Fact Book

2008

NATIONAL STOCK EXCHANGE OF INDIA LIMITED

June 2008
 C O N T E N T S

SECTION 1 – NATIONAL STOCK EXCHANGE OF INDIA

Genesis ......................................................................................................... 3
Ownership And Management ..................................................................... 3
Market Segments And Products .................................................................. 3
Achievements / Milestones.......................................................................... 6
Facts And Figures ...................................................................................... 11
Technology ................................................................................................ 11
Application Systems .................................................................................. 12
NSE Family ............................................................................................... 14
NSCCL .............................................................................................. 14
NSDL ................................................................................................. 15
NSE Infotech Services Ltd.................................................................... 15
NSE.IT ............................................................................................... 15
IISL .................................................................................................... 16
NCDEX ............................................................................................. 16
NCCL ................................................................................................ 16
PXI..................................................................................................... 16
SECTION 2 – MEMBERSHIP ADMINISTRATION
Eligibility Criteria...................................................................................... 21
Trading Membership ................................................................................. 21
Clearing Membership ................................................................................ 22
Growth And Distribution Of Members .................................................... 22
Transaction Charges .................................................................................. 23
SECTION 3 – LISTING OF SECURITIES
Benefits Of Listing On NSE ...................................................................... 31
Listing Criteria........................................................................................... 32
Listing Agreement ..................................................................................... 32
Compliance By Listed Companies............................................................. 32
Disclosures By Listed Companies .............................................................. 32
De-Listing .................................................................................................. 33
CM Segment .............................................................................................. 34
Listing Fees ................................................................................................ 34

i
 C O N T E N T S

Shareholding Pattern ................................................................................. 35

WDM Segment .......................................................................................... 35
Funds Mobilisation On The Exchange ...................................................... 36
Initial Public Offerings (IPO’s) .................................................................. 36
FPOs .................................................................................................. 36
Rights Issues ........................................................................................ 37
Preferential Allotment / Private Placement........................................ 37
QIPs ................................................................................................... 37
SECTION 4 – CAPITAL MARKET SEGMENT
NEAT System ........................................................................................... 59
Market Performance .................................................................................. 59
Trading Volume ................................................................................. 59
Liquidity ............................................................................................ 60
Distribution of Turnover .................................................................... 61
Market Capitalisation ......................................................................... 61
Sectoral Distribution........................................................................... 61
Trading Records during 2007-08 ......................................................... 62
Internet Trading ................................................................................. 62
FII Turnover on NSE .......................................................................... 62
On-line IPOs ...................................................................................... 62
Indices ........................................................................................................ 63
Volatility Index .................................................................................. 63
Mutual Funds And Exchange Traded Funds ............................................. 64
Transaction Charges .................................................................................. 64
Clearing & Settlement ............................................................................... 65
Settlement Agencies ............................................................................. 66
Settlement Cycles ................................................................................ 67
Settlement Statistics............................................................................. 67
Risk Management System .......................................................................... 67
Capital Adequacy ............................................................................... 68
Margin Requirements.......................................................................... 68
Categorisation of newly listed securities ............................................... 68

ii
 C O N T E N T S

Value at Risk Margin .......................................................................... 69

Extreme Loss Margin........................................................................... 69
Mark to Market Margin ....................................................................... 69
Index-based Circuit Filters ................................................................... 70
Settlement Guarantee Fund................................................................. 71
Surveillance, Investigation & Inspection ................................................... 71
Surveillance & Investigation ............................................................... 71
Inspection ........................................................................................... 71
SECTION 5 – WHOLESALE DEBT MARKET SEGMENT
Trading Mechanism ..................................................................................103
Market Performance .................................................................................104
Turnover ...........................................................................................104
Market Capitalisation ........................................................................106
Transaction Charges .................................................................................106
Settlement .................................................................................................106
Constituent SGL Facility..........................................................................107
FIMMDA-NSE MIBID/MIBOR..............................................................107
Zero Coupon Yield Curve........................................................................108
NSE-VAR System .....................................................................................109
GOI-bond Index .......................................................................................110
SECTION 6 – FUTURES & OPTIONS SEGMENT
Trading Mechanism ..................................................................................136
Contract Specification ..............................................................................137
Selection Criteria For Stocks And Index Eligibility For Trading ............138
Trading Value & Contract Traded ...........................................................140
Product wise turnover on F&O Segment .............................................141
Futures and Options on Benchmark Indices ........................................142
Sectorwise Stock Futures & Options Turnover ....................................143
Participant wise turnover on F&O Segment .......................................143
FII Turnover on NSE .........................................................................144
Memberwise turnover on the Exchange ...............................................144
High Volume Members.......................................................................144

iii
 C O N T E N T S

Internet Trading ................................................................................145

Traded Value Records ........................................................................145
Top 20 Futures And Option Contracts ....................................................145
Number Of Trades ..................................................................................146
Charges .....................................................................................................146
Clearing And Settlement ..........................................................................147
Settlement Statistics............................................................................147
Clearing Mechanism ..........................................................................148
Settlement Mechanism ........................................................................148
Risk Management System .........................................................................150
NSE- SPAN .......................................................................................151
Margins .............................................................................................152
Position Limits ..................................................................................153
SECTION 7 – INVESTOR GRIEVANCES, ARBITRATION
Investor Grievances ..................................................................................185
Arbitration................................................................................................186
SECTION 8 – KNOWLEGDE INITIATIVE
NSE’S Certification in Financial Markets ................................................191
NCFM Online Payment System ..............................................................192
NCFM Tests conducted in other languages .............................................192
CBSE- NSE Certification in Financial Markets ........................................192
NSE Research Initiative ............................................................................193

iv
 C O N T E N T S

TABLES
SECTION 1
1-1 Board of Directors ............................................................ 17
1-2 Executive Committees...................................................... 18
SECTION 2
2-1 (a) Eligibility Criteria for Membership ................................. 24
2-1 (b) Requirements for Professional Clearing
Membership ...................................................................... 25
2-2 Growth and Distribution of Members ............................. 25
SECTION 3
3-1 Listing Criteria for Companies on CM
Segment of NSE ............................................................... 38
3-2 Companies Listed/ Permitted to Trade/Available
for Trading on the CM Segment ...................................... 40
3-3 Share holding Pattern at the end of March 2008 of
Companies Listed on NSE .............................................. 43
3-4 Eligibility Criteria for Securities on WDM Segment ....... 44
3-5 Securities Available for Trading on WDM Segment
(as on March 31) ............................................................... 45
3-6 Initial Public Offerings (IPOs) during 2007-08 ................. 46
3-7 FPOs during 2007-08 ........................................................ 50
3-8 Rights Issues during 2007-08 ............................................. 50
3-9 Preferential Allotments by NSE Listed Companies
during 2007-08 .................................................................. 51
3-10 Amount raised through QIP during 2007-08 ................... 56
SECTION 4
4-1 Business Growth of CM Segment .................................... 72
4-2 Percentage Share of Top ‘N’ Securities /Members
in Turnover ...................................................................... 75
4-3 ‘50’ Most Active Securities during 2007-08 in
Terms of Trading Value ................................................... 76
4-4 Top ‘50’ Companies by Market Capitalisation
as on March 31, 2008 ........................................................ 78
4-5 Industry Wise Classification of Top ‘50’ Companies
by Trading Volume and Market Capitalisation ............... 80

v
 C O N T E N T S

4-6 NSE’s Most Active Trading days during

the year 2007-08 ................................................................ 81
4-7 Individual Securities Single day Trading Records ............ 81
4-8 FII turnover on derivative Market
Segment of Exchange ........................................................ 81
4-9 Market Capitalisation of Securities in the
CM Segment ..................................................................... 82
4-10 Composition of S&P CNX Nifty Index as on
March 31, 2008 ................................................................. 84
4-11 Composition of CNX NIFTY Junior Index -
as on March 31, 2008 ........................................................ 85
4-12 Industry-wise Weightages of S&P CNX NIFTY
Securities as on 31st March, 2008 ..................................... 87
4-13 S&P CNX NIFTY Index ................................................. 87
4-14 CNX NIFTY Junior Index .............................................. 90
4-15 Performance of NSE Indices during
the year 2007-08 ................................................................ 93
4-16 Details of Mutual Funds and Exchange Traded
Funds Listed on NSE ....................................................... 93
(a) List of Mutual Funds (MF’s) and Exchange Traded
Funds (ETF’s) ................................................................... 93
(b) No of Trades and Trading Value ...................................... 94
4-17 Settlement Cycle and Process in CM Segment
& Settlement Process ........................................................ 94
4-18 Settlement Statistics in CM Segment ................................ 96
SECTION 5
5-1 Business Growth of WDM Segment ...............................111
5-2 WDM Transactions in Government Securities ...............116
5-3 Security-wise and Participant –wise Distribution
of WDM Trades ..............................................................119
5-4 Share of Top ‘N’ Securities/Trading Members/
Participants in Turnover in WDM Segment ...................122
5-5 Market Capitalisation of WDM Securities ......................123
5-6 FIMMDA NSE-MIBID/MIBOR Rates...........................128
5-7 1 day Value-at-Risk (99%) for Government of India
Securities Traded as on March 31, 2008...........................131

vi
 C O N T E N T S

SECTION 6
6-1 List of Securities on which Futures & Options
available at NSE along with their market lot
(as on 20th June 2008) .....................................................156
6-2 Contract Specification for Index
Futures and Options........................................................163
6-3 Contract Specification for Stock
Futures and Options........................................................166
6-4 Business Growth of Futures & Options
Market Segment...............................................................167
6-5 Sector-wise Trading Value of Top 5 companies
in the F&O Segment (2007-08) ........................................172
6-6 Participant wise Trading Value in the
F&O Segment (2007-08) ..................................................174
6-7 FII Gross turnover on derivative Market
Segment of Exchange .......................................................175
6-8 (a) Number of Members in different turnover
brackets during 2007-08 ...................................................176
(b) No. of members in different Turnover Brackets in
Futures and Options Segment for 2007-08 .....................177
(c) Segment wise Contribution of Top ‘N’ Members to
turnover on Futures and Options segment .....................176
6-9 Top 20 Futures contracts according to number
of contracts 2007-08 .........................................................178
6-10 Top 20 Option contracts according to no. of
contracts traded 2007-08 .................................................179
6-11 Number of trades in the Futures & Options
Segment 2007-08 ..............................................................179
6-12 Settlement Statistics in F&O Segment ............................180
SECTION 7
7-1 Receipt and Disposal of Investor Grievance....................187
7-2 Status Report of Arbitration Matters ..............................187
SECTION 8
8-1 NCFM Modules ..............................................................194
8-2 Studies under the NSE Research Initiative ......................195

vii
 C O N T E N T S

CHARTS
SECTION 1
1-1 Market Segment Indications - Trading Volume ................. 5
1-2 Market Segment Indicators - Market Capitalisation........... 6
SECTION 3
3-1 No. of Companies Listed ................................................. 37
SECTION 4
4-1 Business Growth of Capital Market Segment .................. 75
4-2 Movement of Sectoral Indices : 2007-08 ........................... 92
SECTION 5
5-1 Business Growth of WDM Segment ...............................104
5-2 (a) Security-wise Distribution of WDM Trades (2007-08) ....105
(b) Participant-wise distribution of
WDM trades (2007-08) .....................................................105
5-3 Overnight MIBID/MIBOR Rates, 2006-07 -
from 3 April 2007 to 31st March 2008 ............................108
5-4 Zero Coupon Yield Curve, 2007-08 ................................109
SECTION 6
6-1 Business Growth of F&O Segment .................................140
6-2 Product wise Number of Contracts
Traded during 2007-08 .....................................................141
6-3 Product wise trading volumes during 2007-08.................142
6-4 Participant wise F&O Turnover during 2007-08 ............144

viii
National Stock Exchange
of India 1
2
 National Stock Exchange of India 1
Genesis

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

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 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 and 1-2 gives 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

3
 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 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 2007-08 was nearly Rs. 14,148 crore. (US $ 3,540 million).

Futures & Options segment of NSE provides trading in derivatives instruments like
Index Futures, Index Options, Stock Options, Stock Futures. Though only eight 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, Nifty Midcap 50 index
and single stocks are available. The average daily turnover in the F&O Segment of the
Exchange during 2007-08 was nearly Rs. 52,153 cr. (US $ 13,048 millions).

The statistical details of these segments are presented in the tables and charts below :

Market Segments – Selected Indicators

At end of March 2008
Segments No. of Members No. of Securities/Contracts Available
CM 1,069 1,236 a
WDM 62 3,566
F&O 942 23,466 b
Total 1,075 c 28,268

4
a Excludes suspended securities.
b 3 Nifty index Futures, 3 CNX IT Futures, 3 Bank Nifty Futures, 3 CNX 100 futures,
3 Nifty Junior index futures, 3 Nifty Midcap50 futures, 3 Mini Nifty Futures,
681 stock futures, 520 Nifty index options, 124 CNX IT options, 296 Bank Nifty
options, 146 CNX 100 options, 312 Nifty Junior index options , 112 Nifty Midcap
50 options, 142 Mini Nifty Options, 21,094 stock option and 18 interest rate futures
contracts.
c Do not add up to total because of multiple membership.

Trading Value
(Rs. cr)
Segment/Year 2004-05 2005-06 2006-07 2007-08
CM 1,140,072 1,569,558 1,945,287 3,551,038
F&O 2,547,053 4,824,250 7,356,271 13,090,478
WDM 887,294 475,523 219,106 282,317
Total 4,574,418 6,869,332 9,520,664 16,923,833

Market Segments Indicators- Trading Volume

5
 Market Capitalisation (As at end March)
(Rs. cr)
Segment/Year Mar-05 Mar-06 Mar-07 Mar-08
CM 1,585,585 2,813,201 3,367,350 4,858,122
WDM 1,461,734 1,567,574 1,784,801 2,123,346
Total 3,047,319 4,380,775 5,152,151 6,981,468

Market Segment Indicators- Market Capitalisation

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.

Contd...

6
Contd...

Month/Year Event
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
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
June 2003 Launch of Exchange Traded Interest Rate derivatives on
Notional 91 day T-bills and Notional 10 year bonds
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
Contd...

7
 Contd...

Month/Year Event
March 2005 ‘India Innovation Award’ by EMPI Business School, New
Delhi
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 NSE, CRISIL announce launch of India Bond Watch.com
March 2007 Launch of Gold BeES- Exchange Traded Fund (ETF).(First
Gold ETF)
June 2007 Launch of Futures & Options on CNX 100 and CNX Nifty
Junior contracts.
October 2007 Launch of Futures & Options on Nifty Midcap 50
January 2008 Launch of Mini Nifty derivative contracts
March 2008 Launch of long term option contracts on S&P CNX Nifty
Index.
April 2008 Launch of Securities Lending & Borrowing Scheme
April 2008 Launch of - India VIX - The Volatility Index
June 2008 Setting up of Power Exchange India Ltd.

Developments during the year.

New Products in the F & O Segment

Based on the evolving needs of the market and the investors, NSE introduced futures
and options trading on Nifty Midcap 50 index in October 2007. It is a gateway for
investors to invest in the medium capitalised segment of the stock market which is
being increasingly perceived as an attractive investment strategy with high growth
potential. Mini Nifty derivative were available for trading from 01st January 2008.
It provides an opportunity and easier access for small investors to invest in derivatives.
Index is the most actively traded index based derivative product in India. The long
term options contract which was introduced in March 2008 has expected to deepen this
market further.

Securities Lending and Borrowing

SEBI issued a SLB scheme on December 20, 2007. The salient features of the scheme are
as under:

• To begin with, the SLB would be operated through Clearing Corporation/Clearing

House of stock exchanges having nation-wide terminals who will be registered as
Approved Intermediaries (AIs) under the SLS, 1997.

8
• The SLB would take place on an automated, screen based, order-matching platform
which will be provided by the AIs. This platform would be independent of the other
trading platforms.

• To begin with, the securities traded in derivatives segment would be eligible for
lending & borrowing under the scheme.

• All categories of investors including retail, institutional etc. will be permitted to

borrow and lend securities. The borrowers and lenders would access the platform
for lending/borrowing set up by the AIs through the clearing members (CMs) who
are authorized by the AIs in this regard.

• The tenure of lending/borrowing would be fixed as standardised contracts. To start

with, contracts with tenure of 7 trading days may be introduced.

• The settlement cycle for SLB transactions would be on T+1 basis. The settlement
of lending and borrowing transactions would be independent of normal market
settlement.

• The settlement of the lending and borrowing transactions should be done on a

gross basis at the level of the clients i.e. no netting of transactions at any level will
be permitted.

NSCCL, as an Approved Intermediary (AI) launched the Securities Lending & Borrowing
Scheme from April 21, 2008. Lending & Borrowing is carried on an automated screen
based platform where the order matching is done on basis of price time priority. The
borrowing has a fixed tenure of seven days with the first leg settlement on T+1 day and
reverse leg settlement on T+8 day.

Direct Market Acess

During April 2008, Securities & Exchange Board of India (SEBI) allowed the direct market
access (DMA) facility to the institutional investors. DMA allows brokers to offer clients
direct access to the exchange trading system through the broker’s infrastructure without
manual intervention by the broker. DMA facility give clients direct control over orders,
help in faster execution of orders, reduce the risk of errors from manual order entry and
lend greater transparency and liquidity. DMA also leads to lower impact cost for large
orders, better audit trails and better use of hedging and arbitrage opportunities through
the use of decision support tools/algorithms for trading.

Volatility Index

The India VIX, the volatility Index was launched on 08th April, 2008 . A Volatility
Index reflects the market’s expectation of volatility over the near term. The index
captures the implied volatility embedded in option prices. Volatility is often described
as the “rate and magnitude of changes in prices” and, in, finance often referred to as risk.

9
 Volatility Index is a measure, of the amount by which an underlying Index is expected
to fluctuate, in the near term, (calculated as annualised volatility, denoted in percentage
e.g. 20%) based on the order book of the underlying index options. Market volatility
keeps changing as new information flows into the market. It would be imperative
for market participants to have an index designed to track market volatility. The
India VIX is a simple but useful tool in determining the overall volatility of the
market.

Cross Margining

Many trading members undertake transactions on both the cash and derivative segments
of an Exchange. They keep separate deposits with the exchange for taking positions in
two different segments. In order to improve the efficiency of the use of the margin capital
by market participants and as in initial step towards cross margining across cash and
derivatives markets SEBI allowed Cross Margining benefit in May 2008.

For Cross margining the stock positions of the institutions in capital market segment
after confirmation by the custodian on T+1 day shall be compared with the stock
futures position of the same institution in derivative segment based on the CP code of
the institution at the end of the day. The position shall be considered for cross margining
only if the position in the capital market segment off set the position in the derivative
segment.

SEBI has allowed the following to start with: a. Cross margin is available for institutional
trades. b. Cross margin is available to positions in cash market having corresponding off-
setting positions in the stock futures market. c. For positions in the cash market which
have corresponding offsetting positions in the stock futures, VaR margin is not be levied
on the cash market position to the extent of the off-setting stock futures market position.
d. Extreme Loss margin and Market to Market margin shall continue to be levied on the
entire cash market position. e. The near-month stock futures positions are not considered
for cross-margin benefit three days prior to expiry (the last Thursday of every month)
and there will be no change in the margins on the F & O positions.

Power Exchange India Limited

Power Exchange India Limited (PXI) a joint venture of National Stock Exchange of India
Ltd (NSE) and National Commodity & Derivatives Exchange Ltd (NCDEX) has been
set up in response to the guidelines issued by Central Electricity Regulatory Commission
(CERC). PXI would be operating as a National Level electricity exchange covering the
entire Indian electricity market. It will provide a common electronic platform for trading
of electricity. It is proposed that the initial trading would be done on a day-ahead basis
with voluntary participation. New contracts would be introduced after taking feedback
form the market and obtaining approval from CERC.

10
 Facts And Figures

The growth in the stock market activity across the different market segments and
products is visible from records reached as at the end of March 2008 as sited in the table
below :

Stock Market Records

Sr. Parameter Date Magnitude

No.
Capital Market Segment
1 Record number of trades January 03, 2008 6,812,991
2 Record daily turnover (quantity) September 26, 2007 11,353 lakhs
3 Record daily turnover (value) November 01, 2007 Rs.28,476.07 cr.
(US $ 7,124.36 mn.)
4 Record market capitalisation January 07, 2008 Rs.6,745,724.00 cr.
(US $ 1,687,696.77 mn.)
5 Record value of S&P CNX Nifty Index January 08, 2008 6357.10
6 Record value of CNX Nifty Junior Index January 04, 2008 13209.35
Clearing & Settlement
Record Pay-in/Pay-out (Rolling Settlement):
1 Funds Pay-in/Pay-out October 23,2007 * Rs.4,567.70 cr.
(US $ 1,142.78 mn.)
2 Securities Pay-in/Pay-out (Value) December 31,2007 * Rs.9,195.56 cr.
(US $ 2,300.62 mn.)
3 Securities Pay-in/Pay-out (Qty) October 01,2007 * 2,788.30 lakhs
* Settlement Date
Derivatives (F&O segment)
1 Record number of trades October 18,2007 1,420,967
2 Record daily turnover (value) October 18,2007 Rs. 110,563 cr.
(US $ 27,661.50 mn.)
Wholesale Debt Market Segment
1 Record daily turnover (value) August 25,2003 Rs.13,911.57 cr.
(US $ 3,179.79 mn.)

Technology
Technology has been the backbone of the Exchange. Providing the services to the investing
community and the market participants using technology at the cheapest possible cost has
been its main thrust. NSE chose to harness technology in creating a new market design. It
believes that technology provides the necessary impetus for the organisation to retain its

11
 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 energise participation
from about 2,956 VSATs from nearly 245 cities spread all over the country.

Its trading system, called National Exchange for Automated Trading (NEAT), is a state
of-the-art 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 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. NSE has also put in place
NIBIS (NSE’s Internet Based Information System) for on-line real-time dissemination of
trading information over the Internet.

As part of its business continuity plan, NSE has established a disaster back-up site at
Chennai along with its entire infrastructure, including the satellite earth station and the
high-speed optical fibre link with its main site at Mumbai. This site at Chennai is a replica
of the production environment at Mumbai. The transaction data is backed up on near real
time basis from the main site to the disaster back-up site through the 2 mbps high-speed
link to keep both the sites all the time synchronized with each other.

Application Systems
The various application systems that NSE uses for its trading as well 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.

In the front end, there are 6 applications: (i) NEAT – CM system takes 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 securities and users. The application runs on three Stratus systems with Open Strata
Link (OSL). The application has been benchmarked to support 15,000 users and handle
more than 15 million trades daily. This application also provides data feed for processing
to some other systems like Index, OPMS through TCP/IP. This is a direct interface with
the trading members of the CM segment of the Exchange for entering the orders into the
main system. There is a two way communication between the NSE main system and the
front end terminal of the trading member. (ii) NEAT – WDM system takes care of trading
of securities in the Wholesale Debt Market (WDM) segment that includes Gilts, Corporate
Bonds, CPs, T-Bills, etc. This is a direct interface with the trading members of the WDM
segment of the Exchange for entering the orders/trades into the main system. There is a
two way communication between the NSE main system and the front end terminal of

12
the trading member. (iii) NEAT – F&O 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. This is a direct interface with
the trading members of the F&O segment of the Exchange for entering the orders into
the main system. There is a two way communication between the NSE main system and
the front end terminal of the trading member. (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 of the CM segment
who are registered for undertaking order entry on behalf of their clients for IPOs. NSE
uses the NEAT IPO system that allows bidding in several issues concurrently. There is
a two way communication between the NSE main system and the front end terminal of
the trading member. (v) NEAT – MF system is an interface with the trading members of
the CM segment for order collection of designated Mutual Funds units (vi) Surveillance
system offers the users a facility to comprehensively monitor the trading activity and
analyse the trade data online and offline.

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 thirteen 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 and load balancing of an array of parallel
processors that provides complete fault tolerance. 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) Data warehousing
that is the central repository of all data in CM as well as F&O segment of the Exchange,
(f) Listing system that captures the data from the companies which are listed in the
Exchange for corporate governance and integrates the same to the trading system for
necessary broadcasts for data dissemination process and (g) Membership system that keeps
track of all required details of the Trading Members of the Exchange.

