news dec 2010

8/8/2019 News Dec 2010

1/19

December 2010

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

Trading members to display their SEBI registered names and other details such as logo, registration number,

complete address with telephone numbers etc. on trading portals, notice/display boards, advertisements etc.

Mutual funds schemes permitted to be transacted through clearing members of the registered stock exchanges

Depository participants allowed to process redemption request of mutual fund units held in demat form

Portfolio managers advised to ensure a single lump-sum investment amount by clients should not be less than

` 5 lakh, disclosures about performance of portfolio are made and investment portfolios are not organised as

'schemes' akin to mutual fund schemes.

Amendments made in the SEBI (Mutual Funds) Regulations, 1996 related to Interval schemes, uniform cut-off

timings for applicability of NAV of mutual fund schemes

Initiated by SEBI

Repo trades in corporate debt securities to be settled on T+0 basis in addition to the existing T+1 and T+2basis under DVP I (gross basis) framework.

Initiated by RBI

S P O T L I G H T

Bimal Jalan Committee Report on 'Review of ownership and governance of market infrastructure institutions (MIIs)'released on November 22, 2010

NSE has joined hands with Maharashtra Knowledge Corporation Ltd. (MKCL) to launch a course in basic

financial literacy.

N C F M N E W S

The Bimal Jalan committee set up by SEBI submitted its report on 'Review of ownership and governance of market

infrastructure institutions' to SEBI on November 22, 2010. The committee has made recommendations on the issues

related to MII (i.e. stock exchanges, clearing corporations and depositories). Some of these issues are pertaining to

ownership and governance norms, measures of conflict resolution, listing of MIIs, net worth requirements, distribution

of profits of MIIs, related businesses that can be entered into by MIIs and replacement of Manner of Increasing and

Maintaining Public Shareholding in Recognised Stock Exchanges MIMPS Regulations. The report has been put on SEBI's

website for public comments (which can be given till December 31, 2010).

IOSCO issues guidelines for the 'Regulation of Conflicts of Interest Facing Market Intermediaries' in November 2010.

I N T E R N A T I O N A L N E W S

8/8/2019 News Dec 2010

2/19

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

Prepared by SBU-EDUCATIONNational Stock Exchange of India Ltd.Exchange Plaza, Bandra Kurla Complex, Bandra (E) Mumbai - 400051. Tel No: 022-26598163For detailed NSE Newsletter or for e-subscription, log on to www.nseindia.com>Press Room>NSE Newsletter.For Market Data, refer to www.nseindia.com>Research>Datazone.Articles for NSE Newsletter can be sent at [email protected]

Parameters Rank

Single Stock Futures

Stock Index Optionsrd

Stock Index Futures 3th

No. of Trades 4th

Market Capitalisation 14

nd2

nd2

Source : WFE (Rankings done for the period Jan- Dec 2009). Rankingsfor single stock futures, stock index options and stock index futuresis based on number of contracts traded.

NSE's GLOBAL RANKINGS

December 2010

CNX IT CNX FMCG INDEX S&P CNX Finance

S&P CNX Petrohemicals S&P CNX Pharmaceuticals CNX Bank Nifty

CNX Infrastructure S&P CNX Nifty

Nifty Dow Jones NIKKIE Hang seng Nasdaq

Nifty Movements vis-a-vis other International Indices(Rebased to 100 for March 31, 2010)

Performance of select sectors vis-a-vis Nifty(Rebased to 100 for March 31, 2010)

0

1000

2000

3000

4000

0

30

60

90

120

150

180

210

Sep-10

Oct-10

Nov-10

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

0

100

200

300

400500

600

700

800

15

20

25

30

35

40

Sep-10

Oct-10

Nov-10

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

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

Capital Market Segment

Currency Futures WDM Segment

Avg.

DailyTrad

ingValue

TradingV

alue

TradingV

alue

Avg.

DailyTrad

ingValue

F&O Segment

1000

2000

3000

4000

5000

50

100

150

200

250

300

Sep-10

Oct-10

Nov-10

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

TradingValue

Avg.

DailyTradingValue

TradingValue

Avg.

DailyTradingValue

Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10

150

140

130

120

110

100

9075

100

125

Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10

NSE MARKET STATISTICS

SegmentsTurnover ( ` cr ore) ch ange over tu rnover Capitalisation

Oct 2010 Nov 2010 Oct 2010 ( crore) ( crore)

CMWDM

F&OCDS(CurrencyFutures)

TOTAL

Percentage Average daily Market

` `

360,472 363,993 0.98 17,333 6,894,91245,913 32,444 (29.33) 1,622 3,486,249

2,824,493 2,965,846 5.00 141,231304,213 266,332 (12.45) 12,682

3,535,091 3,628,615 2.65 10,381,161

0

6000

12000

18000

24000

30000

200

400

600

800

1000

1200

1400

Sep-10

Oct-10

Nov-10

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

8/8/2019 News Dec 2010

3/19

NSEs Educational Courses: Basic Financial Literacy course

Short duration (3-4 months) capital

market course (NCCMP)

