to the investors and help them in taking wealth

maximizing decisions more efficiently.

Facts and Figures (up to March 31, 2007)

Parameter Date Magnitude

CM segment

� Number of Members March 31, 2007 1,002

� Number of securities available for trading March 31, 2007 1,084

� Number of VSATs March 31, 2007 2,737

� Record number of trades February 28, 2007 4,778,407

� Record daily trades (Quantity) May 11, 2006 7,124 lakh

� Record daily trade (Value) March 31, 2006 Rs.17,315.06 crore

(US $ 3,881

million)

� Record market capitalisation February 07, 2007 Rs 3,681,573 crore

(US $ 844,591

million)

� Record value of S&P CNX Nifty Index February 07, 2007 4224.35

� Record value of CNX Nifty Junior Index February 07, 2007 7509.75

Record Pay-in/Pay-out (Rolling

Settlement):

� Funds Pay-in/Pay-out May 02, 2006 * Rs. 4,110.53 crore

� Securities Pay-in/Pay-out (Value May 02, 2006 * Rs. 7,293.25 crore

� Securities Pay-in/Pay-out (Qty)* May 02, 2006 * 2,443.71 lakh

*Settlement Date

WDM segment

� Number of Members March 31, 2007 63

� Number of securities available for trading March 31, 2007 3,252

� Record daily trade (Value) August 25, 2003 Rs.13,911.57 crore

(US $ 3,206 million)

F & O segment

� Number of Members March 31, 2007 845

� Number of Contracts available for trading March 31, 2007 13,041

� Record daily trade (Value) April 27, 2006 Rs.60,434 crore

(US $ 13,864 million)

7

Technology

Technology has been the backbone of the Exchange and NSE has used technology optimally

to provide services to the investing community and the market participants. NSE has

successfully harnessed technology in creating a new market design. It believes that technology

provides the necessary impetus for the organisation to retain its competitive edge and ensure

timeliness and satisfaction in customer service. In recognition of the fact that technology

will continue to redefine the shape of the securities industry, NSE stresses on innovation

and sustained investment in technology to remain ahead of competition. NSE is the first

exchange in the world to use satellite communication technology for trading. It uses satellite

communication technology to energies participation from about 2,737 VSATs from nearly

266 cities spread all over the country. The list of towns and cities and the state-wise

distribution of VSATs as at end March 2007 is presented in Table 1-4.

Its trading system, called National Exchange for Automated Trading (NEAT), is a highly

customized client server based application. At the server end all trading information is stored

in an in-memory database to achieve minimum response time and maximum system availability

for users. It has an uptime record of 99.7%. For all trades entered into NEAT system, there

is uniform response time of less than 1.5 seconds. NSE has been continuously undertaking

capacity enhancement measures so as to effectively meet the requirements of increased users

and associated trading loads.

As part of its business continuity plan, NSE has established a disaster back-up site at Chennai

which includes replication of the entire production infrastructure, including the satellite

earth station. The transaction data is replicated on near real time basis from the main site to

the disaster back-up site through the 2 mbps high-speed link, thereby keeping both the sites

synchronised with each other.

Application Systems

The various application systems that NSE uses for its trading as well as clearing and settlement

and other operations form the backbone of the Exchange. The application systems used for

the day-to-day functioning of the Exchange can be divided into (a) Front end applications

and (b) Back office applications.

The various application systems that NSE uses for its trading, clearing and settlement and

other operations form the backbone of the activities of the Exchange. The application

systems used for the day-to-day functioning of the Exchange can be broadly divided into (a)

Front end applications and (b) Back office applications.

In the front end, there are 6 applications: (i) NEAT - CM system take care of trading of

securities in the Capital Market segment that includes equities, debentures/notes as well as

retail Gilts. The NEAT - CM application has a split architecture wherein the split is on the

8

securities and users. The application runs on two Stratus systems with Open Strata Link

(OSL). This application also provides data feed for processing to other online systems like

Index, OPMS through TCP/IP. This system directly interfaces with the trading members of

the CM segment of the Exchange for entering the orders. There is a two way communication

between the NSE main system and the front end terminal of the trading member. (ii) NEAT

- WDM system is similar to the Neat CM system & takes care of trading of securities in the

Wholesale Debt Market (WDM) segment that includes Gilts, Corporate Bonds, CPs, T-Bills,

etc. (iii) NEAT - F&O system is similar to the Neat CM system & takes care of trading of

securities in the Futures and Options (F&O) segment that includes Futures on Index as well

as individual stocks and Options on Index as well as individual stocks. (iv) NEAT - IPO

system is an interface to help the initial public offering of companies which are issuing the

stocks to raise capital from the market. This is a direct interface with the trading members

who are registered for undertaking order entry on behalf of their clients for IPO's. NSE

uses the NEAT IPO system that allows bidding in several issues concurrently. (v) NEAT -

MF system is an interface with the trading members of the CM segment for order collection

of designated Mutual Funds units.

In the back office, the following important application systems are operative: (a) NCSS

(Nationwide Clearing and Settlement System) is the clearing and settlement system of the

NSCCL for the trades executed in the CM segment of the Exchange. The system has 3

important interfaces - OLTL (Online Trade loading) that takes each and every trade executed

on real time basis and allocates the same to the clearing members, Depository Interface that

connects the depositories for settlement of securities and Clearing Bank Interface that

connects the 10 clearing banks for settlement of funds. It also interfaces with the clearing

members for all required reports. Through collateral management system it keeps an account

of all available collaterals on behalf of all trading/clearing members and integrates the same

with the position monitoring of the trading/clearing members. The system also generates

base capital adequacy reports. (b) FOCASS is the clearing and settlement system of the

NSCCL for the trades executed in the F&O segment of the Exchange. It interfaces with the

clearing members for all required reports. Through collateral management system it keeps

an account of all available collaterals on behalf of all trading/clearing members and integrates

the same with the position monitoring of the trading/clearing members. The system also

generates base capital adequacy reports. (c) OPMS - the online position monitoring system

that keeps track of all trades executed for a trading member vis-à-vis its capital adequacy, (d)

PRISM is the parallel risk management system for F&O trades using Standard Portfolio

Analysis (SPAN). It is a system for comprehensive monitoring of positions of trading /

clearing members. It provides real time information on initial margin value, mark to market

profit or loss, collateral amounts, contract-wise latest prices, contract-wise open interest and

limits. The system also tracks online real time client level portfolio base upfront margining

and monitoring. (e)Surveillance system offers the users a facility to comprehensively monitor the

trading activity and analyse the trade data online and offline. (f) Data warehousing system that is

the central repository of all data in CM as well as F&O segment of the Exchange, (g) Listing

9

system that captures the data of the companies which are listed in the Exchange for corporate

governance. It integrates the same with the trading system for necessary broadcasts for data

dissemination process and (h) Membership system that keeps track of all required details of

the Trading Members of the Exchange.

NSE Family

NSCCL

National Securities Clearing Corporation Ltd. (NSCCL), a wholly-owned subsidiary of NSE,

was set up in August 1995. It was the first clearing corporation in the country to provide

novation/settlement guarantee that revolutionized the entire concept of settlement system

in India. It commenced clearing operations in April 1996. It has been set up to bring and

sustain confidence in clearing and settlement of securities; to promote and maintain short

and consistent settlement cycles; to provide counter-party risk guarantee, and to operate a

tight risk containment system. It carries out the clearing and settlement of the trades executed

in the equities and derivatives segments of the NSE. It operates a well-defined settlement

cycle and there are no deviations or deferments from this cycle. It aggregates trades over a

trading period T, nets the positions to determine the liabilities of members and ensures

movement of funds and securities to meet respective liabilities. It also operates Subsidiary

General Ledger (SGL) for settling trades in government securities for its constituents. It has

been managing clearing and settlement functions since its inception without a single failure

or clubbing of settlements. It assumes the counter-party risk of each member and guarantees

financial settlement. It also undertakes settlement of transactions on other stock exchanges

like the Over The Counter Exchange of India (OTCEI). It operates Mutual Fund Service

System to clear and settle purchase and redemption of mutual fund units for individual

investors. It has tied up with 13 Clearing Banks viz., Canara Bank, Citi Bank N.A, HSBC

Ltd. HDFC Bank, IndusInd Bank, ICICI Bank, Kotak Mahendra Bank, UTI Bank, Bank of

India, IDBI Bank, Standard Chartered Bank, State Bank of India and Union Bank of India

for funds settlement while it has direct connectivity with depositories for settlement of

securities. It has also initiated a working capital facility in association with the clearing banks

that helps clearing members to meet their working capital requirements. Any clearing bank

interested in utilizing this facility has to enter into an agreement with NSCCL and with the

clearing member.

NSCCL has also introduced the facility of direct payout to clients' account on both the

depositories. It ascertains from each clearing member, the beneficiary account details of

their respective clients who are due to receive pay out of securities. It has provided its

members with a front-end for creating the file through which the information is provided to

NSCCL. Based on the information received from members, it sends payout instructions to

the depositories, so that the client receives the pay out of securities directly to their accounts

on the pay-out day.

10

NSCCL currently settles trades under T+2 rolling settlement. It has the credit of continuously

upgrading the clearing and settlement procedures and has also brought Indian financial

markets in line with international markets. It has put in place online real-time monitoring

and surveillance system to keep track of the trading and clearing members' outstanding

positions and each member is allowed to trade/operate within the pre-set limits fixed

according to the funds available with the Exchange on behalf of the member. The online

surveillance mechanism also generates various alerts/reports on any price/volume movements

of securities not in line with the trends/patterns.

NSDL

Prior to trading in a dematerialized environment, settlement of trades required moving the

securities physically from the seller to the ultimate buyer, through the seller's broker and

buyer's broker, which involved lot of time and the risk of delay somewhere along the chain.

Further, the system of transfer of ownership was grossly inefficient as every transfer involved

physical movement of paper to the issuer for registration, with the change of ownership

being evidenced by an endorsement on the security certificate. In many cases, the process of

transfer took much longer than stipulated in the then regulations. Theft, forgery, mutilation

of certificates and other irregularities were rampant. All these added to the costs and delays

in settlement, restricted liquidity. To obviate these problems, NSE to promote

dematerialization of securities joined hands with UTI and IDBI to set up the first depository

in India called the "National Securities Depository Limited" (NSDL). The depository system

gained quick acceptance and in a very short span of time it was able to achieve the objective

of eradicating the paper from the trading and settlement of securities, and was also able to

get rid of the risks associated with fake/forged/stolen/bad paper. Dematerialized delivery

today constitutes almost 100% of total of the total delivery based settlement.

NSE Infotech Services Ltd

Information Technology has been the backbone of conceptualization, formation, running

and the success of National Stock Exchange of India Limited (NSE). NSE has been at the

forefront in spearheading technological changes in the securities market. It was important

to give a special thrust and focus on Information Technology to retain the primacy in the

market. Towards this a wholly owned subsidiary NSE Infotech Services Limited (NSETECH)

was incorporated to cater to the needs of NSE and all it's group companies exclusively.

NSE.IT

NSE.IT Limited, a 100% technology subsidiary of NSE, was incorporated in October 1999.

It provides the securities industry with technology that ensures transparency and efficiency

in the trading, clearing and risk management systems. Additionally, NSE.IT provides

consultancy services in the areas of data warehousing, internet and business continuity plans.

Amongst various products launched by NSE.IT are NEAT XS, a Computer-To-Computer

Link (CTCL) order routing system, NEAT iXS, an internet trading system and Probos, pro-

11

fessional broker's back office system. NSE.IT also offers an e-learning portal, finvarsity

(www.finvarsity.com) dedicated to the finance sector. The site is powered by Enlitor - a

learning management system developed by NSE.IT jointly with an e-learning partner. New

initiatives include payment gateways, products for derivatives segments and Enterprise Man-

agement Services.

IISL

India Index Services and Products Limited (IISL), a joint venture of CRISIL and NSE, was

set up in May 1998 to provide indices and index services. It has a licensing and marketing

agreement with Standard and Poor's (S&P), the world's leading provider of investible equity

indices, for co-branding equity indices. IISL is India's first specialized company focusing

upon the index as a core product. It provides a broad range of services, products and

professional index services. It maintains over 90 equity indices comprising broad-based

benchmark indices, sectoral indices and customised indices. Many investment and risk

management products based on IISL indices have developed in the recent past, within India

and abroad. These include index based derivatives on NSE and on Singapore Exchange, a

number of index funds, India's first exchange traded fund and Licensing of the Index for

various structured products.

NCDEX

NSE joined hand with other financial institutions in India viz., ICICI Bank, NABARD, LIC,

PNB, CRISIL, Canara Bank and IIFCO to promote the National Commodity & Derivatives

Exchange (NCDEX) which provides for a world class commodity exchange platform for

Market Participants to trade in wide spectrum of commodity derivatives. Currently NCDEX

facilitates trading of 41 agro based commodities, 2 precious metal, 6 base metal, 2 energy

products and 3 polymers.

12

Table 1-1: Shareholders of NSEIL

Life Insurance Corporation of IndiaState Bank of IndiaInfrastructure Development Finance Company LimitedStock Holding Corporation of India LimitedIndustrial Development Bank of India LimitedICICI Bank LimitedIFCI LimitedSBI Capital Markets LimitedNYSE Group, Inc. New YorkGA Global Investments Limited, CyprusGS Strategic Investments Limited, MauritiusSAIF II Mauritius Company Limited, MauritiusIL&FS Trust Company LimitedCanara BankBank of BarodaGeneral Insurance Corporation of IndiaNational Insurance Company LimitedThe New India Assurance Company LimitedThe Oriental Insurance Company LimitedUnited India Insurance Company LimitedSaturn India LimitedOriental Bank of CommerceIndian BankUnion Bank of IndiaCorporation BankSaturn South Asia LimitedPunjab National Bank

As of June 19, 2007.

Table 1-2: Board of Directors*

1. Mr. S. B. Mathur Administrator of the Specified undertaking of ChairmanUnit Trust of India

2. Mr. Ravi Narain Managing Director, NSEIL CEO &ManagingDirector

3. Ms. Chitra Ramkrishna Deputy Managing Director, NSEIL Dy. ManagingDirector

4. Rear Admiral Madan Mohan Chopra AVSM (Retd.) Director5. Mr. S. H. Khan Ex-Chairman & Managing Director, Industrial Director

Development Bank of India6. Mr. A. P. Kurian Chairman, Association of Mutual Funds in India Director7. Mr. Anand G. Mahindra Vice Chairman & Managing Director, Director

Mahindra & Mahindra Ltd.8. Mr. Y. H. Malegam“ Chairman Emeritus, M/s. S.B. Billimoria & Co. Director

Chartered Accountants9. Prof. (Dr.) K. R. S. Murthy Professor & Former Director, Indian Institute Director

of Management, Bangalore10. Ms. Vishakha Mulye Chief Financial Officer & Treasurer, ICICI Bank Limited Director11. Dr. R. H. Patil Chairman, The Clearing Corporation of India Limited Director12. Mr. M. Raghavendra Ex-General Manager General Insurance Corporation of India Director13. Dr. V. A. Sastry Director14. Mr. Onkar Nath Singh Ex-Chairman & Mananging Director Industrial Director

Investment Bank of India Ltd.15. Mr. S. Venkiteswaran Sr. Advocate Director16. Mr. T. S. Vijayan, Chairman Life Insurance Corporation of India Director

* As of June 08, 2007.

13

Table 1-3: Executive Committees

I CM & WDM SEGMENTS

1. Mr. Ravi Narain, CEO & MD, National Stock Exchange of India Ltd. Chairman

2. Mr. Sanjay Agarwal, Managing Director, M/s. NDA Securities Ltd. Trading Member

3. Mr. Ravindra Babu, Managing Director,M/s. Zen Securities Ltd. Trading Member

4. Mr. Jigar Shah (upto 16.08.2007), Executive Director, Trading MemberM/s. Deutsche Equities India Pvt. Ltd

5. Mr. Y. H. Malegam, Chairman Emeritus, M/s. S.B.Billimoria & Co. PublicChartered Accountants Representative

6. Ms. Chitra Ramkrishna, Deputy Managing Director, Other NomineesNational Stock Exchange of India Ltd.

7. Mr. P. M. Venkatasubramanian, Ex-Managing Director, GIC Other Nominees

8. Ms. Vishakha Mulye, Chief Financial Officer & Treasurer , ICICI Bank Ltd. Other Nominees

9. Mr. D. C. Anjaria, Director, International Financial Solutions Pvt. Ltd. PublicRepresentative

10. Mr. Vimal Bhandari, Country Manager – India AEGON International NV. PublicRepresentative

11. Mr. Ramesh Kumar Somani ,Whole-time Director, Eureka Stock & Trading MemberShare Broking Services Ltd.

II F&O MARKET SEGMENT

1 Mr. Ravi Narain, CEO & MD, National Stock Exchange of India Ltd. Chairman

2 Mr. Rajesh Baheti, Partner, M/s. Crossseas Capital Services Trading Member

3 Mr. D.C.Anjaria, Director, International Finance Solutions Pvt. Ltd. PublicRepresentative

4 Mr. Shailesh Haribhakti, Managing Partner & CEO Haribhakti Group PublicRepresentative

5 Prof. V. Ravi Anshuman, Indian Institute of Management Bangalore PublicRepresentative

6 Mr. Motilal Oswal , Chairman & Managing Director, Trading MemberM/s. Motilal Oswal Securities Ltd.

7 Mr. M. Raghavendra, Ex-General Manager, General Insurance Other NomineesCorporation of India

8 Ms. Chitra Ramkrishna, Deputy Managing Director, Other NomineesNational Stock Exchange of India Ltd.

* As of June 08, 2007.

14

Table 1-4: List of Cities and VSATs at the end of March 2007

State/UTs List of Towns and Cities Total No. Total No.

of Cities of VSATs

Andhra Pradesh 31 159

Assam 2 6

Bihar 5 19

Chhattisgarh 2 9

Delhi 1 527

Goa 3 7

Gujarat 29 181

Haryana 21 107

Himachal Pradesh 1 1

Jammu & Kashmir 2 5

Jharkhand 5 21

Karnataka 12 86

Kerala 20 75

Madhya Pradesh 10 72

Maharashtra 12 682

Orissa 6 9

Punjab 20 89

Rajasthan 17 124

Tamil Nadu 23 174

Union Territory 1 1

Uttar Pradesh 30 138

Uttaranchal 6 13

West Bengal 7 232

Total 266 2,737

*Indicates cities which have a Regional Stock Exchange.

Amalapuram, Anantapur,Ankapalle, Bhimavaram, Chirala, Cuddapah, Eluru,

Gajuwaka, Gudiwada, Guntur, *Hyderabad, Kakinada, Kukatpally, Kurnool,

Narsapur, Nellore, Ongole, Palakol, Iduguralla, Rajamundry, Secundarabad,

Srikakulam, Tadepal l igudem, Tanuku, Tenal i , Tirupathi , Vi jayawada,

Vizag,Vizianagaram, Warangal, Chilakaluripeta,

*Guwahati, Silchar.

Begusarai, Bhagalpur, Muzzaffarpur, *Patna,Sitamarhi,

Bilaspur, Korba, Raipur

*Delhi

Panaji, Mapusa,Margao

*Ahmedabad, Anand *Baroda, Bharuch, Bhavnagar, Bhuj, Botad, Dhoraji, Dhrangadhra,

Gandhidham, Gandhinagar, Jamnagar, Junagadh, Kadi, Mehsana, Nadiad, Navsari, Patan,Petlad, *Rajkot, Surajkaradi, Savarkundla, Surat, Surendranagar, Unjha, Valsad, Vapi,Visnagar,Keshod,

Ambala , Bahadurgarh, Bhiwani, Fatehabad, Faridabad, Ganaur, Gohana, Gurgaon, Hissar,

Jagadhri, Jind, Kaithal, Karnal, Kurukshetra, Panchkula, Panipat, Rewari, Rohtak, Sirsa,Sonepat, Yamuna Nagar,

Shimla

Jammu, Srinagar

Bokaro Steel City, Dhanbad, Giridih, Ranchi, Jamshedpur

Arsikere, *Bangalore, Bellary, Hassan, Hubli, Kumta, *Mangalore, Manipal , Mysore, Sagar,

Shimoga, Udupi

Angamaly, Calicut, Ernakulam, Guruvaryur, Irinjalakuda, Kannur, Kasargod, *Kochi,

Kodungallore, Kollam, Kottayam, Muvattupuzha, Pala, Palakad, Pathanamthitta,

Thalassery, Thiruvalla, Thrissur, Thodupuzha, Thiruvananthapuram (Trivandrum)

Bhilai, Bhopal, Gwalior, *Indore, Jabalpur, Nagda, Neemuch, Ratlam, Satna, Ujjain

Ahmednagar, Akola, Amravati, Ichalkaranji , Jalgaon, Kolhapur, Kopargaon, *Mumbai,

Nagpur, Nashik, *Pune, Solapur,

*Bhubaneshwar, Berhampur, Cuttack, Rourkela, Jeypore, Jaraka

Amritsar, Bathinda, Chandigarh, Fazilka, Hoshiyarpur, Jalandhar, Khanna, *Ludhiana,Mansa, Moga, Mohali, Muktasar, Nabha, Pathankot, Patiala, Barnala, Kotkapura, Batala,Kapurthala, Faridkot

Ajmer, Alwar, Bhilwara, Bikaner, Falna, *Jaipur, Jodhpur, Kota, Udaipur, Sujangarh,

Makrana, Nokha, Beawar, Sadarsahar, Sri Ganganagar, Kankroli, Pali

*Chennai, *Coimbatore, Erode, Karaikal, Karaikudi, Karur, Kumbakonam, Madurai,

Nagercoil, Namakkal, Neyveli, Salem, Sivakasi, Thanjavur, Tirunelveli, Trichy, Tuticorin,Hosur, Vellore, Gobichettipalayam, Gudiyatham, Dharapuram, Pollachi,

Pondicherry,

Agra, Aligarh, Allahabad, Bahraich, Bareilly, Chandausi, Gorakhphur, Ghaziabad, Jhansi,Kurja, *Kanpur, Lucknow, Mathura, Meerut, Moradabad, Muzzafararnagar, Modinagar,

Rishikesh, Roorkee, Renukoot, Saharanpur, Varanasi, Bulandshar, Kashipur, Hapur,Rampur, Sahibabad, Haldwani, Baghpat, Mirzapur

Dehradun, Haridwar, Nainital, Rudrapur, Ramnagar, Sitarganj

Asansol, *Kolkata, Siliguri, Durgapur, Raniganj, Paschim Medinipur , Burdwan

MembershipAdministration 2

17

Membership Administration

The trading in NSE has a three tier structure-the trading platform provided by the Exchange,

the broking and intermediary services and the investing community. The trading members

have been provided exclusive rights to trade subject to their continuously fulfilling the

obligation under the Rules, Regulations, Byelaws, Circulars, etc. of the Exchange. The trading

members are subject to its regulatory discipline. Any person can become a trading member

by complying with the prescribed eligibility criteria and exit by surrendering trading

membership without any hidden/overt cost. There are no entry/exit barriers to trading

membership.

Eligibility Criteria

The Exchange stresses on factors such as corporate structure, capital adequacy, track record,

education, experience, etc. while granting trading rights to its members. This reflects a

conscious effort by the Exchange to ensure quality broking services which enables to build

and sustain confidence in the Exchange's operations. The standards stipulated by the

Exchange for trading membership are substantially in excess of the minimum statutory

requirements as also in comparison to those stipulated by other exchanges in India. The

exposure and volume of transactions that can be undertaken by a trading member are linked

to liquid assets in the form of cash, bank guarantees, etc. deposited by the member with the

Exchange as part of the membership requirements.

The trading members are admitted to the different segments of the Exchange subject to the

provisions of the Securities Contracts (Regulation) Act, 1956, the Securities and Exchange

Board of India Act, 1992, the rules, circulars, notifications, guidelines, etc., issued there

under and the byelaws, Rules and Regulations of the Exchange. All trading members are

registered with SEBI.

Trading Membership

A prospective trading member is admitted to any of the following combinations of market

segments:

• Wholesale Debt Market (WDM) segment,

• Capital Market (CM) and the Futures and Options (F&O) segments,

• CM Segment and the WDM segment, or

• CM Segment, the WDM and the F&O segment.

In order to be admitted as a trading member, the individual trading member/at least two

partners of the applicant firm/at least two directors of the applicant corporate must be

graduates and must possess at least two years' experience in securities markets. The applicant

for trading membership/any of its partners/shareholders/directors must not have been

22222

18

declared defaulters on any stock exchange, must not be debarred by SEBI for being associated

with capital market as intermediaries and must not be engaged in any fund-based activity.

For the F&O segment, at least two dealers should also have passed SEBI-approved

certification test for derivatives. In case of corporate applicant, the minimum paid up capital

should be Rs. 30 lakh and the dominant promoter/shareholder group should hold at least

51% (40% in case of listed companies) of paid-up equity capital of such corporate entity.

The net worth required for trading members on CM & F&O Segment is 100 lakh, however,

a net worth of Rs. 300 lakh is required for members clearing for self as well as for other

trading members.

Clearing Membership

The trades executed on the Exchange may be cleared and settled by a clearing member. The

trading members in the CM segment are also clearing members. In the F&O segment, some

members, who are registered with SEBI as self-clearing members, clear and settle their own

trades. Certain others, registered as trading member-cum-clearing member, clear and settle

their own trades as well as trades of other trading members. Besides this, there is a special

category of members, called professional clearing members (PCMs), who do not trade but

only clear trades executed by others. This means that some members clear and settle their

trades through a trading member-cum-clearing member or a PCM, not themselves. The

members clearing their own trades or trades of others, and the PCMs are required to bring

in additional security deposits in respect of every trading member whose trades they undertake

to clear and settle. The requirements of trading membership and clearing membership are

presented in Tables 2-1A and 2-1B.

Growth and Distribution of Members

As at end March 2007, the Exchange had 1,009 members. A large majority (91.48 %) of them

were corporate members, and the remaining, individuals and firms. There were 1,002, 63 and 845

members in the CM, WDM and F&O segments respectively. The growth of membership on

NSE is presented in Table 2-2. The distribution of trading members on the Exchange as at end

March 2007 is presented below:

Distribution of Trading Members (as on March 30, 2007)

CM WDM CM & CM, WDM CM & F&O Total

Segment Segment WDM & F&O Segment

Segment Segment

Corporates 124 7 9 47 736 923

Individuals 11 0 0 0 29 40

Firms 13 0 0 0 33 46

Total 148 7 9 47 798 1,009

A total of 12,743 (1,186 corporates, 862 partnership firms and 10,695 individuals) sub-brokers

were affiliated to 502 trading members of the Exchange on March 30, 2007.

19

Transaction Charges

In addition to annual fees, members are required to pay transaction charges on trades

undertaken by them. They pay transaction charge at the rate of Rs. 3.5 for every Rs. 1 lakh

of turnover in the CM segment. The transaction charges payable to the exchange by the

trading member for the trades executed by him on the F&O segment are fixed at the rate of

Rs. 2 per lakh of turnover (0.002%) subject to a minimum of Rs. 1,00,000 per year. However,

for the transactions in the options sub-segment, the transaction charges will be levied on the

premium value at the rate of 0.05% (each side) instead of on the strike price as levied earlier.

The Exchange has waived the transaction charges for Wholesale Debt Market Segment for

the period April 1, 2007 to March 31, 2008.

20

Tab

le 2

-1A

: E

ligi

bil

ity

Cri

teri

a fo

r M

emb

erh

ip

(All

valu

es in

Rs.

lak

h)

Part

icu

lars

CM

an

d F

&O

Seg

men

tC

M a

nd

WD

M S

eg

men

tW

DM

Seg

men

tC

M,

WD

M a

nd

F&

O S

eg

men

t

Co

nst

ituti

on

Indiv

idual

s/F

irm

s/C

orp

ora

tes

Corp

ora

tes

Corp

ora

tes

Corp

ora

tes

Pai

d-u

p c

apit

al30

3030

30

(in

cas

e o

f co

rpora

tes)

Net

Wort

h10

0*20

020

020

0*

Inte

rest

Fre

e Se

curi

ty D

epo

sit

(IF

SD)*

125*

*25

015

027

5**

Co

llate

ral

Secu

rity

Dep

osi

t (C

SD)

25**

25N

il25

**

Annual

Sub

scri

pti

on

12

12

Educa

tio

n

Exp

erie

nce

Tw

o y

ear'

s ex

per

ien

ce i

n s

ecu

riti

es m

ark

et

Tra

ck R

ecord

The

Ap

plic

ant/

Par

tner

s/D

irec

tors

sh

ould

no

t b

e def

ault

ers

on

an

y st

ock

exc

han

ge.

They

must

no

t b

e deb

arre

d b

y SE

BI

for

bei

ng

asso

ciat

ed w

ith

cap

ital

mar

ket

as in

term

edia

ries

They

must

be

enga

ged s

ole

ly in

th

e b

usi

nes

s o

f se

curi

ties

an

d m

ust

no

t b

e en

gage

d in

an

y

fun

d-b

ased

act

ivit

y.

*N

o a

ddit

ion

al n

etw

ort

h is

req

uir

ed f

or

self

-cle

arin

g m

emb

ers

in t

he

F&

O s

egm

ent.

How

ever

, a n

etw

ort

h o

f R

s. 3

00 la

kh is

req

uir

ed f

or

mem

ber

s cl

eari

ng

for

self

as

wel

l as

for

oth

er

trad

ing

mem

ber

s.

**A

ddit

ion

al R

s. 2

5 la

kh is

req

uir

ed f

or

clea

rin

g m

emb

ersh

ip (

self

-cle

arin

g m

emb

er/m

emb

ers

clea

rin

g fo

r se

lf a

s w

ell a

s fo

r o

ther

s) in

th

e F

&O

seg

men

t. I

n a

ddit

ion

, a m

emb

er c

lear

ing

for

oth

ers

is r

equir

ed t

o b

rin

g in

IF

SD o

f R

s. 2

lak

h a

nd C

SD o

f R

s. 8

lak

h p

er t

radin

g m

emb

er h

e un

der

take

s to

cle

ar in

th

e F

&O

seg

men

t.

Indiv

idual

tra

din

g m

emb

er/ t

wo

par

tner

s/tw

o d

irec

tors

sh

ould

be

gra

du

ates

. D

eale

rs s

ho

uld

als

o

hav

e p

asse

d S

EB

I ap

pro

ved

cert

ific

atio

n t

est

for

der

ivat

ives

and

Cap

ital

Mar

ket

(B

asic

or

Dea

lers

) M

odule

of

NC

FM

.

At

leas

t tw

o d

irec

tors

sh

ould

be

grad

uat

es.

At

leas

t tw

o

dir

ecto

rs s

ho

uld

be

grad

uat

es.

At

leas

t tw

o d

irec

tors

sh

ou

ld b

e

grad

uat

es.

Dea

lers

sh

ould

als

o h

ave

pas

sed

SE

BI

app

rove

d c

erti

fica

tio

n

test

fo

r der

ivat

ives

an

d C

apit

al M

arke

t

(Bas

ic o

r D

eale

rs)

Mo

dule

of

NC

FM

.

21

Table 2-1B: Requirements for Professional Clearing Memberhip

(All values in Rs. lakh)

Particulars CM Segment F&O Segment CM and F&O Segment

Eligibility Trading Member of NSE/SEBI Registered Custodians/Recognised Banks

Net Worth 300 300 300

Interest Free Security* 25 25 34

Deposit (IFSD)

Collateral Security 25 25 50

Deposit (CSD)

Annual Subscription 2.5 Nil 2.5

* The Professional Clearing Member (PCM) is required to bring in IFSD of Rs. 2 lakh and CSD of Rs. 8

lakh per trading member whose trades he undertakes to clear in the F&O segment and IFSD of Rs. 6 lakh

and CSD of Rs. 17.5 lakh (Rs. 9 lakh and Rs. 25 lakh respectively for corporate Members) per trading

member in the CM segment.

Table 2-2: Growth and Distribution of Members

Month/Year Trading Member Total* Professional

(end of period) CM Segment WDM Segment F&O Segment Clearing Member

Mar-95 348 88 -- 353 --

Mar-96 890 104 -- 895 --

Mar-97 1,013 111 -- 1,019 --

Mar-98 964 108 -- 970 --

Mar-99 918 99 -- 924 --

Mar-00 883 94 -- 892 --

Mar-01 973 90 340 980 13

Mar-02 928 88 484 936 13

Apr-02 927 89 502 935 13

May-02 926 88 501 934 13

Jun-02 920 86 449 928 13

Jul-02 918 85 521 926 13

Aug-02 914 84 532 921 13

Sep-02 912 84 532 919 13

Oct-02 907 82 540 914 13

Nov-02 899 82 539 906 13

Dec-02 894 81 544 901 14

Jan-03 891 81 546 899 13

Feb-03 889 79 551 897 13

Mar-03 887 78 553 895 13

Apr-03 882 77 561 890 13

May-03 874 77 566 882 13

Jun-03 870 77 568 879 13

Jul-03 863 75 568 872 13

Aug-03 859 75 568 869 13

Contd...

22

Sep-03 860 75 574 871 14

Oct-03 860 75 578 871 14

Nov-03 857 75 579 868 14

Dec-03 860 75 583 871 14

Jan-04 861 76 584 872 14

Feb-04 861 76 588 872 16

Mar-04 862 78 589 874 16

Apr-04 860 75 595 872 16

May-04 860 75 599 872 17

Jun-04 863 75 614 874 17

Jul-04 865 75 621 876 17

Aug-04 866 75 621 877 17

Sep-04 866 74 620 876 17

Oct-04 869 76 625 880 17

Nov-04 868 74 628 879 17

Dec-04 867 74 634 878 17

Jan-05 872 74 646 883 17

Feb-05 876 75 652 886 16

Mar-05 881 75 661 891 17

Apr-05 884 75 667 894 17

May-05 886 75 676 896 17

Jun-05 885 75 679 895 17

Jul-05 883 74 679 893 16

Aug-05 887 71 695 896 17

Sep-05 892 70 702 899 17

Oct-05 900 70 704 907 17

Nov-05 902 70 706 909 17

Dec-05 903 70 716 910 17

Jan-06 915 70 731 922 17

Feb-06 920 68 753 927 19

Mar-06 933 68 767 940 19

Apr-06 937 68 776 944 17

May-06 937 68 776 944 17

Jun-06 950 68 789 957 18

Jul-06 950 68 789 957 18

Aug-06 964 68 804 971 19

Sep-06 966 68 806 973 19

Oct-06 965 66 805 972 19

Nov-06 972 66 811 979 19

Dec-06 978 64 819 985 19

Jan-07 991 64 832 998 19

Feb-07 995 63 836 1,002 19

Mar-07 1,002 63 845 1,009 19

-- Not Applicable* Do not add up to total because of multiple membership.Note: Number of SEBI registered members excluding surrendered, dafaulter and expelled members.

Month/Year Trading Member Total* Professional

(end of period) CM Segment WDM Segment F&O Segment Clearing Member

Table 2-2: Growth and Distribution of Members

Contd...

Listing of Securities 3

25

Listing of Securities

The stocks, bonds and other securities issued by issuers require listing for providing liquidity

to investors. Listing means formal admission of a security to the trading platform of the

Exchange. It provides liquidity to investors without compromising the need of the issuer

for capital and ensures effective monitoring of conduct of the issuer and trading of the

securities in the interest of investors. The issuer wishing to have trading privileges for its

securities satisfies listing requirements prescribed in the relevant statutes and in the listing

regulations of the Exchange. It also agrees to pay the listing fees and comply with listing

requirements on a continuous basis. All the issuers who list their securities have to satisfy

the corporate governance requirement framed by regulators.

Benefits of Listing on NSE

The benefits of listing on NSE are as enumerated below:

� NSE provides a trading platform that extends across the length and breadth of the

country. Listing on NSE thus, enables issuers to reach and service investors across the

country.

� NSE being the largest stock exchange in terms of trading volumes, the securities trade

at low impact cost and are highly liquid. This in turn reduces the cost of trading to the

investor.

� The trading system of NSE provides unparallel level of trade and post-trade

information. The best 5 buy and sell orders are displayed on the trading system and the

total number of securities available for buying and selling is also displayed. This helps

the investor to know the depth of the market. Further, corporate announcements,

results, corporate actions etc are also available on the trading system, thus reducing

scope for price manipulation or misuse.

� The facility of making initial public offers (IPOs), using NSE's network and software,

results in significant reduction in cost and time of issues.

� NSE's web-site www.nseindia.com provides a link to the web-sites of the companies

that are listed on NSE, so that visitors interested in any company can visit that company's

web-site from the NSE site.

� Listed companies are provided with monthly trade statistics for the securities of the

company listed on the Exchange.

� The listing fee is nominal.

CM Segment

At the end of March 2007,the number of listed companies were 1,228 and companies available

for trading were 1,084. These securities had a market capitalisation of Rs. 3,367,350 crore. The

growth of securities available for trading on the CM segment is presented in Table 3-1.

33333

26

Listing Criteria

The Exchange has laid down criteria for listing of new issues by companies, IPOs by knowledge-

based issuers, companies listed on other exchanges, and companies formed by amalgamation/

restructuring, etc. in conformity with the Securities Contracts (Regulation) Rules, 1957 and

directions of the Central Government and the Securities and Exchange Board of India (SEBI).

The criteria include minimum paid-up capital and market capitalisation, project appraisal, company/

promoter's track record, etc. The listing criteria for companies in the CM Segment are presented

in Table 3-2. The issuers of securities are required to adhere to provisions of the Securities

Contracts (Regulation) Act, 1956, the Companies Act, 1956, the Securities and Exchange Board

of India Act, 1992, and the rules, circulars, notifications, guidelines, etc. prescribed there under..

Listing Agreement

All companies seeking listing of their securities on the Exchange are required to enter into a

formal listing agreement with the Exchange. The agreement specifies all the quantitative and

qualitative requirements to be continuously complied with by the issuer for continued listing.

The Exchange monitors such compliance. Failure to comply with the requirements invites

suspension of trading, or withdrawal/delisting, in addition to penalty under the Securities

Contracts (Regulation) Act, 1956. The agreement is being increasingly used as a means to improve

corporate governance.

Shareholding Pattern

In the interest of transparency, the issuers are required to disclose shareholding pattern on

a quarterly basis. Table 3-3 presents the sector-wise shareholding pattern at end-December

2006 of 1,158 companies listed on NSE. On an average, the promoters hold more than

54.23% of the total shares. Though non-promoter holding is nearly 43.56 % , Individuals

held only 14.41% and the institutional holdings ( FIIs,MFs, VCF's- Indian and Foreign)

accounted for 20.77 %.

Listing Fees

The listing fees charged by the Exchange are presented in the following table:

Listing Fees in the CM Segment

Listing Fees Amount (Rs.)

Initial Fees 7,500

Annual Fees

Companies with Paid-up Share and/or Debenture Capital (Rs. crore):

Of 1 4,200

> 1 to = 5 8,400

> 5 to = 10 14,000

> 10 to = 20 28,000

> 20 to = 50 42,000

> 50 70,000

plus Rs. 1,400 for every additional

Rs. 5 crore or part thereof

27

Compliance by Listed Companies

NSE has institutionalised a process of verifying compliance of various conditions of the

listing agreement. It conducts a periodic review for compliance on account of announcement

of book closure/record date, announcement of quarterly results, submission of distribution

schedule and annual reports, appointment of compliance officer, investor grievances, various

disclosures, etc.

Disclosures by Listed Companies

It is essential that all critical price sensitive/material information relating to securities is

made available to the market participants and the investors immediately to enable them to

take informed decisions in respect of their investments in securities. The Exchange therefore

ensures certain important timely disclosures by listed companies and disseminates them to

market through the NEAT terminals and through its website. The disclosures include

corporate actions, quarterly/half yearly results, decisions at board meeting, compliance with

corporate governance norms, non-promoters' holding, verification of media reports etc.

Keeping in mind the investor community and the importance of the information about

companies, NSE has also put a system in place where in all corporate announcements including

that of Board meetings that a company discloses to the market is handled in a straight

through and hands free manner. As and when the company submits information the same

will be seamlessly broadcast to the market.

