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The National Stock Exchange (NSE), located in Bombay, is India's first debt market. It was set up in 1993 to

encouragestock exchange reform through system modernization and competition. It opened for trading in mid-1994. It

was recently accorded recognition as a stock exchange by the Department of Company Affairs. The instruments

traded are, treasury bills, government security and bonds issued by public sector companies.

The number of members trading on the exchange has been on a steady increase, helping integrate the national

market and providing a modern system with a complete audit trail of all transactions.

Membership

1026 trading members on the Capital Market segment, of which around 86% account for corporates and the

remaining individuals and firms. 113 trading members on the Wholesale Debt Market segment, all of which account for corporates. (Out of

these 113 trading members, 106 are members of the Capital Market segment also and are included in the

1026 members indicated above).

Geographic Distribution

Over 2600 trading terminals Over 1500 VSATs across the country with a 24 hour Network monitoring system in over 160 cities as of

December 31st, 1997.

Number of Companies

On the Capital Market segment, 600 securities are listed and 762 securities are permitted to trade as of

December 31st, 1997. On the Wholesale Debt Market segment, 470 securities are listed and 369 securities are permitted to trade

as of December 31st, 1997. Of the 470 securities listed, 267 are Government Securities, T-Bills and thebalance account for other securities.

Capital Market Operations

NSE is working to increase the capacity of the trading system from the present 4,00,000 trades per day to

more than 10,00,000 trades per day. The average daily numbers of trades have gone up from over 893 trades in November-94 to over 1,48,783

trades in November 97. On August 7, 97 the number of trades reached a record high of 2,36,411 which

makes NSE one of the largest stock exchanges in the world.

Average daily traded value has increased from Rs.7 crores in November-94 to more than Rs. 1480 crores in

December-97 with a high of Rs.3,080.61 crores recorded on 26th June-97. Number of shares traded has increased from 76.10 lakhs in November-94 to 11,148.21 lakhs in December-

97.

Net traded value has increased from Rs.125 crores in November -94 to Rs. 32,549 crores in December-97.

Delivered value (settlement wise) has increased from Rs.60 crores in November -94 to Rs.5,008 crores in

December -97.

Number of shares traded (depository segment) has increased from 200 shares in December -96 to 1,19,102

shares in December-97.

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Net traded value (depository segment) has increased from Rs.0.43 lakhs in December -96 to Rs.185.44

lakhs in December-97.

Market share of cities other than five metros (Mumbai, Delhi, Calcutta, Chennai & Ahmedabad) which was

about 16% in first quarter of 1996 grew to as high as 24% during the last quarter of 1997.

The ratio of contribution to turnover from Non Stock Exchange centres to Stock Exchange centres has risen

from 0.36% in first quarter (Jan to Mar) of 1996 to over 10% in fourth quarter of 1997.

The market capitalisation of companies has increased from Rs. 292637 crores in November'94 to Rs.4571663 crores in February'98.

Clearing & Settlement

Completed 170 settlements successfully without any delay or postponement as on February 28, 1998. Value of shares handled by the Clearing house per week has increased from Rs. 30 crores in November-94

to over Rs.1042 crores per week in December-97. The highest value of shares handled during the period

was more than Rs. 2251.40 crores.

Inter-Region Clearing : NSCCL has Regional Clearing Centres at Delhi, Calcutta, Chennai and a Central

Clearing Centre at Mumbai. Members have the option of delivering/receiving the securities at a clearing

centre chosen by them.

Wholesale Debt Market Operations

The WDM segment commenced operations on June 30, 1994 with 224 securities carrying an outstanding

debt value of Rs. 1,35,000 crores (US$ 34 billion). This has now increased to 839 securities with a market

capitalisation of Rs. 3,50,565 crores (US$ 88 billion). More than half of the securities available for trading are

listed and the balance are permitted to trade. Currently, the Exchange has 78 registered participants on the WDM segment which includes 24 Public

sector banks, 18 Foreign banks, 15 Private sector banks, 6 Primary dealers, 5 Financial institutions, the

others being corporate bodies, mutual funds and foreign debt fund. Average daily value in the WDM segment increased from Rs. 2.4 crores in June-94 to Rs. 298.17 crores in

December -97 with a high of Rs. 1831.27 crores recorded on 12-Aug-97.

Net traded value in the WDM segment increased from Rs. 1096.25 crores in July -94 to Rs. 7,752.52 crores

in December-97 with a high of Rs. 15,545.40 crores recorded in July '97.

There has been a consistent increase in NSEs share of the total volume of activity in the market (gilt

securities) over the period. Government securities along with Treasury bills together account for over 80% of

the total market activity.

The share of the Exchange of the total market activity in Government Securities and T-Bills has increased

from a mere 22% in 1996 to 53% in 1997.