1-4 days Training programmes

Certifications (NCFM)

For more information send an email to:[email protected],

[email protected],

[email protected],

[email protected]

Or Call :

(022) 26598252 / 8216,

26598171 / 72,

26598100 (Extn3079, 3080, 3074, 3075, 3059, 3060)

[Type the company name]

[Pick the date]

8/8/2019 News Dec 2010

4/19

1

1

Submission of report of The Committee for Review of Ownership and Governance of Market Infrastructure Institu-tions

The Securities and Exchange Board of India constituted a Committee under the Chairmanship of Dr. Bimal Jalan,(Former Governor, Reserve Bank of India) to examine issues arising from the ownership and governance of Market In-

frastructure Institutions (MIIs). Dr. Bimal Jalan submitted the report to Chairman, SEBI on November 22, 2010.The committee deliberated and recommended primarily on the following issues among others after going through aconsultative process.

1. Ownership norms: Structure of MIIs, ownership norms for the MIIs, ownership and control of an MII in another classof MII, foreign participation etc.

2. Governance norms: The board composition for the three MIIs and disclosures to be made by board members.

3. Measures for conflicts resolution: Appointment and compensation for senior management of the MII includingMD/CEO, measures to ensure autonomy of regulatory departments and requirements for a compliance officer etc.

4. Other issues: Listing of MIIs, net worth requirements, distribution of profits of MIIs, related businesses that can be

entered into by MIIs, replacement of MIMPS Regulations and powers to SEBI.

The other members of the Committee were:

a. Dr. K.P. Krishnan, Joint Secretary, Ministry of Finance (till June 30, 2010), Secretary, Economic AdvisoryCouncil to the Prime Minister of India (from July 1, 2010)

b. Shri. Kishor Chaukar, Managing Director, Tata Industries

c. Shri. Uday Kotak, Managing Director, Kotak Mahindra Bank Ltd.

d. Prof. G. Sethu, Officer on Special Duty, National Institute of Securities Markets

e. Dr. K. M. Abraham, Whole Time Member, SEBI

f. Shri J.N. Gupta, Executive Director, SEBI (Member Secretary).

Some of the recommendations of the committee are as follows:

Ownership norms

A single anchor institutional investor (AII) may be permitted to hold up to 24% of the total equity capital of an ex-

change, along with persons acting in concert. Every anchor institutional investor will have to bring down its holding to

15% or less in ten years from the time it is recognised as an anchor. During the allowed holding period of ten years, if

an AII desires to offload the stake to another eligible AII, the holding period for new AII would be deemed to have com-

menced from the date when original AII acquired shares and became AII. In summary, the total holding period allowed

will be only 10 years for the initial AII and its subsequent AIIs. SEBI may extend such period in case the AII makes an

application for the extension in time and the same is a fit case for extension.

At the time of filing the application for recognition as a stock exchange, anchor institutional investors shall be identi-

fied, by the entity seeking recognition, from amongst the shareholders holding more than 15% and up to 24 % of the

equity capital of the exchange.

Anchor Institutional Investor for existing stock exchanges: Entities at (a) above desirous of holding more than 15% and

up to 24% for becoming anchor institutional investors in a recognised stock exchange will have to make an application

to SEBI for the same after getting the approval of the shareholders in the AGM of the stock exchange through a special

resolution.

N S E N E W S L E T T E R

S P O T L I G H T

D e c e m b e r 2 0 1 0

8/8/2019 News Dec 2010

5/19

2

2

All anchor institutional investors put together shall not hold more than 49% of the total equity capital of an exchange.

The present procedure of obtaining fit and proper approval from SEBI, for entities holding more than 5% shall con-

tinue.

Domestic institutions registered in India having a net worth of`

1000

crores or more and falling under the categoryof: (i) Public Financial institutions defined under section 4A of the Companies Act, 1956 and with national jurisdiction,

(ii) Banking company as defined under clause (c) of section 5 of the Banking Regulation Act, 1949 may be permitted to

be anchor institutional investors for stock exchanges for a period of 10 years from the date of recognition as an AII of

the exchange.

Ownership and control of an MII in anotehr class of MII

The Committee is of the view that clearing corporations and depositories perform specialized post-trade services. It is

ideal for these MIIs (clearing corporations and depositories) to function as public utilities and focus on improving the

safety of the market and reducing the costs to users. The Committee is of the view that, there is no need to permit a

clearing corporation or depository to invest in other class of MIIs. Hence, clearing corporations and depositories may

not be allowed to invest in other class of MIIs . To sum up, the model proposed for restriction on shareholding of stock

exchanges is as follows:-

The category based restrictions for trading members, FII, FDI and cumulative foreign holding will continue as before.