De-listing

The securities listed on NSE can be de-listed from the Exchange as per the SEBI (Delisting

of Securities) Guidelines, 2003 in the following manner:

Voluntary De-listing of Companies

Any promoter or acquirer desirous of delisting securities of the company under the provisions

of these guidelines shall obtain the prior approval of shareholders of the company by a

special resolution passed at its general meeting, make a public announcement in the manner

provided in these guidelines, make an application to the delisting exchange in the form

specified by the exchange and comply with such other additional conditions as may be specified

by the concerned stock exchanges from where securities are to be de-listed. Any promoter

of a company which desires to de-list from the stock exchange shall also determine an exit

price for delisting of securities in accordance with the book building process as stated in the

guidelines. The stock exchanges shall provide the infrastructure facility for display of the

price at the terminal of the trading members to enable the investors to access the price on

the screen to bring transparency to the delisting process.

Compulsory De-listing of Companies

The stock exchanges may de-list companies which have been suspended for a minimum

period of six months for non-compliance with the listing agreement. The stock exchanges

have to give adequate and wide public notice through newspapers and also give a show cause

28

notice to a company. The exchange shall provide a time period of 15 days within which

representation may be made to the exchange by any person who may be aggrieved by the

proposed delisting. Where the securities of the company are de-listed by an exchange, the

promoter of the company shall be liable to compensate the security holders of the company

by paying them the fair value of the securities held by them and acquiring their securities,

subject to their option to remain security-holders with the company.

WDM Segment

In the WDM segment, all government securities, state development loans and treasury bills

are 'deemed' listed as and when they are issued. All eligible securities whether publicly issued

or privately placed can be made available for trading in the WDM segment. Amongst other

requirements, privately placed debt paper of banks, institutions and corporates require an

investment grade credit rating to be eligible for listing. The listing requirements for securities

on the WDM segment are presented in Table 3-4.

The growth of securities available for trading on the WDM segment is presented in Table 3-5. As

at end March 2007, 3,252 securities with issued capital of Rs. 1,753,771 crore and a market

capitalisation of Rs. 1,784,801 crore were available for trading on the WDM segment.

29

Table 3-1: Companies Listed/Permitted to Trade/Availablefor Trading on the CM Segment

Month/Year No. of Companies No. of Companies No. of Companies Market

(end of period) Listed Permitted to Trade Available for Capitalisation

Trading* (Rs. crore)

Nov-94 0 300 300 292,637

Mar-95 135 543 678 363,350

Mar-96 422 847 1,269 401,459

Mar-97 550 934 1,484 419,367

Mar-98 612 745 1,357 481,503

Mar-99 648 609 1,254 491,175

Mar-00 720 479 1,152 1,020,426

Apr-00 725 473 1,145 846,391

May-00 733 431 1,109 790,478

Jun-00 741 423 1,109 852,554

Jul-00 747 410 1,094 746,402

Aug-00 751 410 1,089 794,516

Sep-00 758 379 1,070 730,350

Oct-00 764 377 1,067 707,121

Nov-00 767 376 1,070 764,177

Dec-00 775 350 1,050 760,391

Jan-01 778 348 1,050 807,641

Feb-01 782 320 1,026 789,600

Mar-01 785 320 1,029 657,847

Apr-01 790 319 1,031 653,720

May-01 789 318 1,030 592,437

Jun-01 790 292 1,001 569,797

Jul-01 785 294 994 574,260

Aug-01 786 293 994 575,242

Sep-01 788 293 987 509,105

Oct-01 789 292 986 535,846

Nov-01 788 268 956 581,386

Dec-01 788 268 956 552,908

Jan-02 794 199 893 563,683

Feb-02 791 198 889 621,523

Mar-02 793 197 890 636,861

Apr-02 800 173 865 649,551

May-02 798 172 863 631,609

Jun-02 799 170 848 659,991

Jul-02 799 163 841 608,643

Aug-02 799 161 839 632,618

Sep-02 801 161 840 599,603

Oct-02 803 119 803 606,788

Nov-02 805 118 788 645,388

Dec-02 809 116 788 672,862

Jan-03 814 112 789 572,277

Feb-03 818 107 788 581,985

Mar-03 818 107 788 537,133

Apr-03 830 78 771 530,630

May-03 847 61 769 612,030

Jun-03 853 52 769 678,550

Contd...

30

Table 3-1: Companies Listed/Permitted to Trade/Availablefor Trading on the CM Segment

Month/Year No. of Companies No. of Companies No. of Companies Market

(end of period) Listed Permitted to Trade Available for Capitalisation

Trading* (Rs. crore)

Contd...

Jul-03 865 44 774 719,144

Aug-03 873 35 775 836,650

Sep-03 883 27 774 863,480

Oct-03 887 26 776 926,747

Nov-03 891 23 777 979,541

Dec-03 897 23 779 1,167,028

Jan-04 904 22 786 1,116,150

Feb-04 907 21 788 1,110,954

Mar-04 909 18 787 1,120,976

Apr-04 918 18 795 1,171,828

May-04 928 16 804 950,494

Jun-04 940 12 813 979,700

Jul-04 929 12 815 1,066,087

Aug-04 936 9 820 1,143,075

Sep-04 945 7 824 1,227,550

Oct-04 950 6 828 1,253,825

Nov-04 954 6 831 1,446,292

Dec-04 957 6 832 1,579,161

Jan-05 958 5 833 1,557,444

Feb-05 964 4 837 1,614,597

Mar-05 970 1 839 1,585,585

Apr-05 973 1 836 1,517,908

May-05 977 1 842 1,654,995

Jun-05 987 1 854 1,727,502

Jul-05 999 1 868 1,848,740

Aug-05 1,006 1 875 1,957,491

Sep-05 1,016 1 883 2,098,263

Oct-05 1,019 1 881 1,927,645

Nov-05 1,025 --- 886 2,166,823

Dec-05 1,036 --- 896 2,322,392

Jan-06 1,043 --- 903 2,434,395

Feb-06 1,051 --- 911 2,512,083

Mar-06 1,069 --- 929 2,813,201

Apr-06 1,089 --- 944 2,990,200

May-06 1,093 --- 952 2,612,639

Jun-06 1,099 --- 962 2,524,659

Jul-06 1,095 --- 956 2,514,261

Aug-06 1,099 --- 958 2,777,401

Sep-06 1,116 --- 969 2,994,132

Oct-06 1,127 --- 981 3,138,319

Nov-06 1,137 --- 991 3,373,652

Dec-06 1,158 --- 1,016 3,426,236

Jan-07 1,185 --- 1,040 3,571,487

Feb-07 1,208 --- 1,063 3,296,931

Mar-07 1,228 --- 1,084 3,367,350

* Excluding suspended companies.

31

Tab

le 3

-2:

Lis

tin

g C

rite

ria

for

Com

pan

ies

on t

he

CM

Seg

men

t of

NSE

Cri

teri

aIn

itia

l P

ub

lic O

fferi

ng

s (I

PO

s)C

om

pan

ies

list

ed

on

oth

er

exch

an

ges

Pai

d-u

p E

quit

y C

apit

al (

PU

EC

)/P

UE

C �

Rs.

10

cr. an

d M

C �

Rs.

25

cr.

PU

EC

� R

s. 1

0 cr

. an

d M

C �

Rs.

25

cr. O

R

Mar

ket

Cap

ital

isat

ion

(M

C)

PU

EC

� R

s. 2

5 cr

. O

R

MC

� R

s. 5

0 cr

.

Com

pan

y/P

rom

ote

r's

Tra

ck R

ecord

3 ye

ars

of

exis

ten

ce o

f ap

plic

ant/

pro

mo

tin

g co

mp

any.

3 ye

ars

of

exis

ten

ce o

f ap

plic

ant/

pro

mo

tin

g co

mp

any.

Div

iden

d R

eco

rd o

r N

et w

ort

h--

Div

iden

d p

aid in

at

leas

t 2

out

of

the

last

3 y

ears

OR

Net

wort

h

Rs.

50

cr.

Pro

ject

Ap

pra

isal

/ L

isti

ng

Pro

ject

appra

isal

by

spec

ifie

d a

gen

cies

Lis

ted o

n a

ny

oth

er s

tock

exc

han

ge f

or

at lea

st las

t

thre

e ye

ars

OR

Pro

ject

appra

isal

by

spec

ifie

d a

gen

cies

Oth

er R

equir

emen

ts

No

te:

1.T

he

crit

eria

fo

r IP

Os

shal

l al

so b

e ap

plic

able

to

co

mp

anie

s w

hic

h h

ave

com

e o

ut

wit

h I

PO

s, b

ut

are

no

t lis

ted o

n N

SE, p

rovi

ded

th

ey m

ake

an a

pp

licat

ion

fo

r lis

tin

g w

ith

in 6

mo

nth

s o

f th

e dat

e o

f cl

osu

re o

f p

ub

lic i

ssue.

2.K

now

ledge

-bas

ed c

om

pan

ies

are

com

pan

ies

in t

he

fiel

d o

f in

form

atio

n t

ech

no

logy

, in

tern

et c

om

mer

ce,

tele

com

mun

icat

ion

s, p

har

mac

euti

cals

, et

c. a

nd t

he

reve

nue

fro

m k

now

ledge

-bas

ed a

ctiv

ity

is m

ore

th

an 7

5% o

f in

com

e

for

last

2 y

ears

.

3.D

ivid

end t

rack

rec

ord

/ n

etw

ort

h /

pro

ject

appra

isal

/ l

isti

ng

are

no

t ap

plic

able

to

Gove

rnm

ent

Co

mp

anie

s, P

SUs,

FIs

, N

atio

nal

ised

Ban

ks,

Stat

uto

ry C

orp

ora

tio

ns,

Ban

kin

g C

om

pan

ies

etc.

wh

o a

re o

ther

wis

e go

vern

ed b

y a

regu

lato

ry f

ram

ewo

rk.

Exp

lan

ati

on

s :

1.P

aid u

p E

quit

y C

apit

al m

ean

s p

ost

iss

ue

pai

d u

p e

quit

y ca

pit

al.

2.In

cas

e o

f IP

Os,

mar

ket

cap

ital

isat

ion

is

the

pro

duct

of

the

issu

e p

rice

an

d t

he

po

st-i

ssue

num

ber

of

equit

y sh

ares

. In

cas

e o

f lis

ted c

om

pan

ies

it is

the

pro

duct

of

po

st iss

ue

num

ber

of

equit

y sh

ares

an

d a

vera

ge o

f th

e w

eekl

y

hig

h a

nd l

ow

of

the

clo

sin

g p

rice

s duri

ng

last

12

mo

nth

s is

use

d t

o c

alcu

late

mar

ket

cap

ital

isat

ion

.

3.N

et w

ort

h m

ean

s p

aid-u

p e

quit

y ca

pit

al +

res

erve

s ex

cludin

g re

valu

atio

n r

eser

ve -

mis

cella

neo

us

exp

ense

s n

ot

wri

tten

off

- n

egat

ive

bal

ance

in

pro

fit

and l

oss

acc

oun

t to

th

e ex

ten

t n

ot

set

off

.

(a)

No

dis

cip

lin

ary

acti

on

by

oth

er s

tock

exch

ange

s/re

gula

tory

auth

ori

ty in

pas

t 3

yrs.

(b)

Sati

sfac

tory

red

ress

al m

ech

anis

m f

or

inve

sto

r

grie

van

ces,

dis

trib

uti

on

of

shar

eho

ldin

g an

d

litig

atio

n r

eco

rd o

f th

e p

rom

oti

ng

com

pan

y,

if a

ny.

(a)

Sam

e as

fo

r IP

Os.

(b)

No

neg

ativ

e n

et w

ort

h,

No

win

din

g-u

p

pet

itio

n,

and

N

o r

efer

ence

to

BIF

R.

32

Tab

le 3

-3 :

Sh

areh

old

ing

pat

tern

at

the

end

of

Dec

emb

er 2

006

of c

omp

anie

s L

iste

d o

n N

SE

(In

per

cen

t)

Cate

go

ryP

rom

ote

rsN

on

-Pro

mo

ters

Inst

itu

tio

nal

No

n -

In

stit

uti

on

al

India

nF

ore

ign

Fin

anci

alF

ore

ign

Mutu

alV

entu

reO

ther

sB

odie

sIn

div

idual

so

ther

s

Pro

mo

ters

Pro

mo

ters

Inst

ituti

on

s/In

stit

uti

on

alF

un

ds

Cap

ital

Fun

ds

Co

rpo

rate

Ban

ks/C

entr

alIn

vest

ors

incl

udin

g

Go

vern

men

t/F

ore

ign

Sta

teV

entu

re

Go

vern

men

t(s)

/C

apit

al

Insu

ran

ceF

un

ds

Co

mp

anie

s

Ban

ks43

.11

1.07

4.71

18.9

34.

060.

000.

778.

2213

.37

0.73

5.02

En

gin

eeri

ng

22.0

33.

1112

.38

10.8

711

.07

0.00

0.39

6.07

24.0

98.

611.

38

Fin

ance

25.3

21.

3113

.32

20.4

01.

450.

004.

078.

4721

.52

3.51

0.64

FM

CG

18.4

34.

7214

.65

11.5

910

.82

0.01

0.00

4.15

13.9

120

.69

1.02

Info

rmat

ion

Tec

hn

olo

gy

43.5

93.

932.

0814

.48

2.77

0.31

0.27

6.74

18.2

53.

224.

36

Infr

astr

uct

ure

81.3

11.

183.

036.

541.

130.

170.

371.

654.

260.

300.

06

Man

ufa

cturi

ng

41.7

912

.19

7.41

9.62

3.91

0.18

0.13

5.62

15.8

01.

831.

53

Med

ia &

En

tert

ain

men

t34

.99

7.82

2.26

15.7

95.

310.

000.

547.

7422

.02

3.37

0.16

Pet

roch

emic

als

63.1

42.

515.

115.

271.

480.

000.

025.

8111

.45

0.62

4.58

Ph

arm

aceu

tica

ls40

.56

7.35

4.81

11.4

63.

350.

250.

576.

6720

.79

2.46

1.72

Ser

vice

s45

.00

4.45

7.71

11.7

94.

540.

090.

116.

9516

.05

3.07

0.25

Tel

eco

mm

un

icat

ion

s55

.60

4.30

4.15

12.7

11.

810.

020.

004.

2112

.36

3.51

1.32

Mis

cella

neo

us

45.3

62.

992.

627.

653.

280.

021.

648.

4123

.46

3.02

1.56

Num

ber

of

Shar

es62

7459

4181

281

1791

2577

8058

1725

8013

9986

4237

944

0808

0948

1472

0307

752

3443

482

7446

8815

6918

8352

0770

335

0287

6350

2884

0071

27

% T

o t

ota

l num

ber

of

shar

es48

.02

6.21

6.17

10.7

13.

370.

110.

405.

7014

.41

2.68

2.21

Sh

are

s

held

by

Cu

sto

dia

ns

an

d

ag

ain

st

wh

ich

Dep

osi

tory

Receip

ts

have

been

issu

ed

33

Tab

le 3

-4:

Eli

gib

ilit

y C

rite

ria

for

Sec

uri

ties

on

WD

M S

egm

ent

Issu

er

Lis

tin

g C

rite

ria

Pu

bli

c I

ssu

eP

riva

te P

lacem

en

t

a.P

ub

lic S

ecto

r U

nder

taki

ngs

/ S

tatu

tory

Co

rpora

tio

ns

–M

inim

um

51%

ho

ldin

g b

y G

ovt

.A

s ap

plic

able

to

co

rpora

tes

–L

ess

than

51%

ho

ldin

g by

Go

vt.

As

app

licab

le t

o c

orp

ora

tes

b.St

atuto

ry C

orp

ora

tio

n/L

oca

l B

odie

s/A

uth

ori

ties

–M

inim

um

51%

ho

ldin

g by

Govt

.–

As

app

licab

le t

o P

SUs

–A

s ap

plic

able

to

Co

rpo

rate

s

–L

ess

than

51%

sh

areh

old

ing

As

app

licab

le t

o c

orp

ora

tes

c.F

inan

cial

In

stit

uti

on

s (S

LR

Bo

nds

& N

on

-SL

R B

on

ds)

–E

ligib

le–

Cre

dit

Rat

ing

d.

Sch

edule

d C

om

mer

cial

Ban

ks (

SCB

s)–

Net

wort

h o

f R

s. 5

0 cr

ore

or

abo

ve–

Net

wort

h o

f R

s. 5

0 cr

ore

or

abo

ve

–C

redit

Rat

ing

e.In

fras

truct

ure

Co

mp

anie

s I

nve

stm

ent

Gra

de

Cre

dit

Rat

ing

(Tax

Exe

mp

tio

n a

nd r

eco

gnit

ion

as

infr

astr

uct

ure

com

pan

y un

der

rel

ated

sta

tute

s/re

gula

tio

ns)

f.C

orp

ora

tes

–M

inim

um

Pai

d-u

p c

apit

al o

f R

s. 1

0

crore

, O

R–

Min

imum

Pai

d-u

p c

apit

al o

f R

s. 1

0 cr

ore

, O

R

–M

arke

t C

apit

alis

atio

n o

f R

s. 2

5 cr

ore

–M

arke

t C

apit

alis

atio

n o

f R

s. 2

5 cr

ore

(Net

wort

h i

n c

ase

of

un

liste

d c

om

pan

ies)

(Net

wort

h i

n c

ase

of

un

liste

d c

om

pan

ies)

–C

redit

Rat

ing

g.M

utu

al F

un

ds

SEB

I re

gist

ered

Mutu

al F

un

d/Sc

hem

e h

avin

g an

in

vest

men

t o

bje

ctiv

e

to i

nve

st p

redo

min

antl

y in

deb

t in

stru

men

ts.

h.

Secu

riti

sed D

ebt

Min

imum

tra

nch

e o

f R

s. 2

0 cr

ore

Inve

stm

ent

Gra

de

Cre

dit

Rat

ing

34

Tab

le 3

-5:

Secu

riti

es A

vai

lab

le f

or T

rad

ing

on W

DM

Seg

men

t (a

s of

en

d o

f M

arch

)

(Am

oun

t in

Rs.

cro

re)

As

on

Marc

h 3

1

Secu

riti

es

2002

2003

2004

2005

2006

2007

Nu

mb

er

Am

ou

nt

Nu

mb

er

Am

ou

nt

Nu

mb

er

Am

ou

nt

Nu

mb

er

Am

ou

nt

Nu

mb

er

Am

ou

nt

Nu

mb

er

Am

ou

nt

Go

vern

men

t Se

curi

ties

560

512,

279

719

605,

459

920

846,

532

1,20

41,

119,

224

1259

1,22

7,60

81,

276

1,3

96,3

65

T-B

ills

3924

,489

3935

,753

3933

,274

3974

,919

51 7

1,47

1 5

2 1

17,9

50

PSU

Bo

nds

401

38,7

5545

737

,101

707

55,2

3174

367

,037

791

88,

690

796

90,

374

Inst

ituti

on

al.

Bo

nds

338

25,3

6635

321

,475

360

27,6

8441

127

,795

369

26,

738

271

28,

136

Ban

k B

on

ds

586,

506

737,

056

110

14,1

6012

118

,885

184

33,

942

268

66,

137

Corp

ora

te B

on

ds

337

17,6

5630

616

,269

455

30,5

9156

339

,360

512

43,

863

584

54,

087

Oth

ers

5731

,187

4313

,388

309,

451

162,

598

11 1

,794

5 7

23

To

tal

1,790

656,2

38

1,990

736,5

02

2,6

21

1,016

,923

3,0

97

1,349,8

17 3

,177

149410

6.2

3 3

,252

1,7

53,7

71

Capital Market Segment 4

37

Capital Market Segment

The trading on the NSE's capital market commenced on November 4, 1995 and within a

year of it's existence NSE became the largest stock exchange in the country. The growth of

NSE turnover figures shows a substantial rise from Rs. 1,805 crore in the year 1994-95 to

Rs.1,945,287 crore in 2006-07. The CM segment of NSE provides an efficient and transparent

platform for trading of equity, preference shares, debentures, warrants, exchange traded

funds as well as retail Government securities.

Trading Mechanism

The trading system, known as the National Exchange for Automated Trading (NEAT) system, is

an on-line, fully-automated, nationwide, anonymous, order-driven, screen-based trading system.

In this system, a member can punch into the computer quantities of securities and the prices at

which he likes to transact and the transaction is executed as soon as it finds a matching sale or

buy order from a counter party. It electronically matches orders on a price/time priority and

hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved

operational efficiency. It allows faster incorporation of price sensitive information into prevailing

prices, thus increasing the informational efficiency of markets. It enables market participants to

see the full market on real-time, making the market transparent. It allows a large number of

participants, irrespective of their geographical locations, to trade with one another simultaneously,

improving the depth and liquidity of the market. It provides tremendous flexibility to the users

in terms of kinds of orders that can be placed on the system. It ensures full anonymity by

accepting orders, big or small, from members without revealing their identity, thus providing

equal access to everybody. It provides a perfect audit trail which helps to resolve disputes by

logging in the trade execution process in entirety.

The trading platform of the CM segment is accessed not only from the computer terminals

from the premises of brokers spread over about 266 cities, but also from the personal computers

in the homes of investors through the Internet.

On-line IPOs

The on-line trading system of NSE is used by companies to make IPOs through book building.

It is a fully automated screen based bidding system that allows trading members to enter bids on

behalf of their clients. All bids received by the system are numbered, time stamped, and stored

in the book till the last day of the book building process and the offer price is determined after

the bid closing date. While ensuring efficient price discovery, this system reduces time taken for

completion of the issue process. 199 companies have used the on-line IPO system of NSE by

the end of March 2007.

Market Performance

Trading Volume

The average daily trading volume increased by leaps and bounds from Rs. 17 crore during

1994-95 to Rs. 7,812 crore (US$1,792 million) during 2006-07. The CM segment registered a

44444

38

record number of trades on February 28, 2007 with 4,778,407 trades. The business growth of

the CM segment is presented in Table 4-1 and Chart 4-1.

Internet Trading

At the end of March 2007, 74 members on the CM segment and 68 on the F&O Segment

were permitted to allow investor's web based access to NSE's trading system. The members

of the exchange in turn had registered 2,248,711 clients for web based access as on March

31, 2007. In the Capital market segment about 1,203 lakh trades for Rs. 232,856.90 crore,

(US$ 53,419.80 million) constituting 11.97% of total trading volume, were routed and executed

through internet. The following table gives the growth of internet trading.

Year Enabled Registered Trading Trading % of total

Members* Clients* Volume Volume trading

(Rs. crore) (US $ million) volume

1999-00 3 – – – –

2000-01 61 1,23,578 7,287.81 1,562.57 0.54

2001-02 82 2,31,899 8,138.81 1,667.79 1.59

2002-03 80 346,420 15,360.76 3,233.84 2.48

2003-04 70 463,560 37,945.08 8,745.12 3.45

2004-05 78 849,696 81,033.81 18,522.01 7.11

2005-06 142 1,44,3291 1,83,428.52 41,118.25 11.68

2006-07 74 2,248,711 232,856.90 53,419.80 11.97

* At the end of the financial year 2006-07

Liquidity

The liquidity in the CM segment, as measured by the turnover ratio, has witnessed a steady

increase and reached nearly 57.77% during the year 2006-2007 compared to 55.79% during the

year 2005-06. During the period 2006-07, 87.51% of the securities are traded for more than 100

days is indicated below:

Frequency Distribution of Securities Traded During 2006-07

No. of Days Traded No. of Securities % to Total

Above 100 981 87.51

91-100 3 0.27

81-90 12 1.07

71-80 8 0.71

61-70 25 2.23

51-60 18 1.61

41-50 13 1.16

31-40 17 1.52

21-30 14 1.25

11-20 17 1.52

1-10 13 1.16

Total 1,121 100.00

39

Distribution of Turnover

The concentration of trading among top 'N' securities/brokers is presented in Table 4-2. It

is observed that the top '5' and '100' securities account for about 16.97% and 77.22% of

total turnover in the CM segment in 2006-07. The details of '50' most active securities during

2006-07, which accounted for 61.94% of turnover, are presented in Table 4-2.

Broker-wise distribution of turnover as presented in Table 4-2 indicates increasing diffusion

of trades among a large number of trading members over the years. During 2006-07, top '5'

brokers accounted for only 14.72% of turnover, while top '100' brokers accounted for 71.22%

of total turnover.

Market Capitalisation

The total market capitalisation of securities available for trading on the CM segment increased

from Rs. 363,350 crore as at end March 1995 to Rs. 3,367,350 crore as at end March 2007

(Table 4-4). The details of '50' top companies by market capitalisation, which accounted for

65.37% of total market capitalisation as at end March 2007, are presented in Table 4-5.

Sectoral Distribution

Table 4-6 presents the share of top '50' companies, classified according to different sectors,

in terms of trading volume and market capitalisation.

A significant change in the importance of different sectors is observed during the past few

years. The share of manufacturing companies in trading volume of top '50' companies,

which was 2.03 % in 2002-03 has been steadily increasing and has reached at 55.15 % in

2006-07. As compared to this, the share of information technology (IT) companies in trading

volume which was 74.71 % in 2002-03, witnessed a considerable decline and stood at 15.04%

in 2006-07.

A similar trend has been noticed in the manufacturing sector in terms of market

capitalization. The share of market capitalization in the manufacturing sector reached its

peak at 45.88% in the year 2006-07 from 8.03% in the year 2002-03. The IT sector has

maintained a identical pattern where the market capitalization in 2002-03 was 18.28 % and

18.14 % in the current year 2006-07.

Indices

India Index Services and Products Ltd. (IISL), in technical partnership with S&P, have

developed and have been maintaining scientifically an array of indices of stock prices on

NSE. The popular indices are the S&P CNX Nifty, CNX Nifty Junior, S&P CNX Defty,

S&P CNX 500, CNX Midcap, CNX 100, S&P CNX Industry indices and CNX segment

indices. S&P CNX Nifty, introduced in November 3, 1995, is based on 50 largest and highly

liquid stocks. CNX Nifty Junior, introduced in December 1996, is built out of the next 50

large and liquid stocks. These indices are monitored and updated dynamically and are reviewed

regularly. The comparative movement of major sectoral indices along with that of S&P

CNX Nifty is presented in Chart 4-2.

40

The S&P CNX Nifty accounted for 56.70% of total market capitalisation as at end March

2007, while the CNX Nifty Junior accounted for 9.60% of market capitalisation (Table 4-4).

The compositions of these two indices as at end March 2007 are presented in Table 4-7 and

Table 4-8. The industry wise weightages of securities included in S&P CNX Nifty are

presented in Table 4-9.

The movements in S&P CNX Nifty and CNX Nifty Junior are presented in Table 4-10 and

Table 4-11 respectively. The S&P CNX Nifty Index touched its peak of 4245.30 on February

08, 2007. The S&P CNX Nifty yielded a point to point positive return of 12.31% during

2006-07

Transaction Charges

The maximum brokerage chargeable by trading member in respect of trades effected in the

securities admitted to dealing on the CM segment of the Exchange is fixed at 2.5% of the

contract price, exclusive of statutory levies like, securities transaction tax, SEBI turnover

fee, service tax and stamp duty. However, the brokerage charges as low as 0.10% are also

observed in the market.

A member is required to pay the exchange transaction charges at the rate of 0.0035% (Rs.

3.5 per Rs. 1 lakh) of the turnover. Trading members are also required to pay securities

transaction tax (STT) on all delivery based transaction at the rate of 0.125% (payable by

both buyer and seller) and in case of non-delivery transactions at the rate of 0.025% for

equities payable by the seller only).

Clearing & Settlement

While NSE provides a platform for trading to its trading members, the National Securities

Clearing Corporation Ltd. (NSCCL) determines the funds/securities obligations of the trading

members and ensures that trading members meet their obligations. The core processes

involved in clearing and settlement are:

(a) Trade Recording: The key details about the trades are recorded to provide basis for

settlement. These details are automatically recorded in the electronic trading system of

the exchanges.

(b) Trade Confirmation: The parties to a trade agree upon the terms of trade like security,

quantity, price, and settlement date, but not the counterparty which is the NSCCL. The

electronic system automatically generates confirmation by direct participants.

(c) Determination of Obligation: The next step is determination of what counter-parties owe,

and what counter-parties are due to receive on the settlement date. The NSCCL

interposes itself as a central counterparty between the counterparties to trades and

nets the positions so that a member has security wise net obligation to receive or deliver

a security and has to either pay or receive funds.

(d) Pay-in of Funds and Securities: The members bring in their funds/securities to the NSCCL.

41

They make available required securities in designated accounts with the depositories by

the prescribed pay-in time. The depositories move the securities available in the accounts

of members to the account of the NSCCL. Likewise members with funds obligations

make available required funds in the designated accounts with clearing banks by the

prescribed pay-in time. The NSCCL sends electronic instructions to the clearing banks

to debit member's accounts to the extent of payment obligations. The banks process

these instructions, debit accounts of members and credit accounts of the NSCCL.

(e) Pay-out of Funds and Securities: After processing for shortages of funds/securities and

arranging for movement of funds from surplus banks to deficit banks through RBI

clearing, the NSCCL sends electronic instructions to the depositories/clearing banks

to release pay-out of securities/funds. The depositories and clearing banks debit

accounts of the NSCCL and credit accounts of members. Settlement is complete upon

release of pay-out of funds and securities to custodians/members.

(f) Risk Management: A sound risk management system is integral to an efficient settlement

system. The NSCCL ensures that trading members' obligations are commensurate with

their net worth. It has put in place a comprehensive risk management system, which is

constantly monitored and upgraded to pre-empt market failures. It monitors the track

record and performance of members and their net worth; undertakes on-line monitoring

of members' positions and exposure in the market, collects margins from members

and automatically disables members if the limits are breached. The risk management

methods adopted by NSE have brought the Indian financial market in line with the

international markets.

Settlement Agencies

The NSCCL, with the help of clearing members, custodians, clearing banks and depositories

settles the trades executed on exchanges. The roles of each of these entities are explained below:

(a) NSCCL: The NSCCL is responsible for post-trade activities of a stock exchange. Clearing

and settlement of trades and risk management are its central functions. It clears all trades,

determines obligations of members, arranges for pay-in of funds/securities, receives funds/

securities, processes for shortages in funds/securities, arranges for pay-out of funds/

securities to members, guarantees settlement, and collects and maintains margins/collateral/

base capital/other funds. It is the counterparty to all settlement obligations of the members.

(b) Clearing Members: They are responsible for settling their obligations as determined by the

NSCCL. They have to make available funds and/or securities in the designated accounts

with clearing bank/depositories, as the case may be, to meet their obligations on the

settlement day.

(c) Custodians: Custodian is a clearing member but not a trading member. They settle trades

assigned to them by trading members. They are required to confirm whether they are

going to settle a particular trade or not. If it is confirmed, the NSCCL assigns that obligation

to that custodian and the custodian is required to settle it on the settlement day.

(d) Clearing Banks: Every clearing member is required to open a dedicated clearing account with

one of the clearing banks. Based on his obligation as determined through clearing, the

42

clearing member makes funds available in the clearing account for the pay-in and receives

funds in case of a pay-out.

(e) Depositories: Depositories help in the settlement of the dematerialised securities. Each

custodian/clearing member is required to maintain a clearing pool account with the

depositories. He is required to make available the required securities in the designated account

on settlement day. The depository runs an electronic file to transfer the securities from

accounts of the custodians/clearing member to that of NSCCL. As per the schedule of

allocation of securities determined by the NSCCL, the depositories transfer the securities

on the pay-out day from the account of the NSCCL to those of members/custodians.

(f) Professional Clearing Member: NSCCL admits special category of members namely, professional

clearing members. Professional Clearing Member (PCM) may clear and settle trades executed

for their clients (individuals, institutions etc.). In such an event, the functions and

responsibilities of the PCM would be similar to Custodians. PCMs may also undertake

clearing and settlement responsibility for trading members. In such a case, the PCM would

settle the trades carried out by the trading members connected to them. A PCM has no

trading rights but has only clearing rights, i.e. he clears the trades of his associate trading

members and institutional clients.

Settlement Cycles

NSCCL clears and settles trades as per well-defined settlement cycles, as presented in Table 4-12.

Since the beginning of the financial year 2003, all securities are being traded and settled under

T+2 rolling settlement. The NSCCL notifies the consummated trade details to clearing members/

custodians on the trade day. The custodians affirm back the trades to NSCCL by T+1 day. Based

on the affirmation, NSCCL nets the positions of counterparties to determine their obligations.

A clearing member has to pay-in/pay-out funds and/or securities. A member has a security-wise

net obligation to receive/deliver a security. The obligations are netted for a member across all

securities to determine his fund obligations and he has to either pay or receive funds. Members'

pay-in/pay-out obligations are determined latest by T+1 day and are forwarded to them on the

same day so that they can settle their obligations on T+2 day. The securities/funds are paid-in/

paid-out on T+2 day and the settlement is complete in 3 days from the end of the trading day.

Settlement Statistics

The settlement statistics of the CM segment is presented in Table 4-13. During 2006-07, NSCCL

settled trades for Rs. 1,940,094 crore of which 28.06% were settled by delivery. However, these

deliveries include only the net deliveries made by the trading members to the clearing corporation.

Of total delivery, nearly 100% of securities were delivered in demat form in 2006-07. Short

deliveries averaged around 0.32% of total delivery in 2006-07.

Risk Management System

There have been a number of experiments with different risk containment measures in the

recent past. NSE being aware of the importance of the risk containment measures has a

dedicated Risk Group which looks into aspects relating to the risk management. These

43

measures have been repeatedly reviewed and revised. The risk containment measures in

vogue are described below:

Capital Adequacy

The capital adequacy requirements stipulated by the NSE are substantially in excess of the

minimum statutory requirements as also in comparison to those stipulated by other stock

exchanges. A person seeking membership in the CM and F&O segment is required to have

a net worth of Rs. 1 crore, and keep an interest free security deposit of Rs. 1.25 crore and

collateral security deposit of Rs. 0.25 crore with the Exchange/NSCCL. The deposits kept

with the Exchange as part of the membership requirement may be used towards the margin

requirement of the member. Additional capital may be provided by the member for taking

additional exposure.

Margin Requirements

NSCCL imposes stringent margin requirements as a part of its risk containment measures.

The categorization of stocks for imposition of margins has the structure as given below;

� The Stocks which have traded atleast 80% of the days for the previous six months

shall constitute the Group I and Group II.

� Out of the scrips identified above, the scrips having mean impact cost of less than or

equal to 1% shall be categorized under Group I and the scrips where the impact cost is

more than 1 shall be categorized under Group II.

� The remaining stocks shall be classified into Group III.

� The impact cost shall be calculated on the 15th of each month on a rolling basis

considering the order book snapshots of the previous six months. On the basis of the

impact cost so calculated, the scrips shall move from one group to another group from

the 1st of the next month.

� For securities that have been listed for less than six months, the trading frequency and

the impact cost shall be computed using the entire trading history of the security.

Categorisation of newly listed securities

For the first month and till the time of monthly review a newly listed security shall be

categorised in that Group where the market capitalization of the newly listed security exceeds

or equals the market capitalization of 80% of the securities in that particular group.

Subsequently, after one month, whenever the next monthly review is carried out, the actual

trading frequency and impact cost of the security shall be computed, to determine the liquidity

categorization of the security.

In case any corporate action results in a change in ISIN, then the securities bearing the new

ISIN shall be treated as newly listed security for group categorization.

Daily margin, comprises of VaR margin, Extreme Loss margin and Mark to Market margin.

1) Value at Risk Margin :

All securities are classified into three groups for the purpose of VaR margin

44

For the securities listed in Group I, scrip wise daily volatility calculated using the

exponentially weighted moving average methodology shall be applied to daily returns

in the same manner as in the derivatives market. The scrip wise daily VaR would be 3.5

times the volatility so calculated subject to a minimum of 7.5%.

For the securities listed in Group II, the VaR margin shall be higher of scrip VaR (3.5

sigma) or three times the index VaR, and it shall be scaled up by root 3.

For the securities listed in Group III, the VaR margin would be equal to five times the

index VaR and scaled up by root 3.

The index VaR, for the purpose, would be the higher of the daily Index VaR based on

S&P CNX NIFTY or BSE SENSEX. The index VaR would be subject to a minimum

of 5%.

Security specific Margin: NSCCL may stipulate security specific margins for the securities

from time to time.

The VaR margin rate computed as mentioned above will be charged on the net

outstanding position (buy value-sell value) of the respective clients on the respective

securities across all open settlements. There would be no netting off of positions

across different settlements. The VaR margin shall be collected on an upfront basis by

adjusting against the total liquid assets of the member at the time of trade. The VaR

margin so collected shall be released on completion of pay-in of the settlement.

The VaR numbers are recomputed six times during the day taking into account price

and volatilities at various time intervals and are provided on the website of the Exchange.

2) Extreme Loss Margin

The Extreme Loss Margin for any security shall be higher of 5%, or 1.5 times the

standard deviation of daily logarithmic returns of the security price in the last six

months. The Extreme Loss Margin shall be collected/ adjusted against the total liquid

assets of the member on a real time basis.

3) Mark to Market Margin

Mark to market loss shall be calculated by marking each transaction in security to the

closing price of the security at the end of trading. In case the security has not been

traded on a particular day, the latest available closing price at the NSE shall be considered

as the closing price. In case the net outstanding position in any security is nil, the

difference between the buy and sell values shall be considered as notional loss for the

purpose of calculating the mark to market margin payable.

The mark to market margin (MTM) shall be collected from the member before the

start of the trading of the next day. The MTM margin shall also be collected/adjusted

from/against the cash/cash equivalent component of the liquid net worth deposited

with the Exchange.

The MTM margin so collected shall be released on completion of pay-in of the

settlement.

45

Index-based Circuit Filters

An index based market-wide circuit breaker system applies at three stages of the index

movement either way at 10%, 15% and 20%. These circuit breakers bring about a coordinated

trading halt in all equity and equity derivatives markets nation wide. The breakers are triggered

by movement of either S&P CNX Nifty or Sensex, whichever is breached earlier.

• In case of a 10% movement of either of these indices, there would be a one-hour market

halt if the movement takes place before 1:00 p.m. In case the movement takes place at or

after 1:00 p.m. but before 2:30 p.m. there would be trading halt for ½ hour. In case movement

takes place at or after 2:30 p.m. there will be no trading halt at the 10% level and market

shall continue trading.

• In case of a 15% movement of either index, there shall be a two-hour halt if the movement

takes place before 1 p.m. If the 15% trigger is reached on or after 1:00 p.m. but before 2:00

p.m., there shall be a one-hour halt. If the 15% trigger is reached on or after 2:00 p.m. the

trading shall halt for remainder of the day.

• In case of a 20% movement of the index, trading shall be halted for the remainder of the

day.

NSE may suo moto cancel the orders in the absence of any immediate confirmation from

the members that these orders are genuine or for any other reason as it may deem fit. The

Exchange views entries of non-genuine orders with utmost seriousness as this has market-

wide repercussion. As an additional measure of safety, individual scrip-wise price bands

have been fixed as below:

• Daily price bands of 2% (either way) on a set of specified securities

• Daily price bands of 5% (either way) on a set of specified securities

• Daily price bands of 10% (either way) on specified securities

• Price bands of 20% (either way) on all remaining securities (including debentures,

warrants, preference shares etc. which are traded on CM segment of NSE),

• No price bands are applicable on:

scrips on which derivative products are available or

scrips included in indices on which derivatives products are available. *

The price bands for the securities in the Limited Physical Market are the same as those

applicable for the securities in the Normal Market.

For Auction market the price bands of 20% are applicable.

*In order to prevent members from entering orders at non-genuine prices in such securities,

the Exchange has fixed operating range of 20% for such securities.

Settlement Guarantee Fund

The Settlement Guarantee Fund (SGF), provides the cushion for any residual risk. It operates

like a self-insurance mechanism where members contribute to the Fund. In the event of

failure of a trading member to meet settlement obligations or committing a default, the

Fund is utilised to the extent required for successful completion of the settlement. This has

46

eliminated counter-party risk of trading on the Exchange. The market has full confidence

that settlement shall take place in time and shall be completed irrespective of default by

isolated trading members.

Surveillance

As the securities transactions are prone to a variety of manipulations, the Exchange has

instituted a strong surveillance mechanism to protect market integrity. It includes:

On-line Monitoring

NSCCL has in place an on-line monitoring and surveillance system whereby exposure of the

members is monitored on a real time basis. A system of alerts has been built in so that both

the member and NSCCL are alerted as per pre-set levels (reaching 70%, 85%, 90%, 95% and

100%) when the members approach their allowable limits. The system enables NSSCL to

further check the micro-details of members' positions, if required, and take pro-active action.