13
 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. 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 Mahindra Bank, Axis Bank Lt,. 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.

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

14
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

NSE Infotech Services Ltd Information Technology has been the back bone of
conceptualization, formation, running and the success of National Stock Exchange of
India Limited (NSE). NSE has been at the forefront in spearheading technology 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
M/s. 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 to provide thrust to NSE’s technology edge, concomitant with its overall goal of
harnessing latest technology for optimum business use. 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, professional
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

15
 learning management system developed by NSE.IT jointly with an e-learning partner. New
initiatives include payment gateways, products for derivatives segments and Enterprise
Management 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 96 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,
India’s first exchange traded fund, a number of index funds, and Licensing of the Index
for various structured products

NCDEX

NSE joined hand with other financial institutions in India to promote the 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 48 agro based commodities, 2 precious metal, 6 base metal, 3 energy products and
3 polymers.

NCCL

National Commodity Clearing Limited (NCCL) is a company promoted by National

Stock Exchange of India Limited (NSEIL). It was incorporated in the year 2006. One of the
objectives of NCCL is to provide and manage clearing and settlement, risk management
and collateral management services to commodity exchanges. NCCL is having the
requisite experience and exposure in providing clearing and settlement facility, risk and
collateral management services in the commodities market including funds settlement
with multiple clearing banks. Currently NCCL is providing clearing and settlement
services to NCDEX.

PXI

A National Level Power Exchange by the name of Power Exchange India Limited (PXI)
has been set up through a Joint Venture by India’s two leading Exchanges, National
Stock Exchange of India Ltd (NSE) and National Commodity & Derivatives Exchange
Ltd (NCDEX). PXI has got the in-principle approval from CERC to set up and operate
the power exchange and will operate as a National Level electricity exchange covering
the entire Indian electricity market.

16
 Table 1-1 : Board of Directors*

1 Mr. S. B. Mathur Chairman

2 Mr. Ravi Narain MD & CEO

National Stock Exchange of India Ltd.

3 Ms. Chitra Ramkrishna Deputy Managing Director

National Stock Exchange of India Ltd.

4 Mr. C. Achuthan Director

Former Presiding Officer, Securities Appellate Tribunal

5 Mr. Anjan Barua Director

Chief General Manager ( Global Markets), State Bank of India

6 Rear Admiral Madan Mohan Chopra AVSM (Retd.) Director

7 Mr. A. P. Kurian Director

Chairman, Association of Mutual Funds in India

8 Dr. Rajiv B. Lall Director

Managing Director & CEO, Infrastructure Development
Finance Company Limited

9 Mr. Lawrence Leibowitz Director

Group EVP and Head of US Markets & Global Technology
NYSE Euronext

10 Mr. Anand G. Mahindra Director

Vice Chairman & Managing Director, Mahindra & Mahindra
Ltd.

11 Mr. Y. H. Malegam Director

Chairman Emeritus, M/s. S.B. Billimoria & Co. Chartered
Accountants

12 Prof. (Dr.) K. R. S. Murthy Director

Professor & Former Director, Indian Institute of Management,
Bangalore

13 Dr. R. H. Patil Director

Chairman, The Clearing Corporation of India Limited

14 Ms. Bhagyam Ramani Director

General Manager, General Insurance Corporation of India

15 Dr. V. A. Sastry Director

16 Mr. Onkar Nath Singh Director

Ex-Chairman & Mananging Director
Industrial Investment Bank of India Ltd.

17 Mr. Justice B.N.Srikrishna (Retd.) Director

Former Judge, Supreme Court of India

18 Mr. T. S. Vijayan Director

Chairman
Life Insurance Corporation of India

* As of July 15, 2008.

17
 Table 1-2 : Executive Committees

I CM & WDM SEGMENTS

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

of India Ltd.

2 Mr. Ashok Kumar Agarwal Chairman, Globe Capital Market Ltd. Trading Member

3 Mr. D. C. Anjaria Director, International Financial Public Representative

Solutions Pvt. Ltd.

4 Mr. Vimal Bhandari Country Manager – India AEGON Public Representative

International NV

5 Mr. C. J. George Managing Director, Geojit Financial Trading Member

Services Ltd.

6 Mr. Y. H. Malegam Chairman Emeritus, S.B.Billimoria & Public Representative

Co. Chartered Accountants

7 Ms. Chitra Ramkrishna Deputy Managing Director, National Other Nominees

Stock Exchange of India Ltd

8 Mr. Rashesh Shah Director, Edelweiss Securities Pvt. Ltd. Trading Member

9 Mr. Ramesh Kumar Somani Whole-time Director, Eureka Stock & Trading Member
Share Broking Services Ltd

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

11 Mr. Gagan Rai Managing Director & CEO, National Other Nominees
Securities Depository Limited

II F&O MARKET SEGMENT

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

of India Ltd.

2 Mr. D.C.Anjaria Director, International Finance Public Representative

Solutions Pvt. Ltd.

3 Prof. V. Ravi Anshuman Indian Institute of Management Public Representative

Bangalore

4 Mr. Sunil Godhwani Managing Director, Religare Securities Trading Member

Ltd.

5 Mr. Shailesh Haribhakti Chairman Haribhakti Group Public Representative

6 Mr. Ketan Marwadi Managing Director, Marwadi Shares Trading Member

and Finance Limited

7 Mr. M. Raghavendra Ex-General Manager, General Insurance Other Nominees

Corporation of India

8 Ms. Chitra Ramkrishna Deputy Managing Director, National Other Nominees

Stock Exchange of India Ltd

9 Ms. T. S. Jagadharini Vice President, National Stock Other Nominees

Exchange of India Limited

* As of July 15, 2008.

18
 Membership
Administration 2
20
 Membership Administration 2
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/

21
 shareholders/directors must not have been 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 2008, the Exchange had 1,075 members. A large majority (91.72 %) of
them were corporate members, and the remaining, individuals and firms. There were
1,069, 63 and 942 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 2008 is presented below:

Distribution of Trading Members (as on March 31, 2008)

CM WDM CM & CM, WDM CM & Total

Segment Segment WDM & F&O F&O
Segment Segment Segment

Corporates 97 6 8 48 827 986

Individuals 10 0 0 0 34 44

Firms 12 0 0 0 33 45

Total 119 6 8 48 894 1,075

22
A total of 21,083 (1,359 corporates, 1,467 partnership firms and 18,257 individuals)
sub-brokers were affiliated to 505 trading members of the Exchange on
March 31, 2008.

Transaction Charges
In addition to annual fees, members are required to pay transaction charges on trades
undertaken by them. They pay transaction charges 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 of the Exchange for the period April 1, 2007 to March 31, 2008.

23
24
Table 2-1A : Eligibility Criteria for Memberhip
(All values in Rs. lakh)
Particulars CM and F&O Segment CM and WDM Segment WDM Segment CM, WDM and F&O Segment
Constitution Individuals/Firms/Corporates Corporates Corporates Corporates
Paid-up capital 30 30 30 30
(in case of corporates)
Net Worth 100* 200 200 200*
Interest Free Security Deposit 125** 250 150 275**
(IFSD)
Collateral Security Deposit (CSD) 25** 25 Nil 25**
Annual Subscription 1 2 1 2
Education Individual trading member/ two partners/two At least two directors A t l e a s t t w o At least two directors should be
directors should be graduates. Dealers should should be graduates. directors should graduates. Dealers should also have
also have passed SEBI approved certification be graduates. passed SEBI approved certification
test for derivatives and Capital Market (Basic test for derivatives and Capital Market
or Dealers) Module of NCFM. (Basic or Dealers) Module of NCFM.
Experience -----------------------Two year’s experience in securities market-----------------------
Track Record The Applicant/Partners/Directors should
not be defaulters on any stock exchange.
They must not be debarred by SEBI for
being associated with capital market as
intermediaries They must be engaged solely
in the business of securities and must not be
engaged in any fund-based activity.
* No additional networth is required for self-clearing members in the F&O segment. However, a networth of Rs. 300 lakh is required for members clearing for self as well
as for other trading members.
** Additional Rs. 25 lakh is required for clearing membership (self-clearing member/members clearing for self as well as for others) in the F&O segment. In addition, a
member clearing for others is required to bring in IFSD of Rs. 2 lakh and CSD of Rs. 8 lakh per trading member he undertakes to clear in the F&O segment.
 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

Trading Members
Month/Year CM Segment WDM F&O Total * Professional
(end of period) Segment 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

Contd...

25
 Contd...

Table 2-2 : Growth and Distribution of Members

Trading Members
Month/Year CM Segment WDM F&O Total * Professional
(end of period) Segment Segment Clearing
Member
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
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

Contd...

26
Contd...

Table 2-2 : Growth and Distribution of Members

Trading Members
Month/Year CM Segment WDM F&O Total * Professional
(end of period) Segment Segment Clearing
Member
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
Apr-07 1,003 62 849 1,009 19
May-07 1,005 62 851 1,011 19
Jun-07 1,008 62 859 1,014 19
Jul-07 1,018 62 884 1,024 19
Aug-07 1,014 62 871 1,020 19
Sep-07 1,016 62 877 1,022 19
Oct-07 1,018 62 884 1,024 19
Nov-07 1,018 62 884 1,024 19
Dec-07 1,025 62 892 1,031 19
Jan-08 1,033 62 901 1,039 19
Feb-08 1,051 62 919 1,057 19
Mar-08 1,069 62 942 1,075 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.

27
28
Listing of Securities 3
30
 Listing of Securities 3
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.

31
 Listing Criteria

The Exchange has laid down criteria for listing of new issues by companies through
IPOs, companies listed on other exchanges 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, company/promoter’s track record, etc.
The listing criteria for companies in the CM Segment are presented in Table 3-1. 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 and companies
who do not comply with the provisions of the listing agreement may be suspended from
trading on the Exchange. The agreement is being increasingly used as a means to improve
corporate governance.

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 shareholding pattern, annual reports, appointment of compliance officer,
corporate governance report, investor grievances and 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. These disclosures include corporate actions, quarterly/half yearly results,
decisions at board meeting, non-promoters’ holding, announcements / press
releases etc.

32
 De-listing

There are two kinds of delisting which can be done from the Exchanges 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
shall give adequate and wide public notice through newspapers and also give a show cause
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.

The Stock Exchanges may, after consideration of the representation received from
the aggrieved persons, delist the securities of such companies. The stock exchange
shall ensure that adequate and wide public notice is given through newspaper and on
the notice boards/trading systems of the stock exchanges and shall ensure disclosure
in all such notices of the fair value of such securities. The stock exchange shall display
the name of such company on its website. 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.

The table below gives the names of the six companies delisted from the Exchange during
2007-08.

33
 Sr. No. Name of the Company Date of Delisting
1 Yokogawa India Limited 10-May-07
2 Wartsila India Ltd 19-Jun-07
3 FCI OEN Connectors Limited 17-Sep-07
4 Panasonic AVC Networks India Co. Limited. 14-Dec-07
5 Essar Steel Limited 24-Dec-07
6 iGate Global Solutions Limited 4-Feb-08

CM Segment
Two categories, namely ‘listed’ and ‘permitted to trade’ categories of securities (equity
shares, preference shares and debentures) are available for trading in the CM segment.
However, the permitted to trade category has been phased out gradually and no
new company is been given the benefit of this category. At the end of March 2008,
1,381 companies were listed while 1,236 companies available for trading. These securities
had a market capitalisation of Rs. 48,58,122 crore (US $ 1,215,442 million). The growth
of securities available for trading on the CM segment is presented in Table 3-2.

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

Listing Fees in the CM Segment

Sr. Listing Fees Amount

No. (Rs.)
1 Initial Listing Fees 25,000
2 Annual Listing Fees (based on paid up share, bond and/ or
debenture and/or debt capital, etc.)
a) Upto Rs. 1 Crore 10,000
b) Above Rs. 1 Crore and upto Rs.5 Crores 15,000
c) Above Rs. 5 Crore and upto Rs.10 Crores 25,000
d) Above Rs. 10 Crore and upto Rs.20 Crores 45,000
e) Above Rs. 20 Crore and upto Rs.30 Crores 70,000
f) Above Rs. 30 Crore and upto Rs.40 Crores 75,000
g) Above Rs. 40 Crore and upto Rs.50 Crores 80,000
Contd...

34
Contd...

Listing Fees in the CM Segment

Sr. Listing Fees Amount

No. (Rs.)
h) Above Rs. 50 Crores and upto Rs.100 Crores 1,30,000
i) Above Rs. 100 Crore and upto Rs.150 Crores 1,50,000
j) Above Rs. 150 Crore and upto Rs.200 Crores 1,80,000
k) Above Rs. 200 Crore and upto Rs.250 Crores 2,05,000
l) Above Rs. 250 Crore and upto Rs.300 Crores 2,30,000
m) Above Rs. 300 Crore and upto Rs.350 Crores 2,55,000
n) Above Rs. 350 Crore and upto Rs.400 Crores 2,80,000
o) Above Rs. 400 Crore and upto Rs.450 Crores 3,25,000
p) Above Rs. 450 Crore and upto Rs.500 Crores 3,75,000

Companies which have a paid up share, bond and/ or debenture and/or debt capital,
etc. of more than Rs.500 crores will have to pay minimum fees of Rs.3,75,000 and an
additional listing fees of Rs.2,500 for every increase of Rs.5 crores or part thereof in the
paid up share, bond and/ or debenture and/or debt capital, etc.

Companies which have a paid up share, bond and/ or debenture and/or debt capital,
etc. of more than Rs.1,000 crores will have to pay minimum fees of Rs.6,30,000 and an
additional listing fees of Rs.2,750 for every increase of Rs.5 crores or part thereof in the
paid up share, bond and/ or debenture and/or debt capital, etc.

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 -
March 2008 of companies listed on NSE. On an average, the promoters hold more
than 56.12% of total shares. Though non-promoter holding is nearly 41.91 %, Indian
public held only 13.07% and the institutional holdings by Financial Institutions / Banks
/ Central Government / State Government / Insurance Companies, FIIs, MFs, VCF’s
accounted for 19.37 %.

WDM Segment

In the WDM segment, all government securities, state development loans and treasury bills
are ‘deemed’ listed as and when they are issued. Other than those mentioned above, all
eligible debt securities whether publicly issued or privately placed can be made available

35
 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 2008, 3,566 securities with issued capital of Rs.2,103,082 crore
(US $ 526,165) and a market capitalisation of Rs.2,123,346 crore (US $ 531,235) were
available for trading on the WDM segment.

FUNDS MOBILISATION ON THE EXCHANGE

During the year 2007-08, the resources raised through Public Issues, Rights Issues, QIP
and Preferential Allotments is summarized in the table below.

Particulars No. of Amount Amount

Issues (Rs.cr) (US $ mn)
Public Issues 77 62,483.70 15,632.65
IPOs 74 41,899.13 10,482.64
FPOs 3 20,584.57 5,150.01
Rights Issues 14 13,413.79 3,355.96
QIP 33 24,434.17 6,113.13
Preferential Allotment 174 24,026.97 6,011.25
Total 298 124,358.64 31,112.99

Initial Public Offerings (IPO’s)

During the year 2007-08, 74 companies were listed through IPO and the amount
mobilized through issuance of IPOs was Rs.41, 899.13 crore (US $ 10,482.64 million). The
biggest IPO was that of Reliance Power Limited from the Infrastructure sector whose
issue size was Rs.11,563.20 crore (US $ 2,893 million). DLF Limited was the second largest
IPO during the year, issue size of which was Rs.9,187.50 crore ( US $ 2,299 million)
followed by Power Grid Corporation of India Ltd. with issue size of Rs.2,984.45 crore
(US $ 746.67 million). The details of IPOs listed on NSE during 2007-08 is presented
in Table 3-6.

FPOs
During the year 2007-08 three companies raised capital through the FPO route raising
resources worth Rs. 20,584.57 crore (US $ 5,150.01 million). The details of FPOs listed
on NSE during 2007-08 is presented in Table 3-7.

36
 RIGHTS ISSUES
There were 14 Rights issues during 2007-08, out of which Tata Steel Limited was the
largest in terms of issue size of Rs.9,120.85 crore (US $ 2,281.92 million). The details of
Rights Issues listed on NSE during 2007-08 is presented in Table 3-8.

PREFERENTIAL ALLOTMENT/PRIVATE PLACEMENT

During 2007-08, there were 174 preferential allotments that raised Rs.24,026.97 crore
(US $ 6,011.25 million). The details of Preferential Allotment listed on NSE during
2007-08 are presented in Table 3-9.

QIPs
The amount raised through 33 QIPs during 2007-08, was Rs.24,413.17 crore
(US $ 6,113.13 million). GMR Infrastructure raised the highest amount of
Rs.3,965.71 (US $ 992.17 million).The details of QIPs are presented in Table 3-10.

Chart 3-1 Number of Companies Listed

37
 Table 3-1 : Listing Criteria for Companies on the CM Segment of NSE
Criteria Initial Public Offerings (IPOs)
Paid-up Equity PUEC ≥ Rs. 10 cr. and
Capital (PUEC)/ MC ≥ Rs. 25 cr.
Market Capitalisation
(MC) /Net Worth
Company/ Atleast 3 years track record of either
Promoter’s Track (a) the applicant seeking listing OR
Record
(b) the promoters/promoting
company incorporated in or
outside India OR
(c) Partnership firm and
subsequently converted into
Company not in existence as
a Company for three years)
and approaches the Exchange
for listing. The Company
subsequently formed would
be considered for listing only
on fulfillment of conditions
stipulated by SEBI in this regard.
Dividend Record – Dividend paid in at least 2 out of the
/ Net worth /
Distributable Profits
Listing – Listed on any other recognised stock
Other Requirements (a) No disciplinary action by other
stock exchanges/regulatory
authority in past 3 yrs.
(b) Satisfactory redressal mechanism
for investor grievances,
(c) distribution of shareholding and
(d) details of litigation record in past
3 years.
(e) Track record of Directors of the
Company
38
Companies listed on other exchanges
PUEC ≥ Rs. 10 cr. and
MC ≥ Rs. 25 cr. OR
PUEC ≥ Rs. 25 cr. OR
MC ≥ Rs. 50 cr. OR
The company shall have a net worth
of not less than Rs.50 crores in each of
the preceding financial years.
Atleast three years track record of
either
(a) the applicant seeking listing; OR
(b) the promoters/promoting
company, incorporated in or
outside India.
last 3 financial years immediately
preceding the year in which the
application has been made OR The
networth of the applicants atleast
Rs.50 crores OR The applicant has
distributable profits in at least two out
of the last three financial years.
exchange for at least last three years
OR listed on the exchange having
nationwide trading terminals for at
least one year.
(a) No disciplinary action by other
stock exchanges/regulatory
authority in past 3 yrs.
(b) Satisfactory redressal mechanism
for investor grievances,
(c) distribution of shareholding and
(d) details of litigation record in past
3 years.
(e) Track record of Directors of the
Company
(f) Change in control of a
Company/Utilisation of funds
raised from public
Note:

1. (a) In case of IPOs, Paid up Equity Capital means post issue paid up equity
capital.

(b) In case of Existing companies listed on other exchanges, the existing paid up
equity capital as well as the paid up equity capital after the proposed issue for
which listing is sought shall be taken into account.

2. (a) In case of IPOs, market capitalisation is the product of the issue price and the
post-issue number of equity shares.

(b) In case of case of Existing companies listed on other stock exchanges the market
capitalisation shall be calculated by using a 12 month moving average of the
market capitalisation over a period of six months immediately preceding the
date of application. For the purpose of calculating the market capitalisation
over a 12 month period, the average of the weekly high and low of the closing
prices of the shares on any of the recognised Stock Exchanges where those
shares were frequently traded shall be taken into account while determining
market capitalisation after making necessary adjustments for Corporate Action
such as Rights / Bonus Issue/Split.

3. In case of Existing companies listed on other stock exchanges, the requirement

of Rs.25 crores market capital shall not be applicable to listing of securities issued
by Government Companies, Public Sector Undertakings, Financial Institutions,
Nationalised Banks, Statutory Corporations and Banking Companies who are
otherwise bound to adhere to all the relevant statutes, guidelines, circulars,
clarifications etc. that may be issued by various regulatory authorities from time to
time.

4. Net worth means paid-up equity capital + reserves excluding revaluation reserve
- miscellaneous expenses not written off - negative balance in profit and loss account
to the extent not set off.

5. Promoters mean one or more persons with minimum 3 years of experience of each
of them in the same line of business and shall be holding at least 20 % of the post
issue equity share capital individually or severally.

6. In case a company approaches the Exchange for listing within six months of an
IPO, the securities may be considered as eligible for listing if they were otherwise
eligible for listing at the time of the IPO. If the company approaches the Exchange
for listing after six months of an IPO, the norms for existing listed companies may
be applied and market capitalisation be computed based on the period from the IPO
to the time of listing.

39
 Table 3-2 : Companies Listed/Permitted to Trade/Available for
Trading on the CM Segment

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

(end of period) Companies Companies Companies Capitalisation* Capitalisation*
Listed* Permitted to Available for (Rs. crore) (US $ mn)
Trade* Trading*@
Nov-94 0 300 300 292,637 93,108
Mar-95 135 543 678 363,350 115,606
Mar-96 422 847 1,269 401,459 116,873
Mar-97 550 934 1,484 419,367 116,880
Mar-98 612 745 1,357 481,503 121,807
Mar-99 648 609 1,254 491,175 115,761
Mar-00 720 479 1,152 1,020,426 240,496
Apr-00 725 473 1,145 846,391 181,473
May-00 733 431 1,109 790,478 169,485
Jun-00 741 423 1,109 852,554 182,795
Jul-00 747 410 1,094 746,402 160,035
Aug-00 751 410 1,089 794,516 170,351
Sep-00 758 379 1,070 730,350 156,593
Oct-00 764 377 1,067 707,121 151,613
Nov-00 767 376 1,070 764,177 163,846
Dec-00 775 350 1,050 760,391 163,034
Jan-01 778 348 1,050 807,641 173,165
Feb-01 782 320 1,026 789,600 169,297
Mar-01 785 320 1,029 657,847 141,048
Apr-01 790 319 1,031 653,720 133,959
May-01 789 318 1,030 592,437 121,401
Jun-01 790 292 1,001 569,797 116,762
Jul-01 785 294 994 574,260 117,676
Aug-01 786 293 994 575,242 117,877
Sep-01 788 293 987 509,105 104,325
Oct-01 789 292 986 535,846 109,805
Nov-01 788 268 956 581,386 119,136
Dec-01 788 268 956 552,908 113,301
Jan-02 794 199 893 563,683 115,509
Feb-02 791 198 889 621,523 127,361
Mar-02 793 197 890 636,861 130,504
Apr-02 800 173 865 649,551 136,748
May-02 798 172 863 631,609 132,970
Jun-02 799 170 848 659,991 138,945
Jul-02 799 163 841 608,643 128,135

Contd...

40
Contd...
Table 3-2 : Companies Listed/Permitted to Trade/Available for
Trading on the CM Segment

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

(end of period) Companies Companies Companies Capitalisation* Capitalisation*
Listed* Permitted to Available for (Rs. crore) (US $ mn)
Trade* Trading*@
Aug-02 799 161 839 632,618 133,183
Sep-02 801 161 840 599,603 126,232
Oct-02 803 119 803 606,788 127,745
Nov-02 805 118 788 645,388 135,871
Dec-02 809 116 788 672,862 141,655
Jan-03 814 112 789 572,277 120,479
Feb-03 818 107 788 581,985 122,523
Mar-03 818 107 788 537,133 113,081
Apr-03 830 78 771 530,630 122,293
May-03 847 61 769 612,030 141,053
Jun-03 853 52 769 678,550 156,384
Jul-03 865 44 774 719,144 165,740
Aug-03 873 35 775 836,650 192,821
Sep-03 883 27 774 863,480 199,004
Oct-03 887 26 776 926,747 213,585
Nov-03 891 23 777 979,541 225,753
Dec-03 897 23 779 1,167,028 268,962
Jan-04 904 22 786 1,116,150 257,237
Feb-04 907 21 788 1,110,954 256,039
Mar-04 909 18 787 1,120,976 258,349
Apr-04 918 18 795 1,171,828 267,846
May-04 928 16 804 950,494 217,256
Jun-04 940 12 813 979,700 223,931
Jul-04 929 12 815 1,066,087 243,677
Aug-04 936 9 820 1,143,075 261,274
Sep-04 945 7 824 1,227,550 280,583
Oct-04 950 6 828 1,253,825 286,589
Nov-04 954 6 831 1,446,292 330,581
Dec-04 957 6 832 1,579,161 360,951
Jan-05 958 5 833 1,557,444 355,987
Feb-05 964 4 837 1,614,597 369,051
Mar-05 970 1 839 1,585,585 362,419
Apr-05 973 1 836 1,517,908 340,262
May-05 977 1 842 1,654,995 370,992
Jun-05 987 1 854 1,727,502 387,245
Contd...