S P O T L I G H T ( c o n t d . . )

D e c e m b e r 2 0 1 0

8/8/2019 News Dec 2010

6/19

3

3

The Committee therefore, recommends that at least 51% of the paid-up equity capital of the clearing corporation

should be held by one or more recognized stock exchanges.

It is recommended that the holding of stock exchanges in depositories may be restricted to a maximum of 24%. Fur-

ther, the sponsors shall be subject to a fit and proper approval from SEBI in the manner similar to the shareholders

of stock exchanges holding more than 5%.

Therefore, it is recommended that in the case of all MIIs, an FII should be allowed to acquire the shares through off

market transactions including through initial allotment, as allowed for other shareholder, subject to the limits speci-

fied by the Government from time to time. The same may be suggested to the Government by SEBI.

It is recommended that no trading /clearing member (irrespective of exchange where he operates) shall be allowed

on the board of any of the stock exchange and the number of public interest directors on the board of a stock ex-

change shall at least be equal to the number of shareholder directors without trading/ clearing interest. The appoint-

ment of the Chairperson of the Board shall be with prior approval of SEBI. Terms and conditions of appointment of

Chairperson should be subject to SEBIs approval. The sitting fees payable to the PIDs shall be as per the Companies

Act, 1956.

They shall not be paid any commission or any other remuneration. The committee feels that trading members bringrich practical experience and the same should be utilized in a manner which doesnt conflict with governance. There-

fore in order to utilize the experience and expertise of trading members in the securities market, an advisory commit-

tee shall be constituted by the board of the stock exchange, comprising of trading members. Trading members shall

not be permitted participation in any other committee of the exchange. The advisory committee to the board may

deal with non-regulatory, operational matters such as product design, technology, etc. The board of the exchange

shall consult the advisory committee on these issues. The Chairman of the board shall head the advisory committee.

The advisory committee shall meet a minimum of 4 times a year. The recommendations of the advisory committee

shall necessarily be placed before the ensuing meeting of the board of the exchange and shall be disclosed on ex-

changes website.

It has been recommended that the number of public interest directors on the board of a clearing corporation shall at

least be equal to the number of shareholder directors without trading/clearing interest. Further, an advisory commit-tee shall be constituted by the board of the clearing corporation, comprising mainly of clearing members. Clearing

members shall not be permitted participation in any other committee of the clearing corporation. The advisory com-

mittee to the board shall deal with non-regulatory, operational matters such as procedure related to clearing and set-

tlement, technology, etc. The board of the clearing corporation shall consult the advisory committee on these issues.

The Chairman of the board shall head the advisory committee. The advisory committee shall meet a minimum of 4

times a year. The recommendations of the advisory committee shall be placed before the ensuing meeting of the

board of the clearing corporation and shall be disclosed on clearing corporations website.

It has been recommended that the board composition in depositories should be the same as prescribed for listed com-

panies under clause 49 of the listing agreement. All transactions in securities of the board members of the MII and

their family have to be disclosed to the board of the MII.

The MD/CEO of the MII shall be ex-officio member on the board of the MII. The MD/CEO shall not be included in either

the category of public interest directors or shareholder directors. In case the MII wishes to appoint any other official

on its Board in addition to the MD/CEO, the same shall be subject to the approval of shareholders and SEBI, in that

order. The additional official shall be counted in the category of shareholder directors.

The senior executives heading risk management, surveillance, listing, registration, compliance, inspection, enforce-

ment, arbitration, default, etc. shall report directly to an independent committee of the board consisting of a major-

ity of public interest directors and also to the MD/CEO (dual reporting).



D e c e m b e r 2 0 1 0

8/8/2019 News Dec 2010

7/19

8/8/2019 News Dec 2010

8/19

5

5


Further, when a related business of an MII delivers a service to another MII, it should be ensured that there is equal,

unrestricted, transparent and fair access to all without any bias towards its affiliated entity. SEBI should step in to

investigate complaints in this regard and fasten liability on the MII who owns the related business. SEBI should even go

as far as prohibiting an MII from using services supplied by its related business, should it detect any discriminatory

practices. Further, all commercial arrangements such as listing of international indices, etc. which provide for exclu-sive rights should be subject to prior approval of SEBI. SEBI may grant its approval for such exclusivity for a limited

period on a case-to-case basis, after examining the proposal.