The on-line surveillance mechanism also generates various alerts/reports on any price/volume

movement of securities not in line with past trends/patterns. For this purpose the exchange

has put in place a system that generates alerts. Alerts are scrutinised and if necessary taken

up for follow up action. Open positions of securities are also analysed. Besides this, rumors

in the print media are tracked and where they are price sensitive, companies are contacted

for verification. Replies received are informed to the members and the public.

Investigation and Inspection

As per regulatory requirement, a minimum of 20% of the active trading members are to be

inspected every year to verify the level of compliance with various rules, byelaws and

regulations of the Exchange. Usually, inspection of more members than the regulatory

requirement is undertaken every year. The inspection randomly verifies if investor interests

are being compromised in the conduct of business by the members. The investigation is

based on various alerts which require further analysis. If further analysis suggests any possible

irregular activity which deviates from the past trends/patterns and concentration of trading

at NSE at the member level, then a more detailed investigation is undertaken. If the detailed

investigation establishes any irregular activity, then disciplinary action is initiated against the

member. If the investigation suggests possible irregular activity across exchanges and/or

possible involvement of clients, then the same is informed to SEBI.

47

Tab

le 4

-1:B

usi

nes

s G

row

th o

f C

M S

egm

ent

Mo

nth

& Y

ear

No

. o

fN

o.

of

No

. o

fT

rad

ed

Tra

din

gT

rad

ing

Ave

rag

eA

vera

ge

Tu

rno

ver

Dem

at

Dem

at

Mark

et

Tra

din

gco

mp

an

ies

Tra

des

Qu

an

tity

Valu

eV

alu

eD

ail

yD

ail

yR

ati

oT

rad

ed

Tra

din

gC

ap

ital-

Days

Tra

ded

Tra

din

gT

rad

ing

Qu

an

tity

Valu

eis

ati

on

Valu

eV

alu

e(L

ak

h)

(Lak

h)

(Rs.

cr.

)(U

S $

mil

lio

n)

(Rs.

cr.

)(U

S $

mil

lio

n)

(%)

(Lak

h)

(Rs.

cr.

)(R

s. c

r.)

1994-9

5 (

No

v.-M

ar.

)10

2--

31,

391

1,805

--17

----

00

363,3

50

1995-9

6246

--66

39,9

1267,2

87

--276

----

00

401,

459

1996-9

7250

--264

135,5

61

294,5

03

--1,

176

----

26

419

,367

1997-9

8244

--381

135,6

85

370,1

93

--1,

520

----

315

351

481,

503

1998-9

9251

--546

165,3

27

414

,474

97,6

83

1,651

389

--8,5

42

23,8

18 4

91,

175

1999-2

000

254

--984

242,7

04

839,0

52

192,3

53

3,3

03

757

--15

3,7

72

711

,706

1,0

20,4

26

2000-0

1251

1,201

1,6

76

329,5

36

1,339,5

10287,2

02

5,3

37

1,14

4--

307,2

22

1,264,3

37

657,8

47

Ap

r-01

1995

111

420

,782

35,6

167,

298

1,87

538

45.

4520

,735

35,6

0565

3,72

0M

ay-0

122

954

141

25,7

1548

,329

9,90

32,

197

450

8.16

25,7

1448

,329

592,

437

Jun

-01

2196

313

322

,336

42,7

838,

767

2,03

741

77.

5121

,935

42,6

2556

9,79

7Ju

l-01

2292

499

13,1

4227

,228

5,57

91,

238

254

4.74

13,1

3727

,227

574,

260

Aug-

0121

931

112

15,9

3729

,417

6,02

81,

401

287

5.11

15,9

3129

,415

575,

242

Sep

-01

2091

713

517

,342

35,3

237,

238

1,76

636

26.

9417

,342

35,3

2350

9,10

5O

ct-0

121

917

141

19,7

9935

,326

7,23

91,

682

345

6.59

19,7

9635

,324

535,

846

No

v-01

2092

015

325

,349

42,1

328,

634

2,10

743

27.

2525

,295

42,1

2158

1,38

6D

ec-0

119

895

177

31,7

7754

,468

11,1

612,

867

588

9.85

31,7

7554

,465

552,

908

Jan

-02

2389

6 2

1334

,384

68,7

1914

,082

2,98

861

212

.19

34,2

1968

,606

563,

683

Feb

-02

2084

0 1

7728

,552

49,5

6410

,157

2,47

850

87.

9728

,547

49,5

6462

1,52

3M

ar-0

219

840

157

23,2

9444

,262

9,07

02,

330

477

6.95

23,2

9144

,262

636,

861

2001-

02

247

1,019

1,753

278,4

08

513

,167

105,1

57

2,0

78

426

--277,7

17512

,866

636,8

61

Ap

r-02

2284

320

128

,798

53,3

2011

,225

2,42

451

08.

2128

,782

53,3

1664

9,55

1M

ay-0

222

821

217

35,3

0354

,979

11,5

752,

499

526

8.70

35,3

0354

,978

631,

609

Jun

-02

2082

518

938

,519

44,2

419,

314

2,21

246

66.

7038

,519

44,2

4165

9,99

1Ju

l-02

2382

021

136

,821

51,3

9810

,821

2,23

547

18.

4436

,821

51,3

9860

8,64

3A

ug-

0221

806

191

26,0

0046

,113

9,70

82,

196

462

7.29

26,0

0046

,113

632,

618

Sep

-02

2080

618

525

,581

46,4

999,

789

2,32

548

97.

7525

,581

46,4

9959

9,60

3O

ct-0

221

770

201

26,4

5851

,902

10,9

272,

472

520

8.55

26,4

5851

,902

606,

788

No

v-02

1976

717

523

,631

51,3

5210

,811

2,70

356

97.

9623

,631

51,3

5264

5,38

8D

ec-0

221

762

219

33,0

2261

,973

13,0

472,

951

621

9.21

33,0

2261

,973

672,

862

Jan

-03

2376

323

936

,336

64,7

6213

,634

2,81

659

311

.32

36,3

3664

,762

572,

277

Feb

-03

1976

019

128

,681

48,2

8910

,166

2,54

253

58.

3028

,681

48,2

8958

1,98

5M

ar-0

320

762

177

24,9

1743

,160

9,08

62,

158

454

8.04

24,9

1743

,160

537,

133

2002-0

3251

899

2,3

97

364,0

66

617

,989

130,1

03

2,4

62

518

`--

364,0

49

617

,984

537,1

33

Ap

r-03

2073

820

731

,448

48,9

7111

,286

2,44

956

49.

2331

,448

48,9

7153

0,63

0M

ay-0

321

743

250

44,0

0154

,690

12,6

042,

604

600

8.94

44,0

0154

,690

612,

030

Jun

-03

2174

426

751

,896

61,5

8614

,194

2,93

367

69.

0851

,896

61,5

8667

8,55

0Ju

l-03

2375

532

064

,906

78,8

7818

,179

3,42

979

010

.97

64,9

0678

,878

719,

145

Aug-

0320

752

322

84,5

5485

,347

19,6

704,

267

983

10.2

084

,554

85,3

4783

6,65

1Se

p-0

322

761

346

71,8

4810

3,34

523

,818

4,69

81,

083

11.9

771

,848

103,

345

863,

481

Oct

-03

2372

835

871

,768

115,

595

26,6

415,

026

1,15

812

.47

71,7

6811

5,59

592

6,74

8N

ov-

0320

738

307

56,7

1692

,886

21,4

074,

644

1,07

09.

4856

,716

92,8

8697

9,54

1D

ec-0

322

754

379

71,7

5411

0,37

325

,437

5,01

71,

156

9.46

71,7

5411

0,37

31,

167,

029

Contd...

48

Jan

-04

2176

139

873

,340

134,

269

30,9

456,

394

1,47

412

.03

73,3

4013

4,26

91,

116,

150

Feb

-04

1976

330

846

,484

108,

718

25,0

565,

722

1,31

99.

7946

,484

108,

718

1,11

0,95

4M

ar/04

2276

931

844

,586

104,

877

24,1

714,

767

1,09

99.

3644

,586

104,

877

1,12

0,97

62003-0

4254

804

3,7

80

713

,300

1,099,5

34

253,4

07

4,3

29

998

--713

,300

1,099,5

34

1,12

0,9

76

Ap

r-04

2077

131

953

,686

100,

951

23,0

755,

048

1,15

48.

6153

,686

100,

951

1,17

1,82

8M

ay-0

421

776

357

54,6

5198

,920

22,6

104,

710

1,07

710

.41

54,6

5198

,920

950,

494

Jun

-04

2278

733

641

,987

84,8

9819

,405

3,85

988

28.

6741

,987

84,8

9897

9,70

0Ju

l-04

2279

337

763

,058

93,8

3621

,448

4,26

597

58.

8063

,058

93,8

361,

066,

087

Aug-

0422

799

358

57,5

4386

,856

19,8

533,

948

902

7.60

57,5

4386

,856

1,14

3,07

5Se

p-0

422

809

367

62,6

6688

,508

20,2

304,

023

920

7.21

62,6

6688

,508

1,22

7,55

0O

ct-0

420

814

299

47,2

7475

,698

17,3

023,

785

865

6.04

47,2

7475

,698

1,25

3,82

5N

ov-

0420

816

328

62,5

4882

,035

18,7

514,

102

938

5.67

62,5

4882

,035

1,44

6,29

2D

ec-0

423

821

475

99,3

2611

5,59

326

,421

5,02

61,

149

7.32

99,3

2611

5,59

31,

579,

161

Jan

-05

1982

341

081

,575

99,7

3222

,796

5,24

91,

200

6.40

81,5

7599

,732

1,55

7,44

4F

eb-0

520

835

425

89,6

6599

,989

22,8

554,

999

1,14

36.

1989

,665

99,9

891,

614,

597

Mar

-05

2287

045

9 8

3,70

5 1

13,0

5525

,841

5,1

391,

175

7.13

8370

4.62

113

,055

1,58

5,58

52004-0

5253

856

4,5

09

797,6

85

1,14

0,0

72

260,5

88

4,5

06

1,030

--797,6

85

1,14

0,0

72

1,585,5

85

Ap

r-05

2082

936

7 5

1,26

5 8

2,71

818

,543

4,1

3692

75.

45 5

1,26

5 8

2,71

81,

517,

908

May

-05

2283

041

3 5

6,51

6 8

6,80

219

,458

3,9

4688

45.

24 5

6,51

6 8

6,80

21,

654,

995

Jun

-05

2384

347

7 7

0,48

5 1

11,3

9724

,971

4,8

431,

086

6.45

70,

485

111

,397

1,72

7,50

2Ju

l-05

2085

650

3 8

4,13

4 1

23,0

0827

,574

6,1

501,

379

6.65

84,

134

123

,008

1,84

8,74

0A

ug-

0522

864

570

100

,717

145

,731

32,6

68 6

,624

1,48

57.

44 1

00,7

17 1

45,7

311,

957,

491

Sep

-05

2187

257

6 9

1,99

6 1

45,3

9332

,592

6,9

231,

552

6.93

91,

996

145

,393

2,09

8,26

3O

ct-0

520

887

463

57,

670

120

,810

27,0

81 6

,040

1,35

46.

27 5

7,67

0 1

20,8

101,

927,

645

No

v-05

2087

243

4 5

3,87

0 1

09,5

7824

,564

5,4

791,

228

5.06

53,

870

109

,578

2,16

6,82

3D

ec-0

522

888

553

63,

699

149

,908

33,6

04 6

,814

1,52

76.

45 6

3,69

9 1

49,9

082,

322,

392

Jan

-06

2089

355

4 6

6,71

7 1

49,4

4233

,500

7,4

721,

675

6.14

66,

717

149

,442

2,43

4,39

5F

eb-0

619

900

521

61,

629

135

,374

30,3

46 7

,125

1,59

75.

39 6

1,62

9 1

35,3

742,

512,

083

Mar

-06

2292

0 6

58 8

5,78

8 2

09,3

9546

,939

9,5

182,

134

7.44

85,

788

209

,395

2,81

3,20

12005-0

6251

928

6,0

89

844,4

86

1,5

69,5

58

351,

840

6,2

53

1,402

55.7

9 8

44,4

86

1,5

69,5

58

2,8

13,2

01

Ap

r-06

1893

556

7 7

2,89

2 1

77,3

7240

,691

9,8

542,

261

5.93

72,

892

177

,372

2,99

0,20

0M

ay-0

622

943

694

95,

371

201

,409

46,2

05 9

,155

2,10

07.

71 9

5,37

1 2

01,4

092,

612,

639

Jun

-06

2395

066

7 6

6,74

8 1

51,0

5034

,652

6,5

671,

507

5.98

66,

748

151

,050

2,52

4,65

9Ju

l-06

2195

053

7 4

6,14

6 1

18,6

9827

,231

5,6

521,

297

4.72

46,

146

118

,698

2,51

4,26

1A

ug-

0622

949

631

56,

443

130

,796

30,0

06 5

,945

1,36

44.

71 5

6,44

3 1

30,7

962,

777,

401

Sep

-06

2196

864

8 6

4,38

5 1

44,3

3933

,113

6,8

731,

577

4.82

64,

385

144

,339

2,99

4,13

2O

ct-0

620

973

579

60,

823

138

,382

31,7

46 6

,919

1,58

74.

41 6

0,82

3 1

38,3

823,

138,

319

No

v-06

2298

274

7 7

3,07

1 1

89,8

6343

,557

8,6

301,

980

5.63

73,

071

189

,863

3,37

3,65

2D

ec-0

620

1,0

0966

6 5

8,58

1 1

70,1

0539

,024

8,5

051,

951

4.96

58,

581

170

,105

3,42

6,23

6Ja

n-0

720

1,0

3569

9 8

8,35

4 1

75,1

4740

,181

8,7

572,

009

4.90

88,

354

175

,147

3,57

1,48

7F

eb-0

719

1,0

5770

2 8

9,80

7 1

80,1

7041

,333

9,4

832,

175

5.46

89,

807

180

,170

3,29

6,93

1M

ar-0

721

1,0

8171

0 8

2,83

6 1

67,9

5438

,530

7,9

981,

835

4.99

82,

836

167

,954

3,36

7,35

02006-0

7249

1,1

14 7

,847

855,4

56

1,9

45,2

87

446,2

69

7,8

121,

792

57.7

7 8

55,4

56

1,9

45,2

87

3,3

67,3

50

Mo

nth

& Y

ear

No

. o

fN

o.

of

No

. o

fT

rad

ed

Tra

din

gT

rad

ing

Ave

rag

eA

vera

ge

Tu

rno

ver

Dem

at

Dem

at

Mark

et

Tra

din

gco

mp

an

ies

Tra

des

Qu

an

tity

Valu

eV

alu

eD

ail

yD

ail

yR

ati

oT

rad

ed

Tra

din

gC

ap

ital-

Days

Tra

ded

Tra

din

gT

rad

ing

Qu

an

tity

Valu

eis

ati

on

Valu

eV

alu

e(L

ak

h)

(Lak

h)

(Rs.

cr.

)(U

S $

mil

lio

n)

(Rs.

cr.

)(U

S $

mil

lio

n)

(%)

(Lak

h)

(Rs.

cr.

)(R

s. c

r.)

Tab

le 4

-1:B

usi

nes

s G

row

th o

f C

M S

egm

ent

Contd...

49

Chart 4-1: Business Growth of Capital Market Segment

Table 4-2: Percentage Share of Top 'N' Securities/Members in Turnover

No. of Securities/Members

5 10 25 50 100

Securities

1994-95 (Nov.-Mar.) 48.77 55.92 68.98 81.14 91.071995-96 82.98 86.60 90.89 93.54 95.871996-97 84.55 91.96 95.70 97.03 98.191997-98 72.98 85.17 92.41 95.76 97.901998-99 52.56 67.11 84.71 92.03 95.981999-00 39.56 59.22 82.31 88.69 93.662000-01 52.15 72.90 88.93 94.57 97.462001-02 44.43 62.92 82.24 91.56 95.912002-03 40.58 55.41 77.80 89.16 95.382003-04 31.04 44.87 64.32 79.44 91.032004-05 25.88 41.65 57.98 72.40 84.262005-06 22.15 31.35 46.39 59.22 73.122006-07 16.97 25.25 43.46 61.94 77.22

Members

1994-95 (Nov.-Mar.) 18.19 26.60 44.37 61.71 81.121995-96 10.65 16.56 28.61 41.93 58.591996-97 5.94 10.08 19.67 30.57 45.951997-98 6.29 10.59 18.81 29.21 44.241998-99 7.73 11.96 20.77 31.66 47.021999-00 7.86 12.99 22.78 34.41 49.962000-01 7.78 12.76 23.00 33.86 48.792001-02 7.14 12.29 23.63 36.32 53.402002-03 10.26 16.41 29.07 42.49 59.152003-04 11.58 17.36 30.34 44.05 61.372004-05 13.52 20.20 34.97 49.01 65.092005-06 14.62 22.57 38.17 52.57 38.452006-07 14.72 24.27 42.61 56.71 71.22

50

Table 4-3: '50' Most Active Securities during 2006-07 in Terms of Trading Value

Rank Name of Security Trading Trading % Share in Market % Share inValue Value Total Capitalisation Total

(Rs. crore) (US$ Trading as on Marketmillion) Value 31.3.2007 Capitalisation

(Rs. crore)

1 RELIANCE INDUSTRIES LTD 115,727 2,655 5.95 190,952 5.67

2 INFOSYS TECHNOLOGIES LTD 68,437 1,570 3.52 114,000 3.39

3 SATYAM COMPUTER SERVICES 49,061 1,126 2.52 30,969 0.92

4 TATA STEEL LIMITED 48,778 1,119 2.51 26,101 0.78

5 RELIANCE COMMUNICATIONS L 48,129 1,104 2.47 86,058 2.56

6 OIL AND NATURAL GAS CORP. 37,618 863 1.93 188,392 5.59

7 STATE BANK OF INDIA 34,177 784 1.76 52,338 1.55

8 TATA MOTORS LIMITED 32,929 755 1.69 28,063 0.83

9 INDIABULLS FIN. SER. LTD. 28,234 648 1.45 7,503 0.22

10 ACC LIMITED 28,031 643 1.44 13,772 0.41

11 TATA CONSULTANCY SERV LT 26,848 616 1.38 120,746 3.59

12 ICICI BANK LTD. 26,108 599 1.34 76,379 2.27

13 LARSEN & TOUBRO LTD. 25,909 594 1.33 45,471 1.35

14 ITC LTD 25,888 594 1.33 56,866 1.69

15 BHEL 25,577 587 1.31 55,349 1.64

16 RELIANCE CAPITAL LTD 25,482 585 1.31 14,965 0.44

17 INDIA CEMENTS LTD 24,229 556 1.25 3,569 0.11

18 CENTURY TEXTILES LTD 23,951 549 1.23 5,076 0.15

19 STERLITE INDS (IND) LTD 23,373 536 1.20 26,204 0.78

20 STEEL AUTHORITY OF INDIA 22,666 520 1.17 47,210 1.40

21 TECH MAHINDRA LIMITED 22,416 514 1.15 16,744 0.50

22 HINDALCO INDUSTRIES LTD 21,067 483 1.08 16,884 0.50

23 MARUTI UDYOG LIMITED 21,065 483 1.08 23,696 0.70

24 IVRCL INFRAST & PROJ LTD. 20,412 468 1.05 3,793 0.11

25 SUZLON ENERGY LIMITED 19,238 441 0.99 28,820 0.86

26 HINDUSTAN LEVER LTD 19,125 439 0.98 45,284 1.34

27 SIEMENS LTD 18,675 428 0.96 18,387 0.55

28 MAHINDRA GESCO DEVELOPERS 18,048 414 0.93 2,106 0.06

29 IFCI LTD 17,555 403 0.90 2,146 0.06

30 ZEE ENTERTAINMENT ENT LTD 17,535 402 0.90 10,870 0.32

31 BOMBAY DYEING & MFG. CO L 17,162 394 0.88 2,090 0.06

32 BHARTI AIRTEL LIMITED 16,185 371 0.83 144,825 4.30

33 BAJAJ AUTO LTD 16,080 369 0.83 24,563 0.73

34 UNITECH LTD 15,954 366 0.82 31,449 0.93

35 VIDESH SANCHAR NIGAM LTD 15,945 366 0.82 11,466 0.34

36 GUJARAT AMBUJA CEMENT LTD 15,751 361 0.81 16,185 0.48

37 HDFC LTD 15,045 345 0.77 38,155 1.13

38 MAHINDRA & MAHINDRA LTD 14,514 333 0.75 19,149 0.57

39 WIPRO LTD 14,496 333 0.75 80,717 2.40

40 GRASIM INDUSTRIES LTD 13,364 307 0.69 19,186 0.57

41 JAIPRAKASH ASSOCIATES LTD 13,295 305 0.68 11,821 0.35

42 RANBAXY LABS LTD 12,764 293 0.66 13,118 0.39

43 HDFC BANK LTD 12,148 279 0.62 30,169 0.90

44 MAHANAGAR TELEPHONE NIGAM 12,121 278 0.62 9,245 0.27

45 INDIAN PETROCHEMICALS COR 10,980 252 0.56 8,143 0.24

46 DR. REDDY'S LABORATORIES 10,953 251 0.56 12,227 0.36

47 PARSVNATH DEVELOPER LTD 10,826 248 0.56 4,784 0.14

48 BAJAJ HINDUSTAN LTD 10,649 244 0.55 2,757 0.08

49 NTPC LTD 10,414 239 0.54 123,888 3.68

50 SESA GOA LTD 10,069 231 0.52 6,705 0.20

Total 1,205,001 27,644 61.94 1,969,355 58.48

51

Table 4-4: Market Capitalisation of Securities in the CM Segment

Month/Year Total MC MC of S&P Share in Total MC of CNX Share in Total

(end of period) CNX Nifty MC (%) Nifty Junior MC (%)

Mar-95 363,350 – – – –

Mar-96 401,459 139,357 34.71 – –

Mar-97 419,367 159,758 38.09 25,184 6.01

Mar-98 481,503 230,420 47.85 34,654 7.20

Mar-99 491,175 236,569 48.16 53,452 10.88

Mar-00 1,020,426 373,559 36.61 98,804 9.68

Mar-01 657,847 301,085 45.77 31,989 4.86

Mar-02 636,861 349,402 54.86 42,446 6.66

Mar-03 537,133 316,762 58.97 34,550 6.43

Apr-03 530,630 302,472 57.00 45,918 8.65

May-03 612,030 335,765 54.86 60,229 9.84

Jun-03 678,550 378,241 55.74 64,605 9.52

Jul-03 719,145 395,497 55.00 73,504 10.22

Aug-03 836,651 457,313 54.66 88,009 10.52

Sep-03 863,481 477,724 55.33 95,403 11.05

Oct-03 926,748 524,705 56.62 103,143 11.13

Nov-03 979,541 544,756 55.61 108,847 11.11

Dec-03 1,167,029 634,248 54.35 132,409 11.35

Jan-04 1,116,150 611,844 54.82 130,917 11.73

Feb-04 1,110,954 609,751 54.89 129,489 11.66

Mar-04 1,120,976 638,599 56.97 130,122 11.61

Apr-04 1,171,828 771,153 65.81 139,636 11.92

May-04 950,494 632,652 66.56 104,708 11.02

Jun-04 979,700 642,325 65.56 107,211 10.94

Jul-04 1,066,087 698,209 65.49 114,185 10.71

Aug-04 1,143,075 698,427 61.10 118,520 10.37

Sep-04 1,227,550 747,280 60.88 129,944 10.59

Oct-04 1,253,825 765,067 61.02 129,254 10.31

Nov-04 1,446,292 839,857 58.07 144,221 9.97

Dec-04 1,579,161 902,831 57.17 165,444 10.48

Jan-05 1,557,444 893,674 57.38 157,825 10.13

Feb-05 1,614,597 978,440 60.60 168,860 10.46

Mar-05 1,585,585 951,672 60.02 164,668 10.39

Apr-05 1,517,908 888,639 58.54 156,196 10.29

May-05 1,654,995 977,445 59.06 169,627 10.25

Jun-05 1,727,502 1,040,264 60.22 172,284 9.97

Jul-05 1,848,740 1,083,537 58.61 193,242 10.45

Aug-05 1,957,491 1,118,077 57.12 198,555 10.14

Sep-05 2,098,263 1,227,424 58.50 208,551 9.94

Oct-05 1,927,645 1,119,365 58.07 185,707 9.63

Nov-05 2,166,823 1,254,781 57.91 206,702 9.54

Dec-05 2,322,392 1,350,394 58.15 218,575 9.41

Jan-06 2,434,395 1,399,294 57.48 232,925 9.57

Feb-06 2,512,083 1,434,266 57.09 245,269 9.76

Mar-06 2,813,201 1,590,155 56.52 274,823 9.77

Apr-06 2,990,200 1,663,860 55.64 294,193 9.84

May-06 2,612,639 1,437,366 55.02 250,680 9.59

Jun-06 2,524,659 1,495,329 59.23 219,113 8.68

Jul-06 2,514,261 1,503,314 59.79 222,011 8.83

Aug-06 2,777,401 1,633,200 58.80 248,197 8.94

Sep-06 2,994,132 1,781,134 59.49 301,814 10.08

Oct-06 3,138,319 1,860,568 59.29 317,577 10.12

Nov-06 3,373,652 1,968,913 58.36 327,045 9.69

Dec-06 3,426,236 1,975,603 57.66 333,693 9.74

Jan-07 3,571,487 2,036,797 57.03 341,389 9.56

Feb-07 3,296,931 1,869,473 56.70 315,793 9.58

Mar-07 3,367,350 1,909,448 56.70 323,308 9.60

(In Rs. crore)

52

Table 4-5: Top '50' Companies by Market Capitalisation as on March 31, 2007

Rank Name of Company Market Cap % Share in Trading Trading % Share in(Rs. crore) Total Market Volume Volume Total

Capitali- During During Tradingsation 2006-07 2006-07 Volume

(Rs. crore) (US $ million)

1 RELIANCE INDUSTRIES LTD 190,952 5.67 115,727 2,655 5.95

2 OIL AND NATURAL GAS CORP. 188,392 5.59 37,618 863 1.93

3 BHARTI AIRTEL LIMITED 144,825 4.30 16,185 371 0.83

4 NTPC LTD 123,888 3.68 10,414 239 0.54

5 TATA CONSULTANCY SERV LT 120,746 3.59 26,848 616 1.38

6 INFOSYS TECHNOLOGIES LTD 114,000 3.39 68,437 1,570 3.52

7 RELIANCE COMMUNICATIONS L 86,058 2.56 48,129 1,104 2.47

8 WIPRO LTD 80,717 2.40 14,496 333 0.75

9 ICICI BANK LTD. 76,379 2.27 26,108 599 1.34

10 ITC LTD 56,866 1.69 25,888 594 1.33

11 BHEL 55,349 1.64 25,577 587 1.31

12 STATE BANK OF INDIA 52,338 1.55 34,177 784 1.76

13 STEEL AUTHORITY OF INDIA 47,210 1.40 22,666 520 1.17

14 INDIAN OIL CORP LTD 46,680 1.39 2,941 67 0.15

15 LARSEN & TOUBRO LTD. 45,471 1.35 25,909 594 1.33

16 HINDUSTAN LEVER LTD 45,284 1.34 19,125 439 0.98

17 HDFC LTD 38,155 1.13 15,045 345 0.77

18 RELIANCE PETROLEUM LTD. 32,198 0.96 8,326 191 0.43

19 UNITECH LTD 31,449 0.93 15,954 366 0.82

20 SATYAM COMPUTER SERVICES 30,969 0.92 49,061 1,126 2.52

21 HDFC BANK LTD 30,169 0.90 12,148 279 0.62

22 SUZLON ENERGY LIMITED 28,820 0.86 19,238 441 0.99

23 TATA MOTORS LIMITED 28,063 0.83 32,929 755 1.69

24 STERLITE INDS (IND) LTD 26,204 0.78 23,373 536 1.20

25 TATA STEEL LIMITED 26,101 0.78 48,778 1,119 2.51

26 BAJAJ AUTO LTD 24,563 0.73 16,080 369 0.83

27 IDEA CELLULAR LIMITED 24,528 0.73 3,311 76 0.17

28 HINDUSTAN ZINC LIMITED 23,867 0.71 1,102 25 0.06

29 MARUTI UDYOG LIMITED 23,696 0.70 21,065 483 1.08

30 CAIRN INDIA LIMITED 23,502 0.70 2,796 64 0.14

31 GAIL (INDIA) LTD 22,372 0.66 5,430 125 0.28

32 SUN PHARMACEUTICALS IND. 20,341 0.60 4,009 92 0.21

33 GRASIM INDUSTRIES LTD 19,186 0.57 13,364 307 0.69

34 MAHINDRA & MAHINDRA LTD 19,149 0.57 14,514 333 0.75

35 HCL TECHNOLOGIES LTD 18,967 0.56 7,950 182 0.41

36 CIPLA LTD 18,406 0.55 9,997 229 0.51

37 SIEMENS LTD 18,387 0.55 18,675 428 0.96

38 I-FLEX SOLUTIONS LIMITED 17,106 0.51 6,557 150 0.34

39 HINDALCO INDUSTRIES LTD 16,884 0.50 21,067 483 1.08

40 TECH MAHINDRA LIMITED 16,744 0.50 22,416 514 1.15

41 GUJARAT AMBUJA CEMENT LTD 16,185 0.48 15,751 361 0.81

42 KOTAK MAHINDRA BANK LTD 15,636 0.46 2,599 60 0.13

43 NATIONAL ALUMINIUM CO LTD 15,054 0.45 3,288 75 0.17

44 ABB LTD. 15,044 0.45 8,223 189 0.42

45 RELIANCE CAPITAL LTD 14,965 0.44 25,482 585 1.31

46 PUNJAB NATIONAL BANK 14,952 0.44 7,317 168 0.38

47 UTI BANK LTD 13,811 0.41 5,660 130 0.29

48 ACC LIMITED 13,772 0.41 28,031 643 1.44

49 HERO HONDA MOTORS LTD 13,753 0.41 8,347 191 0.43

50 RANBAXY LABS LTD 13,118 0.39 12,764 293 0.66

Total 2,201,271 65.37 1,030,892 23,650 52.99

53

Tab

le 4

-6:

Top

'50

' C

omp

anie

s b

y T

rad

ing

Vol

um

e an

d M

ark

et C

apit

alis

atio

n a

t N

SE

Item

Tra

din

g V

alu

e

Am

ou

nt

(Rs.

cro

re)

% t

o t

ota

l

2001-

02

2002-0

32003-0

42004-0

52005-0

62006-0

72001-

02

2002-0

32003-0

42004-0

52005-0

62006-0

7

Man

ufa

cturi

ng

28,4

2611

,193

328,

918

345,

095

397,

609

664,

544

6.05

2.03

37.6

641

.81

43.0

155

.15

Fin

anci

al S

ervi

ces

4,9

1714

,204

116,

436

124,

008

167,

785

158,

749

1.05

2.57

13.3

315

.02

18.1

513

.17

F.M

.C.G

13,

258

4,46

319

,426

17,4

3842

,278

45,0

132.

820.

812.

222.

114.

573.

74

I.T

312

,851

412,

781

271,

119

161,

476

198,

626

181,

257

66.5

874

.71

31.0

419

.56

21.4

915

.04

Ph

arm

aceu

tica

ls 2

2,53

89,

560

22,9

6222

,881

22,4

2023

,717

4.80

1.73

2.63

2.77

2.43

1.97

Tel

eco

mm

un

icat

ion

s

––

––

–92

,380

––

––

–7.

67

Oth

ers

87,

884

100,

293

114,

636

154,

540

95,7

1539

,342

18.7

018

.15

13.1

218

.72

10.3

53.

26

TO

TA

L 4

69,8

75

552,4

94

873,4

97

825,4

38

924,4

33

1,205,0

01

100.0

010

0.0

010

0.0

010

0.0

010

0.0

010

0.0

0

Item

Mark

et

Cap

itali

sati

on

Am

ou

nt

(Rs.

cro

re)

% t

o t

ota

l

2001-

02

2002-0

32003-0

42004-0

52005-0

62006-0

72001-

02

2002-0

32003-0

42004-0

52005-0

62006-0

7

Man

ufa

cturi

ng

56,1

0933

,383

262,

123

256,

223

543,

624

1,00

9,94

512

.41

8.03

31.1

323

.35

29.3

045

.88

Fin

anci

al S

ervi

ces

42,4

8545

,283

104,

551

138,

518

186,

746

256,

404

9.39

10.8

912

.41

12.6

210

.07

11.6

5

F.M

.C.G

56,5

0737

,826

59,8

1962

,351

133,

157

102,

150

12.4

99.

097.

105.

687.

184.

64

I.T

80,1

4576

,017

81,1

0824

7,39

844

4,76

839

9,24

917

.72

18.2

89.

6322

.54

23.9

718

.14

Ph

arm

aceu

tica

ls32

,314

27,5

7442

,501

41,3

6575

,100

51,8

657.

146.

635.

053.

774.

052.

36

Tel

eco

mm

un

icat

ion

s–

––

––

255

,412

––

––

– 1

1.60

Oth

ers

184,

720

195,

827

292,

056

351,

583

471,

767

126,

245

40.8

447

.08

34.6

832

.04

25.4

35.

74

TO

TA

L452,2

80

415

,910

842,1

58

1,097,4

38

1,855,1

62

2,2

01,

271

100.0

010

0.0

010

0.0

010

0.0

010

0.0

010

0.0

0

F.M

.C.G

.F

ast

Mo

vin

g C

on

sum

er G

oo

ds

I.T

.In

form

atio

n T

ech

no

logy

54

Table 4-7: Composition of S&P CNX Nifty Index as on March 31, 2007

Sl. Name of Security Issued Market Weightage Beta R2 Volatility Return ImpactNo. Capital Capitalisation (%) (%) (%) Cost

(Rs. crore) (Rs. crore) (%)

1 ABB 42 15,044 0.79 0.94 0.48 2.43 21.23 0.072 ACC 171 13,772 0.72 1.01 0.48 2.60 (6.00) 0.083 BAJAJAUTO 101 24,563 1.29 0.95 0.49 2.40 (11.60) 0.074 BHARTIARTL 1,853 144,825 7.58 0.94 0.55 2.24 85.08 0.105 BHEL 245 55,349 2.90 1.09 0.59 2.50 0.87 0.066 BPCL 300 10,946 0.57 0.66 0.22 2.48 (28.81) 0.117 CIPLA 25 18,406 0.96 0.78 0.40 2.21 (10.61) 0.118 DABUR 60 8,197 0.43 0.95 0.34 2.91 14.92 0.129 DRREDDY 136 12,227 0.64 0.69 0.28 2.27 2.47 0.0910 GAIL 29 22,372 1.17 0.78 0.30 2.52 (16.94) 0.1311 GLAXO 34 9,486 0.50 0.81 0.37 2.34 (22.89) 0.1112 GRASIM 38 19,186 1.00 1.14 0.53 2.77 1.48 0.0913 GUJAMBCEM 846 16,185 0.85 0.96 0.42 2.60 3.29 0.1114 HCLTECH 74 18,967 0.99 0.94 0.45 2.50 (10.91) 0.0915 HDFC 92 38,155 2.00 0.89 0.42 2.43 13.69 0.1016 HDFCBANK 162 30,169 1.58 0.83 0.38 2.37 23.24 0.0917 HEROHONDA 59 13,753 0.72 0.66 0.29 2.16 (22.65) 0.1118 HINDALCO 246 15,111 0.79 1.20 0.52 2.94 (28.68) 0.0919 HINDLEVER 285 45,284 2.37 1.00 0.55 2.39 (24.56) 0.0920 HINDPETRO 40 8,409 0.44 0.77 0.22 2.89 (22.53) 0.1221 ICICIBANK 92 76,379 4.00 0.93 0.46 2.41 44.87 0.0922 INFOSYSTCH 220 114,000 5.97 0.87 0.59 2.02 35.42 0.0623 IPCL 339 8,143 0.43 1.18 0.53 2.86 3.22 0.0824 ITC 616 56,866 2.98 0.94 0.56 2.23 (22.55) 0.0825 JETAIRWAYS 45 5,467 0.29 0.91 0.27 3.07 (35.56) 0.1026 LT 33 45,471 2.38 1.12 0.59 2.56 33.19 0.0727 MARUTI 248 23,696 1.24 1.16 0.64 2.57 (6.19) 0.0728 M&M 248 19,149 1.00 1.02 0.50 2.56 24.46 0.0829 MTNL 249 9,245 0.48 1.26 0.53 3.03 (20.11) 0.0830 NATIONALUM 116 15,054 0.79 1.02 0.42 2.76 (20.43) 0.1331 ONGC 144 188,392 9.87 0.92 0.53 2.21 0.75 0.1032 ORIENTBANK 630 4,701 0.25 1.03 0.40 2.89 (20.05) 0.1133 PNB 644 14,952 0.78 0.98 0.45 2.59 0.81 0.1034 RANBAXY 193 13,118 0.69 0.77 0.34 2.37 (18.61) 0.0735 REL 186 11,294 0.59 0.93 0.46 2.43 (19.21) 0.0936 RELIANCE 153 190,952 10.00 1.00 0.66 2.18 72.29 0.0637 SAIL 1,396 47,210 2.47 1.49 0.53 3.62 37.46 0.0838 SATYAMCOMP 4,130 30,969 1.62 1.06 0.55 2.54 10.87 0.0639 SBIN 63 52,338 2.74 0.89 0.48 2.26 2.68 0.0740 SIEMENS 526 18,387 0.96 1.27 0.56 3.01 (3.90) 0.0941 SUNPHARMA 282 20,341 1.07 0.69 0.41 1.91 22.91 0.1242 SUZLON 46 28,820 1.51 1.25 0.44 3.34 (23.09) 0.0943 TATAPOWER 181 10,079 0.53 0.69 0.36 2.03 (12.55) 0.1144 RCOM 347 86,058 4.51 1.24 0.48 3.16 36.35 0.0745 TATAMOTORS 198 28,063 1.47 1.12 0.61 2.53 (21.85) 0.0746 TCS 56 120,746 6.32 0.97 0.62 2.18 28.83 0.0847 TATASTEEL 369 26,101 1.37 1.35 0.59 3.09 (16.19) 0.0648 VSNL 285 11,466 0.60 1.44 0.55 3.44 (14.35) 0.1049 WIPRO 47 80,717 4.23 1.18 0.66 2.58 (0.05) 0.1050 ZEEL 41 10,870 0.57 0.82 0.16 3.63 4.9 0.09

Total 16,964 1,909,448 100.00 1.00 – 1.77 12.31 0.08

* Beta & R2 are calculated for the period 01-Apr-2006 to 30-Mar-2007

* Beta measures the degree to which any portfolio of stocks is affected as compared to the effect on the market as a whole.

* The coefficient of determination (R2) measures the strength of relationship between two variables the return on a securityversus that of the market.

* Volatility is the standard deviation of the daily returns for the period 01-Apr-2006 to “30-Mar-2007”

* Last day of trading was 30-Mar-2007

* Figures in brackets indicate negative values.

* Returns are calculated considering the close prices of the last trading day of March 2006 and March 2007.

* Impact Cost for S&P CNX Nifty is for a portfolio of Rs. 50 lakhs.