41
 Contd...
Table 3-2 : Companies Listed/Permitted to Trade/Available for
Trading on the CM Segment

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

(end of period) Companies Companies Companies Capitalisation* Capitalisation*
Listed* Permitted to Available for (Rs. crore) (US $ mn)
Trade* Trading*@
Jul-05 999 1 868 1,848,740 414,423
Aug-05 1,006 1 875 1,957,491 438,801
Sep-05 1,016 1 883 2,098,263 470,357
Oct-05 1,019 1 881 1,927,645 432,111
Nov-05 1,025 – 886 2,166,823 485,726
Dec-05 1,036 – 896 2,322,392 520,599
Jan-06 1,043 – 903 2,434,395 545,706
Feb-06 1,051 – 911 2,512,083 563,121
Mar-06 1,069 – 929 2,813,201 630,621
Apr-06 1,089 – 944 2,990,200 685,983
May-06 1,093 – 952 2,612,639 599,367
Jun-06 1,099 – 962 2,524,659 579,183
Jul-06 1,095 – 956 2,514,261 576,798
Aug-06 1,099 – 958 2,777,401 637,165
Sep-06 1,116 – 969 2,994,132 686,885
Oct-06 1,127 – 981 3,138,319 719,963
Nov-06 1,137 – 991 3,373,652 773,951
Dec-06 1,158 – 1,016 3,426,236 786,014
Jan-07 1,185 – 1,040 3,571,487 819,336
Feb-07 1,208 – 1,063 3,296,931 756,350
Mar-07 1,228 – 1,084 3,367,350 772,505
Apr-07 1,246 – 1,104 3,650,368 913,277
May-07 1,267 – 1,126 3,898,078 975,251
Jun-07 1,283 – 1,143 3,978,381 995,342
Jul-07 1,293 – 1,150 4,317,571 1,080,203
Aug-07 1,316 – 1,170 4,296,994 1,075,055
Sep-07 1,319 – 1,173 4,886,561 1,222,557
Oct-07 1,327 – 1,180 5,722,227 1,431,630
Nov-07 1,343 – 1,197 5,876,742 1,470,288
Dec-07 1,353 – 1,207 6,543,272 1,637,046
Jan-08 1,362 – 1,216 5,295,387 1,324,840
Feb-08 1,372 – 1,227 5,419,942 1,356,003
Mar-08 1,381 – 1,236 4,858,122 1,215,442

* Excluding suspended companies.

@ Excludes suspended companies.

42
 Table 3-3 : Shareholding Pattern at the end of March 2008 of companies Listed on NSE

Sectors Promoters Non-Promoters Shares

held by
Institutional Non- Institutional
Custodians
Indian Foreign Financial Foreign Mutual Venture Any other Bodies Individuals Any Other and against
Promoters Promoters Institutions/ Institutional Funds Capital Corporate which
Banks/ Investors Funds Depository
Central including Receipts
Government/ Foreign have been
State Venture issued
Government(s) Capital
/ Insurance Funds
Companies
Banks 41.61 0.94 5.80 19.15 3.45 0.52 0.49 9.14 12.94 1.13 4.83
Engineering 29.37 2.31 7.88 10.63 10.61 0.00 1.32 8.51 20.87 7.35 1.16
Finance 41.11 1.92 9.44 17.44 2.85 0.01 2.00 6.01 14.49 3.97 0.77
FMCG 16.59 15.92 13.88 14.07 7.77 0.00 0.00 3.64 13.55 14.24 0.34
Information 40.84 4.69 2.90 16.00 2.43 0.54 0.30 6.51 16.74 5.69 3.35
Technology
Infrastructure 68.99 7.50 2.35 8.86 2.18 0.08 0.00 3.03 5.73 1.02 0.26
Manufacturing 44.64 9.07 6.55 9.46 3.66 0.08 0.34 6.42 15.49 2.52 1.76
Media & 44.36 5.23 2.26 11.71 5.95 0.33 0.00 7.98 18.07 2.73 1.38
Entertainment
Petrochemicals 57.57 7.73 4.20 4.73 2.35 0.08 0.25 5.58 11.62 1.63 4.26
Pharmaceuticals 42.32 6.88 5.34 10.69 3.08 0.22 0.08 6.99 19.83 3.39 1.19
Services 45.52 8.02 5.46 10.70 4.31 0.25 0.05 7.79 13.35 2.07 2.48
Telecommunication 56.31 3.81 4.22 9.12 1.46 0.02 0.02 3.77 11.14 9.20 0.93
Miscellaneous 43.37 3.13 2.67 9.30 3.57 0.002 0.001 10.19 23.08 3.69 1.01
Number of Shares 86,791,587,876 12,418,196,984 9,469,103,255 18,768,397,741 5,756,467,003 251,395,853 15,624,851 10,271,864,814 23,102,820,441 5,953,450,433 3,467,066,400
% to Total 49.10 7.03 5.36 10.62 3.26 0.14 0.29 5.81 13.07 3.37 1.96
Number of Shares

43
 Table 3-4 Eligibility Criteria for Securities on WDM Segment

Issuer Eligibility Criteria for listing

Public Issue /Private Placement

Corporates (Public limited • Paid-up capital of Rs.10 crores; or

companies and Private limited
• Market capitalisation of Rs.25 crores
companies)
(In case of unlisted companies Networth more than
Rs.25 crores)
• Credit rating

Public Sector Undertaking, • Credit rating

Statutory Corporation
established/ constituted under
Special Act of Parliament /State
Legislature, Local bodies/
authorities,

Mutual Funds: • Qualifies for listing under SEBI’s Regulations

Units of any SEBI registered
Mutual Fund/scheme
• Investment objective to
invest predominantly in
debt or
• Scheme is traded in
secondary market as debt
instrument

Infrastructure companies • Qualifies for listing under the respective Acts, Rules or
Regulations under which the securities are issued.
• Tax exemption and
recognition as infrastructure • Credit rating
company under related
statutes/regulations

Financial Institutions u/s. 4A of Public Issue Private Placement

Companies Act, 1956 including
Industrial Development
Corporations
Qualifies for listing under Credit rating
the respective Acts, Rules or
Regulations under which the
securities are issued.

Banks • Scheduled banks • Scheduled Banks

• Networth of Rs.50 crores or • Networth of Rs.50 crores or
above above
• Qualifies for listing under • Credit rating
the respective Acts, Rules
or Regulations under which
the securities are issued.

44
 Table 3-5 : Securities Available for Trading on WDM Segment (as on March 31)

Securities 2006 2007 2008

Number Amount Amount Number Amount Amount Number Amount Amount

(Rs.cr) (US $ mn) (Rs.cr) (US $ mn) (Rs.cr) (US $ mn)

Government Securities 1,259 1,227,608 275,187 1,276 1,396,365 320,341 1,336 1,682,607 420,968

T-Bills 51 71,471 16,021 52 117,950 27,059 52 113,947 28,508

PSU Bonds 791 88,690 19,881 796 90,374 20,733 777 97,282 24,339

Institutional. Bonds 369 26,738 5,994 271 28,136 6,455 262 32,419 8,111

Bank Bonds 184 33,942 7,609 268 66,137 15,172 396 99,615 24,922

Corporate Bonds 512 43,863 9,833 584 54,087 12,408 738 76,489 19,136

Others 11 1,794 402 5 723 166 5 723 181

Total 3,177 1,494,106 334,926 3,252 1,753,771 402,333 3,566 2,103,082 526,165

45
46
Table 3-6 : Initial Public Offerings (IPOs) during 2007-08

Sr. Company Name Sector Issue Date of No. of Issue Close Close Price Apprecia- Price Apprecia-
No. size Listing Securi- Price Price Price at tion/ Deprecia- tion/ Deprecia-
ties on end of tion on the first tion at end
issued first March day of trading March 2008
day of 2008
(Rs.cr) (Rs.cr) (%) (%)
trading
1 Orbit Corporation Limited Infrastructure 100.10 12-Apr-07 9100000 110 128.2 527.1 16.55 379.18
2 ICRA Limited Finance 85.18 13-Apr-07 2581100 330 803.25 664.05 143.41 101.23
3 Advanta India Limited FMCG 216.32 19-Apr-07 3380000 640 845.5 1063.65 32.11 66.20
4 Fortis Healthcare Limited Miscellaneous 496.76 9-May-07 45996439 108 100.15 83.4 (7.27) (22.78)
5 Bhagwati Banquets and Hotels Limited Services 92.00 17-May-07 23000000 40 49.05 71.15 22.63 77.88
6 Hilton Metal Forging Limited Manufacturing 38.12 24-May-07 5445016 70 67.75 27.7 (3.21) (60.43)
7 Binani Cement Limited Manufacturing 153.75 28-May-07 20500000 75 69.05 62.45 (7.93) (16.73)
8 MIC Electronics Limited Telecommunication 76.50 30-May-07 5100000 150 338.15 715.3 125.43 376.87
9 Insecticides (India) Limited Petrochemicals 36.55 30-May-07 3177900 115 109.45 46.85 (4.83) (59.26)
10 Nitin Fire Protection Industries Limited Miscellaneous 64.47 5-Jun-07 3393141 190 484.85 404.9 155.18 113.11
11 Time Technoplast Limited Manufacturing 123.53 13-Jun-07 3921500 315 480.9 791.75 52.67 151.35
12 Glory Polyfilms Limited Manufacturing 39.46 18-Jun-07 8220000 48 62.1 66 29.38 37.50
13 Decolight Ceramics Limited Miscellaneous 43.47 19-Jun-07 8049237 54 44.65 19.85 (17.31) (63.24)
14 Nelcast Limited Manufacturing 95.27 27-Jun-07 4350240 219 207.35 97.3 (5.32) (55.57)
15 Meghmani Organics Limited Petrochemicals 102.00 28-Jun-07 53684211 19 26.6 21.1 40.00 11.05
16 Vishal Retail Limited Miscellaneous 110.00 4-Jul-07 4074074 270 753.1 831.3 178.93 207.89
17 DLF Limited Infrastructure 9187.50 5-Jul-07 175000000 525 569.8 645.75 8.53 23.00
18 Roman Tarmat Limited Infrastructure 50.78 9-Jul-07 2901507 175 319.2 72.75 82.40 (58.43)
19 Celestial Labs Limited Pharmaceuticals 30.00 17-Jul-07 5000000 60 67.55 37.3 12.58 (37.83)

Contd...
 Contd...
Table 3-6 : Initial Public Offerings (IPOs) during 2007-08

Sr. Company Name Sector Issue Date of No. of Issue Close Close Price Apprecia- Price Apprecia-
No. size Listing Securi- Price Price Price at tion/ Deprecia- tion/ Deprecia-
ties on end of tion on the first tion at end
issued first March day of trading March 2008
day of 2008
(Rs.cr) (Rs.cr) (%) (%)
trading
20 Housing Development and Infrastructure Limited Infrastructure 1707.75 24-Jul-07 34155000 500 559.35 657.25 11.87 31.45
21 Allied Digital Services Limited Information Technology 85.93 25-Jul-07 4522435 190 330.15 793.4 73.76 317.58
22 Everonn Systems India Limited Information Technology 50.02 1-Aug-07 3572964 140 477.35 584.35 240.96 317.39
23 Simplex Projects Limited Infrastructure 55.51 3-Aug-07 3000397 185 273.7 219.6 47.95 18.70
24 Alpa Laboratories Limited Pharmaceuticals 61.07 6-Aug-07 8980600 68 55.15 28.45 (18.90) (58.16)
25 Omaxe Limited Infrastructure 605.94 9-Aug-07 19546520 310 349.35 207.35 12.69 (33.11)
26 Omnitech Infosolutions Limited Information Technology 35.00 14-Aug-07 3333333 105 163.4 128.95 55.62 22.81
27 IVR Prime Urban Developers Limited Infrastructure 721.65 16-Aug-07 14150000 510 417.9 175.55 (18.06) (65.58)
28 Zylog Systems Limited Information Technology 126.00 17-Aug-07 3600000 350 427.5 183.1 22.14 (47.69)
29 Central Bank of India BANKS 816.00 21-Aug-07 80000000 102 115.3 86.9 13.04 (14.80)
30 SEL Manufacturing Company Limited Manufacturing 37.25 21-Aug-07 4138410 90 144.75 323.85 60.83 259.83
31 Asian Granito India Limited Manufacturing 67.90 23-Aug-07 7000000 97 94.2 50.75 (2.89) (47.68)
32 Take Solutions Limited Information Technology 153.30 27-Aug-07 2100000 730 927.8 771.65 27.10 5.71
33 K.P.R. Mill Limited Manufacturing 133.02 28-Aug-07 5912100 225 174.2 96.05 (22.58) (57.31)
34 Puravankara Projects Limited Infrastructure 856.28 30-Aug-07 21406880 400 362.3 241.05 (9.43) (39.74)
35 Motilal Oswal Financial Services Limited Finance 246.07 11-Sep-07 2982710 825 976.85 677.35 18.41 (17.90)
36 Indowind Energy Limited Manufacturing 73.35 14-Sep-07 11284600 65 113.65 69.3 74.85 6.62
37 Magnum Ventures Limited Manufacturing 52.92 20-Sep-07 17641184 30 49.4 13.85 64.67 (53.83)

Contd...

47
48
Contd...
Table 3-6 : Initial Public Offerings (IPOs) during 2007-08

Sr. Company Name Sector Issue Date of No. of Issue Close Close Price Apprecia- Price Apprecia-
No. size Listing Securi- Price Price Price at tion/ Deprecia- tion/ Deprecia-
ties on end of tion on the first tion at end
issued first March day of trading March 2008
day of 2008
(Rs.cr) (Rs.cr) (%) (%)
trading
38 Kaveri Seed Company Limited FMCG 68.04 4-Oct-07 4002184 170 230.95 279.9 35.85 64.65
39 Power Grid Corporation of India Limited Infrastructure 2984.45 5-Oct-07 573932895 52 100.6 98.3 93.46 89.04
40 Koutons Retail India Limited Manufacturing 146.26 12-Oct-07 3524439 415 586.5 805.3 41.33 94.05
41 Consolidated Construction Consortium Limited Infrastructure 188.70 15-Oct-07 3700000 510 792.1 732.7 55.31 43.67
42 Dhanus Technologies Limited Telecommunication 109.30 17-Oct-07 3835000 285 309.75 165.6 8.68 (41.89)
43 Supreme Infrastructure India Limited Infrastructure 37.53 18-Oct-07 3475000 108 175.1 81.45 62.13 (24.58)
44 Maytas Infra Limited Infrastructure 327.45 25-Oct-07 8850000 370 613.35 716.3 65.77 93.59
45 Religare Enterprises Limited Finance 140.16 21-Nov-07 7576102 185 525.3 372 183.95 101.08
46 Varun Industries Limited Manufacturing 54.01 22-Nov-07 9001145 60 112.2 61.05 87.00 1.75
47 Barak Valley Cements Limited Manufacturing 23.77 23-Nov-07 5660000 42 55.3 32.85 31.67 (21.79)
48 Empee Distilleries Limited FMCG 192.20 26-Nov-07 4804893 400 319.35 153.1 (20.16) (61.73)
49 Mundra Port and Special Economic Zone Limited Services 1771.00 27-Nov-07 40250000 440 962.9 578.75 118.84 31.53
50 Edelweiss Capital Limited Finance 691.86 12-Dec-07 8386147 825 1510.25 827.45 83.06 0.30
51 Renaissance Jewellery Limited Miscellaneous 79.86 12-Dec-07 5324240 150 164.9 71.8 9.93 (52.13)
52 Kolte - Patil Developers Limited Infrastructure 275.54 13-Dec-07 19002977 145 181.35 95.7 25.07 (34.00)
53 Kaushalya Infrastructure Development Corporation Infrastructure 51.00 14-Dec-2007 8500000 60 82.45 35.25 37.42 (41.25)
Limited
54 Jyothy Laboratories Limited Pharmaceuticals 305.69 19-Dec-07 4430260 690 794.05 785.3 15.08 13.81
55 Transformers And Rectifiers (India) Limited Infrastructure 139.27 28-Dec-07 2995000 465 729.25 395.35 56.83 (14.98)
Contd...
 Contd...
Table 3-6 : Initial Public Offerings (IPOs) during 2007-08

Sr. Company Name Sector Issue Date of No. of Issue Close Close Price Apprecia- Price Apprecia-
No. size Listing Securi- Price Price Price at tion/ Deprecia- tion/ Deprecia-
ties on end of tion on the first tion at end
issued first March day of trading March 2008
day of 2008
(Rs.cr) (Rs.cr) (%) (%)
trading
56 Brigade Enterprises Limited Infrastructure 745.62 31-Dec-07 19118428 390 379.9 168.55 (2.59) (56.78)
57 eClerx Services Limited Information Technology 101.00 31-Dec-07 3206349 315 449.65 246.4 42.75 (21.78)
58 BGR Energy Systems Limited Manufacturing 438.53 3-Jan-08 9136000 480 901.45 341.9 87.80 (28.77)
59 Burnpur Cement Limited Manufacturing 26.29 3-Jan-08 21910463 12 48.05 21.95 300.42 82.92
60 Aries Agro Limited Petrochemicals 58.51 11-Jan-08 4500849 130 251.4 120.75 93.38 (7.12)
61 Precision Pipes And Profiles Company Limited Manufacturing 75.00 11-Jan-08 5000000 150 136.1 67.45 (9.27) (55.03)
62 Future Capital Holdings Limited Finance 491.34 1-Feb-08 6422800 765 909.8 639.55 18.93 (16.40)
63 Reliance Power Limited Infrastructure 11563.20 11-Feb-08 260000000 450 372.3 318 (17.27) (29.33)
64 J.Kumar Infraprojects Limited Infrastructure 71.50 12-Feb-08 6500000 110 103.35 80.45 (6.05) (26.86)
65 Cords Cable Industries Limited Manufacturing 41.65 13-Feb-08 3085000 135 139.45 84.65 3.30 (37.30)
66 KNR Constructions Limited Infrastructure 133.87 18-Feb-08 7874570 170 154.9 84.6 (8.88) (50.24)
67 OnMobile Global Limited Petrochemicals 479.62 19-Feb-08 10900545 440 518.15 544.1 17.76 23.66
68 Bang Overseas Limited Manufacturing 72.45 20-Feb-08 3500000 207 174.1 122.6 (15.89) (40.77)
69 Shriram EPC Limited Infrastructure 150.00 20-Feb-08 5000000 300 286.5 238 (4.50) (20.67)
70 IRB Infrastructure Developers Limited Infrastructure 944.57 25-Feb-08 51057666 185 189.65 169.35 2.51 (8.46)
71 Tulsi Extrusions Limited Miscellaneous 48.45 25-Feb-08 5700000 85 140.85 76.45 65.71 (10.06)
72 GSS America Infrastructure Projects Limited Information Technology 139.90 7-Mar-08 3497495 400 500.8 757.1 25.20 89.28
73 Rural Electrification Corporation Limited Finance 1639.26 12-Mar-08 156120000 105 121.3 106.45 15.52 1.38
74 V-Guard Industries Limited Manufacturing 65.60 13-Mar-08 8000000 82 75.95 64.6 (7.38) (21.22)

49
 Table 3-7 : FPOs during 2007-08

Sr. Company Sector Issue size Date of No. of Issue Price (Rs.)
No. Name Listing Securities
(Rs.cr) issued

1 ICICI Bank Ltd. Banking 10,043.00 6-Jul-07 58,160,431 940 (Price for the existing
retail shareholders and
retail shareholders is
Rs. 890/-)

2 ICICI Bank Ltd. Banking 10,014.82 6-Jul-07 99,898,476 1002.5

3 Bharat Earth Manufacturing 526.75 17-Jul-07 4,900,000 1075

Movers Ltd

Table 3-8 : Rights Issues during 2007-08

S. No. Company Name Amount Mobilised Amount Mobilised

(Rs. Cr.) (US $ mn)

1 Bajaj Auto Finance Ltd 1.32 0.33

2 Cholamandalam DBS Finance Limited 199.21 49.84

3 DIC India Limited 51.60 12.91

4 Exide Industries Ltd. 150.00 37.53

5 The Federal Bank Ltd 2,135.74 534.34

6 Federal-Mogul Goetze (India) Limited. 106.33 26.60

7 GTL Infrastructure Limited 336.28 84.13

8 Hindustan Oil Exploration Co. Ltd 610.51 152.74

9 ITD Cementation India Limited 244.71 61.22

10 Lg Balakrishnan & Bros Ltd 94.42 23.62

11 Nandan Exim Limited 45.45 11.37

12 Orient Paper & Industries Ltd 160.24 40.09

13 Tata Steel Limited 9,120.85 2,281.92

14 Trent Ltd. 157.13 39.31

Total Resources Mobilised 13,413.79 3,355.96

50
Table 3-9 Preferential Allotments by NSE Listed Companies during 2007-08

S. Company Name Amount Raised Amount Raised

No. Rs. cr US $ mn
1 Aarvee Denims & Exports Limited 8.36 2.09
2 Agro Dutch Industries Limited 2.06 0.52
3 Ahmednagar Forgings Ltd 40.80 10.21
4 Deccan Aviation Limited 575.40 143.96
5 Alps Industries Ltd. 13.00 3.25
6 Amtek Auto Ltd 322.00 80.56
7 Amtek India Limited 96.25 24.08
8 Anant Raj Industries Limited 800.12 200.18
9 ANG Auto Limited 8.06 2.02
10 Ankur Drugs And Pharma Limited 45.76 11.45
11 Ansal Housing and Construction Limited 18.96 4.74
12 Apollo Hospitals Enterprise Ltd 426.40 106.68
13 Apollo Tyres Ltd 35.16 8.80
14 The Andhra Pradesh Paper Mills Limited 20.00 5.00
15 Aptech Limited 43.33 10.84
16 Archies Limited 3.99 1.00
17 Arihant Foundations & Housing Ltd 20.10 5.03
18 Asian Electronics Ltd 13.68 3.42
19 Aurionpro Solutions Limited 25.96 6.49
20 Axis Bank Limited 1,903.10 476.13
21 B.A.G Films and Media Limited 52.48 13.13
22 Bajaj Auto Finance Ltd 123.27 30.84
23 Balrampur Chini Mills Ltd 67.16 16.80
24 Bhartiya International Limited 10.85 2.71
25 Bilpower Limited 29.10 7.28
26 BPL Limited 18.89 4.73
27 California Software Company Limited 38.39 9.60
28 Cambridge Solutions Limited 133.65 33.44
29 CESC Ltd. 43.34 10.84
30 Clutch Auto Limited 27.38 6.85
31 Color Chips Limited 0.40 0.10
32 Core Projects and Technologies Limited 3.78 0.95
33 City Union Bank Ltd. 145.73 36.46
34 Development Credit Bank Limited 280.00 70.05
35 DCW Ltd 28.33 7.09

Contd...