Profit making of MIIs

The MII being a public utility should endeavor to earn only reasonable profits at par with average earnings of the cor-

porate sector in India. Therefore, it is recommended that a cap may be fixed on the maximum return that can be

earned by MII on its net worth and can be distributed / allocated to the shareholders of MII out of the total returns

earned by MII. Any return/profits above such maximum attributable amount would be transferred to IPF or SGF as the

case may be and the same would not form part of shareholders funds/ net worth for the purposes of determining re-

turns and book value of the shares. This would strengthen the MII to withstand shocks, make them robust and maylead to reduction of the chargeslevied by MIIs on the users. The cap may be fixed by SEBI after taking into considera-

tion risk free return based on the yield on a 10 year GOI bond and a risk premium to account for the risks faced by

MIIs including equity risk premium and liquidity risk due to non listing of MIIs. It should also take into account differ-

ential tax rate applicable to unlisted entities as the Committee has recommended that the MIIs should not be permit-

ted to list.

It is therefore, recommended that maximum profit available for distribution / allocation to shareholders which can be

utilized for payment of dividends and for appropriation to general reserves, balances of profit & loss account should

be capped at a certain percentage of annual return on net worth of the previous year. This cap will be determined by

SEBI based on factors enumerated above.

Net worth for this purpose would mean paid-up capital, balance of general reserves, profit & loss account and sharepremium account. The MII will be free to pay dividend to shareholders out of profit earned or out of free reserves/

balance of profit and loss account and share premium account in accordance with Companys act 1956. Any profit

earned over and above the prescribed return on net worth shall be transferred to IPF or SGF as the case may be and

shall not be available for distribution to shareholders nor will it become part of shareholders funds. The ceiling on

rate of return in all cases will be on profits after providing for taxes. The rate of return may be reset by SEBI consid-

ering the change in risk free rate of return, inflation etc.


A u g u s t 2 0 1 0D e c e m b e r 2 0 1 0

8/8/2019 News Dec 2010

9/19

6

6


Initiated by SEBI

1. Trading members to display its SEBI registered name as registered names and other details like (logo, registra-tion number, complete address with telephone numbers etc.) on trading portals, notice/display boards, adver-

tisements etc.

It has been observed by SEBI that a few stock brokers are using brand names / logos of their group companies in their

portals, notice/display boards, advertisements, publications, correspondences with outsiders and various documents.They are either not using the names as registered with SEBI or using the brand names / logos of group companiesmore prominently.

This creates confusion in the minds of the investors in the market. Thus, in consultation with the investors associa-tions and major stock exchanges, SEBI has decided that while a stock broker may use the brand name / logo of itsgroup companies, it must display more prominently:

its name as registered with SEBI, its own logo, if any, its registration number, and its complete address with tele-phone numbers in its portal/web site, if any, notice / display boards, advertisements, publications, know your clientforms, and member client agreements;

its name as registered with SEBI, its own logo, if any, its registration number, and its complete address with tele-phone numbers, the name of compliance officer, his telephone number and e-mail address in contract notes, state-ment of funds and securities and correspondences with the client.

Source: SEBI vide circular no. Cir/MIRSD/ 9 /2010 November 4, 2010

2. Mutual fund schemes permitted to be transacted through clearing members of the registered stock exchanges

and depositories participants allowed to process redemption request of units held in demat form.

Vide SEBI circular dated November 13, 2009 SEBI had permitted units of mutual fund schemes to be transactedthrough registered stock brokers of recognized stock exchanges. In order to provide more avenues for purchasing andredeeming mutual fund units, in addition to the existing facilities of purchasing and redeeming directly with the mu-tual funds and stock brokers, it has been decided :

that units of mutual funds schemes may be permitted to be transacted through clearing members of the regis-tered Stock Exchanges.

Depository participants of registered Depositories have been permitted to process only redemption request ofunits held in demat form.

The following has been decided with respect to investors having demat account and purchasing and redeeming mutualfunds units through stock brokers and clearing members:

Investors shall receive redemption amount (if units are redeemed) and units (if units are purchased) through bro-ker/clearing members pool account. Mutual Funds(MF)/ Asset management Companies(AMC) would pay proceeds tothe broker/clearing member (in case of redemption) and broker/clearing member in turn to the respective investorand similarly units shall be credited by MF/AMC into broker/clearing members pool account (in case of purchase) and

broker /clearing member in turn to the respective investor.

Payment of redemption proceeds to the broker/clearing members by MF/AMC shall discharge MF/AMC of its obli-gation of payment to individual investor. Similarly, in case of purchase of units, crediting units into broker/clearingmember pool account shall discharge MF/AMC of its obligation to allot units to individual investor.

In this regard:

Clearing members and Depository participants will be eligible to be considered as official points of acceptance as perSEBI Circular dated October 11, 2006 and conditions stipulated in SEBI Circular dated November 13, 2009 for stockbrokers Viz. AMFI /NISM certification, code of conduct prescribed by SEBI for Intermediaries of Mutual Fund, shall beapplicable for such Clearing members and Depository participants as well.