* Impact Cost for S&P CNX Nifty is the weightage average impact cost

55

Table 4-8: Composition of CNX NIFTY Junior Index - as on March 31, 2007

Sl. Name of Security Issued Market Weightage Beta R2 Volatility Return ImpactNo. Capital Capitalisation (%) (%) (%) Cost

(Rs. crore) (Rs. crore) (%)

1 ANDHRABANK 400 3,688 1.14 0.89 0.53 2.49 (5.82) 0.182 APOLLOTYRE 33 1,299 0.40 0.57 0.20 2.58 (3.82) 0.253 ASHOKLEY 119 5,084 1.57 1.04 0.59 2.8 (4.71) 0.134 ASIANPAINT 96 7,315 2.26 0.47 0.27 1.88 18.04 0.285 AUROPHARMA 23 3,620 1.12 0.71 0.41 2.29 (0.68) 0.176 AVENTIS 23 2,835 0.88 0.58 0.34 2.05 (36.22) 0.357 BANKBARODA 296 7,834 2.42 0.95 0.48 2.84 (6.72) 0.158 BANKINDIA 487 8,179 2.53 1.27 0.55 3.51 25.65 0.139 BEL 80 12,032 3.72 1.06 0.58 2.85 13.58 0.1810 BHARATFORG 32 7,026 2.17 0.94 0.53 2.64 (29.15) 0.1511 BIOCON 38 4,862 1.50 0.48 0.19 2.25 9.15 0.1112 BONGAIREFN 200 812 0.25 0.98 0.53 2.76 (38.08) 0.1713 CADILAHC 31 4,229 1.31 0.65 0.34 2.32 (0.33) 0.2614 CANBK 410 7,985 2.47 1.23 0.64 3.16 (27.16) 0.1415 CHENNPETRO 144 2,796 0.86 0.78 0.30 2.89 (14.88) 0.3116 RELCAPITAL 15 14,965 4.63 1.40 0.67 3.49 28.74 0.0817 RPL 138 32,198 9.96 0.51 0.42 1.67 (14.52) 0.1018 CORPBANK 65 4,149 1.28 1.14 0.50 3.25 (24.54) 0.1519 CUMMINSIND 143 5,243 1.62 1.02 0.53 2.86 11.24 0.2020 INDHOTEL 190 8,562 2.65 1.14 0.59 3.01 7.48 0.1421 CONCOR 17 12,660 3.92 0.63 0.27 2.46 34.77 0.3522 I-FLEX 22 17,106 5.29 0.85 0.36 2.93 56.87 0.1723 IBP 653 901 0.28 0.83 0.41 2.68 (28.19) 0.4124 IDBI 639 5,619 1.74 1.38 0.61 3.63 (0.89) 0.1125 IFCI 37 2,146 0.66 1.48 0.35 5.11 211.11 0.1426 INGERRAND 33 880 0.27 0.96 0.42 3.02 (29.95) 0.4327 IOB 32 5,598 1.73 1.09 0.50 3.16 6.2 0.2228 JPASSOCIAT 545 11,821 3.66 1.28 0.48 3.79 14.93 0.1329 KOTAKBANK 1,291 15,636 4.84 1.00 0.38 3.31 71.67 0.1230 LICHSGFIN 40 1,172 0.36 0.81 0.53 2.29 (27.30) 0.1331 LUPIN 60 4,870 1.51 0.79 0.37 2.64 19.57 0.1732 MOSERBAER 75 3,338 1.03 0.64 0.18 3.03 30.81 0.1133 MPHASIS 32 4,618 1.43 1.07 0.38 3.53 35.64 0.1334 NICOLASPIR 97 5,115 1.58 0.87 0.37 2.91 (5.88) 0.2235 NIRMA 418 2,553 0.79 0.48 0.29 1.84 (36.16) 0.3536 PATNI 38 5,358 1.66 0.57 0.18 2.75 (15.50) 0.1537 PFIZER 79 2,394 0.74 0.52 0.28 2.02 (30.46) 0.1638 POLARIS 29 1,777 0.55 1.29 0.49 3.78 54.23 0.1139 PUNJABTRAC 265 1,859 0.57 0.61 0.27 2.39 21.05 0.1440 RAYMOND 49 2,133 0.66 0.71 0.29 2.69 (32.87) 0.2741 IDFC 61 9,421 2.91 1.09 0.49 3.17 25.68 0.1242 STER 61 26,204 8.11 1.59 0.66 4.00 (22.43) 0.1443 SYNDIBANK 33 3,335 1.03 1.18 0.53 3.31 (28.88) 0.1344 TTML 472 3,818 1.18 0.82 0.30 3.08 (9.76) 0.1545 TVSMOTOR 1,407 1,415 0.44 1.15 0.55 3.19 (57.60) 0.1346 UNIONBANK 23 5,253 1.62 1.13 0.56 3.1 (14.47) 0.1547 UTIBANK 460 13,811 4.27 0.87 0.35 3.03 37.73 0.1248 VIJAYABANK 231 1,845 0.57 1.00 0.46 3.01 (18.72) 0.1449 INGVYSYABK 23 1,588 0.49 0.65 0.18 3.09 22.36 0.3550 WOCKPHARMA 36 4,354 1.35 0.69 0.38 2.27 (21.40) 0.15

Total 10,221 323,308 100.00 1.00 - 2.05 7.27 0.16

* Beta & R2 are calculated for the period 01-April 2006 to 30-Mar-2007.

* Beta measures the degree to which any portfolio of stocks is affected as compared to the effect on the market as a whole.

* The coefficient of determination (R2) measures the strength of relationship between two variables.

* Volatility is the standard deviation of the daily returns for the period April 1, 2006 to March 31, 2007.

* Last day of trading was March 30, 2007.

* Figures in brackets indicate negative values.

* Returns are calculated considering the close prices of the last trading day of March 2006 and March 2007.

* Impact Cost for CNX Nifty Junior is for a portfolio of Rs. 25 lakhs.

* Impact Cost for CNX Nifty Junior is the weightage average impact cost.

56

Tab

le 4

-9:

Ind

ust

ry-w

ise

Wei

ghta

ges

of S

&P

CN

X N

IFT

Y S

ecu

riti

es

Sl.

Ind

ust

ryA

s o

n 3

1-3-2

003

As

on

31-

3-2

004

As

on

31-

3-2

005

As

on

31-

3-2

006

As

on

30-3

-2007

No

.M

ark

et

Weig

hta

ge

Mark

et

Weig

hta

ge

Mark

et

Weig

hta

ge

Mark

et

Weig

hta

ge

Mark

et

Weig

hta

ge

Cap

(%)

Cap

(%)

Cap

(%)

Cap

(%)

Cap

(%)

(Rs.

cr.

)(R

s. c

r.)

(Rs.

cr.

)(R

s. c

r.)

(Rs.

cr.

)

1C

om

pute

rs -

So

ftw

are

67,8

1021

.41

83,

945

13.1

5 2

01,7

8721

.20

303

,881

19.1

1 3

65,3

9919

.14

2D

iver

sifi

ed38

,350

12.1

1 5

0,56

37.

92 3

2,30

63.

39 5

9,87

53.

77 4

5,28

42.

37

3R

efin

erie

s16

,662

5.26

31,

587

4.95

20,

933

2.20

134

,445

8.45

210

,307

11.0

1

4P

etro

chem

ical

s40

,913

12.9

2 7

9,65

012

.47

80,

114

8.42

6,5

120.

41 8

,143

0.43

5P

har

mac

euti

cals

28,2

708.

92 4

2,50

16.

66 4

7,02

14.

94 7

5,10

04.

72 7

3,57

83.

85

6B

anks

30,2

599.

55 6

6,73

910

.45

99,

818

10.4

9 1

48,3

199.

33 1

78,5

389.

35

7C

igar

ette

s15

,550

4.91

25,

832

4.05

33,

305

3.50

73,

282

4.61

56,

866

2.98

8T

elec

om

mun

icat

ion

- S

ervi

ces

8,13

02.

57 4

2,80

16.

7 5

0,85

05.

34 1

03,1

296.

49 2

51,5

9413

.18

9F

inan

cial

In

stit

uti

on

00.

00–

0.00

–0.

00–

0.00

–0.

00

10A

uto

mo

bile

s -

2 &

3 W

hee

lers

8,61

52.

72 1

9,01

32.

98 2

1,89

22.

30 4

5,56

92.

87 3

8,31

72.

01

11O

ther

s62

,175

19.6

319

5,81

030

.67

363,

780

38.2

263

9,76

840

.24

681,

218

35.6

8

57

Table 4-10: S&P CNX NIFTY Index*

Month & Year Open High Low Close Volatility Price To(%)* Earning Ratio#

1995-96 (Nov.-Mar.) 1000.00 1067.49 813.12 985.30 1.62 --

1996-97 988.33 1203.11 775.43 968.30 1.67 --

1997-98 931.95 1297.10 929.05 1116.90 1.52 --

1998-99 1117.15 1247.15 800.10 1078.05 1.86 16.53

1999-2000 1082.55 1818.15 916.00 1528.45 1.93 24.60

2000-01 1528.70 1636.95 1098.75 1148.20 1.98 17.21

Apr-01 1148.10 1171.85 1000.10 1125.25 2.20 14.57May-01 1125.45 1207.00 1096.25 1167.90 0.89 15.80Jun-01 1168.10 1175.80 1060.05 1107.90 1.27 15.76Jul-01 1108.35 1127.15 1046.90 1072.85 1.01 15.15Aug-01 1073.00 1084.00 1051.75 1053.75 0.57 15.10Sep-01 1054.65 1059.90 849.95 913.85 2.52 13.16Oct-01 914.65 1000.95 884.65 971.90 0.99 13.79Nov-01 973.55 1097.60 973.55 1067.15 1.25 15.46Dec-01 1067.20 1132.65 1010.45 1059.05 1.22 15.35Jan-02 1058.85 1121.75 1052.05 1075.40 0.99 16.99Feb-02 1076.95 1205.95 1069.40 1142.05 1.48 18.38Mar-02 1142.05 1201.10 1117.85 1129.55 1.18 18.102001-02 1148.10 1207.00 849.95 1129.55 1.40 18.10




Apr-05 2035.90 2084.90 1896.30 1902.50 1.23 13.27May-05 1903.10 2099.35 1898.15 2087.55 0.67 13.94Jun-05 2087.80 2226.15 2061.35 2220.60 0.73 14.31

Contd...

58

Table 4-11: CNX NIFTY Junior Index*

Month & Year Open High Low Close Volatility Price To(%) Earning Ratio#

1996-97 (Nov.-Mar.) 1000.00 1208.87 907.02 1032.95 1.76 --

1997-98 1028.30 1395.25 1016.65 1339.40 1.44 --

1998-99 1339.75 2079.10 1177.20 2069.20 2.14 18.92

1999-2000 2099.75 5365.90 1631.90 3695.75 2.46 33.47

2000-01 3720.45 3771.80 1570.20 1601.80 2.75 9.69


Apr-02 1568.40 1658.50 1564.15 1607.75 0.95 7.35May-02 1608.25 1665.15 1448.35 1497.10 1.74 8.56Jun-02 1497.90 1682.00 1497.90 1617.40 1.35 8.26Jul-02 1617.40 1690.35 1429.05 1455.85 1.47 7.44Aug-02 1455.75 1517.35 1433.05 1452.60 1.03 7.42Sep-02 1453.45 1468.85 1255.20 1257.85 1.35 6.48Oct-02 1256.95 1321.00 1231.95 1255.30 1.03 6.56Nov-02 1255.60 1340.85 1243.15 1337.10 0.63 11.55

Table 4-10: S&P CNX NIFTY Index*


Jul-05 2220.45 2332.55 2171.25 2312.30 0.93 14.10Aug-05 2312.05 2426.65 2294.25 2384.65 0.98 14.78Sep-05 2384.70 2633.90 2382.90 2601.40 1.19 16.15Oct-05 2601.00 2669.20 2307.45 2370.95 1.51 14.23Nov-05 2366.80 2727.05 2366.80 2652.25 0.95 15.95Dec-05 2651.60 2857.00 2641.95 2836.55 1.13 17.16Jan-06 2836.80 3005.10 2783.85 3001.10 0.93 17.90Feb-06 3001.30 3090.30 2928.10 3074.70 0.81 18.27Mar-06 3074.60 3433.85 3064.00 3402.55 0.93 20.262005-06 2035.90 3433.85 1896.30 3402.55 1.04 20.26


* S&P CNX Nifty commenced from November 3, 1995# At the end of the periodNote : Volatility is the standard deviation of daily returns for the respective month/year

Contd...

Contd...

59

Table 4-11: CNX NIFTY Junior Index*


Contd...

Dec-02 1337.60 1435.20 1337.20 1413.05 1.13 12.26Jan-03 1413.25 1462.90 1353.75 1376.85 1.05 11.95Feb-03 1377.20 1415.65 1333.75 1387.10 1.21 12.05Mar-03 1401.00 1409.30 1255.35 1259.55 1.15 11.682002-03 1568.40 1690.35 1231.95 1259.55 1.23 11.68





* CNX Nifty Junior commenced from november 4,1996# At the end of periodNote : Volatility is the standard deviation of daily returns for the respective month/year

60

Table 4-12: Settlement Cycle in CM Segment

Activity T+2 Rolling Settlement

(From April 1, 2003)

Trading T

Custodial Confirmation T+1

Determination of Obligation T+1

Securities/Funds Pay-in T+2

Securities/Funds Pay-out T+2

Valuation Debit T+2

Auction T+3

Bad Delivery Reporting T+4

Auction Pay-in/Pay-out T+5

Close Out T+5

Rectified Bad Delivery Pay-in/Pay-out T+6

Re-bad Delivery Reporting T+8

Close Out of Re-bad Delivery T+9

T+1 means one working day after the trade day. Other T + terms have similar meanings.

Chart 4-2: Movement of Sectoral Indices: 2006-07

61

Tab

le 4

-13:

Set

tlem

ent

Stat

isti

cs i

n C

M S

egm

ent

Mon

th/

No.

of

Tra

ded

Qua

ntit

y%

of

Tra

ding

Tra

ding

Valu

e of

% o

fSe

curi

ties

Shor

t%

of

Unr

ecti

fied

% o

fF

unds

Yea

rT

rade

sQ

uant

ity

of S

hare

sSh

ares

Vol

ume

Vol

ume

Shar

esD

eliv

erab

leP

ay-i

n D

eliv

ery

Shor

t B

adU

nrec

tifi

edP

ay-i

n(l

akh)

(lak

h.)

Del

iver

able

Del

iver

able

(Rs.

cro

re)

(US

$ D

eliv

erab

leto

Val

ue(R

s. c

rore

)(A

ucti

oned

Del

iver

yD

eliv

ery

Bad

(Rs.

(lak

h)to

Tot

alm

illio

n)(R

s. c

rore

)of

Sha

res

quan

tity

) t

o T

otal

(Auc

tion

edD

eliv

ery

cror

e)Sh

ares

Tra

ded

(lak

h)D

eliv

erab

le q

uant

ity)

toT

rade

d(l

akh)

Del

iver

able

No

v 9

4-M

ar

95

0.3

133

69

51.

74

17,2

80

--

8,9

80

51.

98

611

0.6

0.8

50.1

80.2

63,0

04

1995-9

66

3,9

01

726

18.6

2657,4

20

--

117,7

50

17.9

15,8

05

182.4

63.2

20.4

432,5

83

1996-9

726

13,4

32

1,645

12.2

52,9

23,1

40

--

326,4

00

11.1

713

,790

38

2.3

26.6

30.4

072,1

21

1997-9

838

13,5

22

2,2

05

16.3

13,7

00,1

00

--

597,7

48

16.1

521,

713

33

1.51

7.2

90.3

310

8,2

72

1998-9

955

16,5

31

2,7

99

16.9

34,1

35,7

30

974,7

09

662,0

38

16.0

130,7

55

31

1.09

6.9

70.2

512

1,754

1999-0

0958

238,6

05

48,7

1320.4

2803,0

50

184,0

99

82,6

07

10.2

979,7

83

635

1.30

110.1

30.2

327,9

92

2000-0

11,

614

304,1

96

50,2

03

16.5

01,

263,8

98

270,9

90

106,2

77

8.4

194,9

62

339

0.6

811

.58

0.0

23

45,9

37

Ap

r-01

87

16,3

23

5,6

43

34.5

728,2

26

5,7

84

6,0

83

21.5

55,2

14

16

0.2

80.0

43

0.0

008

1,9

15

May

-01

155

27,7

64

6,4

28

23.1

551,8

35

10,6

22

7,3

71

14.2

23,7

52

15

0.2

40.0

19

0.0

003

1,9

76

Jun

-01

127

22,7

97

5,1

34

22.5

243,1

36

8,8

39

5,9

60

13.8

24,0

58

14

0.2

70.0

10

0.0

002

1,6

26

Jul-

01

97

13,1

49

2,9

71

22.5

929,0

92

5,9

61

3,7

21

12.7

94,0

20

21

0.7

00.0

02

0.0

001

1,8

30

Aug-

01

111

15,5

12

3,0

18

19.4

628,5

72

5,8

55

3,9

62

13.8

73,5

31

31

1.0

30.0

03

0.0

001

1,8

47

Sep

-01

124

16,5

54

3,1

36

18.9

433,7

18

6,9

09

3,9

33

11.6

63,8

07

16

0.5

10.0

00

0.0

000

2,0

68

Oct

-01

145

19,7

75

3,4

85

17.6

235,2

25

7,2

18

4,2

47

12.0

64,1

36

40

1.1

50.0

00

0.0

000

1,9

54

No

v-0

1142

22,6

47

4,8

65

21.4

837,4

71

7,6

78

5,6

79

15.1

65,4

68

46

0.9

50.0

00

0.0

000

2,3

11

Dec

-01

168

29,2

21

5,9

29

20.2

953,0

98

10,8

81

7,1

84

13.5

36,9

24

48

0.8

10.0

00

0.0

000

3,0

35

Jan

-02

225

38,3

25

5,7

29

14.9

571,3

29

14,6

17

7,9

40

11.1

37,8

49

39

0.6

80.0

00

0.0

000

3,4

40

Feb

-02

170

26,8

66

6,6

00

24.5

748,8

23

10,0

05

7,9

82

16.3

57,9

35

39

0.5

90.0

00

0.0

000

3,0

16

Mar

-02

169

25,7

62

6,3

60

24.6

947,5

96

9,7

53

7,7

03

16.1

87,6

58

40

0.6

20.0

00

0.0

000

3,0

30

2001-

2002

1,720

274,6

95

59,2

99

21.

59

508,1

21

104,1

23

71,

766

14.1

264,3

53

364

0.6

10.0

80.0

001

28,0

48

Ap

r-02

204

30,1

13

7,5

13

24.9

556,1

30

11,8

17

8,9

33

15.9

18,8

56

61

0.8

10.0

00.0

000

3,2

16

May

-02

211

33,7

85

8,3

17

24.6

253,4

14

11,2

45

8,7

32

16.3

58,6

76

55

0.6

60.0

00.0

000

3,1

62

Jun

-02

195

39,1

37

10,2

32

26.1

446,3

34

9,7

55

8,0

00

17.2

77,9

55

64

0.6

20.0

00.0

000

2,7

28

Jul-

02

206

36,8

35

10,3

48

28.0

950,2

62

10,5

82

8,4

07

16.7

38,3

58

69

0.6

70.0

00.0

000

2,9

42

Aug-

02

193

26,8

22

5,0

85

18.9

645,4

43

9,5

67

5,3

12

11.6

95,2

75

30

0.5

90.0

00.0

000

2,1

52

Sep

-02

183

25,2

54

4,4

33

17.5

546,8

94

9,8

72

5,2

71

11.2

45,2

35

25

0.5

60.0

00.0

000

2,3

36

Oct

-02

201

26,5

91

4,6

01

17.3

051,3

82

10,8

17

5,7

34

11.1

65,7

04

21

0.4

60.0

00.0

000

2,5

99

No

v-0

2174

23,0

70

4,4

33

19.2

250,1

71

10,5

62

6,4

52

12.8

66,4

11

23

0.5

20.0

00.0

000

2,6

35

Dec

-02

223

33,7

65

7,5

73

22.4

363,8

72

13,4

47

8,8

59

13.8

78,8

23

35

0.4

60.0

00.0

000

3,3

91

Jan

-03

231

35,0

17

8,1

52

23.2

862,8

15

13,2

24

9,1

69

14.6

09,1

28

38

0.4

70.0

00.0

000

3,3

55

Feb

-03

193

28,5

90

6,0

33

21.1

048,7

17

10,2

56

6,7

37

13.8

36,7

09

23

0.3

80.0

00.0

000

2,6

44

Mar

-03

182

26,4

24

5,6

33

21.3

246,1

34

9,7

12

6,3

50

13.7

66,3

17

25

0.4

40.0

00.0

000

2,9

32

2002-0

32,3

97

365,4

03

82,3

53

22.5

4621,

569

130,8

57

87,9

56

14.1

587,4

47

469

0.5

70.0

00.0

000

34,0

92

Ap

r-03

214

32,4

88

7,8

30

24.1

051,1

59

11,7

90

8,3

28

16.2

88,2

75

87

1.1

10.0

00.0

03,7

83

May

-03

240

40,5

00

10,8

87

26.8

851,7

20

11,9

20

9,9

07

19.1

59,8

56

64

0.5

90.0

00.0

03,5

84

Jun

-03

253

50,0

54

14,0

30

28.0

357,5

24

13,2

57

12,5

39

21.8

012,4

81

78

0.5

50.0

00.0

04,2

92

Jul-

03

332

66,9

40

18,5

09

27.6

581,4

22

18,7

65

17,5

81

21.5

917,4

89

115

0.6

20.0

00.0

05,9

15

Aug-

03

317

81,3

01

20,5

79

25.3

182,7

34

19,0

68

17,7

98

21.5

117,6

93

146

0.7

10.0

00.0

05,4

65

Sep

-03

338

72,9

16

16,8

10

23.0

5101,2

29

23,3

30

20,6

25

20.3

720,5

38

90

0.5

30.0

00.0

07,4

12

Oct

-03

367

72,4

40

16,1

57

22.3

0116,7

49

26,9

07

22,9

57

19.6

622,8

60

79

0.4

90.0

00.0

08,9

92

No

v-0

3305

56,1

50

13,4

20

23.9

094,3

76

21,7

51

19,0

57

20.1

918,9

81

70

0.4

80.0

00.0

07,1

57

Dec

-03

370

68,1

61

18,9

77

27.8

4107,8

98

24,8

67

25,8

25

23.9

325,6

87

109

0.5

30.0

00.0

09,1

71

Jan

-04

396

73,5

10

18,6

10

25.3

2132,7

51

30,5

95

28,3

45

21.3

528,2

20

100

0.5

30.0

00.0

09,6

77

Contd...

62

Tab

le 4

-13:

Set

tlem

ent

Stat

isti

cs i

n C

M S

egm

ent

Mon

th/

No.

of

Tra

ded

Qua

ntit

y%

of

Tra

ding

Tra

ding

Valu

e of

% o

fSe

curi

ties

Shor

t%

of

Unr

ecti

fied

% o

fF

unds

Yea

rT

rade

sQ

uant

ity

of S

hare

sSh

ares

Vol

ume

Vol

ume

Shar

esD

eliv

erab

leP

ay-i

n D

eliv

ery

Shor

t B

adU

nrec

tifi

edP

ay-i

n(l

akh)

(lak

h.)

Del

iver

able

Del

iver

able

(Rs.

cro

re)

(US

$ D

eliv

erab

leto

Val

ue(R

s. c

rore

)(A

ucti

oned

Del

iver

yD

eliv

ery

Bad

(Rs.

(lak

h)to

Tot

alm

illio

n)(R

s. c

rore

)of

Sha

res

quan

tity

) t

o T

otal

(Auc

tion

edD

eliv

ery

cror

e)Sh

ares

Tra

ded

(lak

h)D

eliv

erab

le q

uant

ity)

toT

rade

d(l

akh)

Del

iver

able

Feb

-04

311

47,2

23

9,8

11

20.7

8110,0

70

25,3

68

19,6

81

17.8

819,6

28

32

0.3

30.0

00.0

08,4

38

Mar

-04

307

42850

9,9

30

23.1

7103,3

31

23,8

14

18,7

21

18.1

218,6

34

44

0.3

30.0

00.0

07703.6

2003-0

43,7

50

704,5

33

175,5

50

24.9

21,

090,9

63

251,

432

221,

364

20.2

9220,3

41

1,014

0.5

80.0

00.0

081,

588

Ap

r-04

330

54,2

07

12,9

34

23.8

6103,1

54

23,5

78

21,7

19

21.0

521,6

17

64

0.5

00.0

00.0

07,8

70

May

-04

351

54,7

79

13,8

55

25.2

9100,2

03

22,9

04

22,7

27

22.6

822,6

68

48

0.3

50.0

00.0

08,9

60

Jun

-04

320

39,2

84

8,5

78

21.8

481,0

20

18,5

19

13,9

99

17.2

813,9

48

29

0.3

30.0

00.0

05,8

62

Jul-

04

392

63,7

79

14,0

38

22.0

197,3

09

22,2

42

18,1

64

18.6

718,0

99

51

0.3

70.0

00.0

06,5

23

Aug-

04

361

58,3

04

13,9

48

23.9

289,5

96

20,4

79

18,6

05

20.7

718,5

54

55

0.4

00.0

00.0

06,4

63

Sep

-04

345

57,3

37

15,5

88

27.1

981,9

13

18,7

23

19,6

56

24.0

019,5

85

71

0.4

60.0

00.0

06,1

71

Oct

-04

318

51,3

99

15,1

78

29.5

379,8

78

18,2

58

21,6

60

27.1

221,5

88

70

0.4

60.0

00.0

07,3

04

No

v-0

4319

59,1

24

18,9

65

32.0

879,9

21

18,2

68

24,3

59

30.4

824,2

69

93

0.4

90.0

00.0

08,4

01

Dec

-04

466

95,2

39

27,4

64

28.8

4115,8

67

26,4

84

33,1

21

28.5

932,9

94

135

0.4

90.0

00.0

011,3

86

Jan

-05

411

82,1

13

19,4

97

23.7

497,7

55

22,3

44

25,0

31

25.6

124,9

45

86

0.4

40.0

00.0

08,0

83

Feb

-05

424

88,1

47

22,2

08

25.1

9100,2

67

22,9

18

28,1

58

28.0

828,0

62

89

0.4

00.0

00.0

09,8

01

Mar

-05

466

84284

20023

23.7

6 1

14,0

85

26,0

77

29,9

03

26.2

129,7

92

79

0.4

00.0

00.0

0 1

0,4

17

2004-0

54,5

03

787,9

96

202,2

77

25.6

71,

140,9

69

260,7

93

277,1

01

24.2

9276,1

20

871

0.4

30.0

00.0

097,2

41

Ap

r-05

365

51,9

49

13,1

47

25.3

1 8

3,0

38

18,6

14

21,6

24

26.0

421,5

38

64

0.4

80.0

00.0

0 7

,691

May

-05

414

56,2

78

15,2

74

27.1

4 8

8,4

44

19,8

26

24,5

60

27.7

724,4

49

75

0.4

90.0

00.0

0 7

,920

Jun

-05

464

66,7

92

18,2

90

27.3

8 1

06,1

33

23,7

91

30,0

65

28.3

329,9

64

76

0.4

20.0

00.0

0 1

0,5

86

Jul-

05

474

77,9

79

21,0

12

26.9

5 1

14,7

29

25,7

18

31,3

08

27.2

931,1

98

91

0.4

30.0

00.0

0 1

0,1

74

Aug-

05

579

100,1

27

28,3

05

28.2

7 1

52,5

60

34,1

99

42,8

94

28.1

242,7

45

121

0.4

30.0

00.0

0 1

3,4

04

Sep

-05

537

85,3

54

22,9

95

26.9

4 1

32,0

88

29,6

09

35,6

18

26.9

735,4

63

112

0.4

90.0

00.0

0 1

0,3

73

Oct

-05

503

64,7

35

18,2

16

28.1

4 1

35,3

76

30,3

47

33,8

57

25.0

133,7

41

72

0.4

00.0

00.0

0 1

3,1

71

No

v-0

5425

52,0

06

14,1

64

27.2

4 1

04,7

48

23,4

81

27,6

53

26.4

027,5

74

46

0.3

20.0

00.0

0 9

,155

Dec

-05

551

62,1

12

17,2

35

27.7

5 1

42,8

14

32,0

14

36,2

95

25.4

136,1

94

51

0.2

90.0

00.0

0 1

1,4

82

Jan

-06

550

66,0

10

18,6

07

28.1

9 1

48,2

58

33,2

34

40,0

98

27.0

539,9

64

67

0.3

60.0

00.0

0 1

3,6

33

Feb

-06

515

60,3

23

17,7

01

29.3

4 1

33,7

53

29,9

83

37,3

52

27.9

337,2

46

55

0.3

10.0

00.0

0 1

0,5

81

Mar

-06

624

74,7

73

22,2

93

29.8

1 1

74,8

99

39,2

06

48,0

29

27.4

647,8

99

64

0.2

90.0

00.0

0 1

3,2

56

2005-0

66,0

00

818

,438

227,2

40

27.7

71,

516

,839

340,0

22

409,3

53

26.9

9407,9

76

894

0.3

90.0

00.0

013

1,426

Ap

r-06

570

72,8

68

21,0

24

28.8

5 1

74,5

55

40,0

45

48,9

07

28.0

248,7

61

91

0.4

40.0

00.0

0 1

3,7

30

May

-06

717

99,7

58

30,5

80

30.6

5 2

16,3

97

49,6

44

66,7

50

30.8

566,5

02

121

0.4

00.0

00.0

0 2

6,4

70

Jun

-06

667

66,3

30

17,7

80

26.8

1 1

49,8

42

34,3

75

36,2

17

24.1

736,1

26

53

0.3

00.0

00.0

0 1

3,3

98

Jul-

06

537

46,6

42

13,0

97

28.0

8 1

21,9

78

27,9

83

30,3

47

24.8

830,2

72

35

0.2

70.0

00.0

0 1

1,4

89

Aug-

06

627

54,9

89

14,8

43

26.9

9 1

27,8

07

29,3

20

32,5

73

25.4

932,4

77

56

0.3

80.0

00.0

0 9

,636

Sep

-06

638

61,9

74

17,3

87

28.0

6 1

40,3

00

32,1

86

39,3

54

28.0

539,2

67

58

0.3

30.0

00.0

0 1

2,2

06

Oct

-06

577

60,6

76

17,9

18

29.5

3 1

36,0

36

31,2

08

40,4

49

29.7

340,3

44

57

0.3

20.0

00.0

0 1

1,1

18

No

v-0

6744

72,4

08

21,2

15

29.3

0 1

83,4

96

42,0

96

52,0

49

28.3

751,9

24

62

0.2

90.0

00.0

0 1

5,5

35

Dec

-06

667

58,8

90

17,9

27

30.4

4 1

72,1

27

39,4

88

48,1

02

27.9

548,0

09

50

0.2

80.0

00.0

0 1

4,3

40

Jan

-07

698

85,7

57

23,5

54

27.4

7 1

72,2

10

39,5

07

51,8

55

30.1

151,7

19

85

0.3

60.0

00.0

0 1

4,2

50

Feb

-07

683

87,5

84

22,8

38

26.0

8 1

76,8

34

40,5

68

51,3

27

29.0

351,2

16

59

0.2

60.0

00.0

0 1

4,0

23

Mar

-07

731

82,6

38

20,9

10

25.3

0 1

68,5

12

38,6

58

46,5

05

27.6

046,4

31

41

0.2

00.0

00.0

0 1

6,9

92

2006-0

7 7

,857

850,5

15 2

39,0

74

28.1

1 1

,940,0

94

445,0

78

544,4

34

28.0

6 5

43,0

48

769

0.3

20.0

00.0

0 1

73,1

88

* B

alan

ce a

t th

e en

d o

f p

erio

d.

Contd...

Wholesale Debt MarketSegment 5

65

Wholesale Debt Market Segment

The Exchange started its trading operations in June 1994 by enabling the Wholesale Debt

Market (WDM) segment of the Exchange. This segment provides a trading platform for a

wide range of fixed income securities that includes Central Government Securities, Treasury

Bills (T-bills), State Development Loans (SDLs), Bonds issued by Public Sector Undertakings

(PSUs), Floating Rate Bonds (FRBs), Zero Coupon Bonds (ZCBs), Index Bonds, Commercial

Papers (CPs), Certificates of Deposit (CDs), Corporate Debentures, SLR and non-SLR bonds

issued by financial institutions (FIs), bonds issued by foreign institutions and units of mutual

funds (MFs).

To further encourage wider participation of all classes of investors, including the retail

investors, the Retail Debt Market segment (RDM) was launched on January 16, 2003. This

segment provides for a nation wide, anonymous, order driven, screen based trading system

in government securities. In the first phase, all outstanding and newly issued Central

Government Securities were traded in the retail debt market segment. Subsequently other

securities like State Government Securities, T-bills were added for trading. The settlement

cycle is same as in the case of equity market i.e., T+2 rolling settlement cycle.

Trading Mechanism

The WDM trading system, known as NEAT (National Exchange for Automated Trading), is a

fully automated screen based trading system that enables members across the country to trade

simultaneously with enormous ease and efficiency. It supports an anonymous order driven market

which operates on a price/time priority and provides tremendous flexibility to users in terms of

orders with various time/price/quantity related conditions that can be placed on the system. It

also provides on-line market information like total order depth, best buys and sells available,

quantity traded, the high, low and last traded price for securities are available at all points of time.

The WDM Trading system provides two market sub-types: continuous market and negotiated

market. In the continuous market, the buyer and seller do not know each other and they put their

best buy/sell orders, which are stored in order book with price/time priority. If orders match, it

results into a trade. The trades in WDM segment are settled directly between the participants,

who take an exposure to the settlement risk attached to any unknown counter-party. In the

NEAT-WDM system, all participants can set up their counter-party exposure limits against all

probable counter-parties. This enables the trading member/participant to reduce/ minimize the

counter-party risk associated with the counter-party to trade. A trade does not take place if both

the buy/sell participants do not invoke the counter-party exposure limit in the trading system.

In the negotiated market, the trades are normally decided by the seller and the buyer outside the

exchange, and reported to the Exchange through a trading member for approval. Thus, deals

negotiated or structured outside the exchange are disclosed to the market through NEAT-WDM

system. In negotiated market, as buyers and sellers know each other and have agreed to trade, no

counter-party exposure limit needs to be invoked.

55555

66

The trades on the WDM segment could be either outright trades or repo transactions with

settlement cycle of T+2 and repo periods (1 to 14 days). For every trade, it is necessary to specify

the number of settlement days and the trade type (repo or non-repo), and in the event of a repo

trade, the repo term and repo rate.

Market Performance

Turnover

The trading volume on the WDM Segment of the Exchange witnessed a year on year decline

of 54 % from Rs. 475,523 crore (US $ 106,596 million) during 2005-06 to Rs. 219,106 crore

(US $ 50,265 million) during 2006-07. The average daily trading volume also decelerated

from Rs.1,755 crore (US $ 393.34 million) during 2005-06 to Rs. 898 crore (US $ 206.01

million) in fiscal 2006-07. The highest recorded WDM trading volume of Rs. 13,912 crore

(US $ 3,206 million) was registered on August 25, 2003. The business growth of the WDM

segment is presented in Table 5-1 and Chart 5-1.

The transactions in dated government securities accounted for a substantial share of 73.02

% on the WDM segment. The details of transactions in government securities and treasury

bills, outright as well as repo transactions are presented in Table 5-2. There were no repo

transactions recorded during 2005-06 and 2006-07. The WDM's SGL Outright Transactions

as a percentage to the total SGL Outright transactions was 51.7 % in 2006-07.

The security-wise and participant-wise distribution of WDM trades is presented in Table 5-

3. It is observed that the market is dominated by dated government securities (including

state development loan), which accounted for 70 % of WDM trades during 2006-07. Among

the market participants, the trading members accounted for 30.88 % of the total WDM

trades followed by domestic banks which held a share of 26.03 %. Share of foreign banks in

WDM trades had spiked up to 20.57 % during 2006-07 as compared with its share of 14.11

% in the last fiscal.

The share of top 'N' securities/trading members/participants in turnover in WDM segment

is presented in Table 5-4. The share of top '10' securities decreased from 59.78 % in 2005-

06 to 51.29% in 2006-07. The share of top '50' and top '100' securities accounted for 77.15%

and 86.91% respectively in 2006 - 07

Market Capitalisation

Market capitalisation of the WDM segment has witnessed a constant increase indicating an

increase in the number of securities available for trading on this segment. Total market

capitalisation of the securities available for trading on WDM segment stood at Rs. 1,784,801

crore as on March 30, 2007. Central Government securities accounted for the largest share

of the market capitalisation with 66.24%. The details of market capitalisation of WDM

securities are presented in Table 5-5.

Transaction Charges

The Exchange has waived the transaction charges for the Wholesale Debt Market segment

of the Exchange for the period April 1, 2007 to March 31, 2008.

67

Settlement

Settlement is on a rolling basis, i.e. there is no account period settlement. Each order has a

unique settlement date specified upfront at the time of order entry and used as a matching

parameter. It is mandatory for trades to be settled on the predefined settlement date. The

Exchange currently allows settlement periods ranging from same day (T+0) settlement to a

maximum of (T+2) for non-government securities while settlement of all outright secondary

market transactions in government securities was standardized to T+1. In case of repo

transactions in government securities, first leg can be settled either on T+0 basis or T+1

basis.

In case of government securities, the actual settlement of funds and securities are effected

directly between participants or through Reserve Bank of India (RBI). All trades in

government securities are reported to RBI-SGL through the Negotiated Dealing System

(NDS) of RBI, and Clearing Corporation of India Limited (CCIL) provides settlement

guarantee for transactions in government securities including repos. The trades are settled

on a net basis through the DvP-III system. In the DvP-III, the settlement of Securities and

Funds are carried out on a net basis.

For securities other than government securities and T-bills, trades are settled on a gross

basis directly between participants on delivery versus payment basis.

On the scheduled settlement date, the Exchange provides data/information to the respective

member/participant regarding trades to be settled on that day with details like security, counter

party and consideration.

The settlement details for non-government securities, i.e. certificate no., Cheque no.,

constituent etc. are reported by the member/participant to the Exchange.

The Exchange closely monitors the settlement of transactions through the reporting of

settlement details by members and participants. In case of deferment of settlement or

cancellation of trade, participants are required to seek prior approval from the Exchange.

For any dispute arising in respect of the trades or settlement, the exchange has established

arbitration mechanism for resolving the same.

Constituent SGL Facility

Subsidiary General Ledger (SGL) account is a facility provided by RBI to large banks and

financial institutions to hold their investments in government securities and treasury bills in

the electronic book entry form. Such institutions can settle their trades for securities held in

SGL through a delivery-versus-payment (DvP) mechanism, which ensures movement of

funds and securities simultaneously. As all investors in government securities do not have an

access to the SGL accounting system, RBI has permitted such investors to hold their securities

in physical stock certificate form. They may also open a constituent SGL account with any

entity authorised by RBI for this purpose and thus avail of the DvP settlement. Such client

accounts are referred to as constituent SGL accounts.

For retail participants in the market, who otherwise have to hold securities in physical form

and settle their transactions on a bilateral basis, the NSCCL offers constituent SGL facility.

RBI has allowed NSCCL to open SGL and current accounts for this purpose.

68

FIMMDA-NSE MIBID/MIBOR

A reference rate is an accurate measure of the market price. In the fixed income market, it is

an interest rate that the market respects and closely matches. On these lines, NSE has been

computing and disseminating the NSE Mumbai Inter-bank Bid Rate (MIBID) and NSE

Mumbai Inter-bank Offer Rate (MIBOR) for the overnight money market from June 15,

1998, the 14-day MIBID/MIBOR from November 10, 1998 and the 1 month and 3 month

MIBID/MIBOR from December 1, 1998. In view of the robust methodology of computation

of these rates and their extensive use by market participants, these have been co-branded

with Fixed Income and Money Market Dealers Association (FIMMDA) from March 4, 2002.

These are now known as FIMMDA-NSE MIBID/MIBOR. These are presented in Table 5-

6. The Chart 5-2 presents overnight MIBID/MIBOR for 2006-07.

FIMMDA-NSE MIBID/MIBOR are based on rates polled by NSE from a representative

panel of 33 banks /primary dealers. Currently, quotes are polled and processed daily by the

Exchange at 0940 (IST) for overnight rate and at 1130 (IST) for the 14 day, 1 month and 3

month rates. The overnight rates are disseminated daily to the market at about 0955 (IST)

and the 14 day, 1 month and 3 month rates at about 1145 (IST). These are broadcast through

NEAT-WDM trading system immediately on release and also disseminated through websites

of NSE and FIMMDA , through leading information vendors ,financial dailies and email.

The FIMMDA-NSE MIBID/MIBOR is used as a benchmark rate for majority of deals struck

for interest rate swaps, forward rate agreements, floating rate debentures and term deposits.

Zero Coupon Yield Curve

Keeping in mind the requirements of the banking industry, financial institutions, mutual

funds, insurance companies, etc. that have substantial investment in sovereign papers, NSE

disseminates a 'Zero Coupon Yield Curve' (NSE Zero Curve) to help in valuation of securities

across all maturities irrespective of its liquidity in the market. This product has been developed

by using Nelson-Siegel functional form to estimate the term structure of interest rate at any

given point of time and been successfully tested by using daily WDM trades data. This is

being disseminated daily.