51
 Contd...
Table 3-9 Preferential Allotments by NSE Listed Companies during 2007-08

S. Company Name Amount Raised Amount Raised

No. Rs. cr US $ mn
36 Dewan Housing Finance Corporation Ltd 52.99 13.26
37 Everest Kanto Cylinder Limited 88.70 22.19
38 Electrosteel Castings Ltd 54.97 13.75
39 Emco Limited 21.75 5.44
40 Era Infra Engineering Limited 50.83 12.72
41 Ess Dee Aluminium Limited 81.08 20.28
42 Four Soft Limited 19.85 4.97
43 Ganesh Housing Corporation Ltd. 7.46 1.87
44 Garware Wall Ropes Ltd. 4.99 1.25
45 Garware Offshore Services Limited 17.33 4.34
46 Gati Limited 34.45 8.62
47 Gemini Communication Limited 15.53 3.88
48 Genesys International Corporation Limited 1.09 0.27
49 Genus Power Infrastructures Limited 84.00 21.02
50 Geodesic Information Systems Limited 24.96 6.25
51 Geojit Financial Services Limited 147.69 36.95
52 GHCL Limited 16.28 4.07
53 Gitanjali Gems Limited 45.07 11.28
54 Goldiam International Limited 0.75 0.19
55 Goldstone Technologies Ltd. 15.33 3.84
56 Granules India Limited 82.87 20.73
57 Greenply Industries Ltd 6.21 1.55
58 Gujarat State Petronet Limited 107.35 26.86
59 GTC Industries Ltd 8.00 2.00
60 Gujarat NRE Coke Ltd. 52.50 13.13
61 Gujarat Sidhee Cements Ltd 4.73 1.18
62 Havells India Limited 260.00 65.05
63 Housing Development Finance Corporation Ltd. 3,114.00 779.08
64 HDFC Bank Ltd 1,390.10 347.79
65 Hexaware Technologies Limited 150.00 37.53
66 Himatsingka Seide Ltd 9.98 2.50
67 Hindalco Industries Ltd. 1,173.62 293.63
68 Hindustan Dorr-Oliver Ltd 8.00 2.00
69 I-Flex Solutions Limited 40.17 10.05
70 Indiabulls Real Estate Limited 273.83 68.51
Contd...

52
Contd...
Table 3-9 Preferential Allotments by NSE Listed Companies during 2007-08

S. Company Name Amount Raised Amount Raised

No. Rs. cr US $ mn
71 Indo Count Industries Ltd 6.07 1.52
72 ICSA (India) Limited 53.20 13.31
73 IG Petrochemicals Ltd. 13.50 3.38
74 Indiabulls Financial Services Limited 321.17 80.35
75 India Infoline Limited 609.20 152.41
76 IMP Powers Ltd 5.91 1.48
77 Ind-Swift Laboratories Ltd. 2.35 0.59
78 Infotech Enterprises Ltd 201.01 50.29
79 ING Vysya Bank Limited 157.51 39.41
80 IOL Netcom Limited 5.68 1.42
81 Jai Corp Limited 611.75 153.05
82 Jayant Agro Organics Ltd. 3.90 0.98
83 JIK Industries Limited 13.89 3.47
84 Jindal Saw Limited 116.53 29.15
85 Jain Irrigation Systems Limited 47.59 11.91
86 Jindal Stainless Limited 102.77 25.71
87 JSW Steel Limited 190.40 47.64
88 Jyoti Structures Ltd 5.27 1.32
89 Kanoria Chemicals & Industries Ltd 20.34 5.09
90 Kesar Enterprises Ltd. 4.38 1.10
91 Kinetic Motor Company Limited 9.75 2.44
92 Karuturi Networks Limited 39.85 9.97
93 Kopran Ltd. 7.03 1.76
94 KPIT Cummins Infosystems Limited 38.55 9.64
95 K S Oils Limited 131.78 32.97
96 Lakshmi Precision Screws Limited 9.09 2.27
97 Lakshmi Energy and Foods Limited 37.38 9.35
98 Lloyd Electric & Engineering Ltd 50.00 12.51
99 Lumax Industries Ltd 54.00 13.51
100 Lyka Labs Ltd 27.36 6.84
101 Mahindra & Mahindra Financial Services Limited 414.20 103.63
102 Mahindra Lifespace Developers Limited 198.83 49.74
103 Malwa Cotton Spg. Mills Ltd 2.80 0.70
104 Man Industries (India) Ltd. 9.00 2.25
105 Media Video Ltd. 18.49 4.63
Contd...

53
 Contd...
Table 3-9 Preferential Allotments by NSE Listed Companies during 2007-08

S. Company Name Amount Raised Amount Raised

No. Rs. cr US $ mn
106 Micro Technologies (India) Limited 9.09 2.27
107 Mercator Lines Limited 44.00 11.01
108 MSK Projects (India) Limited 37.38 9.35
109 Nagarjuna Construction Co. Ltd 410.00 102.58
110 Nagreeka Exports Ltd 6.09 1.52
111 Nagreeka Exports Limited 6.05 1.51
112 Nava Bharat Ventures Limited 30.40 7.61
113 Nicco Corporation Limited 20.00 5.00
114 Onward Technologies Ltd 0.18 0.04
115 Opto Circuits (India) Limited 41.93 10.49
116 Pantaloon Retail (India) Ltd. 398.24 99.63
117 Paramount Communications Ltd 14.58 3.65
118 Parekh Aluminex Limited 18.40 4.60
119 Phoenix Lamps Ltd 42.53 10.64
120 The Phoenix Mills Limited 317.72 79.49
121 Polyplex Corporation Ltd. 20.52 5.13
122 Prajay Engineers Syndicate Limited 1.46 0.37
123 Praj Industries Ltd 87.78 21.96
124 Precision Wires India Ltd 19.49 4.88
125 Provogue (India) Limited 130.50 32.65
126 Rana Sugars Ltd 6.82 1.71
127 Rane Holdings Limited 29.70 7.43
128 Reliance Capital Limited 494.76 123.78
129 Shree Renuka Sugars Limited 62.57 15.65
130 Ramkrishna Forgings Limited 1.50 0.38
131 Radha Madhav Corporation Limited 6.57 1.64
132 Reliance Natural Resources Limited 743.85 186.10
133 RPG Cables Ltd 8.30 2.08
134 Sabero Organics Gujarat Ltd 8.50 2.13
135 Sagar Cements Ltd. 28.72 7.18
136 Saksoft Limited 3.27 0.82
137 Sangam (India) Ltd. 2.76 0.69
138 Sanghi Industries Limited 93.71 23.45
139 Sanghvi Movers Ltd. 29.69 7.43
140 South Asian Petrochem Limited 71.77 17.96
Contd...

54
Contd...
Table 3-9 Preferential Allotments by NSE Listed Companies during 2007-08

S. Company Name Amount Raised Amount Raised

No. Rs. cr US $ mn
141 SB&T International Ltd 7.75 1.94
142 Sharyans Resources Ltd. 94.82 23.72
143 Shiv-Vani Oil & Gas Exploration Services Limited 102.50 25.64
144 Shreyans Industries Ltd 5.98 1.49
145 Sical Logistics Limited 219.05 54.80
146 Sona Koyo Steering Systems Ltd. 30.98 7.75
147 Spentex Industries Ltd 1.00 0.25
148 Shriram Transport Finance Co. Ltd. 539.20 134.90
149 Strides Arcolab Limited 1.71 0.43
150 STI India Ltd 4.08 1.02
151 Sterlite Technologies Limited 28.00 7.01
152 Subhash Projects & Marketing Ltd 134.60 33.68
153 Summit Securities Limited 28.73 7.19
154 Supreme Tex Mart Limited 14.81 3.70
155 Surana Industries Limited 24.75 6.19
156 Suryajyoti Spinning Mills Limited 3.48 0.87
157 Surya Pharmaceutical Limited 20.93 5.24
158 Tata Power Co. Ltd. 580.86 145.32
159 Tata Steel Limited 1,380.17 345.30
160 Tata Tea Ltd 204.13 51.07
161 Transport Corporation of India Limited 52.63 13.17
162 TIPS Industries Limited 11.12 2.78
163 Trent Ltd. 43.50 10.88
164 Television Eighteen India Ltd. 91.54 22.90
165 UFLEX Limited 80.50 20.14
166 Usha Martin Limited 88.74 22.20
167 Vakrangee Softwares Limited 42.18 10.55
168 Valecha Engineering Limited 21.05 5.27
169 Varun Shipping Co. Ltd. 63.75 15.95
170 Viceroy Hotels Limited 8.13 2.03
171 Welspun Gujarat Stahl Rohren Limited 68.45 17.13
172 Xpro India Limited 1.76 0.44
173 Yes Bank Limited 330.75 82.75
174 Zicom Electronic Security Systems Limited 14.34 3.59
TOTAL 24,026.97 6,011.25

55
 Table 3-10 : Amount raised through QIP during 2007-08

Sr. Name of the company Amount Raised Amount Raised

No
(Rs.cr) (US $ mn)
1 GMR Infrastructure Limited 3965.71 992.17
2 Suzlon Energy Limited 2182.70 546.08
3 IDFC Limited 2100.00 525.39
4 UTI Bank Limited 1752.43 438.44
5 Kotak Mahindra Bank Limited 1615.00 404.05
6 Bank of India 1359.81 340.21
7 GVK Power & Infrastructure Limited 1221.00 305.48
8 PTC India Limited 1199.99 300.22
9 Max India Limited 999.99 250.19
10 The Phoenix Mills Limited 980.00 245.18
11 United Phosphorous Limited 845.81 211.61
12 Punj Lloyd Limited 814.00 203.65
13 Godrej Industries Ltd. 600.00 150.11
14 India Cements Ltd. 592.49 148.23
15 CESC Limited 590.81 147.81
16 Sintex Industries Ltd. 589.50 147.49
17 Peninsula Land Limited 525.00 131.35
18 Centurion Bank of Punjab Limited 500.00 125.09
19 Simplex Infrastructures Limited 400.00 100.08
20 The South Indian Bank Ltd. 326.00 81.56
21 ING Vysya Bank Limited 192.49 48.16
22 Nitco Tiles Limited 166.01 41.53
23 Shree Renuka Sugars Limited 164.00 41.03
24 Godawari Power And Ispat limited 100.00 25.02
25 Logix Microsystems Limited 97.65 24.43
26 Sadbhav Engineering Limited 92.00 23.02
27 Escorts Limited 87.92 22.00
28 Sunil Hitech Engineering Limited 81.00 20.27
29 Birla Power Solutions Limited. 67.32 16.84
30 Escorts Limited 60.84 15.22
31 Pratibha Industries Limited 60.72 15.19
32 Parekh Aluminex Limited 54.00 13.51
33 West Coast Paper Mills Limited 49.99 12.51
TOTAL 244,34.17 6,113.13

56
Capital Market Segment 4
58
 Capital Market Segment 4
The Trading on NSE’s capital market segment which commenced on November 04, 1995
has been witnessing a substantial growth over the years. The trading volumes jumped by
82.55 % during the fiscal 2007-08 as compared to 2006-07. With the increase in volumes,
efficient and transparent trading platform, a vide range of securities like equity, preference
shares, debt warrants, exchange traded funds as well as retail government securities, NSE
upholds its position as the largest stock exchange in the country.

NEAT System
National Exchange for Automated Trading (NEAT) is the trading system of NSE. NEAT
facilitates a system on-line, fully automated, nationwide, anonymous, order driven,
screen-based trading. 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 for buy order for a counter party. The numerous advantages
of the NEAT system are detailed out below :
• 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 245 cities, but also from
the personal computers in the homes of investors through the Internet.

Market Performance
Trading Volume
Over the years the Capital market has witnessed a growth in the trading volumes. From
Rs. 1,805 crore in 1994-95 the volumes increased to Rs. 1,945,287 crore (US $ 446,269 million)
in 2006-07. In the reporting year 2007-08 the volumes increased by leaps and bounds to

59
 Rs. 3,551,038 crore (US $ 888,426 million). The average daily trading volume increased from
Rs. 17 crore during 1994-95 to Rs. 14,148 crore (US $ 3,540 million) during 2007-08. The
business growth of the CM segment is presented in Table 4-1 and Chart 4-1.

Liquidity

The liquidity in the CM segment, as measured by the turnover ratio, has witnessed a steady
increase and reached nearly 73.09% during the year 2007-2008 compared to 57.77% during
the year 2006-07. The securities available for trading for more than 100 days accounted
for 92.97% as indicated in the table below:

Frequency Distribution of Securities Traded During 2007-08

No. of Days Traded No. of Securities % to Total
Above 100 1,177 92.97
91-100 5 0.39
81-90 17 1.34
71-80 7 0.55
61-70 11 0.87
51-60 7 0.55
41-50 7 0.55
31-40 6 0.47
21-30 9 0.71
11-20 13 1.03
1-10 7 0.55
Total 1,266 100.00

The percentage of companies traded compared to the number of companies available for
trading is quite high at more than 98% for all the months during the fiscal 2007-08. In the
month of February 08 almost 100% of the companies traded. The month wise statistics
are indicated in the table below :

Trading Frequency of Companies during the period 2007-08

Month Companies Avaliable Companies Traded % of Traded to
for Trading* Available for Trading
Apr-07 1,104 1,088 98.55
May-07 1,126 1,113 98.85
Jun-07 1,143 1,130 98.86
Jul-07 1,150 1,140 99.13
Aug-07 1,170 1,166 99.66
Sep-07 1,173 1,116 95.14
Oct-07 1,180 1,176 99.66
Nov-07 1,197 1,189 99.33
Dec-07 1,207 1,202 99.59
Jan-08 1,216 1,210 99.51
Feb-08 1,227 1,226 99.92
Mar-08 1,236 1,229 99.43

*At the end of the period includes listed/permitted to trade companies but excludes suspended companies

60
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 16.29 % and
77.29 % of total turnover in the CM segment in 2007-08. The top ‘50’ securities accounted
for 61.47 % of the total turnover, details of which are presented in Table 4-3.

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 2007-08, top
‘5’ brokers accounted for only 14.57% of turnover, while top ‘100’ brokers accounted
for 73.90% 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. 4,858,122 crore
(US $ 1,125,442 million) as at end March 2008. A Y-o-Y increase of 44.27 % was
witnessed during 2007-08 as compared to the market capitalization of Rs.3,367,350 crore
(US $ 772,505 million) in 2006-07. The details of ‘50’ top companies by market
capitalisation, which accounted for 65.12% of total market capitalisation as at end
March 2008, are presented in Table 4-4.

Sectoral Distribution

Table 4-5 presents the classification of ‘Top 50’ companies based on their trading value
and on their Market capitalization. A significant change in the importance of different
sectors is observed during the past few years.

The share of trading volumes in the Infrastructure sector saw a significant increase from
7.39 % in the last fiscal to 22.93 % in the current year. In terms of market capitalisation
the share increased from 7.05 % during 2006-07 to 17.05% in the current year. This sector
also holds the maximum share in terms of trading volumes and market capitalization
in the current fiscal 2007-08. Among the top ‘50’ Companies there was a significant
contribution in trading volumes from newly listed companies like DLF limited-2.53 %
(listed on 05th July, 2007), Power Grid Corporation Ltd- 1.45 % (listed on 05th October
2007), Reliance Power Ltd -0.80 % (listed on 11th February 2008) and Housing Dev &
Infra Ltd- 1.09 % (listed on 24th July,2007) which has attributed to the emergence of
this sector.

The top ‘50’ companies cover a significant share of trading volumes and market capitalistion
in the Petrochemicals sector of 17.80% and 22.94% respectively. Under this sector, among
the companies - Cairn India Limited (listed on 09th January 2008) features both in the
top 50’ traded volumes and market capitalistion.

The share of manufacturing companies in the trading volume and market capitalization
of top ‘50’ companies has been witnessing a steady increase over the years. In the current
fiscal the top ‘50’ companies with the maximum share in this sector were Rel. Nat.

61
 Resources Ltd - 4.90 % in terms of trading volumes and NMDC Ltd (listed on 03rd
March 2008) 4.33 % in terms of market capitalization.

The IT sector on the other hand witnessed a slowdown in the share of top ‘50’ companies
both in terms of trading volumes and market capitalization. The share of trading volumes
decreased from 15.04 % in 2006-07 to 5.90 % in 2007-08. The market capitalization share
decreased from 18.14 % in the previous fiscal to 7.95 % in the current fiscal year.

Trading Records during 2007-08

Ten of NSE’s most Active trading days in terms of trading values are presented in Table
4-6 . During the fiscal, the month of October 07 witnessed the highest trading value of
Rs.455,589 cr (US $ 113,983 million) and maximum number of active days (03rd,17th,18th
and 20th of October 2007).

Internet Trading
At the end of March 2008, a total number of 305 members were permitted to allow investor’s
web based access to NSE’s trading system. The members of the exchange in turn had registered
4,405,134 clients for web based access as on March 31, 2008. In the Capital market segment,
the trading volume of Rs. 4,405,134 crore (US$ 668,399 million) during the year
2007-08 constituting 18.82% of total trading volume, was routed and executed through
the internet. The following table shows the growth of internet trading for the fiscal
years 2006-07 and 2007-08.

Year Enabled Registered Internet Internet % of total

Members* Clients* Trading Trading Trading
Volume Volume Volume
(Rs. crore) (US $ million)
2006-07 242 2,279,098 337,524 77,432 17.35
2007-08 305 4,405,134 668,399 167,225 18.82

* At the end of the financial year

FII Turnover on NSE :

The gross turnover of FIIs amounted to Rs.1,270,521 crore ( US $ 317,869 million) as

compared with Rs.686,297 crore (US $ 157,444 million) during 2006-07.

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. 281 companies have
used the on-line IPO system of NSE by the end of March 2008.

62
 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, Nifty Midcap 50, 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.

The S&P CNX Nifty accounted for 58.64% of total market capitalisation as at end
March 2008, while the CNX Nifty Junior accounted for 9.34% of market capitalisation
(Table 4-9). The compositions of these two indices as at end March 2008 are presented in
Table 4-10 and Table 4-11. The industry wise weightages of securities included in S&P
CNX Nifty are presented in Table 4-12.

The movements in S&P CNX Nifty and CNX Nifty Junior are presented in
Table 4-13 and Table 4-14 respectively. The Performance of few of the indices is presented
in Table 4-15. All the indices with the exception of CNX IT witnessed their record time
highs during the month of January 2008. The S&P CNX Nifty Index touched its peak of
6357.10 on January 08, 2008. It yielded a point to point positive return of 23.89% during
2007-08. The Finance index earned the highest point to point positive returns of 60.06 %
followed by the Petrochemicals index 45.30 % during the current fiscal.

Volatility Index
Volatility Index is a measure of market’s expectation of volatility over the near term. Volatility
is often described as the “rate and magnitude of changes in prices” and in finance often referred
to as risk. Volatility Index is a measure, of the amount by which an underlying Index is expected
to fluctuate, in the near term, (calculated as annualised volatility, denoted in percentage
e.g. 20%) based on the order book of the underlying index options. Volatility Index is a
good indicator of the investors’ perception on how volatile markets are expected to be
in the near term. Usually, during periods of market volatility, market moves steeply up
or down and the volatility index tends to rise. As volatility subsides, option prices tend
to decline, which in turn causes volatility index to decline.

India VIX
NSE has been in the forefront of bringing the latest products and services to the Indian
capital markets for the benefit of the investors. In another innovation in the Indian
markets, NSE launched the India VIX on 08th April, 2008 a volatility index based on
the Nifty 50 Options prices. From the best bidask prices of Nifty 50 Options contracts
(which are traded on the F&O segment of NSE), a volatility figure (%) is calculated which
indicates the expected market volatility over the next 30 calendar days. Higher the implied
volatility higher the India VIX value and vice versa.

63
 There are some differences between a price index, such as the Nifty 50 and India
VIX. Nifty 50 is calculated based on the price movement of the underlying 50 stocks
which comprises the index. India VIX is calculated based on the bid-offer prices of the
near and mid month Nifty 50 Index Options. Nifty 50 Index is an absolute number,
e.g. 4500, 5000 etc., whereas India VIX is a percentage value (eg. 20%, 30% etc.).
Whereas Nifty 50 signifies how the markets have moved directionally, India VIX
indicates the expected near term volatility and how the volatility is changing from time
to time.

Uses of Volatility Index

Volatility Index offers great advantages in terms of trading, hedging and introducing
derivative products on this index. Investors can use volatility index for various purposes
as mentioned below:
• Investors’ portfolios are exposed to the market volatility. Investors could hedge
their portfolios against volatility with an off-setting position in India VIX futures
or options contracts.
• Volatility index depicts the collective consensus of the market on the expected
volatility and being contrarian in nature helps in predicting the direction.
Investors therefore could appropriately use this information for taking trading
positions.
• Investors could also use the implied volatility information given by the index, in
identifying mis-priced options.
• Short sale positions could expose investors to directional risk. Derivatives on
volatility index could help investors in safeguarding their positions and thus avoid
systemic risk for the market Based on the experience gained with the benchmark
broad based index, sector specific volatility indices could be constructed to enable
hedging by investors in those specific sectors.

Mutual Funds and Exchange Traded Funds

Out of the 11 Mutual Funds listed on the Exchange, 8 of them have been listed during the
current fiscal 2007-08. In case of Exchange Traded Funds there have been 6 new listings
during 2007-08 taking the total numbers to 12 as on 31st March, 2008. Table 4-16 (A) &
(B) presents the details of the names and volumes of these funds.

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.

64
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. 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.

65
 (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 settles
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 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

66
 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 4-17. 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 4-18. During 2007-08,
NSCCL settled trades for Rs. 3,519,919 crore (US $ 880,640 million.) of which 27.64%
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 2007-08. Short deliveries averaged around 0.27
of total delivery in 2007-08.

Risk Management System

There have been a number of experiments with different risk containment measures in
the recent pasts. 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
measures have been repeatedly reviewed and revised. The risk containment measures in
vogue are described below:

67
 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
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% are categorized under Group I and the scrips where the impact cost
is more than 1, are categorized under Group II.

• The remaining stocks are classified into Group III.

• The impact cost is 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 are moved 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 is 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 is
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 is 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 are treated as newly listed security for group categorization.

Daily margin, comprises of VaR margin, Extreme Loss margin and Mark to Market
margin.

68
1) Value at Risk Margin :

All securities are classified into three groups for the purpose of VaR margin

For the securities listed in Group I, scrip wise daily volatility calculated using the
exponentially weighted moving average methodology is 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 is 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 is equal to five times the index
VaR and scaled up by root 3.
The index VaR, for the purpose, is higher of the daily Index VaR based on
S&P CNX NIFTY or BSE SENSEX. The index VaR is 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 is to be charged on the net
outstanding position (buy value-sell value) of the respective clients on the respective
securities across all open settlements. There is netting off of positions across different
settlements. The VaR margin is 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
is 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 is 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 collected/ adjusted against the total liquid assets of the
member on a real time basis.

3) Mark to Market Margin

Mark to market loss is 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 is considered
as notional loss for the purpose of calculating the mark to market margin
payable.

69
 The mark to market margin (MTM) is collected from the member before the start
of the trading of the next day. The MTM margin is also collected/adjusted from/
against the cash/cash equivalent component of the liquid net worth deposited with
the Exchange.

The MTM margin so collected is released on completion of pay-in of the

settlement.

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 banks 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. *

70
The price bands for the securities in the Limited Physical Market as 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 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, Investigation & Inspection

Surveillance & Investigation

As the securities transactions are prone to a variety of manipulations, the Exchange has
instituted a strong surveillance mechanism to protect market integrity. Surveillance
mechanism includes monitoring of orders and trades data, open positions and corporate
information that flow into the market to identify possible market abuse practices. Various
on-line and off-line alerts/reports are generated, on any price/volume movement of
securities not in line with past trends/patterns. Besides, 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.

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 client 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.

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.