R E G U L A T O R Y C H A N G E S

A u g u s t 2 0 1 0D e c e m b e r 2 0 1 0

8/8/2019 News Dec 2010

10/19

7

7


Stock exchanges and Depositories will provide investor grievance handling mechanism to the extent they relate todisputes between their respective regulated entity and their client and shall also monitor the compliance of code ofconduct specified in the SEBI Circulars MFD/CIR/20/23230/02 dated November 28, 2002 and SEBI/IMD/08/174648/2009 dated August 27, 2009 regarding empanelment and code of conduct for intermediaries of MutualFunds.

The respective stock exchanges and Depositories would provide detailed operating guidelines to facilitate the above

and ensure that timelines prescribed under SEBI (Mutual Fund) Regulations, 1996 shall be adhered to with regard toallotment of units and receipt of redemption proceeds at the investors level.

3. Portfolio managers advised to ensure-minimum investment amount by clients (i.e. not less than`5 lakh, dis-closures about performance of portfolio and not to organize investment portfolios as schemes akin to mutual

fund schemes.

Portfolio Managers are registered and regulated under the SEBI (Portfolio Managers) Regulations 1993. SEBI has comeacross lack of uniformity in practice relating to following issues pertaining to portfolio managers:

There have been instances of portfolio managers accepting funds or securities less than `5lakh from clients andopening client accounts on the basis of the clients commitment that `5lakh would be brought in soon. Also therehave been instances of committed amounts being higher than the prescribed minimum of `5lakh while the initialamount collected from the client could be below`5lakh.

It is seen that many portfolio managers are not making adequate disclosure regarding portfolio performance inthe disclosure document.

SEBI vide notification dated August 11, 2008 deleted the word Scheme from PMS Regulations. However, it is seen thatin some cases, portfolio managers still group portfolios in separate investment categories and term them as schemes.

In order to bring about greater uniformity, clarity and transparency with regard to above issues, portfolio managersare advised to ensure the following;

To ensure compliance with regulation 15(1A) of SEBI (Portfolio Managers) Regulations, 1993, it is clarified that the

first single lump-sum investment amount received as funds or securities from clients should not be less than`5 Lakh.To ensure compliance with regulation 14(2)(b)(iv) of SEBI (Portfolio Managers) Regulations, 1993, Portfolio Managersshall disclose the performance of portfolios grouped by investment category for the past three years as per the en-closed prescribed tabular format.

Portfolio Managers are required to ensure that the disclosure document is given to all clients along with the accountopening form at least two days in advance of signing of the agreement. In order to ensure that the clients have accessto updated information about the portfolio manager, portfolio managers shall place the latest disclosure document ontheir website, wherever possible.

Portfolio Managers shall not organize investment portfolios as Schemes akin to Mutual Fund Schemes while marketingtheir services to clients.

Source: SEBI Circular vide Cir. /IMD/DF/16/2010 November 02, 2010

R E G U L A T O R Y C H A N G E S ( c o n t d . . )

A u g u s t 2 0 1 0D e c e m b e r 2 0 1 0

8/8/2019 News Dec 2010

11/19

8

8


4. Amendments made in the SEBI (Mutual Fund) Regulations, 1996 related to interval schemes, uniform cut-off

timings for applicability of NAV of mutual fund schemes

Interval Schemes

It has been noticed that certain Scheme Information Documents provide that the subscription to the scheme can bemade during a specific period (known as specified transaction period) and the repurchase of units is permitted on

all business days subject to applicable loads (except for redemption during specified transaction period when noload is charged). These schemes are generally referred to as interval schemes.

As per the current regulation, there is no restriction on tenure of securities in which interval scheme can invest.This read with daily redemption option may result in asset liability mismatch. In line with the changes made in theSEBI (Mutual Funds) Regulations, 1996 regarding close ended schemes, it has been decided that, henceforth, for allinterval schemes/plans

The units will be required to be mandatorily listed.

No redemption/repurchase of units shall be allowed except during the specified transaction period (the periodduring which both subscription and redemption may be made to and from the scheme). The specified transactionperiod shall be of minimum 2 working days. (The AMC shall ensure compliance with the equirements mentioned in

Clause 2 from the date of next specified transaction period or April 1, 2011 whichever is later)

Minimum duration of an interval period in an interval scheme/plan shall be 15 days.

Investments should be permitted only in such securities which mature on or before the opening of the immedi-ately following specified transaction period.

In case of securities with put and call options the residual time for exercising the put option of the securities shallnot be beyond the opening of the immediately following transaction period.

Applicability:

Schemes for which observations (final) under Regulation 29 of SEBI (Mutual Funds) Regulations, 1996 have been is-sued but are yet to be launched would be required to carry out the changes in Scheme Information Document and

file the same with SEBI before the launch.

Uniform cut-off timings for applicability of Net Asset Value (NAV) of Mutual Fund scheme(s)/plan(s).