The ZCYC depicts the relationship between spot interest rates in the economy and the associated

term to maturity. It provides daily estimates of the term structure of interest rates using

information on secondary market trades in government securities from the WDM segment. The

term structure forms the basis for the valuation of all fixed income instruments. Modelled as a

series of cashflows due at different points of time in the future, the underlying price of such an

instrument is calculated as the net present value of the stream of cashflows. Each cashflow, in

such a formulation, is discounted using the interest rate for the associated term to maturity; the

appropriate rates are read off the estimated ZCYC. Once estimated, the interest rate-maturity

mapping is used to compute underlying valuations even for securities that do not trade on a given

day. Changes in the economy cause shifts in the term structure, changing the underlying valuations

of fixed income instruments. The daily ZCYC captures these changes, and is used to track the

value of portfolios of government securities on a day-to-day basis.

Chart 5-3 plots the spot interest rates at different maturities for the year 2006-07

69

NSE-VaR System

NSE has developed a VaR system for measuring the market risk inherent in Government of

India (GOI) securities. NSE-VaR system builds on the NSE database of daily yield curves

(ZCYC) and provides measures of VaR using 5 alternative methods (variance-covariance

(normal), historical simulation method, weighted normal, weighted historical simulation and

extreme value method). Together, these 5 methods provide a range of options for market

participants to choose from.

NSE-VaR system releases daily estimates of security-wise VaR at 1-day and multi-day horizons

for securities traded on WDM segment of NSE and all outstanding GoI securities with

effect from January 1, 2002. Participants can compute their portfolio risk as weighted average

of security-wise VaRs, the weights being proportionate to the market value of a given security

in their portfolio. 1-day VaR (99%) measure for GoI Securities traded on NSE-WDM on

March 30, 2007 is presented in Table 5-7.

GOI-Bond Index

The increased activity in the government securities market in India and simultaneous

emergence of mutual (gilt) funds has given rise to the need for a well defined Bond Index to

measure returns in the bond market. The NSE-Government Securities Index prices

components off the NSE Benchmark ZCYC, so that the movements reflect returns to an

investor on account of change in interest rates only, and not those arising on account of the

impact of idiosyncratic factors. The index provides a benchmark for portfolio management

by various investment managers and gilt funds. It also forms the basis for designing index

funds and for derivative products such as options and futures. Some of the salient features

of this index are:

• The base date for the index is 1st January 1997 and the base date index value is 100

• The index is calculated on a daily basis from 1st January 1997 onwards; weekends and

holidays are ignored.

• The index uses all Government of India bonds issued after April 1992. These were

issued on the basis of an auction mechanism that imparted some amount of market-

relatedness to their pricing. Bonds issued prior to 1992 were on the basis of administered

interest rates.

• Each day, the prices for all these bonds are estimated off the NSE Benchmark-ZCYC

for the day.

• The constituents are weighted by their market capitalisation.

• Computations are based on arithmetic and not geometric calculations.

• The index uses a chain-link methodology i.e. today's values are based on the previous

value times the change since the previous calculations. This gives the index the ability

to add new issues and remove old issues when redeemed.

• Coupons and redemption payments are assumed to be re-invested back into the index

in proportion to the constituent weights.

• Both the Total Returns Index and the Principal Returns Index are computed.

• The indices provided are: Composite, 1-3, 3-8, 8+ years, TB index, GS index

70

Tab

le 5

-1:

Bu

sin

ess

Gro

wth

of

WD

M S

egm

ent

Mo

nth

/Y

ear

All

Tra

des

Reta

il T

rad

e

No

. o

fN

um

ber

Ave

rag

eA

vera

ge

Tra

din

gT

rad

ing

Ave

rag

eN

um

ber

of

Tra

din

gT

rad

ing

Sh

are

in

Acti

veo

f T

rad

es

Dail

yD

ail

yV

olu

me

Vo

lum

eT

rad

e S

ize

Tra

des

Vo

lum

eV

olu

me

To

tal

Secu

riti

es

Tra

din

gT

rad

ing

(Rs.

cr.

)(U

S $

(Rs.

cr.

)(R

s. c

r.)

(US

$T

rad

ing

Vo

lum

eV

olu

me

mil

lio

n)

mil

lio

n.)

Vo

lum

e (

%)

(Rs.

cr.

) (

US $

m

illi

on

)

1994-

95 (

Jun

e-M

arc

h)

183

1,021

30

6,7

81

6.6

416

831

0.4

5

1995-9

6304

2,9

91

41

11,8

68

3.9

71,

115

207

1.74

1996-9

7524

7,8

04

145

42,2

78

5.4

21,

061

201

0.4

7

1997-9

8719

16,8

21

385

111,

263

6.6

11,

390

289

0.2

6

1998-9

91,

071

16,0

92

365

86

105,4

69

24,8

57

6.5

51,

522

308

72.5

40.2

9

1999-0

01,

057

46,9

87

1,035

237

304,2

1669,7

42

6.4

7936

218

49.9

20.0

7

Ap

r-00

207

4,9

78

1,7

09

366

34,1

83

7,3

29

6.8

735

81.7

20.0

2

May

-00

236

4,6

53

1,3

15

282

32,8

75

7,0

49

7.0

720

71.5

00.0

2

Jun

-00

158

2,7

71

698

150

17,4

45

3,7

40

6.3

031

102.1

40.0

6

Jul-

00

176

4,2

75

1,0

89

233

28,3

11

6,0

70

6.6

218

61.2

90.0

2

Aug-

00

175

2,6

82

658

141

16,4

40

3,5

25

6.1

3112

214.5

00.1

3

Sep

-00

175

3,4

04

857

184

21,4

19

4,5

92

6.2

969

132.7

90.0

6

Oct

-00

203

3,9

10

1,1

37

244

25,0

19

5,3

64

6.4

031

112.3

60.0

4

No

v-0

0222

5,5

19

1,4

51

311

36,2

85

7,7

80

6.5

731

81.7

20.0

2

Dec

-00

217

6,0

92

1,5

93

341

38,2

22

8,1

95

6.2

717

61.2

90.0

2

Jan

-01

221

10,0

95

2,5

54

548

66,4

00

14,2

37

6.5

839

143.0

00.0

2

Feb

-01

225

9,0

80

2,8

73

616

63,2

12

13,5

53

6.9

638

122.5

70.0

2

Mar

-01

243

7,0

11

2,0

32

436

48,7

71

10,4

57

6.9

657

153.2

20.0

3

2000-0

11,

038

64,4

70

1,483

318

428,5

82

91,

891

6.6

5498

131

28.0

90.0

3

Ap

r-01

213

6,6

06

2,3

14

474

46,2

85

9,4

85

7.0

117

61.2

30.0

1

May

-01

220

12,2

20

3,3

59

688

83,9

82

17,2

09

6.8

752

81.6

40.0

1

Jun

-01

200

11,9

36

3,2

93

675

82,3

29

16,8

71

6.9

028

51.0

20.0

1

Jul-

01

223

12,5

75

3,2

55

667

84,6

29

17,3

42

6.7

325

51.0

20.0

1

Aug-

01

215

11,6

22

3,1

58

647

75,7

84

15,5

30

6.5

244

193.8

90.0

3

Sep

-01

207

9,5

26

2,5

28

518

63,1

99

12,9

51

6.6

328

40.8

20.0

1

Oct

-01

196

12,6

36

3,2

34

663

80,8

60

16,5

70

6.4

017

40.8

20.0

0

No

v-0

1216

15,3

00

4,2

90

879

98,6

74

20,2

20

6.4

536

163.2

80.0

2

Dec

-01

167

10,1

35

2,6

00

533

62,4

11

12,7

89

6.1

621

61.2

30.0

1

Jan

-02

228

17,0

11

4,2

98

881

111,7

36

22,8

97

6.5

736

132.6

60.0

1

Feb

-02

254

16,1

27

4,4

05

903

101,3

13

20,7

61

6.2

844

153.0

70.0

1

Mar

-02

216

9,1

57

2,4

34

499

55,9

88

11,4

73

6.1

130

91.8

40.0

2

2001-

02

979

144,8

51

3,2

77

672

947,1

90

194,0

96

6.5

4378

110

22.5

40.0

1

Ap

r-02

254

12,1

64

3,2

22

678

77,3

34

16,2

81

6.3

632

71.4

70.0

1

Contd....

71

Mo

nth

/Y

ear

All

Tra

des

Reta

il T

rad

e

No

. o

fN

um

ber

Ave

rag

eA

vera

ge

Tra

din

gT

rad

ing

Ave

rag

eN

um

ber

of

Tra

din

gT

rad

ing

Sh

are

in

Acti

veo

f T

rad

es

Dail

yD

ail

yV

olu

me

Vo

lum

eT

rad

e S

ize

Tra

des

Vo

lum

eV

olu

me

To

tal

Secu

riti

es

Tra

din

gT

rad

ing

(Rs.

cr.

)(U

S $

(Rs.

cr.

)(R

s. c

r.)

(US

$T

rad

ing

Vo

lum

eV

olu

me

mil

lio

n)

mil

lio

n.)

Vo

lum

e (

%)

(Rs.

cr.

) (

US $

m

illi

on

)

May

-02

206

8,6

62

2,1

30

448

53,2

46

11,2

10

6.1

530

102.1

10.0

2

Jun

-02

237

8,8

75

2,1

79

459

54,4

77

11,4

69

6.1

422

71.4

70.0

1

Jul-

02

230

14,9

96

3,6

19

762

97,7

25

20,5

74

6.5

246

163.3

70.0

2

Aug-

02

232

15,4

83

3,8

55

812

100,2

26

21,1

00

6.4

756

163.3

70.0

2

Sep

-02

251

10,4

39

2,8

45

599

68,2

69

14,3

72

6.5

481

214.4

20.0

3

Oct

-02

265

16,5

87

4,2

46

894

106,1

42

22,3

46

6.4

0143

418.6

30.0

4

No

v-0

2260

21,0

52

5,5

09

1,1

60

132,2

22

27,8

36

6.2

8172

357.3

70.0

3

Dec

-02

245

18,8

07

4,8

91

1,0

30

117,3

83

24,7

12

6.2

4152

367.5

80.0

3

Jan

-03

253

21,3

35

5,1

75

1,0

89

139,7

18

29,4

14

6.5

5131

326.7

40.0

2

Feb

-03

229

10,7

28

2,9

12

613

66,9

74

14,1

00

6.2

4115

245.0

50.0

4

Mar

-03

276

8,6

50

2,3

91

503

54,9

86

11,5

76

6.3

6272

5511.5

80.1

0

2002-0

31,

123

167,7

78

3,5

98

758

1,068,7

01

224,9

90

6.3

71,

252

300

63.1

60.0

3

Ap

r-03

282

15,5

12

4,8

12

1,1

09

101,0

52

23,2

89

6.5

1180

418.6

70.0

4

May

-03

290

18,6

51

5,1

40

1,1

85

123,3

59

28,4

30

6.6

1148

316.4

20.0

2

Jun

-03

310

18,4

00

5,0

67

1,1

68

126,6

72

29,1

94

6.8

8127

296.1

10.0

2

Jul-

03

271

18,2

20

4,8

53

1,1

18

131,0

27

30,1

97

7.1

9122

306.2

70.0

2

Aug-

03

306

22,7

53

6,5

09

1,5

00

162,7

37

37,5

06

7.1

5127

265.3

70.0

2

Sep

-03

334

17,1

52

4,8

15

1,1

10

125,1

99

28,8

54

7.3

0115

255.2

80.0

2

Oct

-03

275

20,4

65

5,9

75

1,3

77

143,4

04

33,0

50

7.0

181

275.5

80.0

2

No

v-0

3233

11,7

37

3,5

18

811

80,9

03

18,6

46

6.8

989

285.9

40.0

3

Dec

-03

247

12,5

29

3,2

27

744

83,9

06

19,3

38

6.7

057

142.9

90.0

2

Jan

-04

280

11,4

07

2,9

82

687

77,5

33

17,8

69

6.8

0123

347.1

20.0

4

Feb

-04

241

8,6

75

2,7

95

644

61,4

99

14,1

74

7.0

979

214.4

40.0

3

Mar

-04

372

14,0

17

3,9

52

911

98,8

06

22,7

72

7.0

5152

275.6

40.0

3

2003-0

41,

078

189,5

184,4

77

1,032

1,316

,096

303,3

186.9

41,

400

332

69.8

30.0

3

Ap

r-04

285

19,0

75

6,0

67

1,3

87

133,4

78

30,5

09

7.0

033

112.5

60.0

1

May

-04

275

13,0

97

3,8

06

870

91,3

40

20,8

78

6.9

727

81.8

00.0

1

Jun

-04

347

11,3

82

3,1

71

725

82,4

53

18,8

46

7.2

456

184.0

30.0

2

Jul-

04

302

9,3

03

2,4

45

559

66,0

12

15,0

89

7.1

055

173.8

10.0

3

Aug-

04

243

9,2

41

2,5

52

583

63,8

06

14,5

84

6.9

068

214.8

50.0

3

Sep

-04

288

12,6

59

3,5

08

802

87,6

95

20,0

44

6.9

3103

378.4

10.0

4

Tab

le 5

-1:

Bu

sin

ess

Gro

wth

of

WD

M S

egm

ent

Contd....

Contd....

72

Mo

nth

/Y

ear

All

Tra

des

Reta

il T

rad

e

No

. o

fN

um

ber

Ave

rag

eA

vera

ge

Tra

din

gT

rad

ing

Ave

rag

eN

um

ber

of

Tra

din

gT

rad

ing

Sh

are

in

Acti

veo

f T

rad

es

Dail

yD

ail

yV

olu

me

Vo

lum

eT

rad

e S

ize

Tra

des

Vo

lum

eV

olu

me

To

tal

Secu

riti

es

Tra

din

gT

rad

ing

(Rs.

cr.

)(U

S $

(Rs.

cr.

)(R

s. c

r.)

(US

$T

rad

ing

Vo

lum

eV

olu

me

mil

lio

n)

mil

lio

n.)

Vo

lum

e (

%)

(Rs.

cr.

) (

US $

m

illi

on

)

Tab

le 5

-1:

Bu

sin

ess

Gro

wth

of

WD

M S

egm

ent

Contd....

Oct

-04

291

8,4

37

2,4

25

554

55,7

70

12,7

47

6.6

179

378.3

50.0

7

No

v-0

4329

5,7

67

1,9

80

453

45,5

41

10,4

09

7.9

0134

449.9

60.1

0

Dec

-04

333

10,3

21

2,7

92

638

72,5

93

16,5

93

7.0

3154

419.2

70.0

6

Jan

-05

273

8,3

84

2,5

50

583

61,2

05

13,9

90

7.3

0131

4510.2

90.0

7

Feb

-05

251

10,1

56

3,0

66

701

73,5

88

16,8

20

7.2

5133

439.8

60.0

6

Mar

-05

303

6,4

86

2,2

42

513

53,8

12

12,3

00

8.3

0305

9020.5

40.1

7

2004-0

51,

151

124,3

08

3,0

28

692

887,2

94

202,8

107.1

41,

278

410

93.7

40.0

5

Ap

r-05

204

6,0

79

2,4

83

557

54,6

16

12,2

43

8.9

8 9

8 3

78.2

9 0

.07

May

-05

256

9,3

76

2,8

05

629

70,1

13

15,7

17

7.4

8 1

20

44

9.8

6 0

.06

Jun

-05

268

14,2

13

3,6

96

829

96,1

08

21,5

44

6.7

6 1

08

27

6.0

5 0

.03

Jul-

05

185

8,0

42

2,0

92

469

52,3

09

11,7

26

6.5

0 5

2 1

32.9

1 0

.02

Aug-

05

274

5,3

61

1,7

89

401

44,7

17

10,0

24

8.3

4 1

08

36

8.0

7 0

.08

Sep

-05

258

4,1

27

1,2

78

287

31,9

60

7,1

64

7.7

4 6

8 2

45.3

8 0

.08

Oct

-05

192

2,9

87

1,2

09

271

25,3

87

5,6

91

8.5

0 5

7 2

24.9

3 0

.09

No

v-0

5 1

86

2,8

22

1,2

18

273

24,3

60

5,4

61

8.6

3 4

6 2

04.4

8 0

.08

Dec

-05

222

2,5

05

944

212

20,7

71

4,6

56

8.2

9 6

0 2

76.0

5 0

.13

Jan

-06

180

2,5

72

1,0

80

242

21,6

07

4,8

44

8.4

0 5

4 1

73.8

1 0

.08

Feb

-06

145

2,0

75

868

194

16,4

85

3,6

95

7.9

4 3

9 1

73.8

1 0

.10

Mar

-06

224

1,7

32

814

182

17,0

89

3,8

31

9.8

7 8

2 2

65.8

3 0

.15

2005-0

6 8

97

61,

891

1,7

55

393

475,5

23

106,5

96

7.6

8 8

92

310

69.4

9 0

.07

Ap

r-06

159

1,9

62

1,3

64

313

23,1

84

5,3

19

11.8

2 1

9 7

1.6

3 0

.03

May

-06

174

1,7

55

818

188

17,9

86

4,1

26

10.2

5 1

9 6

1.3

5 0

.03

Jun

-06

168

950

536

123

11,7

90

2,7

05

12.4

1 4

7 1

22.6

8 0

.10

Jul-

06

146

1,1

69

605

139

12,7

10

2,9

16

10.8

7 2

7 8

1.9

2 0

.07

Aug-

06

170

2,3

41

1,0

71

246

23,5

61

5,4

05

10.0

6 3

9 1

43.1

0 0

.06

Sep

-06

198

2,3

36

1,1

14

256

23,3

96

5,3

67

10.0

2 4

2 6

1.4

8 0

.03

Oct

-06

124

1,6

76

832

191

15,8

10

3,6

27

9.4

3 0

00.0

00.0

0

No

v-0

6 1

85

2,9

38

1,3

34

306

29,3

39

6,7

31

9.9

9 1

5 4

0.8

8 0

.01

Dec

-06

170

1,2

44

708

162

14,8

68

3,4

11

11.9

5 3

3 4

0.8

6 0

.03

Jan

-07

140

1,3

32

901

207

18,0

26

4,1

35

13.5

3 3

5 1

43.2

4 0

.08

Feb

-07

108

920

791

182

14,2

45

3,2

68

15.4

8 4

9 1

43.1

2 0

.10

Mar

-07

178

952

710

163

14,1

92

3,2

56

14.9

1 7

4 1

33.0

1 0

.09

2006-0

7 7

62

19,5

75

898

206

219

,106

50,2

65

11.

19 3

99

102

23.2

9 0

.05

73

Tab

le 5

-2:

WD

M T

ran

sact

ion

s in

Gov

ern

men

t Se

curi

ties

(Rs.

cro

re)

Mo

nth

/Y

ear

Ou

trig

ht

Tra

nsa

cti

on

sR

ep

o T

ran

sacti

on

sT

ota

l (5

+8)

% S

hare

in

Date

dS

tate

Tre

asu

ryT

ota

lD

ate

dT

reasu

ryT

ota

lSG

L O

utr

igh

t

Secu

riti

es

Go

vern

men

tB

ills

(2+

3+

4)

Secu

riti

es

Bil

ls(6

+7)

Tra

nsa

cti

on

s

Secu

riti

es

12

34

56

78

910

1994-9

5 (

Jun

e-M

arc

h)

2,9

47

79

2,6

34

5,6

60

00

05,6

60

--

1995-9

66,8

1317

62,2

55

9,2

43

739

5744

9,9

88

--

1996-9

726,8

91

298

10,9

1238,1

01

162

45

207

38,3

08

--

1997-9

879,5

64

931

17,0

21

97,5

154,2

25

1,845

6,0

70

103,5

85

--

1998-9

978,9

73

860

10,5

86

90,4

194,7

41

120

4,8

61

95,2

80

--

1999-0

0278,8

66

2,0

82

10,6

44

291,

592

1,933

363

2,2

96

293,8

88

--

Ap

r-00

31,5

38

99

1,4

96

33,1

33

30

030

33,1

63

--

May

-00

30,2

45

93

1,0

73

31,4

11

25

025

31,4

36

--

Jun

-00

15,7

63

9718

16,4

90

65

065

16,5

55

--

Jul-

00

26,1

19

121

1,0

43

27,2

83

125

0125

27,4

08

--

Aug-

00

13,5

90

253

1,3

16

15,1

59

470

0470

15,6

29

--

Sep

-00

17,4

10

23

2,7

42

20,1

75

135

0135

20,3

10

--

Oct

-00

20,6

90

22

2,8

63

23,5

75

115

0115

23,6

90

--

No

v-0

032,4

96

162

2,0

23

34,6

81

50

050

34,7

31

--

Dec

-00

34,5

96

227

2,0

58

36,8

81

75

075

36,9

56

--

Jan

-01

62,2

46

161

2,1

56

64,5

63

145

0145

64,7

08

--

Feb

-01

59,2

73

38

2,7

16

62,0

27

50

050

62,0

77

--

Mar

-01

44,1

32

48

2,9

38

47,1

18

315

0315

47,4

33

--

2000-0

1388,0

98

1,256

23,1

42

412

,496

1,600

01,

600

414

,096

--

Ap

r-01

42,1

10

292

2,8

88

45,2

90

00

045,2

90

--

May

-01

79,5

16

133

2,5

94

82,2

43

00

082,2

43

--

Jun

-01

78,7

94

55

2,3

44

81,1

93

00

081,1

93

--

Jul-

01

79,9

45

121

2,8

34

82,9

00

216

0216

83,1

16

--

Aug-

01

72,5

43

68

1,5

46

74,1

57

131

0131

74,2

88

--

Sep

-01

59,7

04

100

2,1

37

61,9

41

00

061,9

41

--

Oct

-01

77,6

11

160

1,6

56

79,4

27

25

50

75

79,5

02

--

No

v-0

194,3

48

109

2,6

51

97,1

08

37

10

47

97,1

55

--

Dec

-01

59,8

54

23

1,6

15

61,4

92

50

050

61,5

42

--

Jan

-02

106,1

48

114

3,1

64

109,4

26

10

010

109,4

36

--

Feb

-02

96,7

12

124

1,1

91

98,0

27

00

098,0

27

--

Mar

-02

52,8

16

113

863

53,7

92

79

079

53,8

71

--

2001-

02

900,1

01

1,412

25,4

83

926,9

96

548

60

608

927,6

04

--

Contd....

74

(Rs.

cro

re)

Mo

nth

/Y

ear

Ou

trig

ht

Tra

nsa

cti

on

sR

ep

o T

ran

sacti

on

sT

ota

l (5

+8)

% S

hare

in

Date

dS

tate

Tre

asu

ryT

ota

lD

ate

dT

reasu

ryT

ota

lSG

L O

utr

igh

t

Secu

riti

es

Go

vern

men

tB

ills

(2+

3+

4)

Secu

riti

es

Bil

ls(6

+7)

Tra

nsa

cti

on

s

Secu

riti

es

12

34

56

78

910

Tab

le 5

-2:

WD

M T

ran

sact

ion

s in

Gov

ern

men

t Se

curi

ties

Ap

r-02

72,3

59

308

1,5

97

74,2

64

195

28

223

74,4

87

72.7

5

May

-02

47,6

94

177

2,5

53

50,4

24

255

0255

50,6

79

71.1

3

Jun

-02

49,1

23

134

1,6

99

50,9

56

215

30

245

51,2

01

80.9

0

Jul-

02

91,3

17

61

2,4

60

93,8

38

43

043

93,8

81

74.9

4

Aug-

02

93,5

94

129

2,9

33

96,6

56

134

109

243

96,8

99

74.5

1

Sep

-02

63,9

79

594

1,3

50

65,9

23

75

159

234

66,1

57

72.9

1

Oct

-02

100,0

32

234

2,5

37

102,8

03

25

144

169

102,9

72

78.0

1

No

v-0

2126,1

58

328

2,6

60

129,1

46

150

17

167

129,3

13

73.3

8

Dec

-02

111,5

36

148

2,4

49

114,1

33

134

44

178

114,3

11

73.4

4

Jan

-03

130,5

58

101

4,5

70

135,2

29

100

150

250

135,4

79

70.7

9

Feb

-03

61,6

41

89

2,9

87

64,7

17

00

064,7

17

82.4

8

Mar

-03

48,5

93

265

3,6

05

52,4

63

65

205

270

52,7

33

66.9

6

2002-0

3996,5

84

2,5

68

31,

400

1,030,5

52

1,391

886

2,2

77

1,032,8

29

74.0

1

Ap

r-03

91,8

57

91

5,0

01

96,9

49

23

023

96,9

72

76.1

4

May

-03

114,9

24

249

3,7

90

118,9

63

00

0118,9

63

74.5

6

Jun

-03

120,5

54

732

2,8

83

124,1

69

67

50

117

124,2

86

76.9

0

Jul-

03

123,4

26

352

4,1

82

127,9

60

20

10

30

127,9

90

76.8

7

Aug-

03

153,1

21

713

4,2

36

158,0

70

00

0158,0

70

72.2

3

Sep

-03

113,7

66

554

6,4

70

120,7

90

13

013

120,8

03

80.6

5

Oct

-03

132,6

76

318

5,6

19

138,6

13

00

0138,6

13

72.3

3

No

v-0

373,8

05

322

4,6

31

78,7

58

00

078,7

58

79.0

2

Dec

-03

76,3

46

268

4,4

80

81,0

94

00

081,0

94

77.2

3

Jan

-04

69,9

09

422

4,6

39

74,9

70

00

074,9

70

75.6

7

Feb

-04

55,6

19

277

3,9

45

59,8

41

00

059,8

41

72.5

6

Mar

-04

87,8

36

385

5,7

21

93,9

42

00

093,9

42

67.0

5

2003-0

41,

213

,839

4,6

83

55,5

97

1,274,1

1912

360

183

1,274,3

02

74.8

9

Ap

r-04

123,0

50

338

5,3

40

128,7

28

27

15

42

128,7

70

70.9

0

May

-04

79,2

92

759

8,0

85

88,1

37

28

31

59

88,1

96

70.4

0

Jun

-04

68,6

29

1,2

82

8,7

66

78,6

78

23

023

78,7

00

62.7

7

Jul-

04

53,0

35

864

9,0

34

62,9

34

45

25

70

63,0

03

69.0

7

Aug-

04

54,5

14

206

6,3

30

61,0

49

21

77

98

61,1

47

66.4

0

Sep

-04

73,8

15

639

9,9

23

84,3

77

00

084,3

77

69.5

0

Oct

-04

44,6

92

1,4

54

7,5

93

53,7

40

00

053,7

40

65.5

5

Contd....

Contd....

75

(Rs.

cro

re)

Mo

nth

/Y

ear

Ou

trig

ht

Tra

nsa

cti

on

sR

ep

o T

ran

sacti

on

sT

ota

l (5

+8)

% S

hare

in

Date

dS

tate

Tre

asu

ryT

ota

lD

ate

dT

reasu

ryT

ota

lSG

L O

utr

igh

t

Secu

riti

es

Go

vern

men

tB

ills

(2+

3+

4)

Secu

riti

es

Bil

ls(6

+7)

Tra

nsa

cti

on

s

Secu

riti

es

12

34

56

78

910

Tab

le 5

-2:

WD

M T

ran

sact

ion

s in

Gov

ern

men

t Se

curi

ties

Contd....

No

v-0

431,0

34

909

11,6

65

43,6

08

00

043,6

08

64.3

7

Dec

-04

55,8

94

1,0

33

12,1

62

69,0

90

00

069,0

90

65.5

1

Jan

-05

44,3

23

844

13,1

46

58,3

13

00

058,3

13

67.4

2

Feb

-05

54,1

36

310

15,7

27

70,1

73

00

070,1

73

69.7

0

Mar

-05

33,2

98

315

16,8

88

50,5

00

00

050,5

00

61.6

2

2004-0

5715

,711

8,9

54

124,6

60

849,3

25

144

147

292

849,6

1767.3

6

Ap

r-05

30,5

69

27

21,7

48

52,3

43

00

052343

58.8

3

May

-05

50,4

10

916

15,9

21

67,2

48

00

067248

67.7

2

Jun

-05

85,3

81

1,1

78

6,2

08

92,7

67

00

092767

71.4

7

Jul-

05

45,0

85

282

4,4

69

49,8

36

00

049836

68.1

4

Aug-

05

25,9

58

898

14,7

33

41,5

90

00

041590

61.3

1

Sep

-05

21,0

37

1,1

73

6,9

23

29,1

33

00

029133

58.9

6

Oct

-05

14,4

24

771

8,4

74

23,6

68

00

023668

60.8

9

No

v-0

5 1

5,8

60

725

6,8

44

23,4

29

00

023429

60.2

5

Dec

-05

12,7

91

582

5,9

98

19,3

71

00

019371

56.9

1

Jan

-06

13,9

02

289

5,8

08

19,9

99

00

019999

62.0

8

Feb

-06

12,2

16

232

3,2

62

15,7

11

00

015711

58.6

4

Mar

-06

10,5

56

321

4,8

30

15,7

07

00

015707

54.6

4

2005-0

6 3

38,1

90

7,3

93

105,2

18 4

50,8

02

00

0450802

63.6

7

Ap

r-06

15,3

46

158

6,7

29

22,2

33

00

0 2

2,2

33

55.6

6

May

-06

12,3

80

466

3,4

62

16,3

09

00

0 1

6,3

09

43.1

3

Jun

-06

5,9

94

421

4,2

98

10,7

13

00

0 1

0,7

13

39.5

4

Jul-

06

6,7

15

282

4,5

36

11,5

33

00

0 1

1,5

33

47.8

7

Aug-

06

14,7

06

294

7,5

40

22,5

40

00

0 2

2,5

40

50.3

6

Sep

-06

17,0

72

416

4,8

32

22,3

20

00

0 2

2,3

20

52.2

9

Oct

-06

11,3

55

88

3,6

83

15,1

25

00

0 1

5,1

25

55.6

4

No

v-0

6 2

2,6

97

267

5,3

13

28,2

77

00

0 2

8,2

77

57.7

3

Dec

-06

10,7

76

435

2,8

80

14,0

91

00

0 1

4,0

91

56.5

3

Jan

-07

13,1

59

124

3,3

46

16,6

29

00

0 1

6,6

29

59.4

8

Feb

-07

10,0

21

161

2,8

63

13,0

46

00

0 1

3,0

46

53.5

5

Mar

-07

9,7

12

325

2,4

71

12,5

08

00

0 1

2,5

08

46.3

3

2006-0

7 1

49,9

33

3,4

36

51,

954

205,3

24

00

0 2

05,3

24

51.

70

76

Tab

le 5

-3:

Secu

rity

-wis

e an

d P

arti

cip

ant-

wis

e D

istr

ibu

tion

of

WD

M T

rad

es(I

n p

er c

ent)

Mo

nth

& Y

ear

Secu

rity

-wis

e D

istr

ibu

tio

nP

art

icip

an

t-w

ise D

istr

ibu

tio

n

Go

vern

men

tT

-Bil

ls P

SU

Oth

ers

Tra

din

gF

Is/

MF

s/P

rim

ary

Ind

ian

Fo

reig

nS

ecu

riti

es

/In

st.

Mem

bers

Co

rpo

rate

sD

eale

rsB

an

ks

Ban

ks

Bo

nd

s

1994-9

5 (

Jun

e-M

arc

h)

44.6

338.8

412

.15

4.3

857.8

26.4

30.0

214

.16

21.

57

1995-9

665.1

319

.04

9.6

96.1

423.4

87.6

01.

1630.0

737.6

9

1996-9

764.7

025.9

26.5

52.8

422.9

53.8

16.1

030.0

137.1

3

1997-9

876.1

416

.96

3.6

43.2

619

.75

4.3

012

.06

41.

24

22.6

5

1998-9

980.1

910

.15

4.7

84.8

815

.48

4.9

314

.64

42.1

222.8

3

1999-0

092.9

93.6

21.

60

1.79

18.6

34.1

819

.42

42.7

215

.05

Ap

r-00

92.6

44.3

81.2

31.7

520.2

53.8

223.1

438.6

814.1

1

May

-00

92.3

63.2

72.0

22.3

522.2

14.4

122.4

135.8

415.1

3

Jun

-00

90.7

84.1

23.0

62.0

424.9

05.2

322.2

829.9

417.6

5

Jul-

00

93.1

33.6

81.1

22.0

723.3

84.7

321.2

331.7

118.9

5

Aug-

00

87.0

68.0

12.8

52.0

823.8

54.3

522.2

726.9

622.5

7

Sep

-00

82.0

212.8

02.7

22.4

624.6

83.6

622.3

225.5

223.8

2

Oct

-00

83.2

411.4

42.8

02.5

222.3

34.6

024.0

427.9

621.0

7

No

v-0

090.1

45.5

72.6

61.6

322.9

43.6

223.7

933.9

815.6

7

Dec

-00

91.3

05.3

92.0

01.3

123.6

83.1

421.6

938.0

313.4

6

Jan

-01

94.2

03.2

51.2

71.2

824.6

64.9

921.5

533.0

815.7

2

Feb

-01

93.9

14.3

01.2

60.5

323.5

44.3

622.5

634.1

515.3

9

Mar

-01

91.2

36.0

21.7

31.0

222.5

13.4

020.0

435.3

518.7

0

2000-0

191.

22

5.4

01.

84

1.54

23.2

44.1

822.1

433.5

416

.90

Ap

r-01

91.6

16.2

41.4

30.7

218.8

23.0

125.1

736.8

116.1

9

May

-01

94.8

43.0

91.3

60.7

119.5

53.9

925.2

838.4

012.7

8

Jun

-01

95.7

72.8

50.8

80.5

019.9

23.5

822.8

841.3

112.3

1

Jul-

01

94.8

63.3

51.1

40.6

520.5

14.7

820.6

041.6

612.4

5

Aug-

01

95.9

92.0

41.1

90.7

821.7

13.5

324.4

939.0

511.2

2

Sep

-01

94.6

33.3

81.3

10.6

825.3

34.1

724.1

931.7

814.5

3

Oct

-01

96.2

12.1

11.0

30.6

526.9

84.1

923.7

434.5

810.5

1

No

v-0

195.7

62.7

00.6

70.8

725.9

63.9

724.4

934.6

610.9

2

Dec

-01

96.0

22.5

90.8

30.5

626.5

14.6

523.1

133.8

911.8

4

Jan

-02

95.1

12.8

30.8

81.1

825.4

34.4

619.1

936.0

914.8

3

Feb

-02

95.5

81.1

81.5

91.6

525.1

64.5

319.7

834.2

616.2

7

Mar

-02

94.6

81.5

42.0

31.7

524.2

34.6

119.4

335.8

415.8

9

2001-

02

95.2

42.7

01.

160.9

123.5

24.1

622.5

036.6

013

.22

Contd....

77

(In

per

cen

t)

Mo

nth

& Y

ear

Secu

rity

-wis

e D

istr

ibu

tio

nP

art

icip

an

t-w

ise D

istr

ibu

tio

n

Go

vern

men

tT

-Bil

ls P

SU

Oth

ers

Tra

din

gF

Is/

MF

s/P

rim

ary

Ind

ian

Fo

reig

nS

ecu

riti

es

/In

st.

Mem

bers

Co

rpo

rate

sD

eale

rsB

an

ks

Ban

ks

Bo

nd

s

Ap

r-02

94.2

22.1

01.9

71.7

125.4

55.1

122.3

334.4

512.6

6

May

-02

90.3

84.7

91.8

92.9

424.4

22.7

122.0

833.7

017.0

9

Jun

-02

90.8

13.1

71.9

14.1

122.5

93.0

519.1

739.2

915.9

0

Jul-

02

93.5

52.5

21.5

82.3

522.6

42.8

322.1

940.2

712.0

7

Aug-

02

93.6

53.0

32.2

31.0

922.4

43.6

021.8

341.6

710.4

6

Sep

-02

94.7

02.2

11.7

61.3

322.4

64.2

724.0

239.0

610.1

9

Oct

-02

94.4

92.5

31.6

41.3

424.5

24.1

823.9

239.1

18.2

7

No

v-0

295.7

82.0

21.2

40.9

623.7

33.5

321.0

144.0

17.7

2

Dec

-02

95.2

62.1

21.5

81.0

424.7

03.8

824.7

841.3

15.3

3

Jan

-03

93.5

93.3

82.1

70.8

626.3

73.6

722.9

639.0

27.9

8

Feb

-03

92.1

74.4

62.4

20.9

528.8

74.8

217.7

531.8

316.7

3

Mar

-03

88.9

76.9

32.7

51.3

532.1

23.4

917.6

730.1

316.5

9

2003-0

393.6

23.0

21.

87

1.49

24.8

13.7

722.0

338.7

710

.62

Ap

r-03

91.0

14.9

52.6

71.3

732.5

53.4

018.6

535.9

19.4

9

May

-03

93.3

63.0

72.0

91.4

832.2

83.8

318.7

436.8

98.2

6

Jun

-03

95.8

02.3

21.1

10.7

733.5

93.5

819.0

337.0

86.7

2

Jul-

03

94.4

83.2

01.6

70.6

533.1

55.1

017.7

737.3

76.6

1

Aug-

03

94.5

32.6

02.1

50.7

233.3

44.9

716.3

439.0

96.2

6

Sep

-03

91.3

25.1

72.5

60.9

536.1

35.3

315.3

237.0

16.2

1

Oct

-03

92.7

43.9

22.4

00.9

435.7

85.8

116.3

835.8

66.1

7

No

v-0

391.6

25.7

21.6

80.9

840.6

85.1

614.6

133.9

05.6

5

Dec

-03

91.3

15.3

42.2

41.1

135.4

94.2

516.0

037.6

56.6

1

Jan

-04

90.7

15.9

81.6

61.6

535.7

84.4

717.3

834.8

57.5

2

Feb

-04

90.8

96.4

21.7

80.9

136.3

23.9

317.2

832.5

49.9

3

Mar

-04

89.2

95.7

92.4

82.4

436.2

13.9

616.3

033.8

29.7

1

2003-0

492.6

04.2

32.0

61.

1134.8

04.5

617

.03

36.3

67.2

5

Ap

r-04

92.4

64.0

11.7

21.8

133.7

55.6

918.9

235.7

15.9

3

May

-04

87.6

78.8

91.8

91.5

532.9

05.2

417.8

835.5

78.4

1

Jun

-04

84.8

210.6

32.5

52.0

030.7

86.0

319.6

033.9

69.6

3

Jul-

04

81.7

213.7

22.0

72.4

933.3

37.0

319.1

528.8

811.6

1

Aug-

04

85.7

910.0

42.1

52.0

232.2

76.0

420.6

025.2

315.8

6

Sep

-04

84.9

011.3

21.5

42.2

433.9

74.9

921.4

925.7

913.7

6

Tab

le 5

-3:

Secu

rity

-wis

e an

d P

arti

cip

ant-

wis

e D

istr

ibu

tion

of

WD

M T

rad

es

Contd....

Contd....

78

(In

per

cen

t)

Mo

nth

& Y

ear

Secu

rity

-wis

e D

istr

ibu

tio

nP

art

icip

an

t-w

ise D

istr

ibu

tio

n

Go

vern

men

tT

-Bil

ls P

SU

Oth

ers

Tra

din

gF

Is/

MF

s/P

rim

ary

Ind

ian

Fo

reig

nS

ecu

riti

es

/In

st.

Mem

bers

Co

rpo

rate

sD

eale

rsB

an

ks

Ban

ks

Bo

nd

s

Tab

le 5

-3:

Secu

rity

-wis

e an

d P

arti

cip

ant-

wis

e D

istr

ibu

tion

of

WD

M T

rad

es

Contd....

Oct

-04

82.7

413.6

11.5

82.0

734.1

74.5

418.6

427.0

815.5

7

No

v-0

470.1

425.6

11.9

62.2

936.3

04.2

816.7

323.3

019.3

9

Dec

-04

78.4

216.7

51.8

82.9

539.9

43.3

318.1

023.9

414.6

9

Jan

-05

73.8

021.4

82.1

52.5

734.0

74.0

416.8

026.6

418.4

5

Feb

-05

73.9

921.3

72.5

12.1

334.2

64.6

615.2

729.7

416.0

7

Mar

-05

62.4

631.3

82.4

23.7

433.1

54.7

316.9

133.4

911.7

2

2004-0

581.