71
72
Table 4-1 : Business Growth of CM Segment

Month & Year No. of No. of No. of Traded Trading Value Average Daily Turnover Demat Demat Trading Value Market Capitalisation
Trading companies Trades Quantity Trading Value Ratio Traded
Days Traded Quantity
(Rs. lakh) (lakh) (Rs. cr.) (US $ mn.) (Rs. cr.) (US $ mn.) (%) (lakh) (Rs. cr.) (US $ mn.) (Rs. cr.) (US $ mn.)
1994-95 (Nov.-Mar.) 102 – 3 1,391 1,805 – 17 – 0.50 0 0 – 363,350 –
1995-96 246 – 66 39,912 67,287 – 276 – 16.76 0 0 – 401,459 –
1996-97 250 – 264 135,561 294,503 – 1,176 – 70.23 2 6 – 419,367 –
1997-98 244 – 381 135,685 370,193 – 1,520 – 76.88 315 351 – 481,503 –
1998-99 251 – 546 165,327 414,474 97,683 1,651 389 84.38 8,542 23,818 5,613 491,175 115,760
1999-2000 254 – 984 242,704 839,052 192,353 3,303 757 82.23 153,772 711,706 163,159 1,020,426 233,933
2000-01 251 1,201 1,676 329,536 1,339,510 287,202 5,337 1,144 43.66 307,222 1,264,337 271,084 657,847 141,048
Apr-01 19 951 114 20,782 35,616 7,298 1,875 384 5.45 20,735 35,605 7,296 653,720 133,959
May-01 22 954 141 25,715 48,329 9,903 2,197 450 8.16 25,714 48,329 9,903 592,437 121,401
Jun-01 21 963 133 22,336 42,783 8,767 2,037 417 7.51 21,935 42,625 8,735 569,797 116,762
Jul-01 22 924 99 13,142 27,228 5,579 1,238 254 4.74 13,137 27,227 5,579 574,260 117,676
Aug-01 21 931 112 15,937 29,417 6,028 1,401 287 5.11 15,931 29,415 6,028 575,242 117,878
Sep-01 20 917 135 17,342 35,323 7,238 1,766 362 6.94 17,342 35,323 7,238 509,105 104,325
Oct-01 21 917 141 19,799 35,326 7,239 1,682 345 6.59 19,796 35,324 7,239 535,846 109,805
Nov-01 20 920 153 25,349 42,132 8,634 2,107 432 7.25 25,295 42,121 8,631 581,386 119,136
Dec-01 19 895 177 31,777 54,468 11,161 2,867 588 9.85 31,775 54,465 11,161 552,908 113,301
Jan-02 23 896 213 34,384 68,719 14,082 2,988 612 12.19 34,219 68,606 14,059 563,683 115,509
Feb-02 20 840 177 28,552 49,564 10,157 2,478 508 7.97 28,547 49,564 10,157 621,523 127,361
Mar-02 19 840 157 23,294 44,262 9,070 2,330 477 6.95 23,291 44,262 9,070 636,861 130,504
2001-02 247 1,019 1,753 278,408 513,167 105,157 2,078 426 80.58 277,717 512,866 105,095 636,861 130,504
Apr-02 22 843 201 28,798 53,320 11,225 2,424 510 8.21 28,782 53,316 11,224 649,551 136,748
May-02 22 821 217 35,303 54,979 11,575 2,499 526 8.70 35,303 54,978 11,574 631,609 132,970
Jun-02 20 825 189 38,519 44,241 9,314 2,212 466 6.70 38,519 44,241 9,314 659,991 138,945
Jul-02 23 820 211 36,821 51,398 10,821 2,235 471 8.44 36,821 51,398 10,821 608,643 128,135
Aug-02 21 806 191 26,000 46,113 9,708 2,196 462 7.29 26,000 46,113 9,708 632,618 133,183
Sep-02 20 806 185 25,581 46,499 9,789 2,325 489 7.75 25,581 46,499 9,789 599,603 126,232
Oct-02 21 770 201 26,458 51,902 10,927 2,472 520 8.55 26,458 51,902 10,927 606,788 127,745
Nov-02 19 767 175 23,631 51,352 10,811 2,703 569 7.96 23,631 51,352 10,811 645,388 135,871
Dec-02 21 762 219 33,022 61,973 13,047 2,951 621 9.21 33,022 61,973 13,047 672,862 141,655
Jan-03 23 763 239 36,336 64,762 13,634 2,816 593 11.32 36,336 64,762 13,634 572,277 120,479
Feb-03 19 760 191 28,681 48,289 10,166 2,542 535 8.30 28,681 48,289 10,166 581985 122,523
Mar-03 20 762 177 24,917 43,160 9,086 2,158 454 8.04 24,917 43,160 9,086 537133 113,081
2002-03 251 899 2,397 364,066 617,989 130,103 2,462 518 115.05 364,049 617,984 130,102 537133 113,081

Contd...
 Contd...
Table 4-1 : Business Growth of CM Segment

Month & Year No. of No. of No. of Traded Trading Value Average Daily Turnover Demat Demat Trading Value Market Capitalisation
Trading companies Trades Quantity Trading Value Ratio Traded
Days Traded Quantity
(Rs. lakh) (lakh) (Rs. cr.) (US $ mn.) (Rs. cr.) (US $ mn.) (%) (lakh) (Rs. cr.) (US $ mn.) (Rs. cr.) (US $ mn.)
Apr-03 20 738 207 31,448 48,971 11,286 2,449 564 9.23 31,448 48,971 11,286 530630 122,293
May-03 21 743 250 44,001 54,690 12,604 2,604 600 8.94 44,001 54,690 12,604 612030 141,053
Jun-03 21 744 267 51,896 61,586 14,194 2,933 676 9.08 51,896 61,586 14,194 678550 156,384
Jul-03 23 755 320 64,906 78,878 18,179 3,429 790 10.97 64,906 78,878 18,179 719145 165,740
Aug-03 20 752 322 84,554 85,347 19,670 4,267 983 10.20 84,554 85,347 19,670 836651 192,821
Sep-03 22 761 346 71,848 103,345 23,818 4,698 1,083 11.97 71,848 103,345 23,818 863481 199,004
Oct-03 23 728 358 71,768 115,595 26,641 5,026 1,158 12.47 71,768 115,595 26,641 926748 213,586
Nov-03 20 738 307 56,716 92,886 21,407 4,644 1,070 9.48 56,716 92,886 21,407 979541 225,753
Dec-03 22 754 379 71,754 110,373 25,437 5,017 1,156 9.46 71,754 110,373 25,437 1167029 268,963
Jan-04 21 761 398 73,340 134,269 30,945 6,394 1,474 12.03 73,340 134,269 30,945 1116150 257,237
Feb-04 19 763 308 46,484 108,718 25,056 5,722 1,319 9.79 46,484 108,718 25,056 1110954 256,039
Mar/04 22 769 318 44,586 104,877 24,171 4,767 1,099 9.36 44,586 104,877 24,171 1,120,976 258,349
2003-04 254 804 3,780 713,300 1,099,534 253,407 4,329 998 98.09 713,300 1,099,534 253,407 1,120,976 258,349
Apr-04 20 771 319 53,686 100,951 23,075 5,048 1,154 8.61 53,686 100,951 23,075 1,171,828 267,846
May-04 21 776 357 54,651 98,920 22,610 4,710 1,077 10.41 54,651 98,920 22,610 950,494 217,256
Jun-04 22 787 336 41,987 84,898 19,405 3,859 882 8.67 41,987 84,898 19,405 979,700 223,931
Jul-04 22 793 377 63,058 93,836 21,448 4,265 975 8.80 63,058 93,836 21,448 1,066,087 243,677
Aug-04 22 799 358 57,543 86,856 19,853 3,948 902 7.60 57,543 86,856 19,853 1,143,075 261,274
Sep-04 22 809 367 62,666 88,508 20,230 4,023 920 7.21 62,666 88,508 20,230 1,227,550 280,583
Oct-04 20 814 299 47,274 75,698 17,302 3,785 865 6.04 47,274 75,698 17,302 1,253,825 286,589
Nov-04 20 816 328 62,548 82,035 18,751 4,102 938 5.67 62,548 82,035 18,751 1,446,292 330,581
Dec-04 23 821 475 99,326 115,593 26,421 5,026 1,149 7.32 99,326 115,593 26,421 1,579,161 360,951
Jan-05 19 823 410 81,575 99,732 22,796 5,249 1,200 6.40 81,575 99,732 22,796 1,557,444 355,987
Feb-05 20 835 425 89,665 99,989 22,855 4,999 1,143 6.19 89,665 99,989 22,855 1,614,597 369,051
Mar-05 22 870 459 83,705 113,055 25,841 5,139 1,175 7.13 83704.62 113,055 25,841 1,585,585 362,419
2004-05 253 856 4,509 797,685 1,140,072 260,588 4,506 1,030 71.90 797,685 1,140,072 260,588 1,585,585 362,419
Apr-05 20 829 367 51,265 82,718 18,543 4,136 927 5.45 51,265 82,718 18,543 1,517,908 340,262
May-05 22 830 413 56,516 86,802 19,458 3,946 884 5.24 56,516 86,802 19,458 1,654,995 370,992
Jun-05 23 843 477 70,485 111,397 24,971 4,843 1,086 6.45 70,485 111,397 24,971 1,727,502 387,246
Jul-05 20 856 503 84,134 123,008 27,574 6,150 1,379 6.65 84,134 123,008 27,574 1,848,740 414,423
Aug-05 22 864 570 100,717 145,731 32,668 6,624 1,485 7.44 100,717 145,731 32,668 1,957,491 438,801
Sep-05 21 872 576 91,996 145,393 32,592 6,923 1,552 6.93 91,996 145,393 32,592 2,098,263 470,357
Contd...

73
74
Contd...
Table 4-1 : Business Growth of CM Segment

Month & Year No. of No. of No. of Traded Trading Value Average Daily Turnover Demat Demat Trading Value Market Capitalisation
Trading companies Trades Quantity Trading Value Ratio Traded
Days Traded Quantity
(Rs. lakh) (lakh) (Rs. cr.) (US $ mn.) (Rs. cr.) (US $ mn.) (%) (lakh) (Rs. cr.) (US $ mn.) (Rs. cr.) (US $ mn.)
Oct-05 20 887 463 57,670 120,810 27,081 6,040 1,354 6.27 57,670 120,810 27,081 1,927,645 432,110
Nov-05 20 872 434 53,870 109,578 24,564 5,479 1,228 5.06 53,870 109,578 24,564 2,166,823 485,726
Dec-05 22 888 553 63,699 149,908 33,604 6,814 1,527 6.45 63,699 149,908 33,604 2,322,392 520,599
Jan-06 20 893 554 66,717 149,442 33,500 7,472 1,675 6.14 66,717 149,442 33,500 2,434,395 545,706
Feb-06 19 900 521 61,629 135,374 30,346 7,125 1,597 5.39 61,629 135,374 30,346 2,512,083 563,121
Mar-06 22 920 658 85,788 209,395 46,939 9,518 2,134 7.44 85,788 209,395 46,939 2,813,201 630,621
2005-06 251 928 6,089 844,486 1,569,558 351,840 6,253 1,402 55.79 844,486 1,569,558 351,840 2,813,201 630,621
Apr-06 18 935 567 72,892 177,372 40,691 9,854 2,261 5.93 72,892 177,372 40,691 2,990,200 685,983
May-06 22 943 694 95,371 201,409 46,205 9,155 2,100 7.71 95,371 201,409 46,205 2,612,639 599,367
Jun-06 23 950 667 66,748 151,050 34,652 6,567 1,507 5.98 66,748 151,050 34,652 2,524,659 579,183
Jul-06 21 950 537 46,146 118,698 27,231 5,652 1,297 4.72 46,146 118,698 27,231 2,514,261 576,798
Aug-06 22 949 631 56,443 130,796 30,006 5,945 1,364 4.71 56,443 130,796 30,006 2,777,401 637,165
Sep-06 21 968 648 64,385 144,339 33,113 6,873 1,577 4.82 64,385 144,339 33,113 2,994,132 686,885
Oct-06 20 973 579 60,823 138,382 31,746 6,919 1,587 4.41 60,823 138,382 31,746 3,138,319 719,963
Nov-06 22 982 747 73,071 189,863 43,557 8,630 1,980 5.63 73,071 189,863 43,557 3,373,652 773,951
Dec-06 20 1,009 666 58,581 170,105 39,024 8,505 1,951 4.96 58,581 170,105 39,024 3,426,236 786,014
Jan-07 20 1,035 699 88,354 175,147 40,181 8,757 2,009 4.90 88,354 175,147 40,181 3,571,487 819,336
Feb-07 19 1,057 702 89,807 180,170 41,333 9,483 2,175 5.46 89,807 180,170 41,333 3,296,931 756,350
Mar-07 21 1,081 710 82,836 167,954 38,530 7,998 1,835 4.99 82,836 167,954 38,530 3,367,350 772,505
2006-07 249 1,114 7,847 855,456 1,945,287 446,269 7,812 1,792 57.77 855,456 1,945,287 446,269 3,367,350 772,505
Apr-07 20 1,088 678 77,081 168,567 42,173 8,428 2,109 4.62 77,081 168,567 42,173 3,650,368 913,277
May-07 21 1,113 802 97,911 207,585 51,935 9,885 2,473 5.33 97,911 207,585 51,935 3,898,078 975,251
Jun-07 21 1,130 751 79,636 193,648 48,448 9,221 2,307 4.87 79,636 193,648 48,448 3,978,381 995,342
Jul-07 22 1,140 897 105,315 267,227 66,857 12,147 3,039 6.19 105,315 267,227 66,857 4,317,571 1,080,203
Aug-07 22 1,166 874 106,218 231,241 57,854 10,511 2,630 5.38 106,218 231,241 57,854 4,296,994 1,075,055
Sep-07 20 1,116 919 143,797 266,050 66,562 13,302 3,328 5.44 143,797 266,050 66,562 4,886,561 1,222,557
Oct-07 22 1,176 1,227 170,945 455,589 113,983 20,709 5,181 7.96 170,945 455,589 113,983 5,722,227 1,431,630
Nov-07 22 1,189 1,180 170,588 414,419 103,683 18,837 4,713 7.05 170,588 414,419 103,683 5,876,742 1,470,288
Dec-07 19 1,202 1,088 163,965 366,385 91,665 19,283 4,824 5.60 163,965 366,385 91,665 6,543,272 1,637,046
Jan-08 23 1,210 1,252 166,821 447,138 111,868 19,441 4,864 8.44 166,821 447,138 111,868 5,295,387 1,324,840
Feb-08 21 1,226 1,072 113,588 280,176 70,097 13,342 3,338 5.17 113,588 280,176 70,097 5,419,942 1,356,003
Mar-08 18 1,229 987 102,604 253,012 63,301 14,056 3,517 5.21 102,604 253,012 63,301 4,858,122 1,215,442
2007-08 251 1,244 11,727 1,498,469 3,551,038 888,426 14,148 3,540 73.09 1,498,469 3,551,038 888,426 4,858,122 1,215,442
 Chart 4-1 : Business Growth of Capital Market Segment

Table 4-2 : Percentage Share of Top ‘N’ Securities/Member in Turnover

No. of Securities/Brokers
Year 5 10 25 50 100
Securities
1994-95 (Nov.-Mar.) 48.77 55.92 68.98 81.14 91.07
1995-96 82.98 86.60 90.89 93.54 95.87
1996-97 84.55 91.96 95.70 97.03 98.19
1997-98 72.98 85.17 92.41 95.76 97.90
1998-99 52.56 67.11 84.71 92.03 95.98
1999-00 39.56 59.22 82.31 88.69 93.66
2000-01 52.15 72.90 88.93 94.57 97.46
2001-02 44.43 62.92 82.24 91.56 95.91
2002-03 40.58 55.41 77.8 89.16 95.38
2003-04 31.04 44.87 64.32 79.44 91.03
2004-05 25.88 41.65 57.98 72.40 84.26
2005-06 22.15 31.35 46.39 59.22 73.12
2006-07 16.97 25.25 43.46 61.94 77.22
2007-08 16.29 26.78 45.46 61.47 77.29
Members
1994-95 (Nov.-Mar.) 18.19 26.60 44.37 61.71 81.12
1995-96 10.65 16.56 28.61 41.93 58.59
1996-97 5.94 10.08 19.67 30.57 45.95
1997-98 6.29 10.59 18.81 29.21 44.24
1998-99 7.73 11.96 20.77 31.66 47.02
1999-00 7.86 12.99 22.78 34.41 49.96
2000-01 7.78 12.76 23.00 33.86 48.79
2001-02 7.14 12.29 23.63 36.32 53.40
2002-03 10.26 16.41 29.07 42.49 59.15
2003-04 11.58 17.36 30.34 44.05 61.37
2004-05 13.52 20.20 34.97 49.01 65.09
2005-06 14.62 22.57 38.17 52.57 38.45
2006-07 14.72 24.27 42.61 56.71 71.22
2007-08 14.57 25.71 44.70 60.11 73.90

75
 Table 4-3 : ‘50’ Most Active Securities during 2007-08 in
Terms of Trading Value

Rank Name of Security Trading Value % Share Market Capitalisation % Share

in Total as on March 31,2008 in Total
(Rs. cr.) (US $ mn.) Trading (Rs. cr.) (US $ mn.) Market
Value Capitali-
sation
1 Reliance Industries 180,435 45,143 5.08 329,368 82,404 6.78
Ltd.
2 Reliance Natural. 106,895 26,744 3.01 16,299 4,078 0.34
Resources Ltd.
3 Reliance Energy Ltd. 106,484 26,641 3.00 29,586 7,402 0.61
4 Reliance Petroleum 96,968 24,260 2.73 70,290 17,586 1.45
Ltd.
5 Reliance 87,839 21,976 2.47 105,214 26,323 2.17
Communications Ltd.
6 Reliance Capital Ltd. 83,504 20,892 2.35 30,183 7,552 0.62
7 ICICI Bank Ltd. 77,736 19,448 2.19 85,512 21,394 1.76
8 IFCI Ltd. 74,312 18,592 2.09 3,362 841 0.07
9 Infosys Technologies 69,809 17,465 1.97 82,362 20,606 1.70
Ltd.
10 Larsen & Toubro Ltd. 66,812 16,716 1.88 88,702 22,192 1.83
11 State Bank Of India 63,360 15,852 1.78 101,065 25,285 2.08
12 DLF Ltd. 55,389 13,858 1.56 110,090 27,543 2.27
13 Bharti Airtel Ltd. 54,387 13,607 1.53 156,815 39,233 3.23
14 Steel Authority Of 48,170 12,052 1.36 76,536 19,148 1.58
India
15 Tata Steel Ltd. 47,526 11,890 1.34 50,741 12,695 1.04
16 GMR Infrastructure 47,354 11,847 1.33 27,110 6,782 0.56
Ltd.
17 BHEL 47,235 11,818 1.33 100,907 25,246 2.08
18 Jaiprakash Associates 45,654 11,422 1.29 26,519 6,635 0.55
Ltd
19 NTPC Ltd. 38,833 9,716 1.09 162,106 40,557 3.34
20 HDFC Ltd. 38,579 9,652 1.09 67,560 16,903 1.39
21 Unitech Ltd. 38,565 9,649 1.09 44,838 11,218 0.92
22 Essar Oil Ltd. 36,280 9,077 1.02 23,286 5,826 0.48
23 Oil And Natural Gas 35,359 8,846 1.00 209,727 52,471 4.32
Corp.
24 Indiabulls Real Estate 34,039 8,516 0.96 11,753 2,940 0.24
Ltd.
25 Indiabulls Financial 32,611 8,159 0.92 10,563 2,643 0.22
Services Ltd.
26 Satyam Computer 31,777 7,950 0.89 26,571 6,648 0.55
Services

Contd...

76
Contd...
Table 4-3 : ‘50’ Most Active Securities during 2007-08 in
Terms of Trading Value

Rank Name of Security Trading Value % Share Market Capitalisation % Share

in Total as on March 31,2008 in Total
(Rs. cr.) (US $ mn.) Trading (Rs. cr.) (US $ mn.) Market
Value Capitali-
sation
27 Power Grid Corp. 31,702 7,931 0.89 41,373 10,351 0.85
Ltd.
28 Suzlon Energy Ltd. 29,964 7,497 0.84 39,489 9,880 0.81
29 Sterlite Inds (Ind) Ltd. 29,347 7,342 0.83 50,621 12,665 1.04
30 Jindal Steel & Power 27,897 6,980 0.79 31,870 7,973 0.66
Ltd.
31 Tata Consultancy 27,208 6,807 0.77 79,311 19,843 1.63
Services Ltd.
32 Industrial 26,764 6,696 0.75 6,457 1,615 0.13
Development Bank
Of India Ltd.
33 ITC Ltd. 26,700 6,680 0.75 77,700 19,440 1.60
34 Infra. Dev. Fin. Co. 25,518 6,384 0.72 19,544 4,890 0.40
Ltd.
35 Tata Teleserv 24,633 6,163 0.69 5,320 1,331 0.11
(Maharastra)
36 Housing Dev & Infra 23,852 5,967 0.67 14,083 3,523 0.29
Ltd.
37 Nagarjuna Fertilizers 23,610 5,907 0.66 1,586 397 0.03
Ltd
38 Tata Motors Ltd. 23,608 5,906 0.66 24,005 6,006 0.49
39 Punj Lloyd Ltd. 22,049 5,516 0.62 9,431 2,360 0.19
40 Ispat Industries Ltd. 20,759 5,194 0.58 3,808 953 0.08
41 Tata Power Co Ltd. 20,504 5,130 0.58 25,777 6,449 0.53
42 HDFC Bank Ltd. 20,359 5,094 0.57 47,184 11,805 0.97
43 Jaiprakash 18,596 4,653 0.52 2,651 663 0.05
Hydropower Ltd.
44 ACC Ltd. 17,937 4,488 0.51 15,501 3,878 0.32
45 Reliance Power Ltd. 17,434 4,362 0.49 71,862 17,979 1.48
46 Cairn India Ltd. 15,993 4,001 0.45 39,872 9,975 0.82
47 Kotak Mahindra Bank 15,963 3,994 0.45 21,573 5,397 0.44
Ltd.
48 Hindalco Industries 15,590 3,900 0.44 20,261 5,069 0.42
Ltd
49 Maruti Suzuki India 15,557 3,892 0.44 23,893 5,978 0.49
Ltd.
50 Idea Cellular Ltd. 15,334 3,836 0.43 27,052 6,768 0.56
Total 2,182,792 546,107 61.47 2,747,289 687,338 56.55

77
 Table 4-4 : Top ‘50’ Companies by Market Capitalisation
as on March 31, 2008
Rank Name of Company Market Capitalisation % Share Trading Volume % Share
in Total During 2007-08 in
(Rs. cr.) (US $ mn.) Market (Rs. cr.) (US $ mn.) Total
Capitali- Trading
sation Volume
1 Reliance Industries 329,368 82,404 6.78 180,435 45,143 5.08
Ltd.
2 Oil And Natural Gas 209,727 52,471 4.32 35,359 8,846 1.00
Corporation
3 NTPC Ltd. 162,106 40,557 3.34 38,833 9,716 1.09
4 Bharti Airtel Ltd. 156,815 39,233 3.23 54,387 13,607 1.53
5 NMDC Ltd. 136,979 34,270 2.82 27 7 0.0008
6 DLF Ltd. 110,090 27,543 2.27 55,389 13,858 1.56
7 Reliance 105,214 26,323 2.17 87,839 21,976 2.47
Communications Ltd.
8 State Bank Of India 101,065 25,285 2.08 63,360 15,852 1.78
9 BHEL 100,907 25,246 2.08 47,235 11,818 1.33
10 Larsen & Toubro 88,702 22,192 1.83 66,812 16,716 1.88
Ltd..
11 ICICI Bank Ltd.. 85,512 21,394 1.76 77,736 19,448 2.19
12 Infosys Technologies 82,362 20,606 1.70 69,809 17,465 1.97
Ltd.
13 Tata Consultancy 79,311 19,843 1.63 27,208 6,807 0.77
Services Ltd.
14 ITC Ltd. 77,700 19,440 1.60 26,700 6,680 0.75
15 Steel Authority Of 76,536 19,148 1.58 48,170 12,052 1.36
India
16 Reliance Power Ltd. 71,862 17,979 1.48 17,434 4,362 0.49
17 Reliance Petroleum 70,290 17,586 1.45 96,968 24,260 2.73
Ltd.
18 HDFC Ltd. 67,560 16,903 1.39 38,579 9,652 1.09
19 Wipro Ltd. 63,144 15,798 1.30 11,571 2,895 0.33
20 Indian Oil Corp Ltd. 53,126 13,292 1.09 6,835 1,710 0.19
21 Tata Steel Ltd. 50,741 12,695 1.04 47,526 11,890 1.34
22 Sterlite Inds (Ind) Ltd. 50,621 12,665 1.04 29,347 7,342 0.83
23 Hindustan Unilever 49,832 12,467 1.03 13,120 3,283 0.37
Ltd.
24 HDFC Bank Ltd. 47,184 11,805 0.97 20,359 5,094 0.57
25 Unitech Ltd. 44,838 11,218 0.92 38,565 9,649 1.09
26 Power Grid Corp. 41,373 10,351 0.85 31,702 7,931 0.89
Ltd.