As per the current regulations, in respect of purchase of units in liquid schemes, irrespective of the time of receiptof application, where the funds are not available for utilization before the cut-off time, the closing NAV of the dayimmediately preceding the day on which the funds are available for utilization shall be applicable;

In respect of purchase of units in Income/ Debt oriented schemes (other than liquid fund schemes and plans) withamount equal to or more than Rs. 1 crore, irrespective of the time of receipt of application, the closing NAV of theday on which the funds are available for utilization shall be applicable.

It is observed that mutual funds are deploying funds without receiving clear funds in the scheme account. As a mat-ter of good practice and to avoid systemic risk, it has been decided to modify certain provisions of the SEBI Circular

No. SEBI/IMD/CIR No.11/78450/06 dated October 11, 2006 as per the following details.

With regard to Clause 5(1) of SEBI Circular No. SEBI/IMD/CIR No.11/78450/06 dated October 11, 2006 which speci-fies cut-off timings for liquid fund schemes and plans, it is clarified that for determining the applicable NAV:

The following cut-off timings shall be observed by a mutual fund in respect of purchase of units in liquid fundschemes and their plans, and the following NAVs shall be applied for such purchase:

where the application is received upto 2.00 p.m. on a day and funds are available or utilization before the cut-off time without availing any credit facility, whether, intra-day or otherwise the closing NAV of the day immedi-ately preceding the day of receipt of application;


A u g u s t 2 0 1 0D e c e m b e r 2 0 1 0

8/8/2019 News Dec 2010

12/19

9

9


where the application is received after 2.00 p.m. on a day and funds are available for utilization on the same daywithout availing any credit facility, whether, intra-day or otherwise the closing NAV of the day immediately pre-ceding the next business day ; and

irrespective of the time of receipt of application, where the funds are not available for utilization before the cut-off time without availing any credit facility, whether, intra-day or otherwise the closing NAV of the day immedi-ately preceding the day on which the funds are available for utilization.


A u g u s t 2 0 1 0D e c e m b e r 2 0 1 0

8/8/2019 News Dec 2010

13/19

10

10


For allotment of units in respect of purchase in liquid schemes, it shall be ensured that:

Application is received before the applicable cut-off time.

Funds for the entire amount of subscription/purchase as per the application are credited to the bank account of

the respective liquid schemes before the cut-off time.

The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day orotherwise, by the respective liquid schemes.

For allotment of units in respect of switch-in to liquid schemes from other schemes, it shall be ensured that :

Application for switch-in is received before the applicable cut-off time.

Funds for the entire amount of subscription/purchase as per the switch-in request are credited to the bank ac-count of the respective switch-in liquid schemes before the cut-off time.

The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day orotherwise, by the respective switch-in schemes.

With regard to Clause 6(2A) of SEBI Circular No. SEBI/IMD/CIR No. 11/142521/08 dated October 24, 2008 which speci-fies the applicability of NAV for income/debt oriented mutual fund schemes/plans other than liquid schemes, it isclarified that for determining the applicable NAV

For allotment of units in respect of purchase in income/debt oriented mutual fund schemes/plans other than liquidschemes, it shall be ensured that:

- Application is received before the applicable cut-off time.

- Funds for the entire amount of subscription/purchase as per the application are credited to the bank ac-count of the respective schemes before the cutoff time.

- The funds are available for utilization before the cut-off time without availing any credit facility whetherintra-day or otherwise, by the respective scheme.

For allotment of units in respect of switch-in to income/debt oriented mutual fund schemes/plans other than liquidschemes from other schemes, it shall be ensured that:

Application for switch-in is received before the applicable cut-off time.

Funds for the entire amount of subscription/purchase as per the switch-in

request are credited to the bank account of the respective switch-in

income/debt oriented mutual fund schemes/plans before the cut-off time.

The funds are available for utilization before the cut-off time without availing

any credit facility whether intra-day or otherwise, by the respective switch-in

income/debt oriented mutual fund schemes/plans.


A u g u s t 2 0 1 0D e c e m b e r 2 0 1 0

8/8/2019 News Dec 2010

14/19

11

11


NSE has joined hands eith Maharashtra Knowledge Corporation Ltd. (MKCL) to launch a caourse on basic financial

literacy.

NSE has joined hands with Maharashtra Knowledge Corporation Ltd. (MKCL) to launch a course in basic financial liter-acy. Financial literacy refers to the set of skills and knowledge that allows an individual to make informed and effec-

tive decisions through their understanding of finance. Financial Literacy is important to help individuals meet theirlifes goals and objectives.

The aim of the course is to educate learners on simple concepts of personal finance. The course covers in a simplelanguage topics such as income, taxation, expenditure, savings & investment avenues, borrowing, managing risk,budgeting etc. Participants would also learn about various financial institutions and in what ways they can benefitfrom these institutions. The course helps participants to become aware of different products through which they canmeet their financial needs and learn about the benefits of prudent financial behaviour.