69

14.0

72.0

12.2

333.9

65.1

418

.50

29.8

912

.51

Ap

r-05

56.0

239.8

21.8

72.2

931.3

44.2

817.1

531.7

715.4

6

May

-05

73.2

22.7

11.4

22.6

731.7

24.2

923.1

128.2

112.6

7

Jun

-05

90.0

66.4

61.8

61.6

230.0

53.7

222.7

129.0

714.4

5

Jul-

05

86.7

38.5

42.3

12.4

230.9

32.4

326.4

225.7

114.5

1

Aug-

05

60.0

632.9

53.4

3.5

934.4

43.8

119.5

627.8

214.3

7

Sep

-05

69.4

921.6

64.5

14.3

435.5

75.8

318.7

431.7

78.0

9

Oct

-05

59.8

533.3

84.2

12.5

635.3

42.6

621.7

727.1

513.0

8

No

v-0

568.0

828.1

2.3

31.4

929.1

84.9

921.2

929.9

814.5

6

Dec

-05

64.3

828.8

83.3

13.4

334.3

74.4

18.8

430.9

11.4

9

Jan

-06

65.6

826.8

83.3

84.0

629.9

23.3

224.7

922.1

119.8

6

Feb

-06

75.5

119.7

91.1

33.5

731.8

43.7

126.5

721.1

716.7

1

Mar

-06

63.6

528.2

75.5

62.5

235.7

64.1

622.1

20.4

717.5

1

2005-0

672.6

722.1

32.5

62.6

432.0

13.9

221.

89

28.0

714

.11

Ap

r-06

66.8

729.0

32.2

11.8

926.1

32.3

123.0

529.1

119.4

0

May

-06

71.4

319.2

52.7

96.5

330.3

42.5

822.1

128.2

116.7

6

Jun

-06

54.4

136.4

54.2

54.8

929.4

03.1

824.3

929.2

413.7

9

Jul-

06

55.0

534.9

22.8

86.0

029.6

01.8

520.5

624.3

323.6

6

Aug-

06

63.6

732.0

00.8

53.4

826.4

42.9

317.6

929.6

823.2

6

Sep

-06

74.7

520.6

51.5

43.0

632.2

72.4

819.4

829.8

015.9

7

Oct

-06

72.3

723.3

01.4

42.8

931.9

31.4

622.0

827.3

117.2

2

No

v-0

678.2

718.1

11.3

52.2

728.5

32.8

019.0

429.0

720.5

6

Dec

-06

75.4

019.3

71.1

64.0

733.3

23.1

817.5

923.4

822.4

3

Jan

-07

73.6

918.5

62.6

35.1

231.9

12.4

124.8

121.1

819.6

9

Feb

-07

71.4

820.1

02.0

46.3

842.3

33.1

612.4

417.1

024.9

7

Mar

-07

70.7

217.4

13.0

28.8

535.1

34.4

313.7

014.9

131.8

3

2006-0

770.0

023.7

12.0

24.2

730.8

82.7

019

.82

26.0

320.5

7

79

Table 5-4: Share of Top 'N' Securities/Trading Members/Participants in Turnover in WDM Segment

Year In Percent

Top 5 Top 10 Top 25 Top 50 Top 100

Securities

1994-95 42.84 61.05 80.46 89.81 97.16

1995-96 57.59 69.46 79.60 86.58 93.24

1996-97 32.93 48.02 65.65 78.32 90.17

1997-98 30.65 46.92 71.25 85.00 92.15

1998-99 26.81 41.89 64.30 78.24 86.66

1999-00 37.11 55.57 82.12 90.73 95.28

2000-01 42.20 58.30 80.73 89.97 95.13

2001-02 51.61 68.50 88.73 94.32 97.19

2002-03 43.10 65.15 86.91 92.74 96.13

2003-04 37.06 54.43 81.58 90.66 95.14

2004-05 43.70 57.51 71.72 80.59 89.55

2005-06 47.42 59.78 72.02 81.04 89.36

2006-07 40.90 51.29 65.82 77.15 86.91

Trading Members

1994-95 51.99 73.05 95.37 100.00 -

1995-96 44.36 68.58 96.10 100.00 -

1996-97 30.02 51.27 91.57 99.96 100.00

1997-98 27.17 47.85 83.38 99.82 100.00

1998-99 29.87 50.45 86.55 99.98 100.00

1999-00 32.38 53.41 84.46 100.00 -

2000-01 35.17 54.25 86.82 100.00 -

2001-02 35.18 58.68 88.36 100.00 -

2002-03 31.77 53.71 85.49 100.00 -

2003-04 30.72 53.01 86.71 100.00 -

2004-05 35.75 56.84 86.74 100.00 -

2005-06 39.68 60.63 89.38 100.00 -

2006-07 57.75 78.01 96.43 100.00 -

Participants

1994-95 18.37 27.38 38.40 42.20 -

1995-96 29.66 47.15 70.49 76.32 76.58

1996-97 25.27 44.92 67.00 76.33 77.10

1997-98 23.60 38.96 65.59 77.96 80.22

1998-99 22.47 37.39 62.79 79.27 84.51

1999-00 15.54 27.87 52.51 74.76 81.32

2000-01 17.51 28.85 50.64 69.72 76.78

2001-02 17.49 29.25 50.19 69.16 76.49

2002-03 17.27 28.29 49.22 68.14 75.20

2003-04 16.66 25.96 44.25 59.87 65.17

2004-05 16.82 28.64 47.24 61.71 66.00

2005-06 17.5 30.53 53.61 65.84 67.97

2006-07 25.85 40.65 59.99 68.17 69.09

80

Tab

le 5

-5:

Mar

ket

Cap

ital

isat

ion

of

WD

M S

ecu

riti

es(I

n R

s. c

rore

)(I

n p

er

cen

t)

Mo

nth

/Y

ear

Go

vt.

PS

US

tate

T-b

ills

Oth

ers

To

tal

Go

vt.

PS

US

tate

T-b

ills

Oth

ers

secu

riti

es

bo

nd

slo

an

sse

cu

riti

es

bo

nd

slo

an

s

Jun

-94

60,7

1920,4

39

1,833

18,4

76

20,0

52

121,

518

49.9

716

.82

1.51

15.2

016

.50

Mar-

95

86,1

75

25,6

75

5,8

67

17,1

29

23,3

34

158,1

81

54.4

816

.23

3.7

110

.83

14.7

5

Mar-

96

125,4

92

30,0

74

13,8

50

8,4

52

29,9

15207,7

83

60.4

014

.47

6.6

74.0

714

.40

Mar-

97

169,8

30

36,2

1118

,891

13,4

60

54,3

80

292,7

72

58.0

112

.37

6.4

54.6

018

.57

Mar-

98

196,2

90

35,3

23

23,9

89

17,4

97

70,0

91

343,1

91

57.2

010

.29

6.9

95.1

020.4

2

Mar-

99

260,0

02

34,9

94

30,5

1611

,292

74,6

66

411

,470

63.1

98.5

07.4

22.7

418

.15

Mar-

00

319

,865

39,3

57

39,4

77

15,3

45

79,9

89

494,0

33

64.7

57.9

77.9

93.1

116

.19

Ap

r-00

334,4

29

39,1

53

40,1

11

15,2

49

81,4

09

510,3

51

65.5

37.6

77.8

62.9

915.9

5

May

-00

345,3

93

38,5

91

40,4

11

15,5

62

81,9

35

521,8

92

66.1

87.3

97.7

42.9

815.7

0

Jun

-00

349,0

27

38,8

15

41,2

03

15,6

41

81,6

90

526,3

76

66.3

17.3

77.8

32.9

715.5

2

Jul-

00

350,3

80

39,7

29

41,2

61

15,6

61

82,0

61

529,0

92

66.2

27.5

17.8

02.9

615.5

1

Aug-

00

349,5

44

38,9

75

42,2

41

15,6

81

83,5

86

530,0

27

65.9

57.3

57.9

72.9

615.7

7

Sep

-00

346,2

84

38,4

99

42,4

11

15,7

10

83,7

77

526,6

81

65.7

57.3

18.0

52.9

815.9

1

Oct

-00

351,5

70

39,2

29

43,4

88

15,8

45

84,1

98

534,3

30

65.8

07.3

48.1

42.9

715.7

6

No

v-0

0369,5

94

39,0

84

43,5

19

15,7

85

84,9

97

552,9

79

66.8

47.0

77.8

72.8

515.3

7

Dec

-00

378,6

68

39,1

98

43,8

06

16,3

51

85,1

49

563,1

72

67.2

46.9

67.7

82.9

015.1

2

Jan

-01

390,1

32

38,1

68

44,0

93

16,9

91

84,4

94

573,8

78

67.9

86.6

57.6

82.9

614.7

2

Feb

-01

397,6

05

37,5

17

44,5

50

17,3

06

84,7

37

581,7

15

68.3

56.4

57.6

62.9

714.5

7

Mar-

01

397,2

28

36,3

65

44,6

24

17,7

25

84,8

94

580,8

36

68.3

96.2

67.6

83.0

514

.62

Ap

r-01

424,1

61

36,1

99

45,0

95

18,6

67

85,2

51

609,3

73

69.6

15.9

47.4

03.0

613.9

9

May

-01

438,2

03

36,3

15

46,9

40

18,5

38

85,3

74

625,3

70

70.0

75.8

17.5

12.9

613.6

5

Jun

-01

442,2

90

38,8

65

47,3

02

21,0

56

84,9

17

634,4

30

69.7

16.1

37.4

63.3

213.3

8

Jul-

01

461,3

83

39,4

42

47,8

10

22,2

72

83,2

73

654,1

81

70.5

36.0

37.3

13.4

012.7

3

Aug-

01

470,1

48

42,7

19

50,7

11

23,0

41

82,8

35

669,4

55

70.2

36.3

87.5

73.4

412.3

7

Sep

-01

474,7

79

42,7

81

50,2

17

23,3

47

87,0

37

678,1

61

70.0

16.3

17.4

03.4

412.8

3

Oct

-01

490,7

81

42,3

43

52,3

67

23,6

52

87,7

76

696,9

20

70.4

26.0

87.5

13.3

912.5

9

No

v-0

1512,7

02

43,2

60

53,8

29

23,5

86

87,8

56

721,2

34

71.0

96.0

07.4

63.2

712.1

8

Dec

-01

514,1

71

41,8

23

54,7

71

24,2

66

87,4

67

722,4

97

71.1

75.7

97.5

83.3

612.1

1

Jan

-02

529,8

96

41,5

66

57,9

55

24,0

04

88,0

87

741,5

08

71.4

65.6

17.8

23.2

411.8

8

Feb

-02

541,4

01

41,1

30

59,6

75

24,3

66

89,5

20

756,0

92

71.6

15.4

47.8

93.2

211.8

4

Mar-

02

542,6

01

39,9

44

61,

385

23,8

49

89,0

16756,7

94

71.

70

5.2

88.1

13.1

511

.76

Ap

r-02

555,3

94

40,7

16

63,1

06

24,2

18

89,0

79

772,5

13

71.8

95.2

78.1

73.1

311.5

4

Contd....

81

(In

Rs.

cro

re)

(In

per

cen

t)

Mo

nth

/Y

ear

Go

vt.

PS

US

tate

T-b

ills

Oth

ers

To

tal

Go

vt.

PS

US

tate

T-b

ills

Oth

ers

secu

riti

es

bo

nd

slo

an

sse

cu

riti

es

bo

nd

slo

an

s

May

-02

554,1

37

40,3

33

64,0

65

24,7

45

89,4

10

772,6

90

71.7

25.2

28.2

93.2

011.5

7

Jun

-02

562,2

42

39,7

59

66,6

49

25,1

88

89,0

98

782,9

36

71.8

15.0

88.5

13.2

211.3

8

Jul-

02

586,7

90

39,6

43

66,7

18

26,0

65

87,6

04

806,8

21

72.7

34.9

18.2

73.2

310.8

6

Aug-

02

601,4

10

39,8

72

66,4

24

26,5

80

86,4

93

820,7

79

73.2

74.8

68.0

93.2

410.5

4

Sep

-02

602,2

01

40,0

03

67,0

74

27,1

01

86,2

64

822,6

43

73.2

04.8

68.1

53.2

910.5

0

Oct

-02

617,8

40

40,1

27

68,5

89

27,7

97

86,2

76

840,6

29

73.5

04.7

78.1

63.3

110.2

6

No

v-0

2636,3

92

39,9

02

69,5

00

28,3

77

65,2

80

839,4

51

75.8

14.7

58.2

83.3

87.7

8

Dec

-02

655,1

48

39,4

31

70,3

68

30,8

52

65,0

58

860,8

57

76.1

04.5

88.1

73.5

87.5

7

Jan

-03

662,7

66

39,5

88

70,9

32

34,9

34

65,2

10

873,4

30

75.8

84.5

38.1

24.0

07.4

7

Feb

-03

659,0

78

38,4

04

71,1

15

36,1

56

63,2

26

867,9

79

75.9

34.4

28.1

94.1

77.2

9

Mar-

03

658,0

02

38,3

83

72,0

94

34,9

1961,

084

864,4

81

76.1

24.4

48.3

44.0

47.0

6

Ap

r-03

684,9

12

39,6

61

72,2

95

32,8

80

62,1

63

891,9

12

76.7

94.4

58.1

13.6

96.9

6

May

-03

710,4

20

42,0

15

70,2

14

32,1

47

62,1

10

916,9

05

77.4

84.5

87.6

63.5

16.7

7

Jun

-03

743,5

61

42,1

65

71,8

46

32,8

09

63,5

14

953,8

95

77.9

54.4

27.5

33.4

46.6

6

Jul-

03

783,8

75

42,4

78

71,9

50

32,5

15

63,8

59

994,6

77

78.8

14.2

77.2

33.2

76.4

2

Aug-

03

798,8

50

44,9

45

74,6

74

36,5

20

65,1

40

1,0

20,1

29

78.3

14.4

17.3

23.5

86.3

8

Sep

-03

807,0

01

44,4

39

76,3

53

40,2

55

61,9

90

1,0

30,0

38

78.3

54.3

17.4

13.9

16.0

2

Oct

-03

956,2

95

44,5

44

77,0

37

40,7

03

61,0

92

1,1

79,6

71

81.0

63.7

86.5

33.4

55.1

8

No

v-0

3954,2

59

44,4

86

77,1

54

36,5

07

60,2

23

1,1

72,6

29

81.3

83.7

96.5

83.1

15.1

4

Dec

-03

959,9

03

46,4

36

77,2

92

32,6

39

62,6

56

1,1

78,9

26

81.4

23.9

46.5

62.7

75.3

1

Jan

-04

967,3

51

46,1

21

78,3

05

32,2

32

68,0

60

1,1

92,0

70

81.1

53.8

76.5

72.7

05.7

1

Feb

-04

968,1

55

49,2

24

79,0

36

32,2

29

71,5

07

1,2

00,1

51

80.6

74.1

06.5

92.6

95.9

5

Mar-

04

959,3

02

56,8

32

79,3

40

32,6

92

87,6

98

1,215

,864

78.9

04.6

76.5

32.6

97.2

1

Ap

r-04

972,5

43

54,0

01

76,3

91

40,5

56

68,7

03

1,2

12,1

94

80.2

34.4

56.3

03.3

55.6

7

May

-04

969,0

36

61,5

91

77,1

05

48,8

25

71,6

34

1,2

28,1

91

78.9

05.0

16.2

83.9

85.8

3

Jun

-04

990,2

44

66,0

80

77,5

89

56,1

55

79,2

09

1,2

69,2

76

78.0

25.2

16.1

14.4

26.2

4

Jul-

04

985,6

95

67,4

00

179,8

58

59,4

62

80,6

84

1,3

73,0

99

71.7

94.9

113.1

04.3

35.8

7

Aug-

04

975,7

12

67,7

63

185,8

64

59,8

94

81,5

10

1,3

70,7

44

71.1

84.9

413.5

64.3

75.9

5

Sep

-04

997,1

63

67,6

06

185,3

59

60,6

08

83,2

92

1,3

94,0

27

71.5

34.8

513.3

04.3

55.9

7

Oct

-04

987,4

54

68,5

46

183,7

71

63,7

55

84,2

07

1,3

87,7

33

71.1

64.9

413.2

44.5

96.0

7

No

v-0

4981,2

38

67,6

67

183,4

62

60,8

97

83,4

64

1,3

76,7

27

71.2

74.9

213.3

34.4

26.0

6

Dec

-04

996,3

41

67,9

40

214,5

19

62,0

83

86,6

23

1,4

27,5

06

69.8

04.7

615.0

34.3

56.0

6

Tab

le 5

-5:

Mar

ket

Cap

ital

isat

ion

of

WD

M S

ecu

riti

es

Contd....

82

(In

Rs.

cro

re)

(In

per

cen

t)

Mo

nth

/Y

ear

Go

vt.

PS

US

tate

T-b

ills

Oth

ers

To

tal

Go

vt.

PS

US

tate

T-b

ills

Oth

ers

secu

riti

es

bo

nd

slo

an

sse

cu

riti

es

bo

nd

slo

an

s

Tab

le 5

-5:

Mar

ket

Cap

ital

isat

ion

of

WD

M S

ecu

riti

es

Contd....

Jan

-05

1,0

02,0

06

67,8

13

214,8

98

63,6

79

86,2

40

1,4

34,6

35

69.8

44.7

314.9

84.4

46.0

1

Feb

-05

1,0

10,9

36

67,2

55

223,3

95

69,6

60

89,4

93

1,4

60,7

39

69.2

14.6

015.2

94.7

76.1

3

Mar-

05

1,006,1

07

68,3

98

223,2

08

73,5

02

90,5

191,

461,

734

68.8

34.6

815

.27

5.0

36.1

9

Ap

r-05

1,0

03,3

39

67,9

34

223,5

13

78,6

24

90,9

83

1,4

64,3

93

68.5

24.6

415.2

65.3

76.2

1

May

-05

1,0

10,5

69

72,3

88

216,5

85

82,3

78

90,5

12

1,4

72,4

32

68.6

34.9

214.7

15.5

96.1

5

Jun

-05

1,0

14,5

58

74,6

99

224,4

75

90,6

79

90,8

14

1,4

95,2

25

67.8

55.0

015.0

16.0

66.0

8

Jul-

05

1,0

25,8

14

75,7

01

224,4

02

84,2

49

93,6

57

1,5

03,8

23

68.2

15.0

314.9

25.6

06.2

4

Aug-

05

1,0

36,0

04

76,2

48

224,7

17

87,3

72

93,5

59

1,5

17,9

00

68.2

55.0

214.8

05.7

66.1

7

Sep

-05

1,0

20,6

12

76,1

90

233,1

34

102,2

80

94,8

62

1,5

27,0

78

66.8

34.9

915.2

76.7

06.2

1

Oct

-05

1,0

20,9

75

78,1

17

233,0

38

103,3

52

94,7

55

1,5

30,2

37

66.7

25.1

015.2

36.7

56.2

0

No

v-0

5 1

,044,2

87

78,1

82

235,9

91

98,4

00

97,4

44

1,5

54,3

04

67.1

95.0

315.1

86.3

36.2

7

Dec

-05

1,0

51,5

21

78,7

21

236,2

82

81,8

43

100,9

81

1,5

49,3

48

67.8

75.0

815.2

55.2

86.5

2

Jan

-06

1,0

58,4

61

84,2

07

236,8

43

72,1

07

103,5

61

1,5

55,1

79

68.0

65.4

115.2

34.6

46.6

6

Feb

-06

1,0

58,6

81

83,5

73

240,4

27

67,2

57

103,5

10

1,5

53,4

48

68.1

55.3

815.4

84.3

36.6

6

Mar-

06

1,0

59,7

89

88,7

16 2

41,

927

70,1

86

106,9

56

1,5

67,5

74

67.6

15.6

615

.43

4.4

86.8

2

Ap

r-06

1,0

59,8

66

88,2

94

242,1

82

66,3

64

108,0

72

1,5

64,7

78

67.7

35.6

415.4

84.2

46.9

1

May

-06

1,0

60,5

27

88,8

97

241,1

26

72,6

11

112,7

08

1,5

75,8

69

67.3

05.6

415.3

04.6

17.1

5

Jun

-06

1,0

66,6

43

88,5

90

240,6

90

75,6

70

112,6

58

1,5

84,2

51

67.3

35.5

915.1

94.7

87.1

1

Jul-

06

1,0

58,0

45

88,8

17

241,5

78

83,5

15

113,9

02

1,5

85,8

57

66.7

25.6

015.2

35.2

77.1

8

Aug-

06

1,0

66,8

87

88,5

30

242,1

61

92,0

07

117,1

18

1,6

06,7

02

66.4

05.5

115.0

75.7

37.2

9

Sep

-06

1,0

80,1

69

88,4

99

241,7

23

94,3

48

127,8

96

1,6

32,6

35

66.1

65.4

214.8

15.7

87.8

3

Oct

-06

1,0

92,7

91

87,4

61

241,9

44

93,4

32

132,1

36

1,6

47,7

63

66.3

25.3

114.6

85.6

78.0

2

No

v-0

6 1

,131,5

58

89,4

96

243,2

99

99,8

29

136,3

86

1,7

00,5

68

66.5

45.2

614.3

15.8

78.0

2

Dec

-06

1,1

45,4

96

91,3

68

244,8

79

96,6

25

139,6

99

1,7

18,0

67

66.6

75.3

214.2

55.6

28.1

3

Jan

-07

1,1

49,0

01

90,5

21

244,3

23

103,4

02

140,2

70

1,7

27,5

18

66.5

15.2

414.1

45.9

98.1

2

Feb

-07

1,1

71,5

93

91,9

47

247,2

03

99,7

49

142,2

40

1,7

52,7

32

66.8

45.2

514.1

05.6

98.1

2

Mar-

07

1,1

82,2

78

89,6

28

249,8

47

115

,183

147,8

65

1,7

84,8

01

66.2

45.0

214

.00

6.4

58.2

8

83

Table 5-6: FIMMDA NSE MIBID/MIBOR Rates

Month/Date OVERNIGHT 14 DAY 1 MONTH RATE 3 MONTH RATE

AT 9.40 a.m.* AT 11.30 a.m.** AT 11.30 a.m.*** AT 11.30 a.m.***

MIBID MIBOR MIBID MIBOR MIBID MIBOR MIBID MIBOR

29-Jun-98 6.81 7.12 - - - - - -

31-Jul-98 3.25 4.18 - - - - - -

31-Aug-98 8.59 8.88 - - - - - -

30-Sep-98 8.18 8.38 - - - - - -

30-Oct-98 8.63 8.81 - - - - - -

30-Nov-98 8.00 8.06 8.44 9.06 - - - -

31-Dec-98 - - 8.87 9.45 9.45 10.24 10.43 11.28

30-Jan-99 8.33 8.51 8.80 9.34 9.32 10.04 10.40 11.08

27-Feb-99 9.12 9.27 9.23 9.82 9.87 10.46 10.94 11.45

31-Mar-99 10.87 12.97 9.09 10.06 9.44 10.35 10.30 11.20

29-Apr-99 8.25 8.45 8.25 9.01 8.93 9.72 9.83 10.63

31-May-99 8.04 8.19 8.44 8.93 9.01 9.78 9.80 10.72

30-Jun-99 - - 8.48 9.11 9.11 9.84 9.89 10.68

31-Jul-99 8.18 8.31 8.36 8.86 8.79 9.37 9.36 10.09

31-Aug-99 9.93 10.09 9.24 9.83 9.46 10.11 9.86 10.57

30-Sep-99 - - 9.11 9.64 9.57 10.20 10.06 10.70

30-Oct-99 8.10 8.26 8.82 9.62 9.45 10.17 10.31 11.08

30-Nov-99 7.95 8.04 8.40 9.02 9.08 9.75 10.05 10.70

31-Dec-99 7.07 7.57 8.61 9.27 9.12 9.89 9.76 10.53

31-Jan-00 8.09 8.19 8.33 8.85 8.78 9.32 9.60 10.31

29-Feb-00 8.99 9.10 8.76 9.66 8.98 9.80 9.38 10.24

31-Mar-00 14.10 16.52 9.98 10.93 9.90 10.82 9.96 10.96

29-Apr-00 6.96 7.06 7.35 8.11 8.03 8.68 8.78 9.47

31-May-00 6.92 7.02 7.76 8.66 8.25 9.12 8.92 9.64

30-Jun-00 - - 9.80 11.25 9.71 10.92 9.78 11.13

31-Jul-00 8.20 8.33 9.14 10.11 9.62 10.49 10.28 11.11

31-Aug-00 13.94 14.31 13.02 14.33 12.54 13.61 11.58 12.67

30-Sep-00 10.10 10.28 10.29 11.23 10.55 11.49 10.75 11.76

31-Oct-00 8.10 8.26 8.77 9.48 9.34 10.16 9.89 10.73

30-Nov-00 7.98 8.06 8.68 9.33 9.12 9.82 9.73 10.54

29-Dec-00 8.24 8.46 9.21 9.96 9.49 10.20 9.85 10.64

31-Jan-01 9.66 9.85 9.41 10.05 9.63 10.28 10.00 10.57

28-Feb-01 7.71 7.84 8.11 8.80 8.67 9.38 9.40 10.10

31-Mar-01 10.22 12.18 9.03 9.89 9.08 9.86 9.26 10.25

30-Apr-01 7.25 7.39 7.55 8.33 8.15 8.83 8.83 9.54

31-May-01 6.79 6.95 7.40 8.04 7.89 8.57 8.41 9.08

29-Jun-01 7.20 7.34 7.25 7.85 7.69 8.41 8.16 8.87

31-Jul-01 6.91 7.04 7.29 7.88 7.58 8.17 7.99 8.66

31-Aug-01 6.92 7.03 7.01 7.40 7.34 7.82 7.82 8.32

28-Sep-01 7.77 8.21 7.52 8.14 8.07 8.70 8.33 8.98

31-Oct-01 8.47 8.77 7.15 7.72 7.39 8.03 7.61 8.37

29-Nov-01 6.42 6.59 6.74 7.23 7.26 7.80 7.77 8.32

31-Dec-01 7.80 8.11 7.42 8.04 7.63 8.26 7.88 8.57

31-Jan-02 6.51 6.64 6.89 7.40 7.15 7.73 7.73 8.41

28-Feb-02 6.94 7.16 6.84 7.33 7.23 7.78 7.79 8.37

30-Mar-02 7.44 11.09 7.41 8.06 7.39 8.05 7.63 8.29

30-Apr-02 6.45 6.61 6.58 7.13 7.01 7.63 7.53 8.19

31-May-02 6.01 6.16 6.64 7.29 7.17 7.79 7.48 8.24

28-Jun-02 4.99 5.35 6.04 6.56 6.35 6.98 6.80 7.50

31-Jul-02 5.65 5.75 5.80 6.16 6.01 6.42 6.35 6.84

31-Aug-02 5.67 5.75 5.73 6.02 5.98 6.34 6.37 6.81

28-Sep-02 5.70 5.77 5.73 6.07 5.91 6.32 6.28 6.81

31-Oct-02 5.45 5.53 5.50 5.71 5.65 5.87 5.85 6.23

30-Nov-02 5.21 5.39 5.45 5.65 5.59 5.82 5.77 6.10

31-Dec-02 5.59 5.71 5.50 5.69 5.60 5.90 5.80 6.21

Contd....

84

Table 5-6: FIMMDA NSE MIBID/MIBOR Rates

Month/Date OVERNIGHT 14 DAY 1 MONTH RATE 3 MONTH RATE

AT 9.40 a.m.* AT 11.30 a.m.** AT 11.30 a.m.*** AT 11.30 a.m.***

MIBID MIBOR MIBID MIBOR MIBID MIBOR MIBID MIBOR

31-Jan-03 6.02 6.20 5.60 5.97 5.67 6.04 5.82 6.30

28-Feb-03 6.29 6.52 5.62 5.92 5.66 6.13 5.73 6.27

31-Mar-03 6.69 7.13 5.66 6.30 5.83 6.37 5.73 6.36

30-Apr-03 4.61 4.88 5.00 5.32 5.18 5.51 5.33 5.76

31-May-03 4.78 4.96 4.93 5.26 5.03 5.36 5.19 5.60

30-Jun-03 4.76 4.99 4.91 5.14 4.96 5.30 5.14 5.52

31-Jul-03 4.83 5.00 4.97 5.13 5.01 5.23 5.06 5.39

31-Aug-03 4.37 4.50 4.50 4.66 4.53 4.73 4.69 4.94

30-Sep-03 4.45 4.59 4.41 4.63 4.49 4.73 4.64 4.94

31-Oct-03 4.42 4.53 4.69 4.96 4.73 5.02 4.82 5.21

30-Nov-03 4.25 4.48 4.47 4.62 4.54 4.70 4.66 4.93

31-Dec-03 4.31 4.50 4.45 4.62 4.50 4.72 4.66 4.91

31-Jan-04 4.27 4.49 4.47 4.67 4.57 4.77 4.70 5.00

29-Feb-04 4.29 4.47 4.45 4.63 4.56 4.72 4.72 5.00

31-Mar-04 4.30 4.51 4.44 4.68 4.57 4.82 4.73 5.05

30-Apr-04 4.11 4.46 4.37 4.55 4.45 4.65 4.59 4.90

31-May-04 4.27 4.50 4.35 4.55 4.44 4.64 4.56 4.83

29-Jun-04 4.24 4.49 4.33 4.51 4.41 4.62 4.55 4.83

31-Jul-04 4.22 4.49 4.37 4.56 4.46 4.67 4.62 4.89

31-Aug-04 4.25 4.46 4.44 4.65 4.53 4.76 4.67 4.94

29-Sep-04 4.45 4.59 4.50 4.69 4.58 4.81 4.74 5.03

30-Oct-04 4.68 4.84 4.78 5.03 4.85 5.11 5.00 5.31

30-Nov-04 4.74 4.85 4.99 5.30 5.05 5.39 5.16 5.57

31-Dec-04 5.54 5.78 5.22 5.49 5.20 5.48 5.38 5.68

31-Jan-05 4.69 4.80 4.87 5.13 5.00 5.30 5.35 5.70

28-Feb-05 4.66 4.77 4.87 5.25 5.01 5.51 5.44 6.10

31-Mar-05 4.77 4.92 5.06 5.46 5.23 5.63 5.62 6.11

30-Apr-05 4.90 5.04 5.13 5.33 5.28 5.55 5.56 5.98

31-May-05 4.97 5.06 5.14 5.33 5.27 5.51 5.49 5.93

30-Jun-05 5.51 5.69 5.32 5.46 5.39 5.63 5.60 5.94

30-Jul-05 4.80 5.02 5.05 5.27 5.22 5.50 5.54 6.02

31-Aug-05 4.97 5.05 5.20 5.36 5.32 5.51 5.66 5.96

30-Sep-05 5.03 5.14 5.32 5.53 5.46 5.73 5.71 6.06

31-Oct-05 5.26 5.33 5.35 5.47 5.48 5.65 5.85 6.10

30-Nov-05 5.32 5.43 5.56 5.82 5.68 5.98 5.98 6.30

31-Dec-05 6.83 7.03 6.25 6.76 6.20 6.78 6.27 6.88

31-Jan-06 7.35 7.56 6.92 7.42 7.08 7.53 7.08 7.62

28-Feb-06 6.61 6.73 6.80 7.15 6.92 7.31 7.20 7.65

31-Mar-06 6.60 6.81 7.30 7.91 7.63 8.24 7.86 8.48

29-Apr-06 5.57 5.68 5.64 6.16 5.91 6.45 6.37 6.97

31-May-06 5.50 5.60 5.78 6.11 6.00 6.39 6.39 6.82

30-Jun-06 5.78 5.85 5.79 6.19 6.14 6.61 6.59 7.09

31-Jul-06 6.01 6.10 6.01 6.33 6.27 6.62 6.66 7.20

31-Aug-06 6.02 6.10 6.05 6.36 6.30 6.68 6.72 7.21

29-Sep-06 6.95 7.17 6.30 6.64 6.46 6.86 6.74 7.21

31-Oct-06 6.76 6.89 6.68 7.04 6.85 7.29 7.21 7.63

30-Nov-06 6.12 6.20 6.68 7.00 6.94 7.32 7.34 7.70

30-Dec-06 14.47 15.79 7.82 10.47 8.00 10.30 8.24 9.56

31-Jan-07 7.71 7.84 7.26 8.21 7.64 8.55 8.57 9.19

28-Feb-07 6.01 6.11 7.74 8.51 8.53 9.47 9.53 10.22

30-Mar-07 58.15 68.27 9.03 12.62 9.43 11.66 9.71 11.65

Note:

* Overnight : Disseminated since June 15, 1998.

** 14 Day : Disseminated since November 10, 1998.

*** 1 month : Disseminated since December 1, 1998.

*** 3 month : Disseminated Since December 1, 1998.

Contd....

85

Chart 5-1: Business Growth of WDM Segment

Tale 5-7: 1-day Value-at-Risk (99%) for Government ofIndia Securities Traded as on March 30, 2007

Security Security Issue Normal Weighted Historical Weighted EVT Clean

Type Name Name Normal Simulation Historical Price

Simulation (off NSE-

ZCYC)

GS CG2008 12.00% 0.61 0.95 0.82 1.14 0.68 103.90

GS CG2009 6.65% 0.75 1.14 1.04 0.74 0.84 97.31

GS CG2011 9.39% 0.88 1.18 1.04 0.83 0.87 104.61

GS CG2014 7.37% 1.21 1.19 1.15 1.99 0.94 96.14

GS CG2017 8.07% 1.52 1.36 1.39 1.18 1.11 99.43

GS CG2021 7.94% 2.10 2.13 2.19 3.60 1.66 97.36

GS CG2036 8.33% 4.19 5.18 5.21 5.02 3.67 98.19

TB 91D 290607 0.23 0.34 0.30 0.27 0.26 98.01

86

Figure 5-3 : Zero Coupon Yield Curve, 2006-07

Chart 5-2: Overnight MIBID/MIBOR Rates, 2006-07 –from 3 April 2006 to 31st March 2007

Futures & OptionsSegment 6

89

Futures & Options Segment

The derivatives trading on NSE commenced on June 12, 2000 with futures trading on S&P

CNX Nifty Index. Subsequently, the product base has been increased to include trading in

futures and options on S&P CNX Nifty Index, CNX IT Index, Bank Nifty Index and Single

securities (188 stocks as stipulated by SEBI) and futures on interest rate. Futures and options

contracts were introduced on CNX Nifty Junior and CNX 100 indices for trading in F&O

segment on June 1, 2007.The turnover in the derivatives segment has witnessed considerable

growth since inception. In the global market, NSE ranks first (1st) in the world in terms of

number of contracts traded in the Single Stock Futures, second (2nd) in Asia in terms of

number of contracts traded in equity derivatives instrument. Since inception, NSE established

itself as the sole market leader in this segment in the country with more than 98 % market

share.

Trading Mechanism

The derivatives trading system at NSE is called NEAT-F&O trading system. It provides a

fully automated screen-based trading for all kind of derivative products available on NSE on

a nationwide basis. It supports an anonymous order driven market, which operates on a

strict price/time priority. It provides tremendous flexibility to users in terms of kinds of

orders that can be placed on the system. Various time and price related conditions like

Immediate or Cancel, Limit/Market Price, Stop Loss, etc. can be built into an order. Trading

in derivatives is essentially similar to that of trading of securities in the CM segment.

The NEAT-F&O trading system distinctly identifies two groups of users. The trading user more

popularly known as trading member has access to functions such as, order entry, order matching

and order & trade management. The clearing user (clearing member) uses the trader workstation

for the purpose of monitoring the trading member(s) for whom he clears the trades. Additionally,

he can enter and set limits on positions, which a trading member can take.

Contract Specification

The contract specification for derivatives traded on NSE are summarised in Table 6-1.

The index futures and index options contracts traded on NSE are based on S&P CNX Nifty

Index, CNX IT Index, Bank Nifty, CNX Nifty Junior and CNX 100 while stock futures and

options are based on individual securities. Stock futures and options were available on 188

securities. Interest rate future contracts are available on Notional 91 day T-bill and Notional

10 year bonds (6% coupon bearing and zero coupon bond). While the index options are

European style, stock options are American style.

At any point of time there are only three contract months available for trading, with 1

month, 2 months and 3 months to expiry. These contracts expire on last Thursday of the

expiry month and have a maximum of 3-month expiration cycle. If the last Thursday is a

trading holiday, the contracts expire on previous trading day. A new contract is introduced

on the next trading day following the expiry of the near month contract. All the derivatives

contracts are presently cash settled.

66666

90

Introduction of strike prices for option contracts

NSE introduces option strikes on a daily basis based on the price of the underlying. With

regard to options on stocks the Exchange provides a minimum of seven stick prices for

every option type (i.e call & Put) during the trading month. At any time, there are at least

three strikes in-the-money (ITM), three strikes out-of-the-money (OTM) and one strike

at-the-money (ATM).

The number of strikes provided in options on Nifty, Nifty Junior, CNX 100, CNX IT and

Bank Nifty are related to the range in which previous day's closing value of the respective

indices falls as per the following table:

Nifty Index Level Strike Interval Scheme of strikes to be introduced

(ITM-ATM-OTM)

Upto 2000 25 4-1-4

>2001 upto 4000 50 4-1-4

>4001 upto 6000 50 5-1-5

>6000 50 6-1-6

Selection Criteria for Stocks and Indices

Eligibility Criteria of Stocks

• The stock shall be chosen from amongst the top 500 stocks in terms of average daily

market capitalisation and average daily traded value in the previous six months on a

rolling basis.

• The stock's median quarter-sigma order size over the last six months shall be not less

than Rs.1 lakh. For this purpose, a stock's quarter-sigma order size shall mean the

order size (in value terms) required to cause a change in the stock price equal to one-

quarter of a standard deviation.

• The market wide position limit in the stock shall not be less than Rs. 50 crore. The

market wide position limit (number of shares) shall be valued taking the closing prices

of stocks in the underlying cash market on the date of expiry of contract in the month.

The market wide position limit of open position (in terms of the number of underlying

stock) on futures and option contracts on a particular underlying stock shall be 20% of

the number of shares held by non-promoters in the relevant underlying security i.e.

free-float holding.

Continued Eligibility

• For an existing stock to become ineligible, the criteria for market wide position limit

shall be relaxed upto 10% of the criteria applicable for the stock to become eligible for

derivatives trading. To be dropped out of Derivatives segment, the stock will have to

fail the relaxed criteria for 3 consecutive months.

• If an existing security fails to meet the eligibility criteria for three months consecutively,

then no fresh month contract shall be issued on that security.

• Further, the members may also refer to circular no. NSCC/F&O/C&S/365 dated

91

August 26, 2004, issued by NSCCL regarding Market Wide Position Limit, wherein it is

clarified that a stock which has remained subject to a ban on new position for a significant

part of the month consistently for three months, shall be phased out from trading in

the F&O segment.

However, the existing unexpired contracts may be permitted to trade till expiry and new

strikes may also be introduced in the existing contract months.

Re-introduction of dropped stocks

A stock which is dropped from derivatives trading may become eligible once again. In such

instances, the stock is required to fulfill the eligibility criteria for three consecutive months

to be re-introduced for derivatives trading.

Eligibility Criteria of Indices

• The Exchange may consider introducing derivative contracts on an index if the stocks

contributing to 80% weightage of the index are individually eligible for derivative

trading. However, no single ineligible stocks in the index shall have a weightage of

more than 5% in the index.

• The above criteria is applied every month, if the index fails to meet the eligibility

criteria for three months consecutively, then no fresh month contract shall be issued

on that index, However, the existing unexpired contacts shall be permitted to trade

till expiry and new strikes may also be introduced in the existing contracts.

Selection criteria for unlisted companies

For unlisted companies coming out with initial public offering, if the net public offer is Rs.

500 crore or more, then the Exchange may consider introducing stock options and stock

futures on such stocks at the time of its' listing in the cash market.

Internet Trading

As on March 30 2007, 68 members on the F&O segment provided internet based trading

facility to the investors. About 167 lakh trades amounting to Rs. 922,887.03 crore ( US $

211, 719.90 million) constituting about 12.55 % of the total trading volume in this segment

were routed and executed through the internet. The following table gives the growth of

internet trading in the F&O segment.