Contd...

78
Contd...
Table 4-4 : Top ‘50’ Companies by Market Capitalisation
as on March 31, 2008
Rank Name of Company Market Capitalisation % Share Trading Volume % Share
in Total During 2007-08 in
(Rs. cr.) (US $ mn.) Market (Rs. cr.) (US $ mn.) Total
Capitali- Trading
sation Volume
27 Cairn India Ltd. 39,872 9,975 0.82 15,993 4,001 0.45
28 Suzlon Energy Ltd. 39,489 9,880 0.81 29,964 7,497 0.84
29 Gail (India) Ltd. 35,978 9,001 0.74 12,926 3,234 0.36
30 Jindal Steel & Power 31,870 7,973 0.66 27,897 6,980 0.79
Ltd.
31 Reliance Capital Ltd. 30,183 7,552 0.62 83,504 20,892 2.35
32 Reliance Energy Ltd. 29,586 7,402 0.61 106,484 26,641 3.00
33 National Aluminium 29,110 7,283 0.60 2,129 533 0.06
Co Ltd.
34 Axis Bank Ltd. 28,254 7,069 0.58 14,562 3,643 0.41
35 GMR Infrastructure 27,110 6,782 0.56 47,354 11,847 1.33
Ltd..
36 Idea Cellular Ltd. 27,052 6,768 0.56 15,334 3,836 0.43
37 Satyam Computer 26,571 6,648 0.55 31,777 7,950 0.89
Services
38 Jaiprakash Associates 26,519 6,635 0.55 45,654 11,422 1.29
Ltd.
39 Tata Power Co Ltd. 25,777 6,449 0.53 20,504 5,130 0.58
40 Sun Pharmaceuticals 25,462 6,370 0.52 5,814 1,455 0.16
Ind.
41 ABB Ltd. 25,004 6,256 0.51 11,347 2,839 0.32
42 Tata Motors Ltd. 24,005 6,006 0.49 23,608 5,906 0.66
43 Maruti Suzuki India 23,893 5,978 0.49 15,557 3,892 0.44
Ltd.
44 Grasim Industries Ltd. 23,609 5,907 0.49 8,313 2,080 0.23
45 Essar Oil Ltd. 23,286 5,826 0.48 36,280 9,077 1.02
46 Mundra Port & Sez 23,189 5,802 0.48 9,635 2,410 0.27
Ltd.
47 Hindustan Zinc Ltd. 22,193 5,553 0.46 2,095 524 0.06
48 Kotak Mahindra Bank 21,573 5,397 0.44 15,963 3,994 0.45
Ltd.
49 Siemens Ltd. 20,783 5,200 0.43 12,425 3,108 0.35
50 Hindalco Industries 20,261 5,069 0.42 15,590 3,900 0.44
Ltd.

Total 3,163,594 791,492 65.12 1,842,016 460,850 51.87

79
80
Table 4-5 : Industry Wise Classification of Top ‘50’ Companies by Trading Volume and Market Capitalisation

Industry Trading Value (Amount) Trading Value Market Capitalisation (Amount) Market
(% to Total ‘Top 50 Capitalisation
Co’s) (% to Total ‘Top
50 Co’s)
2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08
(Rs.cr.) (US $ mn.) (Rs.cr.) (US $ mn.) % (Rs.cr.) (US $ mn.) (Rs.cr.) (US $ mn.) %
Banks 72,433 1,662 204,182 5,108 6.01 9.35 203,284 4,664 283,587 7,095 9.23 8.96

Financial Services 86,316 1,980 254,523 6,368 7.16 11.66 53,120 1,219 97,743 2,445 2.41 3.09

Engineering 25,909 594 66,812 1,672 2.15 3.06 45,471 1,043 88,702 2,219 2.07 2.80

FMCG 45,013 1,033 26,700 668 3.74 1.22 102,150 2,343 127,532 3,191 4.64 4.03

Infrastructure 88,949 2,041 500,458 12,521 7.38 22.93 155,337 3,564 539,261 13,492 7.06 17.05

IT 181,257 4,158 128,794 3,222 15.04 5.90 399,249 9,159 251,388 6,289 18.14 7.95

Manufacturing 407,168 9,341 430,484 10,770 33.79 19.72 453,659 10,407 711,980 17,813 20.61 22.51

Petrochemicals 164,324 3,770 388,646 9,723 13.64 17.80 481,723 11,051 725,669 18,155 21.88 22.94

Pharmaceuticals 23,717 544 – – 1.97 – 51,865 1,190 25,462 637 2.36 0.80

Services – – – – – – – – 23,189 580 – 0.73

Telecommunications 92,380 2,119 182,192 4,558 7.67 8.35 255,412 5,859 289,080 7,232 11.60 9.14

Media & 17,535 402 – – 1.46 – – – – – – –

Entertainment

Total 1,205,001 27,644 2,182,792 54,611 100.00 100.00 2,201,271 50,499 3,163,594 79,149 100.00 100.00
 Table 4-6 : NSE’s Most Active Trading days during the year 2007-08

Sr No. Date Highest Single Day Trading Value

(Rs. cr.) (US $ mn.)
1 1-Nov-2007 28,476.07 7,124.36
2 18-Oct-2007 26,030.25 6,512.45
3 8-Jan-2008 25,435.15 6,363.56
4 27-Dec-2007 24,976.78 6,248.88
5 3-Oct-2007 24,842.41 6,215.26
6 3-Jan-2008 24,710.05 6,182.15
7 30-Oct-2007 24,636.21 6,163.68
8 21-Jan-2008 24,525.77 6,136.05
9 17-Oct-2007 24,061.67 6,019.93
10 6-Nov-2007 23,764.91 5,945.69

Table 4-7 : Individual Securities Single day Trading Records

Rank Symbol Name of Company Date Traded Value

(Rs. cr.) (US $ mn.)
1 RPOWER Reliance Power Ltd. 11-Feb-2008 5,602.50 1,401.68
2 POWERGRID Power Grid Corp. Ltd. 5-Oct-2007 4,930.56 1,233.57
3 DLF DLF Limited 5-Jul-2007 4,346.70 1,087.49
4 RPL Reliance Petroleum Ltd. 1-Nov-2007 3,950.54 988.38
5 RPL Reliance Petroleum Ltd. 6-Nov-2007 3,626.62 907.33
6 RPL Reliance Petroleum Ltd. 29-Nov-2007 3,624.58 906.82
7 RNRL Rel. Nat. Resources Ltd. 5-Nov-2007 3,315.46 829.49
8 RNRL Rel. Nat. Resources Ltd. 6-Nov-2007 3,306.10 827.15
9 MUNDRAPORT Mundra Port & Sez Ltd 27-Nov-2007 2,687.72 672.43
10 RELIANCE Reliance Industries Ltd 12-Oct-2007 2,629.35 657.83

Table 4-8 : FII turnover on Capital Market Segment of Exchange

FII Turnover Market Turnover Contribution of

(Rs. cr.) (US $ mn) (Rs.cr.) (US $ mn) FII turnover to
total turnover
Apr-06 58,705 13,467 354,745 81,382 16.55
May-06 72,026 16,524 402,818 92,411 17.88
Jun-06 52,539 12,053 302,100 69,305 17.39
Jul-06 35,265 8,090 237,397 54,461 14.85
Aug-06 35,416 8,125 261,592 60,012 13.54
Sep-06 45,113 10,349 288,678 66,226 15.63
Oct-06 49,588 11,376 276,764 63,493 17.92
Nov-06 64,426 14,780 379,727 87,113 16.97
Dec-06 65,331 14,988 340,211 78,048 19.20
Jan-07 71,757 16,462 350,294 80,361 20.48
Contd...

81
 Contd...
Table 4-8 : FII turnover on Capital Market Segment of Exchange

FII Turnover Market Turnover Contribution of

(Rs. cr.) (US $ mn) (Rs.cr.) (US $ mn) FII turnover to
total turnover
Feb-07 68,828 15,790 360,341 82,666 19.10
Mar-07 67,303 15,440 335,907 77,061 20.04
2006-07 686,297 157,444 3,890,573 892,538 17.64
Apr-08 61,119 15,291 337,134 84,347 18.13
May-08 68,084 17,034 415,170 103,870 16.40
Jun-08 63,289 15,834 387,296 96,897 16.34
Jul-08 95,036 23,777 534,454 133,714 17.78
Aug-08 82,061 20,531 462,482 115,707 17.74
Sep-08 86,233 21,574 532,100 133,125 16.21
Oct-08 171,701 42,957 911,178 227,965 18.84
Nov-08 142,088 35,549 828,840 207,366 17.14
Dec-08 117,423 29,378 732,770 183,330 16.02
Jan-08 177,582 44,429 894,276 223,737 19.86
Feb-08 101,022 25,275 560,352 140,193 18.03
Mar-08 104,883 26,241 506,025 126,601 20.73
2007-08 1,270,521 317,869 7,102,077 1,776,852 17.89

Table 4-9 : Market Capitalisation of Securities in the CM Segment

(In Rs. cr.)
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
Contd...

82
Contd...
Table 4-9 : Market Capitalisation of Securities in the CM Segment
(In Rs. cr.)
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 (%)
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
Apr-07 3,650,368 2,096,100 57.42 321,560 8.81
May-07 3,898,078 2,206,712 56.61 343,150 8.80
Jun-07 3,978,381 2,219,151 55.78 388,710 9.77
Jul-07 4,317,571 2,358,907 54.64 397,396 9.20
Aug-07 4,296,994 2,331,929 54.27 393,906 9.17
Sep-07 4,886,561 2,774,625 56.78 448,284 9.17
Oct-07 5,722,227 3,328,356 58.17 487,986 8.53
Nov-07 5,876,742 3,257,297 55.43 525,730 8.95
Dec-07 6,543,272 3,522,527 53.83 643,625 9.84
Jan-08 5,295,387 2,966,421 56.02 522,450 9.87
Feb-08 5,419,942 3,016,694 55.66 528,511 9.75
Mar-08 4,858,122 2,848,773 58.64 453,625 9.34

83
 Table 4-10 : Composition of S&P CNX Nifty Index as on March 31, 2008

Sl. Name of Security Issued Market Weigh- Beta R2 Volatility Return Impact
No. Capital Capitali- tage Cost
sation
(Rs. cr.) (Rs. cr.) (%) (%) (%) (%)
1 ABB 42 25,004 0.88 0.83 0.48 3.41 2.13 0.11
2 ACC 188 15,501 0.54 0.79 0.34 2.92 3.79 0.07
3 AMBUJACEM 304 18,428 0.65 0.37 0.18 1.79 0.08 0.12
4 BHARTIARTL 1,898 156,815 5.50 0.78 0.37 3.31 0.00 0.09
5 BHEL 490 100,907 3.54 1.10 0.58 4.11 -9.86 0.09
6 BPCL 362 14,771 0.52 0.71 0.20 3.85 -12.10 0.11
7 CAIRN 1,779 39,872 1.40 0.95 0.41 5.58 -1.97 0.11
8 CIPLA 155 17,100 0.60 0.53 0.21 2.63 6.23 0.09
9 DLF 341 110,090 3.86 1.29 0.55 7.16 -17.24 0.09
10 DRREDDY 84 9,943 0.35 0.44 0.23 2.25 1.29 0.11
11 GAIL 846 35,978 1.26 0.94 0.38 3.13 0.48 0.09
12 GRASIM 92 23,609 0.83 0.80 0.53 2.86 -10.62 0.10
13 HCLTECH 133 16,845 0.59 0.87 0.37 4.62 -8.79 0.13
14 HDFC 284 67,560 2.37 0.90 0.40 5.31 -14.90 0.08
15 HDFCBANK 354 47,184 1.66 0.93 0.50 3.74 -8.62 0.09
16 HEROHONDA 40 13,869 0.49 0.45 0.18 2.33 -8.81 0.12
17 HINDALCO 123 20,261 0.71 1.19 0.50 5.29 -18.51 0.11
18 HINDUNILVR 218 49,832 1.75 0.58 0.25 2.85 0.57 0.09
19 ICICIBANK 1,111 85,512 3.00 1.10 0.55 5.35 -29.32 0.09
20 IDEA 2,635 27,052 0.95 0.80 0.34 3.41 -6.64 0.14
21 INFOSYSTCH 286 82,362 2.89 0.62 0.30 4.01 -7.00 0.08
22 ITC 377 77,700 2.73 0.67 0.32 2.79 1.73 0.08
23 LT 58 88,702 3.11 1.04 0.52 4.75 -13.78 0.08
24 M&M 246 17,129 0.60 0.76 0.40 1.83 0.77 0.11
25 MARUTI 144 23,893 0.84 0.68 0.34 2.33 -4.75 0.08
26 NATIONALUM 644 29,110 1.02 0.76 0.18 3.72 -2.66 0.15
27 NTPC 8,245 162,106 5.69 1.17 0.58 3.40 -2.67 0.09
28 ONGC 2,139 209,727 7.36 1.10 0.64 3.27 -3.60 0.10
29 PNB 315 16,088 0.56 1.03 0.49 3.72 -15.43 0.09
30 POWERGRID 4,209 41,373 1.45 1.19 0.52 4.83 -10.56 0.09
31 RANBAXY 187 16,361 0.57 0.60 0.31 2.45 -1.64 0.08
32 RCOM 1,032 105,214 3.69 1.18 0.66 4.05 -11.30 0.08
33 REL 237 29,586 1.04 1.67 0.55 6.41 -20.30 0.09
34 RELIANCE 1,454 329,368 11.56 1.12 0.77 3.50 -8.02 0.08
35 RPL 4,500 70,290 2.47 1.32 0.48 4.28 -11.15 0.08
36 SAIL 4,130 76,536 2.69 1.47 0.66 4.90 -27.18 0.10
37 SATYAMCOMP 134 26,571 0.93 0.64 0.24 3.93 -9.28 0.08
38 SBIN 632 101,065 3.55 0.99 0.52 3.65 -24.22 0.08
39 SIEMENS 67 20,783 0.73 0.87 0.38 4.13 -24.56 0.11
40 STER 142 50,621 1.78 1.28 0.55 4.23 -14.45 0.12
41 SUNPHARMA 104 25,462 0.89 0.38 0.11 2.87 0.19 0.12
Contd...

84
Contd...
Table 4-10 : Composition of S&P CNX Nifty Index as on March 31, 2008

Sl. Name of Security Issued Market Weigh- Beta R2 Volatility Return Impact
No. Capital Capitali- tage Cost
sation
(Rs. cr.) (Rs. cr.) (%) (%) (%) (%)
42 SUZLON 299 39,489 1.39 1.09 0.34 5.80 -6.25 0.11
43 TATACOMM 285 14,619 0.51 0.98 0.34 4.26 0.16 0.12
44 TATAMOTORS 386 24,005 0.84 0.77 0.46 2.80 -11.09 0.09
45 TATAPOWER 220 25,777 0.90 1.20 0.38 4.21 -16.32 0.12
46 TATASTEEL 731 50,741 1.78 1.15 0.52 5.27 -13.40 0.08
47 TCS 98 79,311 2.78 0.68 0.40 3.30 -7.63 0.10
48 UNITECH 325 44,838 1.57 1.55 0.49 5.79 -23.26 0.11
49 WIPRO 292 63,144 2.22 0.69 0.35 4.39 -1.13 0.13
50 ZEEL 43 10,668 0.37 0.78 0.30 3.06 1.61 0.12
Total 43,440 2,848,773 100.00 1.00 – 3.04 -9.36 0.09

* Beta & R2 are calculated for the period 01-Apr-2007 to 31-Mar-2008

* 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 security versus that of the market.
* Volatility is the Std. deviation of the daily returns for the period 01-Mar-2008 to 31-Mar-2008
* Last day of trading was 31-Mar-2008
* 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

Table 4-11 : Composition of CNX NIFTY Junior Index -

as on March 31, 2008

Sl. Name of Security Issued Market Weigh- Beta R2 Volatility Returns Impact
No. Capital Capitali- tage Cost
sation
(Rs. cr.) (Rs. cr.) (%) (%) (%) (%)
1 ANDHRABANK 485 3,570 0.78 1.00 0.59 3.86 -18.7 0.16
2 APOLLOTYRE 48 1,966 0.43 0.83 0.34 4.48 -5.92 0.16
3 ASHOKLEY 133 4,709 1.03 0.94 0.48 2.81 -5.47 0.12
4 ASIANPAINT 96 11,509 2.51 0.22 0.05 2.05 7.61 0.25
5 AUROPHARMA 27 1,566 0.34 0.65 0.32 4.19 -11.65 0.16
6 AVENTIS 23 1,762 0.38 0.41 0.22 3.61 -18.57 0.43
7 BANKBARODA 364 10,321 2.25 1.02 0.58 4.48 -22.53 0.16
8 BANKINDIA 525 13,300 2.90 1.08 0.46 5.19 -29.49 0.12
9 BEL 80 8,539 1.86 0.62 0.32 2.2 -25.73 0.25
10 BHARATFORG 45 5,948 1.30 0.60 0.32 4.4 -7.80 0.17
11 BIOCON 50 4,305 0.94 0.63 0.35 3.25 -3.55 0.18
12 PFC 1148 18,611 4.05 1.08 0.44 4.41 -13.50 0.18
13 CADILAHC 63 3,184 0.69 0.40 0.19 3.38 -2.84 0.41
14 CANBK 410 9,229 2.01 0.99 0.48 4.28 -19.12 0.15

Contd...

85
 Contd...
Table 4-11 : Composition of CNX NIFTY Junior Index -
as on March 31, 2008

Sl. Name of Security Issued Market Weigh- Beta R2 Volatility Returns Impact
No. Capital Capitali- tage Cost
sation
(Rs. cr.) (Rs. cr.) (%) (%) (%) (%)
15 CHENNPETRO 149 4,185 0.91 0.88 0.35 3.95 -6.52 0.19
16 RELCAPITAL 246 30,183 6.58 1.63 0.72 8.19 -32.65 0.10
17 ULTRACEMCO 124 9,767 2.13 0.71 0.45 2.7 -13.26 0.27
18 CORPBANK 143 4,045 0.88 0.81 0.37 5.52 -13.52 0.17
19 CUMMINSIND 40 6,385 1.39 0.65 0.32 5.08 -5.19 0.32
20 INDHOTEL 72 8,117 1.77 0.81 0.53 4.13 -11.06 0.18
21 CONCOR 65 11,216 2.44 0.23 0.06 1.69 -1.88 0.22
22 I-FLEX 42 7,881 1.72 0.94 0.42 3.78 -12.78 0.27
23 GMRINFRA 364 27,110 5.91 1.36 0.62 5.67 -14.82 0.11
24 IDBI 725 6,457 1.41 1.37 0.71 4.21 -24.78 0.12
25 IFCI 762 3,362 0.73 1.50 0.49 5.98 -34.23 0.12
26 MCDOWELL-N 100 15,009 3.27 0.81 0.30 3.07 -11.72 0.17
27 IOB 545 7,360 1.60 0.91 0.48 3.75 -18.39 0.21
28 JPASSOCIAT 234 26,519 5.78 1.39 0.59 7.97 -13.78 0.10
29 KOTAKBANK 345 21,573 4.70 1.23 0.62 7.18 -21.97 0.15
30 LICHSGFIN 85 2,395 0.52 1.15 0.45 4.21 -9.24 0.16
31 LUPIN 82 4,092 0.89 0.47 0.28 2.7 -9.99 0.20
32 MOSERBAER 168 2,560 0.56 0.91 0.38 6.97 -14.18 0.19
33 MPHASIS 209 4,211 0.92 0.67 0.26 5.57 -12.28 0.30
34 JINDALSTEL 15 31,870 6.94 1.41 0.42 6.66 -10.19 0.10
35 NIRMA 80 2,468 0.54 0.59 0.18 3.2 -15.76 0.43
36 PATNI 28 3,091 0.67 0.76 0.28 4.85 -7.72 0.17
37 PFIZER 30 2,045 0.45 0.37 0.22 2.83 2.01 0.24
38 ABIRLANUVO 93 13,027 2.84 0.82 0.42 4.13 -18.35 0.27
39 RNRL 817 21,704 4.73 1.57 0.44 5.55 -24.91 0.09
40 RAYMOND 61 1,860 0.41 0.65 0.27 4.66 -12.28 0.22
41 IDFC 1294 19,544 4.26 1.16 0.59 6.08 -22.62 0.13
42 TECHM 121 8,559 1.86 0.64 0.29 3.00 2.11 0.14
43 SYNDIBANK 522 3,912 0.85 1.11 0.62 4.2 -23.68 0.16
44 TTML 1893 5,320 1.16 1.33 0.56 4.28 -20.28 0.12
45 TVSMOTOR 24 829 0.18 1.08 0.46 5.64 -20.32 0.15
46 UNIONBANK 505 7,110 1.55 1.18 0.56 5.41 -24.31 0.18
47 AXISBANK 358 28,254 6.16 0.82 0.42 5.08 -22.76 0.13
48 VIJAYABANK 434 2,148 0.47 1.24 0.66 4.52 -25.21 0.15
49 INGVYSYABK 102 3,430 0.75 0.59 0.24 3.52 -2.12 0.52
50 WOCKPHARMA 55 2,914 0.63 0.70 0.45 3.28 -21.05 0.25
Total 14,428 459,031 100.00 1.00 – 4.16 -17.23 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, the
return on a security versus that of the market.
* Volatility is the Std. deviation of the daily returns for the period 01-Mar-2008 to 31-Mar-2008
* Last day of trading was 31-Mar-2008
* Impact Cost for CNX Nifty Junior is for a portfolio of Rs. 0.25 lakhs
* Impact Cost for CNX Nifty Junior is the weightage average impact cost

86
 Table 4-12 : Industry-wise Weightages of S&P CNX NIFTY Securities
as on 31st March, 2008

Sl. No. Industry Market Cap Weightage

(Rs. cr.) (%)
1 Refineries 414,429 14.55
2 Telecommunication - Services 303,699 10.66
3 Computers - Software 268,233 9.42
4 Power 258,843 9.09
5 Banks 249,849 8.77
6 Oil Exploration 249,599 8.76
7 Electrical Equipment 186,183 6.54
8 Construction 154,927 5.44
9 Steel & Steel Products 127,277 4.47
10 Engineering 88,702 3.11
11 Cigarettes 77,700 2.73
12 Pharmaceuticals 68,866 2.42
13 Finance - Housing 67,560 2.37
14 Automobile - 4 wheelers 65,028 2.28
15 Cement & Cement Products 57,539 2.02
16 Metals 50,621 1.78
17 Diversified 49,832 1.75
18 Aluminium 49,371 1.73
19 Gas 35,978 1.26
20 Automohiles - 2 and 3 wheelers 13,869 0.49
21 Media & Entertainment 10,668 0.37
Total 2,848,773 100

Table 4-13 : 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 14.57
May-01 1125.45 1207.00 1096.25 1167.90 0.89 15.80
Jun-01 1168.10 1175.80 1060.05 1107.90 1.27 15.76
Jul-01 1108.35 1127.15 1046.90 1072.85 1.01 15.15
Aug-01 1073.00 1084.00 1051.75 1053.75 0.57 15.10
Sep-01 1054.65 1059.90 849.95 913.85 2.52 13.16
Oct-01 914.65 1000.95 884.65 971.90 0.99 13.79

Contd...