N C F M N E W S

A u g u s t 2 0 1 0D e c e m b e r 2 0 1 0

8/8/2019 News Dec 2010

15/19

8/8/2019 News Dec 2010

16/19

13

13


MANAGERIAL PERSONNEL NSE

2 0 1 0D e c e m b e r 2 0 1 0

NAME DESIGNATION DEPARTMENT TEL. NO. EXTN.

Dr. Vijay L Kelkar Chairman 26598202 7053

Mr. Ravi Narain Managing Director and CEO 26598122 7050

Ms. Chitra Ramkrishna Jt. Managing Director 26598123 7051

Mr. J Ravichandran Director Finance & Accounts, Legal & Secre-

tarial

26598203 5005

Mr. Ravi Apte Chief Technology Officer 26598316 5004

Mr. R Nanda Kumar Sr. Vice President National Commodity Clearing Lim-ited, NOW, New Projects & Interna-tional Business

26598223 3000

Mr. R Sundararaman Sr. Vice President National Securities Clearing Corpo-ration Ltd.

26598212 4006

Mr. Ravi Varanasi Sr. Vice President Investigation, Surveillance, DataAnalytics, RO Ahmedabad, Inspec-tion & Compliance

26598225 5003

Mr. Yatrik R Vin Sr. Vice President Finance & Accounts 26598213 3008

Mr. Chandrashekar Muk-

herjeeVice President Human Resource 26598437 3010

Mr. Hari K Vice President Listing & Membership 26598452 5058

Ms. Kamala Vice President Arbitration, Defaulters Section &Investor Service Cell, Inspection,Compliance

26598220 3006

Mr. Nirmal Mohanty Head SBU - Education 26598372 3007

Mr. Suprabhat Lala Vice President Trade - (Capital Market, F&O, Cur-rency Derivatives & WDM), CRM &Marketing

26598154 6026

Mr. Suresh Narayan Vice President India Index Services & Products Ltd.& DotEx International Limited

26598221 2004

Mr. T Venkat Rao Vice President & Head Northern Region

Regional Office - Delhi (011) 23344335 127

Mr. Vidhu Shekhar Vice President New Products & Six Sigma Initiatives 26598209 4007

Mr. Arup Mukherjee Asst. Vice President SBU - Education 26598217 3002

Mr. C. N. Upadhyay Asst. Vice President Inspection & Compliance 26598210 5002

Mr. Dhruvkumar Patil Asst. Vice President Investor Service Cell, DefaultersSection

26598190 3300

Mr. Mahesh Haldipur Asst. Vice President Premises 26598211 4003

Mr. Mayur Sindhwad Asst. Vice President NOW, Dotex International Ltd. 26598312 3102

Mr. Nilesh Tinaikar Asst. Vice President Development 26598445 5090

Ms. Nisha Subhash Asst. Vice President Investigation 26598162 5088

Mr. R Jayakumar Asst. Vice President Secretarial 26598222 5023

Ms. Rana Usman Asst. Vice President NSCCL - Securities, Corporate Bonds,F&O and SLB

26598267 4048

Mr. Ravi Tyagi Officer on Special Duty SME Project 26598435 4002

Mr Ravindra MohanBathula

Asst. Vice President Legal 26598197 5047

Mr. S R V S NagendraKumar

Asst. Vice President Development, NSCCL 26598455 1207

Mr. Sandip Mehta Asst. Vice President CTCL 26598150 6059Mr. Vitthal More Asst. Vice President New Projects 26598378 5537

8/8/2019 News Dec 2010

17/19

14

14


MANAGERIAL PERSONNEL NSE ( c o n t d . . )

A u g u s t 2 0 1 0D e c e m b e r 2 0 1 0

NAME DESIGNATION DEPARTMENT TEL. NO. EXTN.

Mr. Ajith Kumar V Chief Manager Administration & Development 26598146 4094Mr. Amit Bhobe Chief Manager New Projects & NCCL - 3319

Mr. Amol Mahajan Chief Manager Finance & Accounts 26598139/40 3081

Mr. Arvind Goyal Chief Manager NSCCL - Currency Derivatives 26598310 4130

Mr. Avinash Kharkar Chief Manager Investigation 26598366 5150Mr. Bireshwar Chatter-jee