Year Enabled Trading Volume Trading Volume % of total

Members* ( Rs. crore) (US $ million) Trading Volume

2002-03 13 5,148.96 1,083.99** 1.42

2003-04 14 42,990.50 9,907.93 2.02

2004-05 63 105,333.96 24,076.33 4.14

2005-06 127 428,569.48 96,070.27 8.88

2006-07 68 922,887.03 211,719.90 12.55

* At the end of financial year.

** Trading volume is compiled from June 24, 2002.

92

Trading Value

The F&O segment reported a total trading value (notional) of Rs.7,356,271 crore (US $

1,687,605 million) during 2006-07 as against Rs. 4,824,250 crore (US $ 1,687,605 million), a

rise of more than 52.49 % in the past one year. The business growth of F&O segment is

presented in Table 6-2 and Chart 6-1. The F&O segment provides a nationwide market. The

turnover of the top '5' and '10' members accounted to Rs. 1,805,717.55 crore ( US $ 414,250.41

million) and Rs. 2,813,590.61 crore (US $ 645,466.99 million) respectively in 2006-07 in the

Futures segment. However, the turnover of the top '5' and '10' members in the options

segment accounted to Rs. 450,639.73 crore (US $ 103,381.45 million) and Rs. 713,617.56

crore (US $ 163,711.30 million) respectively in the same period. The value contribution of

Top 'N' members is presented in Table 6-3.

Transaction Charges

The maximum brokerage chargeable by a trading member in relation to trades effected in

the contracts admitted to dealing on the F&O segment of NSE is fixed at 2.5% of the

contract value in case of index futures and stock futures. In case of index options and stock

options it is 2.5% of notional value of the contract [(Strike Price + Premium) × Quantity)],

exclusive of statutory levies.

The transaction charges payable to the exchange by the trading member for the trades executed

by him on the F&O segment are fixed at the rate of Rs. 2 per lakh of turnover (0.002%)

subject to a minimum of Rs. 1,00,000 per year. However, for the transactions in the options

sub-segment the transaction charges will be levied on the premium value at the rate of

0.05% (each side) instead of on the strike price as levied earlier.

The trading members contribute to Investor Protection Fund of F&O segment at the rate

of Re.1/- per Rs. 100 crore of the traded value (each side) in case of Futures segment and

Rs.1/- per Rs. 100 crore of the premium amount (each side) in case of Options segment.

The trading members are also required to pay securities transaction tax (STT) on non-delivery

transactions at the rate of 0.017% (payable by the seller) for derivatives w. e. f June 1, 2006.

No transaction charges will be payable in respect of trades done in Interest Rate Futures in

the Futures and Options Segment of the Exchange with effect from 1st April 2007 till 31st

March 2008. Every Trading Member participating in trading in such Interest Rate Futures at

any time during the year 2007-08 shall be required to make a lump sum contribution of

Rs.500/- for the whole year as a contribution to Investor Protection Fund.

There would be no transaction charges levied on turnover above Rs.10 crores per trading

member per day for trades done in NIFTY Junior and CNX 100 in the Futures sub-segment

till September 30, 2007. Further, no transactions charge will be levied on trades done in

NIFTY Junior and CNX 100 in the Options sub-segment till September 30, 2007.

93

Clearing and Settlement

NSCCL undertakes clearing and settlement of all trades executed on the F&O segment of the

Exchange. It also acts as legal counterparty to all trades on this segment and guarantees their

financial settlement. The Clearing and Settlement process comprises of three main activities,

viz., Clearing, Settlement and Risk Management.

Clearing Mechanism

The first step in clearing process is working out open positions and obligations of clearing

(self-clearing/trading-cum-clearing/professional clearing) members (CMs). The open

positions of a CM is arrived at by aggregating the open positions of all the trading members

(TMs) and all custodial participants (CPs) clearing though him, in the contracts which they

have traded. The open position of a TM is arrived at by summing up his proprietary open

position and clients' open positions, in the contracts which they have traded. While entering

orders on the trading system, TMs identify orders as either proprietary or client. Proprietary

positions are calculated on net basis for each contract and that of clients are arrived at by

summing together net positions of each individual client. A TM's open position is the sum

of proprietary open position, client open long position and client open short position.

Settlement Mechanism

All futures and options contracts are cash settled i.e. through exchange of cash. The underlying

for index futures/options of the Nifty index cannot be delivered. The settlement amount

for a CM is netted across all their TMs/clients, across various settlements. For the purpose

of settlement, all CMs are required to open a separate bank account with NSCCL designated

clearing banks for F&O segment.

Settlement of Futures Contracts on Index or Individual Securities

Futures contracts have two types of settlements, the MTM settlement which happens on a

continuous basis at the end of each day, and the final settlement which happens on the last

trading day of the futures contract.

� MTM Settlement for Futures: The positions in futures contracts for each

member are marked-to-market to the daily settlement price of the relevant futures

contract at the end of each day. The CMs who have suffered a loss are required to

pay the mark-to-market (MTM) loss amount in cash which is in turn passed on to

the CMs who have made a MTM profit. This is known as daily mark-to-market

settlement. CMs are responsible to collect and settle the daily MTM profits/losses

incurred by the TMs and their clients clearing and settling through them. Similarly,

TMs are responsible to collect/pay losses/ profits from/to their clients by the

next day. The pay-in and pay-out of the mark-to-market settlement are effected

on the day following the trade day (T+1).

After completion of daily settlement computation, all the open positions are reset to

the daily settlement price. Such positions become the open positions for the next day.

94

� Final Settlement for Futures: On the expiry day of the futures contracts, after the

close of trading hours, NSCCL marks all positions of a CM to the final settlement

price and the resulting profit/loss is settled in cash. Final settlement loss/profit amount

is debited/credited to the relevant CM's clearing bank account on the day following

expiry day of the contract.

� Settlement Prices for Futures: Daily settlement price on a trading day is the

closing price of the respective futures contracts on such day. The closing price

for a futures contract is currently calculated as the last half an hour weighted

average price of the contract in the F&O Segment of NSE. Final settlement

price is the closing price of the relevant underlying index/security in the Capital

Market segment of NSE, on the last trading day of the Contract. The closing

price of the underlying Index/security is currently its last half an hour weighted

average value in the Capital Market Segment of NSE.

Settlement of Options Contracts on Index or Individual Securities

Options contracts have three types of settlements, daily premium settlement, interim

exercise settlement in the case of option contracts on securities and final settlement.

� Daily Premium Settlement for Options: Buyer of an option is obligated to pay the

premium towards the options purchased by him. Similarly, the seller of an option is

entitled to receive the premium for the option sold by him. The premium payable

position and the premium receivable position are netted to compute the net premium

payable or receivable amount for each client for each option contract. The CMs who

have a premium payable position are required to pay the premium amount to NSCCL

which in turn passed on to the members who have a premium receivable position.

This is known as daily premium settlement. CMs are also responsible to collect and

settle for the premium amounts from the TMs and their clients clearing and settling

through them. The pay-in and pay-out of the premium settlement is on T+1 day

(T=Trade day). The premium payable amount and premium receivable amount are

directly credited/debited to the CMs clearing bank account.

� Interim Exercise Settlement: Interim exercise settlement takes place only for option

contracts on individual securities. An investor can exercise his in-the-money options

at any time during trading hours, through his trading member. Interim exercise

settlement is effected for such options at the close of the trading hours, on the day of

exercise. Valid exercised option contracts are assigned to short positions in the option

contract with the same series (i.e. having the same underlying, same expiry date and

same strike price), on a random basis, at the client level. The CM who has exercised

the option receives the exercise settlement value per unit of the option from the CM

who has been assigned the option contract.

Exercise settlement value is debited/credited to the relevant CMs clearing bank account

on T+1 day (T=exercise date).

95

� Final Exercise Settlement: Final Exercise settlement is effected for option positions

at in-the-money strike prices existing at the close of trading hours, on the expiration

day of an option contract. All long positions at in-the-money strike prices are

automatically assigned to short positions in option contracts with the same series, on

a random basis.

For index options contracts, exercise style is European style, while for options contracts

on individual securities, exercise style is American style. Final Exercise is Automatic

on expiry of the option contracts.

Final settlement loss/profit amount for option contracts on Index is debited/credited to

the relevant CMs clearing bank account on T+1 day (T=expiry day). Final settlement loss/

profit amount for option contracts on Individual Securities is debited/credited to the relevant

CMs clearing bank account on T+2 day. Open positions, in option contracts, cease to exist

after their expiration day.

The pay-in / pay-out of funds for a CM on a day is the net amount across settlements and

all TMs/clients, in F&O Segment.

Settlement of Interest Rate Futures Contracts

Daily Mark to Market settlement and Final Mark to Market settlement in respect of admitted

deals in Interest Rate Futures Contracts shall be cash settled by debiting/crediting of the

clearing accounts of Clearing Members with the respective Clearing Bank. All positions

(brought forward, created during the day, closed out during the day) of a F&O CM in Futures

Contracts, at the close of trading hours on a day, shall be marked to market at the Daily

Settlement Price (for Daily Mark to Market Settlement) and settled. All positions (brought

forward, created during the day, closed out during the day) of a F&O Clearing Member in

Futures Contracts, at the close of trading hours on the last trading day, shall be marked to

market at Final Settlement Price (for Final Settlement) and settled. Daily settlement price

shall be the closing price of the relevant futures contract for the trading day. Final settlement

price for an interest rate futures contract shall be based on the value of the notional bond

determined using the ZCYC computed by the Exchange or by any other agency as may be

nominated in this regard. Open positions in Futures contract shall cease to exist after its

expiration day.

� Daily Settlement Price: Daily Settlement price for an interest rate future contract is

the closing price of such interest rate futures contract on the trading day. The closing

price for an interest rate futures contract is calculated on the basis of the last half and

hour weighted average price of such interest rate futures contract. In absence of

trading in the last half an hour, the theoretical price is taken or such other price as

may be decided by the relevant authority from time to time. Theoretical daily settlement

price for unexpired futures contracts shall be the futures prices computed using the

(price of the notional bond) spot prices arrived at from the applicable ZCYC Curve.

The ZCYC shall be computed by the Exchange or by any other agency as may be

96

nominated in this regard from the prices of Government securities traded on the

Exchange or reported on the Negotiated Dealing System of RBI or both taking trades

of same day settlement (i.e. t = 0).

In respect of zero coupon notional bond, the price of the bond shall be the present

value of the principal payment discounted using discrete discounting for the specified

period at the respective zero coupon yield. In respect of the notional T-bill, the

settlement price shall be 100 minus the annualized yield for the specified period

computed using the zero coupon yield curve. In respect of coupon bearing notional

bond, the present value shall be obtained as the sum of present value of the principal

payment discounted at the relevant zero coupon yield and the present values of the

coupons obtained by discounting each notional coupon payment at the relevant zero

coupon yield for that maturity. For this purpose the notional coupon payment date

shall be half yearly and commencing from the date of expiry of the relevant futures

contract. For computation of futures prices from the price of the notional bond

(spot prices) thus arrived, the rate of interest may be the relevant MIBOR rate or

such other rate as may be specified from time to time.

� Final Settlement Price: Final settlement price for an interest rate futures contracts on

zero coupon notional bond and coupon bearing bond shall be based on the price of

the notional bond determined using the zero coupon yield curve. In respect of notional

T-bill it shall be 100 minus the annualized yield for the specified period computed

using the zero coupon yield curve.

Settlement of Custodial Participant (CP) Deals

NSCCL provides a facility to entities like institutions to execute trades through any TM, which

may be cleared and settled by their own CM. Such entities are called Custodial Participants (CP).

To avail of this facility, a CP is required to register with NSCCL through this CM, which allots

them a unique CP code. The CP and the CM are required to enter into an agreement as per

specified format. Thereafter, all trades executed by such CP through any TM are required to have

the CP code in the relevant field on the F&O trading system at the time of order entry. Such

trades executed on behalf of a CP are required to be confirmed by their CM (and not the CM of

the TM through whom the trade was executed), within the time specified by NSE, using the

confirmation facility provided by NSCCL to the CMs in the F&O segment. Till such time the

trade is confirmed by the CM of the CP, the same is considered as a trade of the TM and the

responsibility of settlement of such trade vests with the CM of the TM. Once the trades have

been confirmed by the CM of the CP, they form part of the obligations of the CM of the CP

and they shall be responsible for all obligations arising out of such trades including the payment

of margins and settlement of obligations.

Settlement Statistics

All derivative contracts are currently cash settled. The participants discharge their obligations

through payment/receipt of cash. During the year, 2006-07, such cash settlement amounted

97

to Rs.66,494.47 crore. The details of settlement are presented in Table 6-4. The settlement

of futures and of options involved Rs. 62,111.24 crore and Rs. 4,383.22 crore respectively.

Risk Management System

NSCCL has developed a comprehensive risk containment mechanism for the F&O segment.

The salient features of risk containment measures on the F&O segment are:

• The financial soundness of the members is the key to risk management. Therefore, the

requirements for membership in terms of capital adequacy (net worth, security deposits)

are quite stringent. These requirements have already been explained in Table 2-1 in

Section 2 of this publication.

• NSCCL charges an upfront initial margin for all the open positions of a Clearing Member

(CM). It specifies the initial margin requirements for each futures/options contract on a

daily basis. It follows VaR-based margining computed through SPAN. The CM in turn

collects the initial margin from the trading members (TMs) and their respective clients.

• The open positions of the members are marked to market based on contract settlement

price for each contract at the end of the day. The difference is settled in cash on a T+1

basis.

• NSCCL's on-line position monitoring system monitors a CM's open position on a real-

time basis. Limits are set for each CM based on his effective deposits. The on-line

position monitoring system generates alert messages whenever a CM reaches 70 %, 80

%, 90 % and a disablement message at 100 % of the limit. NSCCL monitors the CMs

for Initial Margin violation, Exposure margin violation, while TMs are monitored for

Initial Margin violation and position limit violation.

• CMs are provided a trading terminal for the purpose of monitoring the open positions

of all the TMs clearing and settling through him. A CM may set limits for a TM clearing

and settling through him. NSCCL assists the CM to monitor the intra-day limits set up

by a CM and whenever a TM exceed the limits, it stops that particular TM from further

trading.

• A member is alerted of his position to enable him to adjust his exposure or bring in

additional capital. Margin violations result in disablement of trading facility for all

TMs of a CM in case of a violation by the CM.

• A separate Settlement Guarantee Fund for this segment has been created out of deposits

of members.

The most critical component of risk containment mechanism for F&O segment is the

margining system and on-line position monitoring. The actual position monitoring and

margining is carried out on-line through Parallel Risk Management System (PRISM) using

SPAN(R)* Standard Portfolio Analysis of Risk) system for the purpose of computation of

on-line margins, based on the parameters defined by SEBI.

* SPAN ® is a registered trademark of the Chicago Mercantile Exchange (CME) used here under license.

98

NSE - SPAN

The objective of NSE-SPAN is to identify overall risk in a portfolio of all futures and

options contracts for each member. The system treats futures and options contracts uniformly,

while at the same time recognising the unique exposures associated with options portfolios,

like extremely deep out-of-the-money short positions and inter-month risk.

Its over-riding objective is to determine the largest loss that a portfolio might reasonably be

expected to suffer from one day to the next day based on 99% VaR methodology.

SPAN considers uniqueness of option portfolios. The following factors affect the value of

an option:

i. Underlying market price

ii. Volatility (variability) of underlying instrument

iii. Time to expiration

iv. Interest rate

v. Strike price

As these factors change, the value of options maintained within a portfolio also changes.

Thus, SPAN constructs scenarios of probable changes in underlying prices and volatilites in

order to identify the largest loss a portfolio might suffer from one day to the next. It then

sets the margin requirement to cover this one-day loss.

The complex calculations (e.g. the pricing of options) in SPAN are executed by NSCCL.

The results of these calculations are called risk arrays. Risk arrays, and other necessary data

inputs for margin calculation are provided to members daily in a file called the SPAN Risk

Parameter file. Members can apply the data contained in the Risk Parameter files, to their

specific portfolios of futures and options contracts, to determine their SPAN margin

requirements.

Hence, members need not execute a complex option pricing calculations, which is performed

by NSCCL. SPAN has the ability to estimate risk for combined futures and options portfolios,

and also re-value the same under various scenarios of changing market conditions.

NSCCL generates six risk parameters file for a day taking into account price and volatilities

at various time intervals and are provided on the website of the Exchange.

Margins

The margining system for F&O segment is as below:

� Initial margin: Margin in the F&O segment is computed by NSCCL upto client level for

open positions of CMs/TMs. These are required to be paid up-front on gross basis at

individual client level for client positions and on net basis for proprietary positions.

99

NSCCL collects initial margin for all the open positions of a CM based on the margins

computed by NSE-SPAN. A CM is required to ensure collection of adequate initial

margin from his TMs up-front. The TM is required to collect adequate initial margins

up-front from his clients.

� Premium Margin: In addition to Initial Margin, Premium Margin is charged at client

level. This margin is required to be paid by a buyer of an option till the premium

settlement is complete.

� Assignment Margin for Options on Securities: Assignment margin is levied in addition to

initial margin and premium margin. It is required to be paid on assigned positions of

CMs towards interim and final exercise settlement obligations for option contracts on

individual securities, till such obligations are fulfilled. The margin is charged on the net

exercise settlement value payable by a CM towards interim and final exercise settlement.

� Exposure Margins: Clearing members are subject to exposure margins in addition to

initial margins.

� Client Margins: NSCCL intimates all members of the margin liability of each of their

client. Additionally members are also required to report details of margins collected

from clients to NSCCL, which holds in trust client margin monies to the extent reported

by the member as having been collected form their respective clients.

100

Tab

le 6

-1:

Con

trac

t Sp

ecif

icat

ion

for

F&

O

Part

icu

lars

Ind

ex

Fu

ture

sS

tock

Fu

ture

sIn

dex

Op

tio

ns

Sto

ck

Op

tio

ns

Inte

rest

Rate

Fu

ture

s

Sec

uri

ty D

escr

ipti

on

FU

TID

XF

UT

ST

KO

PT

IDX

OP

TST

KF

UT

INT

Un

der

lyin

gS&

P C

NX

Nif

tyIn

div

idual

Sec

uri

ties

S&

P C

NX

Nif

ty I

nd

ex/

Ind

ivid

ual

Sec

uri

ties

No

tio

nal

10

year

bo

nd

(6%

co

up

on

),In

dex

/C

NX

IT

In

dex

/C

NX

IT

In

dex

/N

oti

on

al 1

0 ye

ar z

ero

co

up

on

bo

nd

an

dB

AN

K N

ifty

In

dex

/B

AN

K N

ifty

In

dex

/N

oti

on

al 9

1 d

ay T

-Bill

CN

X N

ifty

Jun

ior

CN

X N

ifty

Jun

ior

and

and

CN

X 1

00C

NX

100

Sty

le o

f O

pti

on

NA

NA

Euro

pea

nA

mer

ican

NA

Co

ntr

act

Siz

eA

s sp

ecif

ied

by

SE

BI;

As

spec

ifie

d b

y SE

BI;

As

spec

ifie

d b

y SE

BI;

As

spec

ifie

d b

y SE

BI;

Per

mit

ted

lo

t si

ze i

s 2,

000

Cur

rentl

y m

inim

um R

s. 2

lak

hs

Cur

rentl

y m

inim

um R

s. 2

lak

hs

Cur

rentl

y m

inim

um R

s. 2

lak

hs

Cur

rently

min

imum

Rs.

2 lak

hs

at t

he

tim

e o

f in

tro

duct

ion

at t

he

tim

e o

f in

tro

duct

ion

at t

he

tim

e o

f in

tro

duct

ion

at t

he

tim

e o

f in

tro

duct

ion

Pri

ce S

tep

s

Rs.

0.0

5

Rs.

0.0

1

Exp

irat

ion

Mo

nth

s

3 n

ear

mo

nth

s

On

e ye

ar

Tra

din

g C

ycle

A m

axim

um

of

thre

e m

on

th t

rad

ing

cycl

e -

the

nea

r m

on

th (

on

e),

the

nex

t m

on

th (

two

) an

d t

he

far

mo

nth

(th

ree)

.T

he

con

trac

ts s

hal

l b

e fo

r a

per

iod

of

a m

aturi

tyN

ew c

on

trac

t is

in

tro

duce

d o

n t

he

nex

t tr

adin

g d

ay f

ollo

win

g th

e ex

pir

y o

f n

ear

mo

nth

co

ntr

act

of

on

e ye

ar w

ith

th

ree

mo

nth

s co

nti

nuo

us

con

trac

ts f

or

the

firs

t th

ree

mo

nth

s an

d f

ixed

quar

terl

y co

ntr

acts

fo

r th

e en

tire

yea

r

Las

t T

rad

ing/

Exp

irat

ion

Day

Las

t T

hurs

day

of

the

exp

iry

mo

nth

or

the

pre

ced

ing

trad

ing

day

, if

las

t T

hurs

day

is

a tr

adin

g h

olid

ayL

ast

Th

urs

day

of

the

exp

iry

mo

nth

. If

las

tT

hurs

day

is

a tr

adin

g h

olid

ay,

the

con

trac

t sh

all

exp

ire

on

pre

vio

us

trad

ing

day

. F

urt

her

, w

her

e th

ela

st T

hurs

day

fal

ls o

n t

he

ann

ual

or

hal

f ye

arly

clo

sin

g d

ates

of

the

ban

k, t

he

con

trac

t sh

all

exp

ire

on

pre

vio

us

trad

ing

day

.

Pri

ce B

and

sO

per

atin

g ra

nge

of

Op

erat

ing

ran

ge o

fO

per

atin

g ra

nge

of

Op

erat

ing

ran

ge o

fO

per

atin

g ra

nge

of

10%

of

the

bas

e p

rice

20%

of

the

bas

e p

rice

99%

of

the

bas

e p

rice

99%

of

the

bas

e p

rice

2% o

f th

e b

ase

pri

ce

No.

of

Str

ike

Pri

ces

NA

NA

NIF

TY

,JR

. N

IFT

Y a

nd

7 st

rike

s (t

hre

e 'in

th

e m

on

ey',

NA

CN

X 1

00 B

AN

K N

ifty

&o

ne

'at

the

mo

ney

' an

d t

hre

eC

NX

IT

Up

to

200

0 -

9'o

ut

of

the

mo

ney

) fo

r ev

ery

stri

kes

(fo

ur

'in-t

he-

mo

ney

'),

op

tio

n t

ype

(i.e

cal

l an

d p

ut)

on

e 'a

t th

e m

on

ey' a

nd

fo

ur'

out

of

the

mo

ney

) fo

r ev

ery

op

tio

n t

ype

(i.e

. ca

ll an

d p

ut)

> 2

001

up

to 4

000

- 9

stri

kes

(fo

ur

'in-t

he-

mo

ney

'),

on

e'a

t th

e m

on

ey' a

nd

fo

ur'

out

Contd...

101

Tab

le 6

-1:

Con

trac

t Sp

ecif

icat

ion

for

F&

O

Part

icu

lars

Ind

ex

Fu

ture

sS

tock

Fu

ture

sIn

dex

Op

tio

ns

Sto

ck

Op

tio

ns

Inte

rest

Rate

Fu

ture

s

of

the

mo

ney

) fo

r ev

ery

op

tio

n t

ype

(i.e

. ca

ll an

d p

ut)

> 4

001

up

to 6

000

- 11

str

ikes

(fiv

e 'in

th

e m

on

ey',

on

e'a

t th

e m

on

ey' a

nd

fiv

e' o

ut

of

the

mo

ney

') f

or

ever

yo

pti

on

typ

e (i

.e c

all

and

put)

> 6

000

-13

stri

kes

(six

'in

th

em

on

ey',

on

e 'a

t th

e m

on

ey'

and

six

'o

ut

of

the

mo

ney

')fo

r ev

ery

op

tio

n t

ype

(i.e

cal

l an

d p

ut)

Str

ike

Pri

ce I

nte

rval

(in

Rs.

)N

AN

AU

p t

o 2

000

25

Bet

wee

n 2

.5 a

nd

50

NA

2001

-400

0

50

dep

end

ing

on

th

e p

rice

4001

-600

0

50

of

un

der

lyin

g>

600

0

50

Set

tlem

ent

In c

ash

on

T+

1 b

asis

In c

ash

on

T+

1 b

asis

In c

ash

on

T+

1 b

asis

Dai

ly s

ettl

emen

t o

n T

+1

Dai

ly M

ark-

to-M

arke

t se

ttle

men

tb

asis

an

d f

inal

set

tlem

ent

and

Fin

al S

ettl

emen

t w

ill b

eo

n T

+1

bas

iso

n T

+1

bas

is

Dai

ly S

ettl

emen

t P

rice

Clo

sin

g p

rice

of

futu

res

Clo

sin

g p

rice

of

futu

res

Pre

miu

m V

alue

(net

)P

rem

ium

Val

ue

(net

)A

s m

ay b

e st

ipula

ted

by

NSC

CL

con

trac

t o

n t

he

trad

ing

day

con

trac

t o

n t

he

trad

ing

day

in t

his

reg

ard

fro

m t

ime

to t

ime

Fin

al S

ettl

emen

t P

rice

Clo

sin

g va

lue

un

der

lyin

gC

losi

ng

valu

e un

der

lyin

gC

losi

ng

valu

e o

f su

chC

losi

ng

valu

e o

f su

chA

s m

ay b

e st

ipula

ted

by

NSC

CL

ind

ex/

secu

rity

on

th

e la

stin

dex

/se

curi

ty o

n t

he

last

un

der

lyin

g se

curi

ty (

ind

ex)

un

der

lyin

g se

curi

ty (

ind

ex)

in t

his

reg

ard

fro

m t

ime

to t

ime

trad

ing

day

of

the

futu

res

trad

ing

day

of

the

futu

res

on

th

e la

st t

rad

ing

day

of

the

on

th

e la

st t

rad

ing

day

of

the

con

trac

t.co

ntr

act.

op

tio

ns

con

trac

t.o

pti

on

s co

ntr

act.

Set

tlem

ent

Day

Las

t tr

adin

g d

ay

Mar

gin

s U

p-f

ron

t in

itia

l m

argi

n o

n d

aily

bas

is

NA

: N

ot

app

licab

le

Contd...

102

Contd...

Tab

le 6

-2:

Bu

sin

ess

Gro

wth

of

Fu

ture

s &

Op

tion

s M

ark

et S

egm

ent

Ind

ex O

pti

on

s

Call

Pu

t

No

. o

f

Co

ntr

acts

Tra

ded

No

tio

nal

Tra

din

gV

olu

me

(Rs.

cr.

)

No

. o

fC

on

tracts

Tra

ded

No

tio

nal

Tra

din

gV

olu

me

(Rs.

cr.

)

To

tal

No

. o

fC

on

tracts

Tra

ded

Jun

-00 t

o M

ar-

01

--

--

--

--

90,5

80

2,3

65

555

122.4

9

Ap

r-01

--

--

--

--

13,2

74

292

6015

0.3

1

May

-01

--

--

--

--

10,0

48

230

4710

0.2

1

Jun

-01

5,2

32

119

3,4

29

77-

--

-35,4

66

785

161

370.7

7

Jul-

01

8,6

13

191

6,2

21

135

13,0

82

290

4,7

46

106

93,3

06

2,0

31

416

921.8

9

Aug-

01

7,5

98

165

5,5

33

119

38,9

71

844

12,5

08

263

125,5

89

2,6

96

553

128

2.6

3

Sep

-01

12,1

88

243

8,2

62

169

64,3

44

1,3

22

33,4

80

690

272,5

72

5,2

81

1,0

82

264

5.4

1

Oct

-01

16,7

87

326

12,3

24

233

85,8

44

1,6

32

43,7

87

801

290,2

09

5,4

77

1,1

22

261

5.3

4

No

v-0

114,9

94

310

7,1

89

145

112,4

99

2,3

72

31,4

84

638

413,8

09

8,7

60

1,7

95

438

8.9

8

Dec

-01

12,8

90

287

5,5

13

118

84,1

34

1,9

86

28,4

25

674

550,0

20

12,9

19

2,6

47

680

13.9

3

Jan

-02

11,2

85

253

3,9

33

85133,9

47

3,8

36

44,4

98

1,2

53

805,6

38

21,3

48

4,3

75

928

19.0

2

Feb

-02

13,9

41

323

4,7

49

107

133,6

30

3,6

35

33,0

55

864

834,9

84

21,6

16

4,4

29

1,0

81

22.1

5

Mar

-02

10,4

46

249

4,7

73

111

101,7

08

2,8

63

37,3

87

1,0

94

751,9

58

20,4

91

4,1

99

1,0

78

22.0

9

2001-

02

113,9

74

2,4

66

61,

926

1,300

768,1

59

18,7

80

269,3

70

6,3

83

4,1

96,8

73

101,

927

20,8

87

413

8.4

6

Ap

r-02

11,1

83

260

5,3

89

122

121,2

25

3,4

00

40,4

43

1,1

70

804,6

02

21,6

74

4,5

63

985

207.4

0

May

-02

13,0

70

294

7,7

19

169

126,8

67

3,4

90

57,9

84

1,6

43

905,2

36

23,6

00

4,9

68

1,0

73

225.8

4

Jun

-02

10,2

72

223

7,8

05

166

123,4

93

3,3

25

48,9

19

1,3

17

906,4

64

23,3

32

4,9

12

1,1

67

245.6

0

Jul-

02

16,6

37

350

7,6

88

162

154,0

89

4,3

41

65,5

30

1,8

37

1,1

55,8

97

30,4

07

6,4

01

1,3

22

278.3

2

Aug-

02

15,9

67

318

10,1

24

200

147,6

46

3,8

37

65,6

30

1,7

25

1,1

18,0

52

26,9

38

5,6

71

1,2

83

270.0

6

Sep

-02

16,5

78

332

12,5

43

251

151,2

91

4,0

16

80,0

38

2,2

05

1,1

04,8

04

27,1

40

5,7

14

1,3

57

285.6

9

Oct

-02

23,6

28

459

13,9

10

267

214,0

27

5,5

95

104,6

59

2,7

61

1,3

78,0

88

33,4

41

7,0

40

1,5

92

335.2

5

No

v-0

225,4

13

509

17,1

91

336

261,6

00

7,1

06

104,5

29

2,9

22

1,5

54,5

51

39,8

36

8,3

87

2,0

97

441.4

0

Dec

-02

30,2

61

660

19,9

73

427

309,5

73

9,5

52

111,7

56

3,4

91

1,9

66,8

39

55,6

20

11,7

09

2,6

49

557.6

0

Jan

-03

26,3

76

577

16,8

05

363

322,8

76

10,1

74

132,0

21

4,1

79

2,0

61,1

55

59,1

49

12,4

52

2,5

72

541.4

1

Feb

-03

26,5

01

571

17,6

81

375

268,1

56

7,6

44

114,5

12

3,3

19

1,8

63,2

17

49,3

95

10,3

99

2,6

00

547.3

1

Mar

-03

53,7

88

1,1

16

35,7

39

740

255,6

58

7,1

63

140,5

40

3,9

19

1,9

50,0

04

49,3

32

10,3

86

2,4

67

519.2

8

2002-0

3269,6

74

5,6

70

172,5

67

3,5

77

2,4

56,5

01

69,6

44

1,066,5

61

30,4

89

16,7

68,9

09

439,8

64

92,6

03

1,752

368.9

4

Ap

r-03

54,8

90

1,0

91

31,1

07

616

297,2

70

7,4

71

168,5

53

4,0

98

2,2

05,4

70

50,0

20

11,5

28

2,5

01

576.4

0

May

-03

53,1

98

1,0

39

30,1

09

578

332,5

29

8,8

61

155,8

49

3,9

11

2,2

52,0

50

53,4

23

12,3

12

2,5

44

586.3

0

Ave

rag

eD

ail

yT

rad

ing

Vo

lum

e(U

S$

mil

lio

n.)

Tra

din

gV

olu

me

(Rs.

cr.

)

Mo

nth

/

Year

Sto

ck

Op

tio

ns

Call

Pu

t

No

. o

fC

on

tracts

Tra

ded

No

tio

nal

Tra

din

g

Vo

lum

e

(Rs.

cr.

)

No

. o

fC

on

tracts

Tra

ded

No

tio

nal

Tra

din

g

Vo

lum

e

(Rs.

cr.

)

Ave

rag

eD

ail

y

Tra

din

g

Vo

lum

e(R

s. c

r.)

Tra

din

gV

olu

me

(US

$m

illi

on

)

103

Contd...

Tab

le 6

-2:

Bu

sin

ess

Gro

wth

of

Fu

ture

s &

Op

tion

s M

ark

et S

egm

ent

Jun

-03

55,8

74

1,2

06

34,8

95

735

383,6

03

11,3

03

132,4

98

3,7

39

2,7

50,2

94

73,0

17

16,8

28

3,4

77

801.3

4

Jul-

03

87,1

49

2,0

40

50,6

69

1,1

63

495,8

53

16,1

80

162,5

01

5,1

89

3,7

20,5

63

109,8

49

25,3

17

4,7

76

1,1

00.7

3

Aug-

03

96,8

75

2,4

77

54,6

49

1,3

62

434,5

26

16,0

28

116,3

70

4,2

19

4,3

14,0

98

140,3

63

32,3

49

7,0

18

1,6

17.4

5

Sep

-03

110,0

14

3,0

88

69,9

20

1,9

25

401,6

60

16,3

78

101,5

55

4,0

25

5,4

81,9

39

185,1

51

42,6

71

8,4

16

1,9

39.6

1

Oct

-03

89,7

94

2,7

61

60,3

30

1,8

13

405,7

06

18,5

58

97,4

05

4,4

20

5,9

89,2

05

230,3

65

53,0

92

10,0

16

2,3

08.3

3

No

v-0

371,6

96

2,3

13

48,2

81

1,5

34

269,0

32

13,3

14

61,2

95

3,0

61

4,7

69,9

38

192,1

71

44,2

89

9,6

09

2,2

14.4

7

Dec

-03

87,6

83

3,1

00

68,3

94

2,3

55

294,5

96

14,0

95

63,4

26

3,0

46

5,7

24,0

35

238,9

07

55,0

60

10,8

59

2,5

02.7

4

Jan

-04

105,4

31

4,1

20

72,8

69

2,7

93

327,1

35

17,8

04

67,8

25

3,6

80

6,9

76,0

23

324,0

63

74,6

86

15,4

32

3,5

56.4

8

Feb

-04

98,9

38

3,7

54

74,9

33

2,7

91

238,5

17

13,8

73

75,7

71

4,5

98

5,6

96,5

41

272,8

39

62,8

81

14,3

60

3,3

09.5

1

Mar

-04

132,3

52

4,8

11

92,3

64

3,3

57

367,7

22

14,3

09

131,8

74

5,0

51

7,0

06,6

20

260,4

81

60,0

33

11,8

40

2,7

28.7

5

2003-0

41,

043,8

94

31,

801

688,5

20

21,

022

4,2

48,1

49

168,1

74

1,334,9

22

49,0

38

56,8

86,7

76

2,1

30,6

49

491,

046

8,3

88

1,933.2

5

Ap

r-04

115,3

78

4,3

47

80,7

33

2,9

68

292,6

28

9,6

40

85,9

98

2,7

36

6,5

68,6

68

220,2

99

50,3

54

11,0

15

2,5

17.7

1

May

-04

196,1

98

6,8

24

100,4

30

3,4

69

246,6

30

7,7

17

63,1

56

1,9

76

6,4

81,1

98

194,7

63

44,5

17

9,2

74

2,1

19.8

7

Jun

-04

158,7

84

4,9

14

117,0

41

3,5

59

193,6

87

5,3

39

75,3

80

2,0

84

5,8

22,8

19

158,3

06

36,1

84

7,1

96

1,6

44.7

3

Jul-

04

189,1

79

6,0

59

124,3

52

3,8

56

262,7

55

7,6

14

94,2

22

2,6

82

6,1

34,5

13

175,3

45

40,0

79

7,9

70

1,8

21.7

7

Aug-

04

127,7

79

4,1

92

98,6

18

3,1

93

284,0

13

8,4

99

86,9

19

2,6

04

5,9

78,5

03

176,0

06

40,2

30

8,0

00

1,8

28.6

3

Sep

-04

124,5

47

4,2

82

93,8

08

3,1

64

365,1

87

10,7

63

116,3

04

3,5

47

5,9

31,7

06

178,3

80

40,7

72

8,1

08

1,8

53.3

0

Oct

-04

138,0

99

5,0

30

97,6

28

3,5

00

357,6

25

11,6

84

93,3

42

3,1

24

5,6

66,9

14

182,2

24

41,6

51

9,1

11

2,0

82.5

6

No

v-0

4131,2

18

4,9

79

102,2

23

3,8

14

363,1

58

11,9

71

94,8

10

3,2

39

5,3

14,6

55

175,8

05

40,1

84

8,7

90

2,0

09.1

9

Dec

-04

130,5

57

5,3

55

108,6

50

4,3

56

481,3

49

16,9

52

108,9

51

3,8

45

7,5

15,4

69

268,2

27

61,3

09

11,6

62

2,6

65.6

1

Jan

-05

176,6

82

7,1

88

143,4

16

5,7

86

362,3

45

13,5

02

81,6

18

3,1

00

7,2

46,9

15

265,2

90

60,6

38

13,9

63

3,1

91.4

6

Feb

-05

168,5

94

7,1

28

144,6

27

5,9

98

367,7

07

13,8

90

83,8

43

3,2

47

6,6

61,6

61

253,5

51

57,9

55

12,6

78

2,8

97.7

3

Mar

-05

213,6

32

9,0

74

211,3

85

8,9

18

369,8

95

14,4

96

113,5

90

4,6

08

7,6

94,1

64

298,8

57

68,3

10

13,5

84

3,1

05.0

1

2004-0

51,

870,6

47

69,3

73

1,422,9

1152,5

81

3,9

46,9

79

132,0

66

1,098,1

33

36,7

92

77,0

17,1

85

2,5

47,0

53

582,1

83

10,0

67

2,3

01.

12

Ap

r-05

361,5

44

7,2

95

295,0

20

5,9

81

307,9

94

8,2

03

105,9

55

2,7

64

8,6

28,4

97

195,9

69

43,9

29

9,7

98

2,1

96.4

7

May

-05

382,5

30

7,7

26

353,9

75

7,0

56

288,1

37

7,6

42

100,6

02

2,6

09

9,1

37,6

19

208,3

80

46,7

12

9,4

72

2,1

23.2

5

Jun

-05

421,4

80

9,0

92

331,7

53

7,0

41

385,6

40

11,6

77

104,4

78

3,1

22

10,6

53,0

67

271,2

46

60,8

04

11,7

93

2,6

43.6

5

Jul-

05

358,8

67

8,1

30

389,1

54

8,6

42

376,1

29

11,7

35

84,9

89

2,6

23

11,1

98,6

17

308,1

66

69,0

80

15,4

08

3,4

54.0

0

Contd...

Ind

ex O

pti

on

s

Call

Pu

t

No

. o

f

Co

ntr

acts

Tra

ded

No

tio

nal

Tra

din

gV

olu

me

(Rs.

cr.

)

No

. o

fC

on

tracts

Tra

ded

No

tio

nal

Tra

din

gV

olu

me

(Rs.

cr.

)

To

tal

No

. o

fC

on

tracts

Tra

ded

Ave

rag

eD

ail

yT

rad

ing

Vo

lum

e(U

S$

mil

lio

n.)

Tra

din

gV

olu

me

(Rs.

cr.

)

Mo

nth

/

Year

Sto

ck

Op

tio

ns

Call

Pu

t

No

. o

fC

on

tracts

Tra

ded

No

tio

nal

Tra

din

g

Vo

lum

e

(Rs.

cr.

)

No

. o

fC

on

tracts

Tra

ded

No

tio

nal

Tra

din

g

Vo

lum

e

(Rs.

cr.

)

Ave

rag

eD

ail

y

Tra

din

g

Vo

lum

e(R

s. c

r.)

Tra

din

gV

olu

me

(US

$m

illi

on

)

104

Contd...