87
 Contd...
Table 4-13 : S&P CNX NIFTY Index*

Month & Year Open High Low Close Volatility Price To

(%) Earning
Ratio#
Nov-01 973.55 1097.60 973.55 1067.15 1.25 15.46
Dec-01 1067.20 1132.65 1010.45 1059.05 1.22 15.35
Jan-02 1058.85 1121.75 1052.05 1075.40 0.99 16.99
Feb-02 1076.95 1205.95 1069.40 1142.05 1.48 18.38
Mar-02 1142.05 1201.10 1117.85 1129.55 1.18 18.10
2001-02 1148.10 1207.00 849.95 1129.55 1.40 18.10
Apr-02 1129.85 1153.30 1073.30 1084.50 1.11 17.86
May-02 1084.80 1136.55 1020.10 1028.80 1.35 16.19
Jun-02 1029.25 1102.05 1029.25 1057.80 1.13 15.73
Jul-02 1058.00 1087.40 943.60 958.90 1.01 14.30
Aug-02 959.20 1012.75 935.55 1010.60 0.85 15.04
Sep-02 1010.90 1024.65 960.20 963.15 0.72 14.33
Oct-02 961.15 983.60 920.10 951.40 0.84 14.47
Nov-02 951.45 1057.40 946.40 1050.15 0.70 14.24
Dec-02 1050.15 1103.95 1034.10 1093.50 0.97 14.83
Jan-03 1093.60 1105.60 1026.20 1041.85 0.80 14.13
Feb-03 1040.25 1075.50 1034.10 1063.40 0.89 14.42
Mar-03 1063.55 1070.85 974.10 978.20 1.09 13.36
2002-03 1129.85 1153.30 920.10 978.20 0.99 13.36
Apr-03 977.40 1033.45 920.00 934.05 1.38 13.14
May-03 930.90 1013.85 930.80 1006.80 0.74 11.65
Jun-03 1006.85 1141.30 1004.70 1134.15 0.94 12.95
Jul-03 1133.95 1198.50 1089.30 1185.85 1.04 12.84
Aug-03 1185.80 1365.80 1164.75 1356.55 1.52 14.95
Sep-03 1356.70 1430.70 1285.25 1417.10 1.81 15.43
Oct-03 1416.60 1574.10 1407.95 1555.90 1.52 17.15
Nov-03 1556.50 1630.25 1509.15 1615.25 1.30 17.81
Dec-03 1615.85 1914.40 1615.70 1879.75 0.96 20.73
Jan-04 1880.35 2014.65 1756.25 1809.75 2.18 19.96
Feb-04 1809.30 1935.80 1755.65 1800.30 1.69 19.74
Mar-04 1798.35 1898.70 1669.70 1771.90 1.48 20.70
2003-04 977.40 2014.65 920.00 1771.90 1.43 20.70
Apr-04 1771.45 1912.35 1771.45 1796.10 1.40 18.68
May-04 1796.10 1837.95 1292.20 1483.60 4.21 11.94
Jun-04 1483.90 1566.50 1437.90 1505.60 1.46 12.64
Jul-04 1506.65 1638.70 1472.55 1632.30 1.29 13.63
Aug-04 1631.55 1658.90 1573.70 1631.75 0.99 13.64
Sep-04 1631.70 1760.80 1619.90 1745.50 0.83 14.59
Oct-04 1744.40 1829.45 1737.85 1786.90 0.97 14.93
Nov-04 1787.30 1963.80 1776.70 1958.80 0.68 16.39
Dec-04 1960.75 2088.45 1944.50 2080.50 0.74 15.32
Jan-05 2080.00 2120.15 1894.40 2057.60 1.67 14.68
Feb-05 2057.75 2110.15 2036.60 2103.25 0.78 15.02
Contd...

88
Contd...
Table 4-13 : S&P CNX NIFTY Index*

Month & Year Open High Low Close Volatility Price To

(%) Earning
Ratio#
Mar-05 2103.10 2183.45 1971.15 2035.65 1.08 14.60
2004-05 1771.45 2183.45 1292.20 2035.65 1.61 14.60
Apr-05 2035.90 2084.90 1896.30 1902.50 1.23 13.27
May-05 1903.10 2099.35 1898.15 2087.55 0.67 13.94
Jun-05 2087.80 2226.15 2061.35 2220.60 0.73 14.31
Jul-05 2220.45 2332.55 2171.25 2312.30 0.93 14.10
Aug-05 2312.05 2426.65 2294.25 2384.65 0.98 14.78
Sep-05 2384.70 2633.90 2382.90 2601.40 1.19 16.15
Oct-05 2601.00 2669.20 2307.45 2370.95 1.51 14.23
Nov-05 2366.80 2727.05 2366.80 2652.25 0.95 15.95
Dec-05 2651.60 2857.00 2641.95 2836.55 1.13 17.16
Jan-06 2836.80 3005.10 2783.85 3001.10 0.93 17.90
Feb-06 3001.30 3090.30 2928.10 3074.70 0.81 18.27
Mar-06 3074.60 3433.85 3064.00 3402.55 0.93 20.26
2005-06 2035.90 3433.85 1896.30 3402.55 1.04 20.26
Apr-06 3403.15 3598.95 3290.35 3557.60 1.67 20.31
May-06 3557.55 3774.15 2896.40 3071.05 2.73 17.46
Jun-06 3072.55 3134.15 2595.65 3128.20 3.23 18.44
Jul-06 3128.75 3208.85 2878.25 3143.20 1.93 17.64
Aug-06 3128.20 3452.30 3113.60 3413.90 0.72 19.15
Sep-06 3414.00 3603.70 3328.45 3588.40 1.06 20.92
Oct-06 3588.95 3782.85 3508.65 3744.10 0.93 20.37
Nov-06 3744.10 3976.80 3737.00 3954.50 0.61 21.18
Dec-06 3955.70 4046.85 3657.65 3966.40 1.50 21.26
Jan-07 3966.25 4167.15 3833.60 4082.70 1.15 19.85
Feb-07 4083.40 4245.30 3674.85 3745.30 1.55 18.01
Mar-07 3745.40 3901.75 3554.50 3821.55 2.00 18.40
2006-07 3403.15 4245.30 2595.65 3821.55 1.77 18.40
Apr-07 3820.00 4217.90 3617.00 4087.90 1.73 19.48
May-07 4089.45 4306.75 3981.15 4295.80 0.86 20.41
Jun-07 4296.05 4362.95 4100.80 4318.30 0.84 20.60
Jul-07 4318.40 4647.95 4304.00 4528.85 1.15 20.49
Aug-07 4528.85 4532.90 4002.20 4464.00 2.04 20.20
Sep-07 4466.65 5055.80 4445.55 5021.35 1.08 22.58
Oct-07 5021.50 5976.00 5000.95 5900.65 2.48 25.74
Nov-07 5903.80 6011.95 5394.35 5762.75 1.73 25.21
Dec-07 5765.45 6185.40 5676.70 6138.60 1.67 27.62
Jan-08 6136.75 6357.10 4448.50 5137.45 3.27 21.97
Feb-08 5140.60 5545.20 4803.60 5223.50 2.46 22.27
Mar-08 5222.80 5222.80 4468.55 4734.50 3.04 20.63
2007-08 3820.00 6357.10 3617.00 4734.50 2.02 20.63

* S&P CNX Nifty commenced from November 3, 1995

# At the end of the period
Note : Volatility is the standard deviation of daily returns for the respective month/year

89
 Table 4-14 : CNX NIFTY Junior Index*

Month & Year Open High Low Close Volatil- Price To

ity (%) 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-01 1601.80 1638.05 1362.50 1525.20 2.62 8.47
May-01 1529.05 1676.25 1472.40 1627.15 1.20 8.61
Jun-01 1627.55 1638.90 1397.60 1415.40 1.30 8.68
Jul-01 1416.45 1438.25 1304.25 1342.55 1.17 7.14
Aug-01 1341.90 1370.25 1275.20 1277.35 0.58 6.79
Sep-01 1278.25 1292.00 1038.75 1084.40 2.68 5.90
Oct-01 1083.70 1206.65 1044.90 1174.20 0.99 6.13
Nov-01 1174.15 1376.75 1173.35 1334.15 0.96 5.95
Dec-01 1335.45 1415.85 1215.45 1298.30 1.86 5.84
Jan-02 1298.60 1358.55 1273.80 1348.55 0.91 5.28
Feb-02 1350.60 1617.05 1350.60 1495.55 2.14 6.54
Mar-02 1496.40 1611.20 1489.25 1566.95 1.11 6.80
2001-02 1601.40 1676.25 1038.75 1566.95 1.60 6.80
Apr-02 1568.40 1658.50 1564.15 1607.75 0.95 7.35
May-02 1608.25 1665.15 1448.35 1497.10 1.74 8.56
Jun-02 1497.90 1682.00 1497.90 1617.40 1.35 8.26
Jul-02 1617.40 1690.35 1429.05 1455.85 1.47 7.44
Aug-02 1455.75 1517.35 1433.05 1452.60 1.03 7.42
Sep-02 1453.45 1468.85 1255.20 1257.85 1.35 6.48
Oct-02 1256.95 1321.00 1231.95 1255.30 1.03 6.56
Nov-02 1255.60 1340.85 1243.15 1337.10 0.63 11.55
Dec-02 1337.60 1435.20 1337.20 1413.05 1.13 12.26
Jan-03 1413.25 1462.90 1353.75 1376.85 1.05 11.95
Feb-03 1377.20 1415.65 1333.75 1387.10 1.21 12.05
Mar-03 1401.00 1409.30 1255.35 1259.55 1.15 11.68
2002-03 1568.40 1690.35 1231.95 1259.55 1.23 11.68
Apr-03 1260.75 1370.80 1259.75 1339.75 1.16 16.37
May-03 1342.75 1693.15 1340.25 1664.15 1.21 20.36
Jun-03 1605.50 1804.60 1598.60 1783.70 1.46 8.39
Jul-03 1787.25 2056.85 1778.20 2012.30 1.48 9.48
Aug-03 2014.95 2287.60 1959.50 2275.25 1.66 10.46
Sep-03 2279.30 2459.35 2188.45 2456.95 1.65 11.34
Oct-03 2460.85 2679.80 2448.00 2656.15 1.65 12.26
Nov-03 2671.60 2807.05 2603.95 2801.20 1.13 12.93

Contd...

90
Contd...
Table 4-14 : CNX NIFTY Junior Index*

Month & Year Open High Low Close Volatil- Price To

ity (%) Earning
Ratio#
Dec-03 2823.50 3451.40 2816.80 3405.70 1.02 15.73
Jan-04 3421.40 3702.60 3234.00 3367.65 2.55 15.56
Feb-04 3371.60 3632.10 3193.80 3330.60 1.78 15.35
Mar-04 3340.00 3488.95 3064.10 3392.05 1.55 11.93
2003-04 1260.75 3702.60 1259.75 3392.05 1.57 11.93
Apr-04 3398.00 3875.55 3398.00 3639.80 1.56 12.9
May-04 3643.80 3756.65 2493.70 2846.90 1.39 7.84
Jun-04 2898.45 3018.40 2723.50 2903.35 1.39 7.94
Jul-04 2921.30 3162.85 2804.75 3082.10 1.18 8.13
Aug-04 3088.05 3206.15 3006.70 3199.00 0.94 8.42
Sep-04 3204.55 3543.60 3204.55 3504.25 0.76 9.23
Oct-04 3512.05 3653.40 3403.70 3481.55 0.89 9.18
Nov-04 3480.40 3913.60 3466.65 3884.55 0.86 10.23
Dec-04 3896.25 4468.35 3849.05 4453.30 0.96 14.19
Jan-05 4483.65 4549.85 3999.75 4247.80 1.92 12.93
Feb-05 4249.70 4427.45 4213.95 4388.20 0.85 14.17
Mar-05 4381.00 4705.25 4113.40 4275.15 1.36 13.82
2004-05 3398.00 4705.25 2493.70 4275.15 1.83 13.82
Apr-05 4275.35 4413.40 4016.85 4024.40 1.17 13.21
May-05 4039.85 4369.05 3998.80 4364.55 0.84 14.42
Jun-05 4374.50 4573.05 4351.25 4393.25 0.877 13.89
Jul-05 4398.35 4991.50 4396.15 4919.10 1.01 15.3
Aug-05 4904.45 5173.05 4786.45 5053.00 1.15 15.86
Sep-05 5068.90 5419.90 4955.75 5303.50 1.56 16.65
Oct-05 5338.00 5443.40 4609.15 4714.45 1.37 14.63
Nov-05 4787.50 5383.20 4690.90 5242.00 0.88 16.18
Dec-05 5269.40 5591.45 5222.90 5541.45 1.22 17.11
Jan-06 5555.90 5980.50 5543.45 5882.90 1.18 17.66
Feb-06 5902.10 6132.40 5758.80 5966.65 1.03 18.06
Mar-06 6279.00 6437.40 5938.55 6412.10 0.95 20.25
2005-06 4275.35 6437.40 3998.80 6412.10 0.95 20.25
Apr-06 6415 6882.55 6199.70 6856 1.59 20.12
May-06 6923 7250.30 5116.05 5827.4 3.26 17.08
Jun-06 5901.8 5953.05 4463.75 5264.3 4.15 14.52
Jul-06 5327.15 5391.70 4735.60 5335.1 1.78 14.62
Aug-06 5330.00 6044.55 5244.15 5940.5 1.01 16.46
Sep-06 5964.55 6551.35 5924.20 6510.4 1.31 20.37
Oct-06 6531.15 6868.40 6439.90 6823.15 0.88 20.06
Nov-06 6846.10 7151.80 6734.60 6967.25 0.87 21.34
Contd...

91
 Contd...
Table 4-14 : CNX NIFTY Junior Index*

Month & Year Open High Low Close Volatil- Price To

ity (%) Earning
Ratio#
Dec-06 7028.85 7240.15 6420.65 7106.35 1.91 21.78
Jan-07 7131.25 7459.45 6914.25 7268.05 1.06 19.64
Feb-07 7319.50 7566.65 6537.80 6722.1 1.68 18.08
Mar-07 6719.55 7015.40 6233.80 6878.05 1.93 18.48
2006-07 6415.25 7566.65 4463.75 6878.05 2.05 18.48
Apr-07 6675.85 7554.55 6559.55 7527.30 1.53 17.23
May-07 7610.45 8153.05 7429.15 8022.55 0.95 17.30
Jun-07 8047.10 8708.35 7799.70 8699.05 1.10 20.19
Jul-07 8720.50 9247.00 8564.30 8849.60 1.13 18.71
Aug-07 8829.65 8966.25 7700.20 8632.75 2.30 18.51
Sep-07 8658.20 9838.30 8658.20 9820.90 1.11 21.06
Oct-07 9831.65 10726.65 8908.55 10643.30 2.85 21.43
Nov-07 10757.05 11740.95 10020.35 11431.65 2.05 23.09
Dec-07 11471.60 12533.95 11455.05 12488.25 1.70 26.48
Jan-08 12488.65 13209.35 8336.55 10130.00 4.40 19.89
Feb-08 10269.75 10684.40 9025.60 9636.10 2.42 19.56
Mar-08 9526.40 9526.40 7235.25 7975.75 4.16 16.69
2007-08 6675.85 13209.35 6559.55 7975.75 2.41 16.69

* CNX Nifty Junior commenced from November 4, 1996.

# At the end of period
Note : Volatility is the standard deviation of daily returns for the respective month/year

Chart 4-2 : Movement of Sectoral Indices: 2007-08

92
 Table 4-15 : Performance of NSE Indices during the year 2007-08
Indices Record high Closing index Average Y-o-Y Returns
Value Date values Daily
(31-03-08) Volatility
S&P CNX Nifty 6357.10 8-Jan-08 4734.50 2.00 23.89
CNX Junior 13209.35 4-Jan-08 7975.75 2.40 15.96
CNX 100 6277.05 8-Jan-08 4537.85 2.02 22.59
S&P CNX 500 5563.50 8-Jan-08 3825.85 2.02 21.64
CNX Midcap 9781.70 8-Jan-08 6240.65 2.08 28.67
Nifty Midcap 50 4047.55 9-Jan-08 2371.70 2.55 22.95
CNX FMCG 6778.92 7-Jan-08 5817.72 1.72 23.13
CNX IT 5513.40 4-May-07 3704.95 1.99 -28.49
Finance 9584.19 9-Jan-08 4715.80 3.27 60.06
Petrochemicals 8616.05 7-Jan-08 4664.27 2.47 45.30
Pharmaceuticals 5316.13 2-Jan-08 4549.10 1.46 4.71

Table 4-16 : Details of Mutual Funds and Exchange

Traded Funds Listed on NSE
A: List of Mutual Funds (MF’s) and Exchange Traded Funds (ETF’s)
MUTUAL FUNDS
Sr. Symbol Company Name Date of
No. Listing
1 MORGANSTAN Morgan Stanley 27-May-2004
2 BSCFAUG08A Benchmark Mutual Fund 21-Sep-2005
3 BSCFAUG08B Benchmark Mutual Fund 21-Sep-2005
4 FTCSF3YDIV Franklin Templeton Mutual Fund-Capital Safety Fund-3Y 28-May-2007
(Divdend Option)
5 FTCSF3YGRO Franklin Templeton Mutual Fund-Capital Saftey Fund 3Y 28-May-2007
(Growth Option)
6 FTCSF5YDIV Franklin Templeton Mutual Fund-Capital Safety Fund-5Y 28-May-2007
Dividend Option
7 FTCSF5YGRO Franklin Templeton Mutual Fund-Capital Safety Fund-5Y 28-May-2007
(Growth Option)
8 FTCPOF3YDV Franklin Templeton Capital Protection Oriented Fund 25-Jun-2007
9 FTCPOF3YGR Franklin Templeton Capital Protection Oriented Fund 25-Jun-2007
10 FTCPOF5YDV Franklin Templeton Capital Protection Oriented Fund 25-Jun-2007
11 FTCPOF5YGR Franklin Templeton Capital Protection Oriented Fund 25-Jun-2007
EXCHANGE TRADED FUNDS
1 NIFTYBEES Benchmark Mutual Fund 8-Jan-2002
2 JUNIORBEES Benchmark Mutual Fund-Nifty Junior Benchmark ETF 6-Mar-2003
3 UTISUNDER UTI Mutual Fund 16-Jul-2003
4 LIQUIDBEES Benchmark Asset Management Company Private Limited 16-Jul-2003
5 BANKBEES Benchmark Asset Management Company Pvt. Ltd. 4-Jun-2004
6 GOLDBEES Benchmark Mutual Fund - Gold Benchmark Exchange 19-Mar-2007
Traded Scheme
7 GOLDSHARE UTI Mutual Fund - UTI Gold Exchange Traded Fund 17-Apr-2007
8 KOTAKGOLD Kotak Mutual Fund - Gold Exchange Traded Fund 8-Aug-2007
9 PSUBNKBEES Benchmark Mutual Fund - PSU Bank Benchmark Exchange 1-Nov-2007
Traded Scheme
10 KOTAKPSUBK Kotak Mahindra Mutual Fund 16-Nov-2007
11 RELGOLD Reliance Mutual Fund - Gold Exchange Traded Fund 26-Nov-2007
12 QGOLDHALF Quantum Gold Fund -Exchange Traded Fund (ETF) 28-Feb-2008

93
 Table 4-16 : Details of Mutual Funds and Exchange Traded
Funds Listed on NSE

B: No of Trades and Trading Value

Month & Mutual Funds (MF’s) Exchange traded funds (ETF’s)
Year
No. of Trading Value No. of Trading Value
Trades Trades
(Rs. cr.) (US $ mn.) (Rs. cr.) (US $ mn.)
Apr-07 4,676 16.51 4.13 31,467 129.28 32.34
May-07 5,476 15.39 3.85 27,911 94.37 23.61
Jun-07 5,507 24.33 6.09 19,449 106.16 26.56
Jul-07 7,544 24.67 6.17 16,105 123.30 30.85
Aug-07 6,241 17.22 4.31 15,400 174.79 43.73
Sep-07 7,043 24.53 6.14 15,818 123.99 31.02
Oct-07 10,241 37.15 9.29 20,505 260.64 65.21
Nov-07 7,169 20.94 5.24 26,693 162.94 40.76
Dec-07 6,640 29.51 7.38 15,971 134.05 33.54
Jan-08 26,382 36.71 9.18 28,646 190.24 47.59
Feb-08 12,522 18.56 4.64 24,398 153.39 38.38
Mar-08 7,731 23.31 5.83 51,728 259.42 64.90
2007-08 107,172 288.84 72.26 294,091 1,912.55 478.50

Table 4-17 : Settlement Cycle and Process in CM Segment

Settlement Cycle
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.

94
 Table 4-17 : Settlement Cycle and Process in CM Segment

Settlement Process
T Trading NSE → NSCCL Trade details from Exchange to NSCCL
(real-time and end of day trade file).

T+1 Custodial Confirmation NSCCL ↔ CUSTODIANS/CMs NSCCL notifies the consummated trade details to clearing
members/custodians who affirm back. Based on the affirmation,
NSCCL applies multilateral netting and determines obligations.

Determination of Obligation NSCCL → CUSTODIANS/CMs Download of obligation and pay-in advice of funds/securities

CUSTODIANS/ → CLEARING BANK Instructions to clearing banks to make funds available by pay-in
CMs time

CUSTODIANS/ → DEPOSITORIES Instructions to depositories to make securities available by pay-in-

CMs time

T+2 Securities Pay-in NSCCL ↔ DEPOSITORIES Pay-in of securities (NSCCL advises depository to debit pool
account of custodians/CMs and credit its account and depository
does it)

FundsPay-in NSCCL ↔ CLEARING BANK Pay-in of funds(NSCCL advises Clearing Banks to debit account of
custodians/CMs and credit its account and clearing bank does it)

Securities Pay-out NSCCL ↔ DEPOSITORIES Pay-out of securities (NSCCL advises depository to credit pool
account of custodians/CMs and debit its account and depository
does it)

FundsPay-out NSCCL ↔ CLEARING BANK Pay-out of funds (NSCCL advises Clearing Banks to credit account
of custodians/CMs and debit its account and clearing bank does it)

DEPOSITORIES → CUSTODIANS/CMs Depository informs custodians/CMs through DPs

CLEARING BANK → CUSTODIANS/CMs Clearing Banks inform custodians/CMs

95
96
Table 4-18 : Settlement Statistics in CM Segment
Month/Year No. of Traded % of Trading Volume Value of % of Securities Short % of Unrec- % of Funds
Trades Quantity Quantity Shares Shares Delive- Pay-in Delivery Short tified Bad Unrect- Pay-in
of Shares Delive- Delive- rable to (Auctioned Delivery Delivery ified Bad
Delive- rable to rable Value of quantity) to Total (Aucti- Delivery
rable Total Shares Delive- oned to
Shares Traded rable quantity) Deliver-
(lakh) (lakh) (lakh) Traded (Rs. cr.) (US $ mn.) (Rs. cr.) (Rs. cr.) (lakh) (lakh) able (Rs. cr.)
Nov 94-Mar 95 0.3 133 69 51.74 17,280 – 8,980 51.98 611 0.6 0.85 0.18 0.26 3,004
1995-96 6 3,901 726 18.62 657,420 – 117,750 17.91 5,805 18 2.46 3.22 0.44 32,583
1996-97 26 13,432 1,645 12.25 2,923,140 – 326,400 11.17 13,790 38 2.32 6.63 0.40 72,121
1997-98 38 13,522 2,205 16.31 3,700,100 – 597,748 16.15 21,713 33 1.51 7.29 0.33 108,272
1998-99 55 16,531 2,799 16.93 4,135,730 974,709 662,038 16.01 30,755 31 1.09 6.97 0.25 121,754
1999-00 958 238,605 48,713 20.42 803,050 184,099 82,607 10.29 79,783 635 1.30 110.13 0.23 27,992
2000-01 1,614 304,196 50,203 16.50 1,263,898 270,990 106,277 8.41 94,962 339 0.68 11.58 0.023 45,937
Apr-01 87 16,323 5,643 34.57 28,226 5,784 6,083 21.55 5,214 16 0.28 0.043 0.0008 1,915
May-01 155 27,764 6,428 23.15 51,835 10,622 7,371 14.22 3,752 15 0.24 0.019 0.0003 1,976
Jun-01 127 22,797 5,134 22.52 43,136 8,839 5,960 13.82 4,058 14 0.27 0.010 0.0002 1,626
Jul-01 97 13,149 2,971 22.59 29,092 5,961 3,721 12.79 4,020 21 0.70 0.002 0.0001 1,830
Aug-01 111 15,512 3,018 19.46 28,572 5,855 3,962 13.87 3,531 31 1.03 0.003 0.0001 1,847
Sep-01 124 16,554 3,136 18.94 33,718 6,909 3,933 11.66 3,807 16 0.51 0.000 0.00 2,068
Oct-01 145 19,775 3,485 17.62 35,225 7,218 4,247 12.06 4,136 40 1.15 0.000 0.00 1,954
Nov-01 142 22,647 4,865 21.48 37,471 7,678 5,679 15.16 5,468 46 0.95 0.000 0.00 2,311
Dec-01 168 29,221 5,929 20.29 53,098 10,881 7,184 13.53 6,924 48 0.81 0.000 0.00 3,035
Jan-02 225 38,325 5,729 14.95 71,329 14,617 7,940 11.13 7,849 39 0.68 0.000 0.00 3,440
Feb-02 170 26,866 6,600 24.57 48,823 10,005 7,982 16.35 7,935 39 0.59 0.000 0.00 3,016
Mar-02 169 25,762 6,360 24.69 47,596 9,753 7,703 16.18 7,658 40 0.62 0.000 0.00 3,030
2001-2002 1,720 274,695 59,299 21.59 508,121 104,123 71,766 14.12 64,353 364 0.61 0.08 0.0001 28,048