Chief Manager Data Analytics 26598366 5146

Mr. Gaurav Kapoor Chief Manager CRM 26598208 1227

Ms. Himabindu Vak-kalanka

Chief Manager Development 26598453 5155

Mr. Huzefa Mahuvawala Chief Manager NSCCL -Risk Management 26598168 4040

Mr. Janardhan Gujaran Chief Manager F&O - Trade 26598152 6029

Ms. Jayna Gandhi Chief Manager Finance & Accounts 26598141 3066

Mr. Johnson JosephChiriyath

Chief Manager Listing 26598452 5057

Mr. Kiran Sawant Chief Manager NSCCL - Collaterals 26598265 4088

Mr. Kiran Dusane Chief Manager Premises 26598454 4112

Mr. Prashanto Banerjee Chief Manager Marketing 26598350 1228

Ms. Rehana D'Souza Chief Manager Membership 26598295 4116

Mr. Sammit Joshi

Chief Manager India Index Services & Products Ltd. 26598386 2027

Mr. Sandeep Manoharan

Chief Manager NOW, Dotex International Ltd. 26598313 3089

Ms. Seema Nayak Chief Manager Surveillance 26598166 6062

Mr. Shekhar Rao Chief Manager Finance & Accounts 26598143 3051

Ms. Sonali Karnik Chief Manager Currency Derivatives - Trade 26598131 6028

Mr. Sunil Gawde Chief Manager Capital Market - Trade 26598448 6033

Mr. Achal Jaiswal Chief Manager & Head - East-ern Region

Regional Office - Kolkata (033)40400444 444

Mr. Tojo Banerjee Chief Manager Regional Office - Delhi (011)23344505 128

Ms. Sunitha Anand Chief Manager & Head Southern Region

Regional Office - Chennai & Hydera-bad

(044) 28332512 2100

Ms. Sushama Bhagchan-dani

Chief Manager Finance & Accounts 26598144 3041

Mr. Vinayak Shenoy Chief Manager Finance & Accounts 26598139 3076

Mr. Sandeep Dandapat

Chief Manager Regional Office - Kolkata (033) 40400401 401

Ms. Bhawika Wanchoo

Manager & In-charge - Ah-medabad

Regional Office - Ahmedabad

(079) 26584578 -

8/8/2019 News Dec 2010

18/19

15

15


MANAGERIAL PERSONNEL NSE INFOTECH SERVICES LTD.

A u g u s t 2 0 1 0D e c e m b e r 2 0 1 0

Name Designation Projects Tel. No. Ext

Mr. N Muralidaran CEO 26598205 2001

Mr. G. M. Shenoy Senior Vice President Projects 26598207 2000

Mr. M. R. Krishnan Vice President Infrastructure 26598132 2003

Ms. Hema Iyer Vice President Risk Management 26598254 2002

Mr. Mahesh Soparkar Associate Vice President Projects, DBA/SysAdmin 26598136 2005

Ms. Mamatha Rangaprasd Associate Vice President Trade 26598351 1168

Mr. P. R. Visvas Assistant Vice President Quality, DWH 26598352 1189

Mr. Mahesh Basrur Assistant Vice President FOCASS, NCSS 26598100 2072

Mr. Deviprasad Singh Assistant Vice President Telecom 26598262 2122

Mr. Amit Hatalkar Assistant Vice President Web, SBU-Education 26598291 1119

Ms. Smrati Kaushik Senior Manager Trade 26598271 6082

Mr. Viral Mody Senior Manager Retooling 26598100 2078

Mr. Hitesh Shah Senior Manager DBA /SysAdmin/SysOperations 26598270 2102

Mr. Sujoy Das Senior Manager Index 26598275 2032Mr. Sudhir Sawant Senior Manager Project Management Office 26598100 2112

Mr. Pranav Gupta Senior Manager Risk Management 26598349 1165

Mr. Rajanish Nagwekar Senior Manager Net Market 26598270 2130

Mr. Nipun Dave Senior Manager Neatplus, TAP 26598258 2024

Mr. Bineet Jha Senior Manager HWARE SUPPORT 26598100 2129

Mr. Mathew Joseph K Senior Manager NCSS 26598100 2055

Mr. Benny Sebastian Senior Manager Membership, Inspection, Listing 26598100 1142

Mr. Umesh Agroya Senior Manager Telecom 26598277 2105

Mr. Manoj Joshi Manager NOW 26598231 1565

Ms. Anuja Joshi Manager BCP 26598100 1124Mr. Suresh Chandani Manager Trade 26598100 6083

Mr. Shibu Tomy Manager NCSS 26598100 1154

Ms. Pranali Taskar Manager Telecom 26598277 2096

Mr. Joy John Manager BCP - Chennai 044-28473702 141

Mr. Narayan Neelakanthan Manager Telecom 26598229 2113

Ms. Bernadine Swamy Manager HRD 26598100 2135

Mr. Anoop Kumar Rawat Consultant DBA 26598100 2094

Mr. Nitin Gupte Manager Telecom 26598100 2087

Mr. Sandeep Kumar Gupta Manager APPSG 26598100 2085

Mr. Tushar H. Kulkarni Manager Membership, Inspection 26598100 1141

Mr. Prasad Addagatla Manager SysAdmin/SysOperations 26598320 6089

Mr. Suraj P Bangera Manager Web 26598100 1110

8/8/2019 News Dec 2010

19/19