Tab

le 6

-2:

Bu

sin

ess

Gro

wth

of

Fu

ture

s &

Op

tion

s M

ark

et S

egm

ent

Aug-

05

444,2

94

10,6

20

485,0

01

11,3

72

350,3

70

11,9

35

81,4

53

2,7

50

12,7

64,2

13

372,3

07

83,4

58

16,9

23

3,7

93.5

6

Sep

-05

523,9

48

13,3

70

583,0

81

14,5

50

363,8

72

12,9

17

85,8

97

3,0

69

13,2

53,7

41

399,7

56

89,6

11

19,0

36

4,2

67.2

1

Oct

-05

695,3

11

17,6

32

715,2

08

17,9

54

309,1

20

10,7

53

80,1

34

2,8

22

15,1

76,4

24

433,6

60

97,2

11

21,6

83

4,8

60.5

7

No

v-0

5 5

95,9

00

15,5

82

604,6

57

15,4

91

287,1

36

10,0

69

77,0

52

2,7

08

13,0

55,6

56

395,8

53

88,7

36

19,7

93

4,4

36.8

2

Dec

-05

775,2

16

21,8

62

764,9

64

21,1

25

361,2

68

13,6

30

95,2

61

3,6

14

14,8

62,4

77

523,8

07

117,4

19

23,8

09

5,3

37.2

4

Jan

-06

663,6

84

19,3

92

666,7

82

19,1

29

365,4

93

14,2

65

90,5

62

3,6

29

14,6

81,7

19

487,5

84

109,2

99

24,3

79

5,4

64.9

6

Feb

-06

506,7

14

15,5

26

559,6

82

16,8

05

326,2

33

12,3

50

75,7

40

2,9

18

14,0

98,3

82

492,6

72

110,4

40

25,9

30

5,8

12.6

3

Mar

-06

683,9

79

22,4

07

772,3

72

24,6

90

444,6

04

18,5

76

92,6

57

3,8

90

18,7

90,2

18

734,8

49

164,7

27

33,4

02

7,4

87.6

1

2005-0

6 6

,413

,467

168,6

32

6,5

21,

649

169,8

37

4,1

65,9

96

143,7

52

1,0

74,7

80

36,5

18 1

56,3

00,6

30

4,8

24,2

50

1,0

81,

428

19,2

20

4,3

08.4

8

Ap

r-06

773,6

32

27,5

24

715,4

72

24,8

97

393,3

06

17,6

27

67,1

79

2,9

98

17,8

18,1

53

737,8

39

169,2

68

40,9

91

9,4

03.7

7

May

-06

929,9

08

33,0

96

725,7

69

25,6

94

317,7

74

14,9

10

41,9

04

1,9

71

18,7

64,0

64

742,4

01

170,3

15

33,7

46

7,7

41.5

7

Jun

-06

1,1

18,1

70

34,1

58

793,2

28

23,8

14

206,9

60

8,7

67

57,5

27

2,5

41

16,8

54,5

14

556,8

04

127,7

37

24,2

09

5,5

53.7

7

Jul-

06

898,7

96

28,3

78

851,6

59

26,3

34

247,5

62

10,2

79

69,3

14

2,9

68

13,7

84,8

58

477,2

55

109,4

87

22,7

26

5,2

13.6

8

Aug-

06

807,0

14

27,2

76

789,2

41

25,8

30

358,7

53

11,2

73

87,7

67

2,7

72

14,8

24,0

58

469,6

66

107,7

46

21,3

48

4,8

97.5

5

Sep

-06

762,4

99

27,1

30

762,2

22

26,5

17

428,2

37

13,7

91

79,3

16

2,5

60

15,7

57,4

66

522,9

46

119,9

69

24,9

02

5,7

12.8

3

Oct

-06

622,9

33

23,1

95

729,8

55

26,5

49

400,6

18

13,8

73

74,3

18

2,5

53

14,3

13,7

26

505,6

58

116,0

03

25,2

83

5,8

00.1

6

No

v-0

6 7

01,3

72

27,5

68

845,2

70

32,4

50

463,3

69

16,8

86

90,3

69

3,3

43

17,2

84,5

19

649,8

29

149,0

77

29,5

38

6,7

76.2

5

Dec

-06

961,2

42

38,3

03

1,0

60,7

53

41,4

16

369,7

43

13,9

89

64,8

86

2,4

19

17,5

16,7

26

669,1

62

153,5

13

33,4

58

7,6

75.6

4

Jan

-07

738,9

31

30,4

00

902,6

54

36,2

45

438,2

97

16,7

05

71,4

62

2,6

97

16,2

32,4

46

627,4

56

143,9

45

31,3

73

7,1

97.2

5

Feb

-07

1,3

32,3

80

43,5

08

1,4

40,5

92

48,3

09

384,9

94

14,2

73

73,6

43

2,5

13

20,8

21,1

44

703,4

92

161,3

88

37,0

26

8,4

94.1

3

Mar

-07

2,9

85,4

72

57,6

83

2,9

08,3

74

55,6

39

384,6

79

9,5

30

111,3

33

2,5

76

32,9

11,8

99

693,7

63

159,1

56

33,0

36

7,5

78.8

8

2006-0

7 1

2,6

32,3

49

398,2

19 1

2,5

25,0

89

393,6

93

4,3

94,2

92

161,

902

889,0

18 3

1,909

216

,883,5

73

7,3

56,2

71

1,6

87,6

05

29,5

43

6,7

77.5

3

Ind

ex O

pti

on

s

Call

Pu

t

No

. o

f

Co

ntr

acts

Tra

ded

No

tio

nal

Tra

din

gV

olu

me

(Rs.

cr.

)

No

. o

fC

on

tracts

Tra

ded

No

tio

nal

Tra

din

gV

olu

me

(Rs.

cr.

)

To

tal

No

. o

fC

on

tracts

Tra

ded

Ave

rag

eD

ail

yT

rad

ing

Vo

lum

e(U

S$

mil

lio

n.)

Tra

din

gV

olu

me

(Rs.

cr.

)

Mo

nth

/

Year

Sto

ck

Op

tio

ns

Call

Pu

t

No

. o

fC

on

tracts

Tra

ded

No

tio

nal

Tra

din

g

Vo

lum

e

(Rs.

cr.

)

No

. o

fC

on

tracts

Tra

ded

No

tio

nal

Tra

din

g

Vo

lum

e

(Rs.

cr.

)

Ave

rag

eD

ail

y

Tra

din

g

Vo

lum

e(R

s. c

r.)

Tra

din

gV

olu

me

(US

$m

illi

on

)

105

Table 6-3: Segment wise Contribution of Top ‘N’ Members

Table 6-4: Settlement Statistics in F&O Segment(In Rs. crore)

Month/Year Index/Stock Futures Index/Stock Options Total Total

MTM Final Premium Exercise (Rs. crore) (US $Settlement Settlement Settlement Settlement milliom)

Jun-00 0.22 0.01 -- -- 0.23 0.05

Jul-00 1.46 0.04 -- -- 1.50 0.32

Aug-00 0.76 0.03 -- -- 0.79 0.17

Sep-00 2.11 0.13 -- -- 2.25 0.48

Oct-00 3.42 0.27 -- -- 3.69 0.79

Nov-00 4.65 0.07 -- -- 4.73 1.01

Dec-00 9.82 0.69 -- -- 10.50 2.25

Jan-01 11.94 0.11 -- -- 12.05 2.58

Feb-01 16.14 0.51 -- -- 16.65 3.57

Mar-01 33.56 0.06 -- -- 33.62 7.21

2000-01 84.08 1.93 -- -- 86.01 18.44

Apr-01 8.04 0.09 -- -- 8.13 1.67

May-01 3.78 0.11 -- -- 3.89 0.80

Jun-01 4.85 0.01 1.47 0.28 6.61 1.35

Jul-01 6.70 0.14 5.88 1.43 14.13 2.90

Aug-01 4.59 0.14 9.83 5.06 19.62 4.02

Sep-01 33.69 0.50 15.62 13.91 63.72 13.06

Oct-01 11.27 0.10 17.96 11.42 40.75 8.35

Nov-01 28.38 0.71 24.55 20.21 73.85 15.13

Dec-01 78.94 3.76 17.47 8.21 108.38 22.21

Jan-02 112.53 2.17 30.57 17.75 163.02 33.41

Feb-02 108.87 12.21 24.40 8.86 154.34 31.63

Mar-02 103.62 1.99 17.01 6.81 129.42 26.52

2001-02 505.25 21.93 164.76 93.95 785.88 161.04

Apr-02 106.56 4.15 17.3 8.65 136.66 28.77

May-02 166.54 1.84 21.53 14.35 204.26 43.00

Jun-02 124.05 3.44 19.70 10.35 157.54 33.17

Jul-02 160.88 1.70 23.60 10.67 196.85 41.44

Aug-02 102.1 2.88 20.46 13.89 139.33 29.33

Sep-02 119.83 1.44 23.31 13.46 158.04 33.27

Oct-02 128.24 7.79 25.80 16.64 178.47 37.57

Nov-02 110.93 8.68 33.71 35.34 188.66 39.72

Dec-02 164.04 5.33 44.64 16.82 230.83 48.60

Jan-03 218.42 2.99 38.39 22.94 282.74 59.52

Feb-03 148.42 1.68 28.93 13.14 192.17 40.46

Mar-03 187.89 3.84 33.84 19.64 245.21 51.62

2002-03 1,737.90 45.76 331.21 195.88 2,310.76 486.47

Apr-03 205.81 4.79 46.00 30.01 286.60 66.05

Contd....

2005-06 2006-07

Futures Options Futures Options

Top 5 Members 12 23 14 23

Top 10 Members 20 36 22 36

Top 15 Members 26 45 28 46

Top 25 Members 36 55 38 58

(in percent)

106

Table 6-4: Settlement Statistics in F&O Segment(In Rs. crore)

Month/Year Index/Stock Futures Index/Stock Options Total Total

MTM Final Premium Exercise (Rs. crore) (US $Settlement Settlement Settlement Settlement milliom)

May-03 163.59 5.74 38.04 30.43 237.80 54.81

Jun-03 220.23 3.86 48.78 46.50 319.37 73.60

Jul-03 389.79 8.02 69.43 44.77 512.01 118.00

Aug-03 569.60 8.58 77.32 58.81 714.31 164.63

Sep-03 1,031.87 9.24 78.12 30.41 1,149.64 264.96

Oct-03 1,188.05 14.11 99.15 60.31 1,361.61 313.81

Nov-03 939.35 23.86 63.40 22.11 1,048.72 241.70

Dec-03 905.46 17.90 69.99 41.10 1,034.44 238.41

Jan-04 2,668.21 12.82 107.46 42.67 2,831.16 652.49

Feb-04 1,329.70 16.40 68.26 24.42 1,438.77 331.59

Mar-04 1,210.32 13.62 93.00 44.58 1,361.53 313.79

2003-04 10,821.98 138.95 858.94 476.12 12,295.98 2,833.83

Apr-04 837.28 15.67 64.70 25.29 942.95 215.53

May-04 2,556.13 13.47 91.29 35.82 2,696.71 616.39

Jun-04 535.25 20.05 46.81 9.85 611.96 139.88

Jul-04 451.15 15.14 72.13 42.77 581.19 132.84

Aug-04 548.01 8.66 50.90 14.65 622.22 142.22

Sep-04 480.12 12.63 56.21 39.74 588.70 134.56

Oct-04 837.82 23.18 68.50 31.00 960.50 219.54

Nov-04 691.17 10.21 76.82 41.95 820.15 187.46

Dec-04 1,238.58 22.31 104.09 56.54 1,421.52 324.92

Jan-05 2,317.69 31.74 96.36 42.37 2,488.16 568.72

Feb-05 991.63 10.62 96.35 39.30 1,137.90 260.09

Mar-05 1,539 44 117 77 1,777 406.09

2004-05 13,024.18 227.50 941.06 455.87 14,648.62 3,348.25

Apr-05 1,736.91 31.15 82.83 30.32 1,881.22 421.70

May-05 943.69 41.74 72.54 44.95 1,102.92 247.24

Jun-05 1,095.79 35.18 93.16 71.32 1,295.45 290.39

Jul-05 1,567.52 38.49 92.86 58.85 1,757.72 394.02

Aug-05 2,544.80 36.56 118.94 26.78 2,727.08 611.32

Sep-05 2,366.70 17.31 135.91 95.85 2,615.77 586.36

Oct-05 3,479.10 120.46 143.92 79.20 3,822.67 856.91

Nov-05 1,831.40 32.17 122.63 75.71 2,061.90 462.21

Dec-05 2,487.80 22.74 139.72 67.05 2,717.30 609.12

Jan-06 2,034.60 107.17 139.52 52.06 2,333.35 523.06

Feb-06 1,886.60 44.47 146.68 56.86 2,134.61 478.50

Mar-06 3,610.60 70.45 231.87 158.89 4,071.81 912.76

2005-06 25,585.51 597.89 1,520.58 817.84 28,521.80 6,393.59

Apr-06 7,413.50 97.47 237.13 104.32 7,852.42 1,801.43

May-06 13,594.00 135.07 326.05 124.18 14,179.30 3,252.88

Jun-06 6,854.10 50.29 265.36 97.01 7,266.76 1,667.07

Jul-06 2,810.00 56.05 197.32 73.60 3,136.97 719.65

Aug-06 1,558.00 38.89 192.71 114.79 1,904.39 436.89

Sep-06 2,826.50 27.10 192.37 72.74 3,118.71 715.46

Oct-06 2,218.20 27.95 222.54 64.15 2,532.84 581.06

Nov-06 2,412.00 57.38 212.33 133.02 2,814.73 645.73

Dec-06 5,968.80 34.62 294.30 88.25 6,385.97 1,465.01

Jan-07 3,664.00 99.04 276.52 121.33 4,160.90 954.55

Feb-07 5,981.70 115.28 321.41 59.28 6,477.67 1,486.04

Mar-07 6,012.90 58.40 456.34 136.17 6,663.81 1,528.75

2006-07 61,313.70 797.54 3,194.38 1,188.84 66,494.47 15,254.52

Contd....

107

Table: 6-5 List of Securities on which Futures & Optionsare available along with their market lot as on 5th July, 2007

Sr. List of Securities SYMBOLS Market LotNo.

1 Aban Offshore Ltd. ABAN 200

2 ABB Ltd. ABB 500

3 Aditya Birla Nuvo Limited ABIRLANUVO 200

4 Associated Cement Co. Ltd. ACC 375

5 Adlabs Films Ltd ADLABSFILM 450

6 AIA Engineering Limited AIAENG 200

7 Deccan Aviation Limited AIRDECCAN 1700

8 DLF Limited DLF 400

9 Allahabad Bank ALBK 2450

10 Alok Industries Ltd. ALOKTEXT 3350

11 Amtek Auto Ltd. AMTEKAUTO 600

12 Andhra Bank ANDHRABANK 2300

13 Ansal Prop & Infra Ltd ANSALINFRA 650

14 Alstom Projects India Ltd APIL 400

15 Arvind Mills Ltd. ARVINDMILL 4300

16 Ashok Leyland Ltd ASHOKLEY 4775

17 Aurobindo Pharma Ltd. AUROPHARMA 350

18 Bajaj Auto Ltd. BAJAJAUTO 100

19 Bajaj Hindustan Ltd. BAJAJHIND 1900

20 Balrampur Chini Mills Ltd. BALRAMCHIN 4800

21 Bank of Baroda BANKBARODA 1400

22 Bank of India BANKINDIA 1900

23 Bata India Ltd. BATAINDIA 1050

24 Bharat Electronics Ltd. BEL 275

25 Bharat Earth Movers Ltd. BEML 250

26 Bharat Forge Co Ltd BHARATFORG 1000

27 Bharti Airtel Ltd BHARTIARTL 500

28 Bharat Heavy Electricals Ltd. BHEL 300

29 Ballarpur Industries Ltd. BILT 1900

30 Oswal Chem. & Fert. Ltd. BINDALAGRO 4950

31 Birla Corporation Ltd BIRLAJUTE 850

32 Bombay Dyeing & Mfg. Co Ltd. BOMDYEING 300

33 Bongaigaon Refinery Ltd. BONGAIREFN 4500

34 Bharat Petroleum Corporation Ltd. BPCL 1100

35 Bombay Rayon Fashions Ltd BRFL 1150

36 Cairn India Limited CAIRN 2500

37 Canara Bank CANBK 1600

38 Century Textiles Ltd CENTURYTEX 425

39 CESC Ltd. CESC 550

40 Chambal Fertilizers Ltd. CHAMBLFERT 6900

41 Chennai Petroleum Corporation Ltd. CHENNPETRO 1800

42 Cipla Ltd. CIPLA 1250

43 Colgate Palmolive (I) Ltd. COLGATE 1050

44 Corporation Bank CORPBANK 1200

45 Crompton Greaves Ltd. CROMPGREAV 1000

46 Cummins India Ltd CUMMINSIND 950

47 Dabur India Ltd. DABUR 2700

48 Dena Bank DENABANK 5250

49 Divi's Laboratories Ltd. DIVISLAB 62

50 Dr. Reddy's Laboratories Ltd. DRREDDY 400

51 Educomp Solutions Ltd EDUCOMP 150

52 Everest Kanto Cylinder Ltd EKC 200

53 Escorts India Ltd. ESCORTS 2400

54 Essar Oil Ltd. ESSAROIL 5650

55 Federal Bank Ltd. FEDERALBNK 1300

56 Financial Technologies (I) Ltd FINANTECH 150

Contd....

108


57 GAIL (India) Ltd. GAIL 750

58 Gateway Distriparks Ltd. GDL 2000

59 Mahindra Gesco Developers GESCOCORP 350

60 The Great Eastern Shipping Co. Ltd. GESHIP 1200

61 Glaxosmithkline Pharma Ltd. GLAXO 300

62 GMR Infrastructure Ltd. GMRINFRA 1000

63 Gujarat Narmada Fertilizer Co. Ltd. GNFC 2950

64 Grasim Industries Ltd. GRASIM 88

65 GTL Ltd. GTL 1500

66 Gujarat Alkalies & Chem GUJALKALI 1400

67 Gujarat Ambuja Cement Ltd. GUJAMBCEM 2062

68 Hindustan Construction Co HCC 1400

69 HCL Technologies Ltd. HCLTECH 650

70 Housing Development Finance Corporation Ltd. HDFC 150

71 HDFC Bank Ltd. HDFCBANK 200

72 Hero Honda Motors Ltd. HEROHONDA 400

73 Hindalco Industries Ltd. HINDALC0 1595

74 Hindustan Lever Ltd. HINDLEVER 1000

75 Hindustan Petroleum Corporation Ltd. HINDPETRO 1300

76 Hinduja TMT Ltd. HINDUJATMT 250

77 Hotel Leela Ventures Ltd. HOTELEELA 3750

78 HTMT Global Solutions Ltd. HTMTGLOBAL 250

79 ICICI Bank Ltd. ICICIBANK 350

80 Industrial development bank of India Ltd. IDBI 2400

81 Idea Cellular Ltd. IDEA 2700

82 Infrastructure Development Finance Company Ltd. IDFC 2950

83 IFCI Ltd. IFCI 7875

84 I-FLEX Solutions Ltd. I-FLEX 150

85 Indian Hotels Co. Ltd. INDHOTEL 1750

86 India Cements Ltd. INDIACEM 1450

87 India Infoline Limited INDIAINFO 500

88 Indian Bank INDIANB 2200

89 Indusind Bank Ltd. INDUSINDBK 3850

90 Infosys Technologies Ltd. INFOSYSTCH 100

91 Indian Overseas Bank IOB 2950

92 Indian Oil Corporation Ltd. IOC 600

93 Indian Petrochemicals Corpn. Ltd. IPCL 1100

94 ITC Ltd. ITC 2250

95 IVRCL Infrastructure & Projects Ltd. IVRCLINFRA 500

96 J & K Bank Ltd. J&KBANK 300

97 Jet Airways (India) Ltd. JETAIRWAYS 400

98 Jindal Steel & Power Ltd JINDALSTEL 125

99 Jaiprakash Associates Ltd. JPASSOCIAT 300

100 Jaiprakash Hydro-Power Ltd. JPHYDRO 6250

101 Jindal Stainless Ltd. JSTAINLESS 2000

102 JSW Steel Ltd. JSWSTEEL 550

103 Kesoram Industries Ltd KESORAMIND 500

104 Kotak Mahindra Bank Ltd. KOTAKBANK 550

105 The Karnataka Bank Ltd. KTKBANK 1250

106 LIC Housing Finance Ltd LICHSGFIN 1700

107 Lanco Infratech Ltd. LITL 850

108 Larsen & Toubro Ltd. LT 200

109 Lupin Ltd. LUPIN 350

110 Mahindra & Mahindra Ltd. M&M 312

111 Maharashtra Seamless Ltd. MAHSEAMLES 600

112 Maruti Udyog Ltd. MARUTI 400

113 Matrix Laboratories Ltd. MATRIXLABS 1250

114 United Spirits Ltd. MCDOWELL-N 250

115 Moser-Baer (I) Ltd MOSERBAER 550

Contd....

Contd....

109


Contd....

116 Mphasis Ltd. MPHASIS 800

117 Mangalore Refinery and Petrochemicals Ltd. MRPL 8900

118 Mahanagar Telephone Nigam Ltd. MTNL 1600

119 Nagarjuna Constrn. Co. Ltd. NAGARCONST 1000

120 Nagarjuna Fertiliser & Chemicals Ltd. NAGARFERT 14000

121 National Aluminium Co. Ltd. NATIONALUM 1150

122 NDTV Ltd. NDTV 1100

123 Neyveli Lignite Corporation Ltd. NEYVELILIG 5900

124 Nicolas Piramal India Ltd NICOLASPIR 1045

125 National Thermal Power Corporation Ltd. NTPC 1625

126 Oil & Natural Gas Corp. Ltd. ONGC 225

127 Orchid Chemicals Ltd. ORCHIDCHEM 1050

128 Oriental Bank of Commerce ORIENTBANK 1200

129 Pantaloon Retail (I) Ltd PANTALOONR 500

130 Parsvnath Developers Ltd. PARSVNATH 700

131 Patel Engineering Ltd. PATELENG 500

132 Patni Computer Syst Ltd PATNI 650

133 Peninsula Land Limited PENINLAND 550

134 Petronet LNG Limited PETRONET 4400

135 Power Finance Corporation Ltd. PFC 2400

136 Punjab National Bank PNB 600

137 Polaris Software Lab Ltd. POLARIS 1400

138 Praj Industries Ltd. PRAJIND 1100

139 Punj Lloyd Ltd. PUNJLLOYD 1500

140 Rajesh Exports Ltd RAJESHEXPO 550

141 Ranbaxy Laboratories Ltd. RANBAXY 800

142 Reliance Communications Ltd. RCOM 700

143 Reliance Energy Ltd. REL 550

144 Reliance Capital Ltd RELCAPITAL 550

145 Reliance Industries Ltd. RELIANCE 150

146 Shree Renuka Sugars Ltd. RENUKA 1000

147 Rel. Nat. Resources Ltd. RNRL 7150

148 Rolta India Ltd ROLTA 450

149 Reliance Petroleum Ltd. RPL 3350

150 Steel Authority of India Ltd. SAIL 2700

151 Satyam Computer Services Ltd. SATYAMCOMP 600

152 State Bank of India SBIN 250

153 Shipping Corporation of India Ltd. SCI 1600

154 Sesa Goa Ltd. SESAGOA 150

155 Shree Cements Ltd SHREECEM 200

156 Siemens Ltd SIEMENS 188

157 S Kumars Nationwide Ltd SKUMARSYNF 2600

158 Sobha Developers Ltd. SOBHA 350

159 SRF Ltd. SRF 1500

160 Strides Arcolab Ltd. STAR 850

161 Sterlite Industries (I) Ltd STER 438

162 Sterling Biotech Ltd STERLINBIO 1250

163 Sterlite Optical Technology STROPTICAL 1050

164 Sun Pharmaceuticals India Ltd. SUNPHARMA 225

165 Sun TV Network Ltd. SUNTV 125

166 Suzlon Energy Ltd. SUZLON 200

167 Syndicate Bank SYNDIBANK 3800

168 Tata Chemicals Ltd TATACHEM 1350

169 Tata Motors Ltd. TATAMOTORS 412

170 Tata Power Co. Ltd. TATAPOWER 400

171 Tata Steel Ltd. TATASTEEL 675

172 Tata Tea Ltd. TATATEA 550

173 Tata Consultancy Services Ltd TCS 250

174 Titan Industries Ltd. TITAN 206

175 Triveni Engg. & Inds. Ltd. TRIVENI 7700

Contd....

110

Chart 6-1: Business Growth of F&O Segment


Contd....

176 Tata Teleserv(Maharastra) TTML 10450

177 TVS Motor Company Ltd. TVSMOTOR 2950

178 Ultratech Cement Ltd. ULTRACEMCO 200

179 Union Bank of India UNIONBANK 2100

180 United Phosphorous Ltd UNIPHOS 700

181 Unitech Ltd UNITECH 450

182 UTI Bank Ltd. UTIBANK 450

183 Vijaya Bank VIJAYABANK 6900

184 Voltas Ltd. VOLTAS 3600

185 Videsh Sanchar Nigam Ltd VSNL 525

186 Wipro Ltd. WIPRO 600

187 Wockhardt Ltd. WOCKPHARMA 600

188 Zee Entertainment Enterprises Ltd. ZEEL 700

Table 6- 6 :List of Indices on which Futures & Optionsare available along with their market lot

Indices Market Lot

S&P CNX Nifty 50

CNX Nifty Junior 25

CNX IT 50

CNX 100 50

BANK Nifty 50

Investor Grievances,Arbitration 7

113

Investor Grievances, Arbitration

Investor Grievances

Investors are the backbone of the securities market. Protection of their interests is paramount

for NSE. In furtherance of their interests, NSE has put in place systems to ensure availability

of adequate, up-to-date and correct information to investors to enable them to take informed

decisions. It ensures that critical and price-sensitive information reaching the exchange is

made available to all classes of investors at the same point of time. Such price-sensitive

information as bonus announcements, mergers, new line of business, etc. received from the

companies is disseminated to all the market participants through the network of NSE

terminals all over India. Action is initiated by the Exchange where any kind of price-sensitive

information is not provided to the Exchange at the prescribed time. It ascertains the veracity

of rumours and disseminates facts in the interest of investors. In an attempt to ease the

existing system of information dissemination by the listed companies, NSE launched the

electronic interface for listed companies in August 2004. Under the new system, all corporate

announcements including that of Board meetings which needs to be disclosed to the market

is handled electronically in a straight through and hands free manner. It also conducts various

seminars and programs for the investors all over the country with a view to educate them on

their rights and obligations. They are also made aware of the precautions they need to take

while dealing in the securities market. It makes an audit trail available on request for all

transactions executed on NSE to enable investors to counter-check trade details for the

trades executed on their behalf by the member. It has also prescribed and makes effort to

ensure the implementation of various safeguards like time schedules for issuing contract

notes, for receiving funds and securities purchased by investors, segregation of client funds

and securities from those of members, etc. The Exchange has also launched a facility to

verify trades on the NSE website. Using this facility, an investor who had received a contract

note from the trading member of the Exchange can check whether the trade has been

executed.

NSE has put in place a system for redressal of investor grievances for matters/issues related

to/against trading members/companies. The Investor Grievance Cell of NSE is manned by

a team of professionals possessing relevant experience in the areas of securities markets,

company and legal affairs, and specially trained to identify problems faced by the investor

and to find and effect a solution quickly. It takes up complaints in respect of trades executed

on the NSE through its NEAT terminal and routed through the NSE trading member or

SEBI registered sub-broker of NSE trading member and trades pertaining to companies

traded on NSE. The status of receipt and disposal of investor grievances by the Exchange is

presented in Table 7-1.

77777

114

Investor Protection Fund

Some cushion to the interests of investors is provided by the Investor Protection Funds

(IPFs) set up by the stock exchange. The exchanges maintains an IPF to take care of investor

claims, which may arise out of non settlement of obligations by the trading member, who

has been declared a defaulter, in respect of trades executed on the Exchange. The maximum

amount of claim payable from the Fund to the investor is Rs. 10 lakh.

Arbitration

Arbitration is a speedy and alternative dispute resolution mechanism provided by the Exchange

for resolving disputes between the trading members and between a trading member and his

client, in respect of trades done on the Exchange. The arbitration mechanism is provided by

the Exchange in all its Regional offices to facilitate the speedy dispute resolution mechanism.

The parties to dispute appoint an arbitrator from the panel of arbitrators maintained by the

Exchange and approved by SEBI. The arbitrator(s) pronounces an award after going through

various documents submitted by the parties and hearing them. The status of arbitration

matters with the Exchange as at end March 2007 is presented in Table 7-2.

115

Table 7-1: Receipt and Disposal of Investor Grievance

Year Against Members Against Companies

Pending Received Disposed Pending Pending Received Disposed Pendingat the at the at the at the

beginning end beginning end

1994-95 - - - - - 2 - 2

1995-96 - 56 13 43 2 39 17 24

1996-97 43 320 72 291 24 415 102 337

1997-98 291 259 439 111 337 576 716 197

1998-99 111 383 347 147 197 592 380 409

1999-00 147 197 298 46 409 808 842 375

2000-01 46 263 201 108 375 1,095 1,111 359

2001-02 108 789 710 187 359 607 667 299

2002-03 187 345 418 114 299 587 626 260

2003-04 114 282 253 143 260 527 558 229

2004-05 143 435 409 169 229 1,304 1,128 405

2005-06 169 1,128 1,051 246 405 1,023 1,200 228

2006-07 246 1,367 1,460 153 228 774 769 233

Table 7-2: Status Report of Arbitration Matters

Year No. of Cases Received Withdrawn Awards Pending

1994-95 2 1 1 0

1995-96 41 5 36 0

1996-97 70 3 67 0

1997-98 164 2 162 0

1998-99 : CM 153 5 147 1

1998-99 : WDM 2 0 1 1

1999-00 : CM 149 6 143 0

1999-00 : WDM 1 0 1 0

2000-01 : CM 342 19 323 0

2000-01 : WDM 0 0 0 0

2000-01 : F&O 1 0 1 0

2001-02 : CM 275 7 268 0

2001-02 : WDM 0 0 0 0

2001-02 : F&O 5 0 5 0

2002-03 : CM 136 4 132 0

2002-03 : WDM 0 0 0 0

2002-03 : F&O 17 0 17 0

2003-04 : CM 119 6 113 0

2003-04 : WDM 0 0 0 0

2003-04 : F&O 42 3 39 0

2004-05 : CM 138 3 135 0

2004-05 : WDM 0 0 0 0

2004-05 : F&O 66 0 66 0

2005-06 : CM 224 5 186 33

2005-06 : WDM 0 0 0 0

2005-06 : F&O 191 7 143 41

2005-06 : CO 1 0 1 0

2006-07 : CM 81 0 1 80

2006-07 : F&O 57 1 0 56

Total 2,277 77 1,988 212

Knowledge Initiative 8

119

Knowledge Initiative

Several initiatives have been taken over the last few years to promote the skills of market

participants, to educate and protect the investors and to promote high quality research about

the working of the securities market. In line with this, NSE has launched several initiatives

to strengthen the knowledge base of the Indian securities market and to protect investor

interest. Major initiatives in this area are discussed below:

NSE's Certification in Financial Markets

Taking into account international experience and the needs of the Indian financial markets

NSE introduced in 1998 a unique testing and certification programme called National Stock

Exchange's Certification in Financial Markets (NCFM). This was introduced with a view for

protecting interests of investors in financial markets and more importantly, for minimizing

risks of losses arising out of deficient understanding of markets and instruments. NCFM is

an on-line testing system which tests the practical knowledge and skills required to operate

in the financial markets in a secure and unbiased manner and awards certificates based on

relative merits thus ensuring that the caliber of persons entering this field is kept high in the

best interests of a mature and vibrant market.

The entire process from generation of question paper, testing, assessing, scores reporting

and certifying is fully automated. It allows tremendous flexibility in terms of testing centres,

test dates and test timing and provides easy accessibility and convenience to candidates.

NCFM offers a comprehensive range of modules covering many different areas in finance

(Table 8-1) Some of these modules have regulatory sanctity. For example, it has been specified

by SEBI that all brokers/dealers and sales persons in the derivatives market have to

mandatorily obtain certification. Derivatives Market (Dealers) Module of the NCFM has

been recognised by SEBI for the purpose. In order to improve the level of knowledge of

market participants, only persons who have passed Capital Market (Dealers) Module of the

NCFM are authorised to use its trading system by the Exchange. The National Securities

Depository Limited has similarly prescribed that all the branches of the depository

participants must have at least one person who has qualified the NCFM module on Depository

Operations. In order to strengthen the Corporate Governance Standards, the Corporate

Governance Module was introduced in October 2005. Financial Market: A Beginners Module

was introduced in Feb 2006. This module has been prepared for those who are keen to

acquire some basic but key information about the stock markets as an initial step towards

becoming a more informed investor. This module will act as a means of satisfying some of

the initial queries on the stock markets and has been prepared with the objective of introducing

the functioning and role of the financial markets in India to all those interested in this topic.

The Compliance Officers Module was introduced in February 2006 with an objective of

providing comprehensive knowledge and a proper understanding of the Acts governing the

88888

120

Securities Markets, Rules and Regulations of the Exchange, Listing Procedures, etc. This

would enable an organization to adhere to the required compliance standards and not fall

short of meeting any existing guidelines.

A Security Auditor for any financial organization is essential and will be well equipped to

handle matters relating to Information Security which includes confidentiality, integrity and

timely availability of information for implementing efficient business processes Information

security is not just technology related security but much more than that, covering physical

and environmental security, access controls, business continuity planning etc. In view of

this, the Information Security Auditors Module was introduced in October 2006 and consist

of two parts Information Security Auditors Module (Part I) and (Part II). On successfully

clearing both the parts, a candidate is provided with a 'Certified Information Security Auditor

for Financial Markets' certification.

By the end of March 2007, a total of more than 4.24 lakh tests have been conducted for the

different modules of NCFM.

NCFM Online Payment System:

NCFM online payment was launched from January 16, 2006 in order to facilitate candidates

to pay their test fees on-line. Online payment can be made by modes of credit card, cash or

net banking. Candidates can log on to www.nseindia.com and click on the link 'NCFM On-

line'.

NCFM Tests conducted at international locations:

NSE's Certification in Financial Market (NCFM) is gradually gaining international

prominence. NSE along with Colombo Stock Exchange, Sri Lanka conducted tests in

Derivatives Module on September 16, 2005 and December 13, 2005. It has also conducted

tests in Derivatives Module in collaboration with Chittagong Stock Exchange on June 25,

2007 in Dhaka.

NSE Research Initiative

In order to improve market efficiency further and to set international benchmarks in securities

industry, NSE administers a scheme called the NSE Research Initiative. The initiative fosters

research which can support and facilitate stock exchanges to design market microstructure,

participants to frame their strategies in the market place, help regulators to frame regulations,

policy makers to formulate policy and broaden the horizon of knowledge about the securities

market. The initiative has received a tremendous response from the academics as well as the

market participants from within and outside the country. The studies completed/under

progress under the initiative is presented in Table 8-2.

121

Table 8-1: NCFM Modules

Table 8-2: Studies under the NSE Research Initiative

Sl. No. Title of Study

Completed Papers

1 Econometric Estimation of Systematic Risk of S&P CNX Nifty Constituents

2 Stock Market Development and its Impact on the Financing Pattern of the Indian Corporate Sector

3 Efficiency of the Market for Small Stocks

4 Determinants of Financial Performance of Indian Corporate Sector in the Post-Liberalization Era: AnExploratory Study

5 Should pension funds invest in equities? An analysis of risk-return tradeoff and asset allocation decisions

6 Changes in liquidity following exposure to foreign shareholders: The effect of foreign listings, inclusionin country funds and issues of American Depositary Receipts

7 Is the Spread Between E/P Ratio and Interest Rate Informative for Future Movement of Indian StockMarket?

8 Merger Announcements and Insider Trading Activity in India: An Empirical Investigation

9 Achieving an Individual Investor Friendly System using the power of the Internet

10 Improved Techniques for using Monte Carlo in VaR estimation

11 Short selling and its Regulation in India in International Perspective

12 Empirical investigation of multi-factor asset pricing models using Artificial Neural Network

13 Idiosyncratic Factors in Pricing Sovereign Bonds: An Analysis of the Government of India BondMarket

14 The Extreme Value Volatility Estimators and Their Empirical Performance in Indian Capital Markets

Contd....

Sr. No. Name of Module Test No. of Maxi- Pass Certifi-Duration Quest- mum Marks cate

(in ions Marks (%) Validity

minutes) (in years)

1 Financial Markets: A Beginners’ Module 60 50 100 50 5

2 Derivatives Market (Dealers) Module 120 60 100 60 3

3 Capital Market (Dealers) Module 105 60 100 50 5

4 Securities Market (Basic) Module 105 60 100 60 5

5 FIMMDA-NSE Debt Market (Basic) Module 120 60 100 60 5

6 Surveillance in Stock Exchanges Module 120 50 100 60 5

7 NSDL–Depository Operations Module 75 60 100 60 * 5

8 AMFI-Mutual Fund (Basic) Module 90 62 100 50 No limit

9 AMFI-Mutual Fund (Advisors) Module 120 72 100 50 5

10 Commodities Market Module 120 60 100 50 3

11 Corporate Governance Module 90 100 100 60 5

12 Compliance Officers (Brokers) Module 120 60 100 60 5

13 Compliance Officers (Corporates) Module 120 60 100 60 5

14 Information Security Auditors Module (Part-1) 120 90 100 602

Information Security Auditors Module (Part-2) 120 90 100 60

* Candidates securing 80% or more marks in NSDL-Depository Operations Module only are awarded ‘Certified

Trainer’ certificate.

122

Sl. No. Title of Study

15 Equity Market Interlinkages: Transmission of Volatility - A Case Of US and India

16 Institutional Investors and Corporate Governance in India

17 Dividend policy of Indian Corporate Firms : An Analysis of Trends & Determinants

18 Market Microstructure Effects of Transparency of Indian Banks

19 Futures Trading, Information and Spot Price Volatility of NSE-50 Index Futures Contract

20 Measuring productive efficiency of stock exchanges using price adjustment coefficients

21 Do Futures and Options trading increase stock market volatility?

22 Section switching stock market price effect in the Indian capital market and the policy implicationsthereof

23 Study of Common Stochastic Trend and Co-integration in the Emerging Markets - A case study India,Singapore and Taiwan

24 Market Discipline in the Indian Banking Sector: An Empirical Exploration

25 Conditional CAPM and Cross sectional returns - A study on Indian Securities Market

26 Evaluating index fund implementation in India

27 Measuring Volumes in the Indian Financial Markets Some Terminological and Conceptual Issues

28 Corporate Social Responsibility Initiatives by NSE NIFTY Companies - Content, ImplementationStrategies & Impact.

29 Measures for Improving Common Investor Confidence in Indian Primary Market : A Survey

30 Informational Content of Trading Volume And Open Interest – An Empirical Study of Stock OptionsMarket In India

31 An analysis of the Dynamic Relationships Between South Asian and Developed Equity Markets

32 Corporate Governance and Market reactions

33 Insider Ownership and Corporate Governance

34 Improving Index Fund Implementation in India

35 Seasoned Capital Offerings: Earnings Management and Long-Run Operating Performance of IndianFirms

36 Volatility Spillovers Across Stock, Call Money And Foreign Exchange Markets

37 Understanding the Microstructure in Indian Markets

38 Price and Volume Effects of S&P CNX Nifty Index Reorganization

39 Lead-Lag relationship between Equities and Stock Index Futures Market and its variation aroundInformation Release: Empirical Evidence from India

40 On The New Transformation-Based Approach To Measuring Value-At-Risk: An Application To ForexMarket In India

41 Optimal Hedge Ratio and Hedging Effectiveness of Stock Index Futures : Evidence from India

42 Evaluating Corporate Governance Risk: A Fuzzy logic approach

Papers under Progress

1 The Effect of Board Composition and Ownership Structure on Firm Performance: Evidence fromIndia

2 Price Limits - Are they worth the price?

3 Do the S&P CNX Nifty Index and Nifty Futures Really Lead/Lag? Error correction Model: ACointegration Approach

4 Price & Liquidity Effects of a stock split: An Empirical evidence from Indian Stock Market

5 Under pricing and long Run performance of Initial Public Offerings in Indian Stock Market.

6 Pricing and Liquidity effects of a stock split; An Emprical Evidance from Indian Stock Market.

7 Pricing of Options on Defty.

Table 8-2: Studies under the NSE Research Initiative

Contd....

contentsccmrm.org/wp-content/uploads/2015/03/fact-book-2007.pdf · contents ii section iv capital...

Documents