Contd...
 Contd...
Table 4-18 : Settlement Statistics in CM Segment
Month/Year No. of Traded % of Trading Volume Value of % of Securities Short % of Unrec- % of Funds
Trades Quantity Quantity Shares Shares Delive- Pay-in Delivery Short tified Bad Unrect- Pay-in
of Shares Delive- Delive- rable to (Auctioned Delivery Delivery ified Bad
Delive- rable to rable Value of quantity) to Total (Aucti- Delivery
rable Total Shares Delive- oned to
Shares Traded rable quantity) Deliver-
(lakh) (lakh) (lakh) Traded (Rs. cr.) (US $ mn.) (Rs. cr.) (Rs. cr.) (lakh) (lakh) able (Rs. cr.)
Apr-02 204 30,113 7,513 24.95 56,130 11,817 8,933 15.91 8,856 61 0.81 0.00 0.00 3,216
May-02 211 33,785 8,317 24.62 53,414 11,245 8,732 16.35 8,676 55 0.66 0.00 0.00 3,162
Jun-02 195 39,137 10,232 26.14 46,334 9,755 8,000 17.27 7,955 64 0.62 0.00 0.00 2,728
Jul-02 206 36,835 10,348 28.09 50,262 10,582 8,407 16.73 8,358 69 0.67 0.00 0.00 2,942
Aug-02 193 26,822 5,085 18.96 45,443 9,567 5,312 11.69 5,275 30 0.59 0.00 0.00 2,152
Sep-02 183 25,254 4,433 17.55 46,894 9,872 5,271 11.24 5,235 25 0.56 0.00 0.00 2,336
Oct-02 201 26,591 4,601 17.30 51,382 10,817 5,734 11.16 5,704 21 0.46 0.00 0.00 2,599
Nov-02 174 23,070 4,433 19.22 50,171 10,562 6,452 12.86 6,411 23 0.52 0.00 0.00 2,635
Dec-02 223 33,765 7,573 22.43 63,872 13,447 8,859 13.87 8,823 35 0.46 0.00 0.00 3,391
Jan-03 231 35,017 8,152 23.28 62,815 13,224 9,169 14.60 9,128 38 0.47 0.00 0.00 3,355
Feb-03 193 28,590 6,033 21.10 48,717 10,256 6,737 13.83 6,709 23 0.38 0.00 0.00 2,644
Mar-03 182 26,424 5,633 21.32 46,134 9,712 6,350 13.76 6,317 25 0.44 0.00 0.00 2,932
2002-03 2,397 365,403 82,353 22.54 621,569 130,857 87,956 14.15 87,447 469 0.57 0.00 0.00 34,092
Apr-03 214 32,488 7,830 24.10 51,159 11,790 8,328 16.28 8,275 87 1.11 0.00 0.00 3,783
May-03 240 40,500 10,887 26.88 51,720 11,920 9,907 19.15 9,856 64 0.59 0.00 0.00 3,584
Jun-03 253 50,054 14,030 28.03 57,524 13,257 12,539 21.80 12,481 78 0.55 0.00 0.00 4,292
Jul-03 332 66,940 18,509 27.65 81,422 18,765 17,581 21.59 17,489 115 0.62 0.00 0.00 5,915
Aug-03 317 81,301 20,579 25.31 82,734 19,068 17,798 21.51 17,693 146 0.71 0.00 0.00 5,465
Sep-03 338 72,916 16,810 23.05 101,229 23,330 20,625 20.37 20,538 90 0.53 0.00 0.00 7,412
Oct-03 367 72,440 16,157 22.30 116,749 26,907 22,957 19.66 22,860 79 0.49 0.00 0.00 8,992
Contd...

97
98
Contd...
Table 4-18 : Settlement Statistics in CM Segment
Month/Year No. of Traded % of Trading Volume Value of % of Securities Short % of Unrec- % of Funds
Trades Quantity Quantity Shares Shares Delive- Pay-in Delivery Short tified Bad Unrect- Pay-in
of Shares Delive- Delive- rable to (Auctioned Delivery Delivery ified Bad
Delive- rable to rable Value of quantity) to Total (Aucti- Delivery
rable Total Shares Delive- oned to
Shares Traded rable quantity) Deliver-
(lakh) (lakh) (lakh) Traded (Rs. cr.) (US $ mn.) (Rs. cr.) (Rs. cr.) (lakh) (lakh) able (Rs. cr.)
Nov-03 305 56,150 13,420 23.90 94,376 21,751 19,057 20.19 18,981 70 0.48 0.00 0.00 7,157
Dec-03 370 68,161 18,977 27.84 107,898 24,867 25,825 23.93 25,687 109 0.53 0.00 0.00 9,171
Jan-04 396 73,510 18,610 25.32 132,751 30,595 28,345 21.35 28,220 100 0.53 0.00 0.00 9,677
Feb-04 311 47,223 9,811 20.78 110,070 25,368 19,681 17.88 19,628 32 0.33 0.00 0.00 8,438
Mar-04 307 42850 9,930 23.17 103,331 23,814 18,721 18.12 18,634 44 0.33 0.00 0.00 7703.6
2003-04 3,750 704,533 175,550 24.92 1,090,963 251,432 221,364 20.29 220,341 1,014 0.58 0.00 0.00 81,588
Apr-04 330 54,207 12,934 23.86 103,154 23,578 21,719 21.05 21,617 64 0.50 0.00 0.00 7,870
May-04 351 54,779 13,855 25.29 100,203 22,904 22,727 22.68 22,668 48 0.35 0.00 0.00 8,960
Jun-04 320 39,284 8,578 21.84 81,020 18,519 13,999 17.28 13,948 29 0.33 0.00 0.00 5,862
Jul-04 392 63,779 14,038 22.01 97,309 22,242 18,164 18.67 18,099 51 0.37 0.00 0.00 6,523
Aug-04 361 58,304 13,948 23.92 89,596 20,479 18,605 20.77 18,554 55 0.40 0.00 0.00 6,463
Sep-04 345 57,337 15,588 27.19 81,913 18,723 19,656 24.00 19,585 71 0.46 0.00 0.00 6,171
Oct-04 318 51,399 15,178 29.53 79,878 18,258 21,660 27.12 21,588 70 0.46 0.00 0.00 7,304
Nov-04 319 59,124 18,965 32.08 79,921 18,268 24,359 30.48 24,269 93 0.49 0.00 0.00 8,401
Dec-04 466 95,239 27,464 28.84 115,867 26,484 33,121 28.59 32,994 135 0.49 0.00 0.00 11,386
Jan-05 411 82,113 19,497 23.74 97,755 22,344 25,031 25.61 24,945 86 0.44 0.00 0.00 8,083
Feb-05 424 88,147 22,208 25.19 100,267 22,918 28,158 28.08 28,062 89 0.40 0.00 0.00 9,801
Mar-05 466 84284 20023 23.76 114,085 26,077 29,903 26.21 29,792 79 0.40 0.00 0.00 10,417
2004-05 4,503 787,996 202,277 25.67 1,140,969 260,793 277,101 24.29 276,120 871 0.43 0.00 0.00 97,241
Apr-05 365 51,949 13,147 25.31 83,038 18,614 21,624 26.04 21,538 64 0.48 0.00 0.00 7,691
Contd...
 Contd...
Table 4-18 : Settlement Statistics in CM Segment
Month/Year No. of Traded % of Trading Volume Value of % of Securities Short % of Unrec- % of Funds
Trades Quantity Quantity Shares Shares Delive- Pay-in Delivery Short tified Bad Unrect- Pay-in
of Shares Delive- Delive- rable to (Auctioned Delivery Delivery ified Bad
Delive- rable to rable Value of quantity) to Total (Aucti- Delivery
rable Total Shares Delive- oned to
Shares Traded rable quantity) Deliver-
(lakh) (lakh) (lakh) Traded (Rs. cr.) (US $ mn.) (Rs. cr.) (Rs. cr.) (lakh) (lakh) able (Rs. cr.)
May-05 414 56,278 15,274 27.14 88,444 19,826 24,560 27.77 24,449 75 0.49 0.00 0.00 7,920
Jun-05 464 66,792 18,290 27.38 106,133 23,791 30,065 28.33 29,964 76 0.42 0.00 0.00 10,586
Jul-05 474 77,979 21,012 26.95 114,729 25,718 31,308 27.29 31,198 91 0.43 0.00 0.00 10,174
Aug-05 579 100,127 28,305 28.27 152,560 34,199 42,894 28.12 42,745 121 0.43 0.00 0.00 13,404
Sep-05 537 85,354 22,995 26.94 132,088 29,609 35,618 26.97 35,463 112 0.49 0.00 0.00 10,373
Oct-05 503 64,735 18,216 28.14 135,376 30,347 33,857 25.01 33,741 72 0.40 0.00 0.00 13,171
Nov-05 425 52,006 14,164 27.24 104,748 23,481 27,653 26.40 27,574 46 0.32 0.00 0.00 9,155
Dec-05 551 62,112 17,235 27.75 142,814 32,014 36,295 25.41 36,194 51 0.29 0.00 0.00 11,482
Jan-06 550 66,010 18,607 28.19 148,258 33,234 40,098 27.05 39,964 67 0.36 0.00 0.00 13,633
Feb-06 515 60,323 17,701 29.34 133,753 29,983 37,352 27.93 37,246 55 0.31 0.00 0.00 10,581
Mar-06 624 74,773 22,293 29.81 174,899 39,206 48,029 27.46 47,899 64 0.29 0.00 0.00 13,256
2005-06 6,000 818,438 227,240 27.77 1,516,839 340,022 409,353 26.99 407,976 894 0.39 0.00 0.00 131,426
Apr-06 570 72,868 21,024 28.85 174,555 40,045 48,907 28.02 48,761 91 0.44 0.00 0.00 13,730
May-06 717 99,758 30,580 30.65 216,397 49,644 66,750 30.85 66,502 121 0.40 0.00 0.00 26,470
Jun-06 667 66,330 17,780 26.81 149,842 34,375 36,217 24.17 36,126 53 0.30 0.00 0.00 13,398
Jul-06 537 46,642 13,097 28.08 121,978 27,983 30,347 24.88 30,272 35 0.27 0.00 0.00 11,489
Aug-06 627 54,989 14,843 26.99 127,807 29,320 32,573 25.49 32,477 56 0.38 0.00 0.00 9,636
Sep-06 638 61,974 17,387 28.06 140,300 32,186 39,354 28.05 39,267 58 0.33 0.00 0.00 12,206
Oct-06 577 60,676 17,918 29.53 136,036 31,208 40,449 29.73 40,344 57 0.32 0.00 0.00 11,118
Nov-06 744 72,408 21,215 29.30 183,496 42,096 52,049 28.37 51,924 62 0.29 0.00 0.00 15,535
Contd...

99
100
Contd...
Table 4-18 : Settlement Statistics in CM Segment
Month/Year No. of Traded % of Trading Volume Value of % of Securities Short % of Unrec- % of Funds
Trades Quantity Quantity Shares Shares Delive- Pay-in Delivery Short tified Bad Unrect- Pay-in
of Shares Delive- Delive- rable to (Auctioned Delivery Delivery ified Bad
Delive- rable to rable Value of quantity) to Total (Aucti- Delivery
rable Total Shares Delive- oned to
Shares Traded rable quantity) Deliver-
(lakh) (lakh) (lakh) Traded (Rs. cr.) (US $ mn.) (Rs. cr.) (Rs. cr.) (lakh) (lakh) able (Rs. cr.)
Dec-06 667 58,890 17,927 30.44 172,127 39,488 48,102 27.95 48,009 50 0.28 0.00 0.00 14,340
Jan-07 698 85,757 23,554 27.47 172,210 39,507 51,855 30.11 51,719 85 0.36 0.00 0.00 14,250
Feb-07 683 87,584 22,838 26.08 176,834 40,568 51,327 29.03 51,216 59 0.26 0.00 0.00 14,023
Mar-07 731 82,638 20,910 25.30 168,512 38,658 46,505 27.60 46,431 41 0.20 0.00 0.00 16,992
2006-07 7,857 850,515 239,074 28.11 1,940,094 445,078 544,434 28.06 543,048 769 0.32 0.00 0.00 173,188
Apr-07 674 76,643 20,619 26.90 168,181 42,077 48,349 28.75 48,228 52 0.25 0.00 0.00 14,528
May-07 786 95,458 24,635 25.81 199,170 49,830 55,670 27.95 55,530 64 0.26 0.00 0.00 15,431
Jun-07 752 77,909 21,663 27.81 192,100 48,061 52,825 27.50 52,702 57 0.27 0.00 0.00 15,074
Jul-07 890 106,882 30,283 28.33 264,949 66,287 75,349 28.44 75,147 97 0.32 0.00 0.00 20,938
Aug-07 871 101,384 25,753 25.40 226,239 56,602 63,766 28.19 63,651 62 0.24 0.00 0.00 24,264
Sep-07 894 135,865 34,119 25.11 252,895 63,271 73,052 28.89 72,837 93 0.27 0.00 0.00 21,496
Oct-07 1,207 172,479 41,641 24.14 444,407 111,185 121,822 27.41 121,561 108 0.26 0.00 0.00 41,417
Nov-07 1,193 169,622 37,921 22.36 415,129 103,860 107,494 25.89 107,268 108 0.28 0.00 0.00 31,607
Dec-07 1,077 163,037 40,474 24.83 374,515 93,699 110,578 29.53 110,277 133 0.33 0.00 0.00 31,670
Jan-08 1,262 167,860 41,581 24.77 449,261 112,400 126,808 28.23 126,552 122 0.29 0.00 0.00 45,524
Feb-08 1,057 111,923 24,363 21.77 281,395 70,402 72,123 25.63 72,014 51 0.21 0.00 0.00 25,790
Mar-08 982 102,166 24,918 24.39 251,676 62,966 64,967 25.81 64,852 49 0.20 0.00 0.00 21,804
2007-08 11,645 1,481,229 367,971 24.84 3,519,919 880,640 972,803 27.64 970,618 997 0.27 0.00 0.00 309,543
Wholesale Debt Market
Segment 5
102
 Wholesale Debt Market Segment 5
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. 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.

103
 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
increase of 28.85 % from Rs.219,106 crore (US $ 50,265 million) during 2006-07 to
Rs. 282,317 crore (US $ 70,632 million) during 2007-08. The average daily trading volume
also accelerated from Rs.898 crore (US $ 206 million) during 2006-07 to Rs.1,138 crore
(US $ 285 million) in fiscal 2007-08. 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.

Chart 5-1 : Business Growth of WDM Segment

The transactions in dated government securities accounted for a substantial share of

73.85 % 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, 2006-07 and 2007-08. The WDM’s SGL
Outright Transactions as a percentage to the total SGL Outright transactions was
52.05 % in 2007-08.

The security-wise and participant-wise distribution of WDM trades is presented in Table 5-3
and Chart 5-2(a&b). It is observed that the market is dominated by dated government securities

104
(including state development loan), which accounted for 68.84 % of WDM trades during
2007-08. Among the market participants, the trading members accounted for 38.15 % of the
total WDM trades followed by foreign banks which held a share of 27.09 %. Share of Indian
banks in WDM trades declined to 23.78 % during 2007-08 as compared with its share of
26.03 % in the corresponding period last year.

Chart 5-2 (a) : Security-wise Distribution of WDM Trades (2007-08)

Chart 5-2 (b) : Participant-wise distribution of WDM trades (2007-08)

105
 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 increased marginally from
51.29 % in 2006-07 to 53.31 % in 2007-08. The share of top ‘50’ and top ‘100’ securities
accounted for 79.64% and 89.55% respectively in the current year.

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. 2,123,346 crore (US $ 53,123 million) as on March 31, 2008. Central
Government securities accounted for the largest share of the market capitalisation
with 65.57%. 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, 2008 to March 31, 2009.

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-governmentsecurities 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.

106
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.

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. Further
the exchange introduced a 3-day FIMMDA – NSE MIBID / MIBOR on all Fridays
with effect from June 6, 2008 in addition to existing overnight rate. 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
5-3 presents overnight MIBID/MIBOR for 2007-08.

107
 Chart 5-3 : Overnight MIBID/MIBOR Rates, 2006-07 - from 3
April 2007 to 31st March 2008

FIMMDA-NSE MIBID/MIBOR are based on rates polled by NSE from a representative

panel of 33 banks/institutions/primary dealers. Currently, quotes are polled and processed
daily by the Exchange at 0940 (IST) for overnight rate, at 1130 (IST) for the 14 day, 1
month and 3 month rates and 0940 (IST) for 3 Day rate as on the last working day of the
week . The rates polled are then processed using the bootstrap method to arrive at an
efficient estimate of the reference rates. The overnight rates are disseminated daily and
3 Day rate are disseminated on the last working day of the week to the market at about
0955 (IST) and the 14 day, 1 month and 3 month rates at about 1145 (IST).Overnight Rates
for Saturdays is calculated and disseminated at 1030Hrs. These are broadcast through
NEAT-WDM trading system immediately on release and also disseminated through
websites of NSE and FIMMDA and through e-mail.

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.

108
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 5-4 plots the spot interest rates at different maturities for the year 2007-08

Figure 5-4 : Zero Coupon Yield Curve, 2007-08

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.

109
 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

110
 Table 5-1 : Business Growth of WDM Segment

Month/Year All Trades Retail Trade

No. of Number Trading Volume Average Daily Trading Average Number Trading Volume Share in
active of Volume Trade Size of Total Trading
securities Trades Trades Volume
(Rs. cr.) ( US $ mn) (Rs. cr.) ( US $ mn) (Rs. cr.) (Rs. cr.) ( US $ mn) (%)
1994- 95 (June-March) 183 1,021 6,781 2,157 30 10 6.64 168 31 9.86 0.45
1995-96 304 2,991 11,868 3,455 41 12 3.97 1,115 207 60.26 1.74
1996-97 524 7,804 42,278 11,783 145 40 5.42 1,061 201 56.02 0.47
1997-98 719 16,821 111,263 28,146 385 97 6.61 1,390 289 73.02 0.26
1998-99 1,071 16,092 105,469 24,857 365 86 6.55 1,522 308 72.54 0.29
1999-00 1,057 46,987 304,216 69,742 1,035 237 6.47 936 218 49.92 0.07
2000-01 1,038 64,470 428,582 91,891 1,483 318 6.65 498 131 28.09 0.03
Apr-01 213 6,606 46,285 9,485 2,314 474 7.01 17 6 1.23 0.01
May-01 220 12,220 83,982 17,209 3,359 688 6.87 52 8 1.64 0.01
Jun-01 200 11,936 82,329 16,871 3,293 675 6.90 28 5 1.02 0.01
Jul-01 223 12,575 84,629 17,342 3,255 667 6.73 25 5 1.02 0.01
Aug-01 215 11,622 75,784 15,530 3,158 647 6.52 44 19 3.89 0.03
Sep-01 207 9,526 63,199 12,951 2,528 518 6.63 28 4 0.82 0.01
Oct-01 196 12,636 80,860 16,570 3,234 663 6.40 17 4 0.82 0.00
Nov-01 216 15,300 98,674 20,220 4,290 879 6.45 36 16 3.28 0.02
Dec-01 167 10,135 62,411 12,789 2,600 533 6.16 21 6 1.23 0.01
Jan-02 228 17,011 111,736 22,897 4,298 881 6.57 36 13 2.66 0.01
Feb-02 254 16,127 101,313 20,761 4,405 903 6.28 44 15 3.07 0.01
Mar-02 216 9,157 55,988 11,473 2,434 499 6.11 30 9 1.84 0.02
2001-02 979 144,851 947,190 194,096 3,277 672 6.54 378 110 22.54 0.01

Contd...

111
112
Contd...
Table 5-1 : Business Growth of WDM Segment

Month/Year All Trades Retail Trade

No. of Number Trading Volume Average Daily Trading Average Number Trading Volume Share in
active of Volume Trade Size of Total Trading
securities Trades Trades Volume
(Rs. cr.) ( US $ mn) (Rs. cr.) ( US $ mn) (Rs. cr.) (Rs. cr.) ( US $ mn) (%)
Apr-02 254 12,164 77,334 16,281 3,222 678 6.36 32 7 1.47 0.01
May-02 206 8,662 53,246 11,210 2,130 448 6.15 30 10 2.11 0.02
Jun-02 237 8,875 54,477 11,469 2,179 459 6.14 22 7 1.47 0.01
Jul-02 230 14,996 97,725 20,574 3,619 762 6.52 46 16 3.37 0.02
Aug-02 232 15,483 100,226 21,100 3,855 812 6.47 56 16 3.37 0.02
Sep-02 251 10,439 68,269 14,372 2,845 599 6.54 81 21 4.42 0.03
Oct-02 265 16,587 106,142 22,346 4,246 894 6.40 143 41 8.63 0.04
Nov-02 260 21,052 132,222 27,836 5,509 1,160 6.28 172 35 7.37 0.03
Dec-02 245 18,807 117,383 24,712 4,891 1,030 6.24 152 36 7.58 0.03
Jan-03 253 21,335 139,718 29,414 5,175 1,089 6.55 131 32 6.74 0.02
Feb-03 229 10,728 66,974 14,100 2,912 613 6.24 115 24 5.05 0.04
Mar-03 276 8,650 54,986 11,576 2,391 503 6.36 272 55 11.58 0.10
2002-03 1,123 167,778 1,068,701 224,990 3,598 758 6.37 1,252 300 63.16 0.03
Apr-03 282 15,512 101,052 23,289 4,812 1,109 6.51 180 41 8.67 0.04
May-03 290 18,651 123,359 28,430 5,140 1,185 6.61 148 31 6.42 0.02
Jun-03 310 18,400 126,672 29,194 5,067 1,168 6.88 127 29 6.11 0.02
Jul-03 271 18,220 131,027 30,197 4,853 1,118 7.19 122 30 6.27 0.02
Aug-03 306 22,753 162,737 37,506 6,509 1,500 7.15 127 26 5.37 0.02
Sep-03 334 17,152 125,199 28,854 4,815 1,110 7.30 115 25 5.28 0.02
Oct-03 275 20,465 143,404 33,050 5,975 1,377 7.01 81 27 5.58 0.02
Contd...
 Contd...
Table 5-1 : Business Growth of WDM Segment

Month/Year All Trades Retail Trade

No. of Number Trading Volume Average Daily Trading Average Number Trading Volume Share in
active of Volume Trade Size of Total Trading
securities Trades Trades Volume
(Rs. cr.) ( US $ mn) (Rs. cr.) ( US $ mn) (Rs. cr.) (Rs. cr.) ( US $ mn) (%)
Nov-03 233 11,737 80,903 18,646 3,518 811 6.89 89 28 5.94 0.03
Dec-03 247 12,529 83,906 19,338 3,227 744 6.70 57 14 2.99 0.02
Jan-04 280 11,407 77,533 17,869 2,982 687 6.80 123 34 7.12 0.04
Feb-04 241 8,675 61,499 14,174 2,795 644 7.09 79 21 4.44 0.03
Mar-04 372 14,017 98,806 22,772 3,952 911 7.05 152 27 5.64 0.03
2003-04 1,078 189,518 1,316,096 303,318 4,477 1,032 6.94 1,400 332 69.83 0.03
Apr-04 285 19,075 133,478 30,509 6,067 1,387 7.00 33 11 2.56 0.01
May-04 275 13,097 91,340 20,878 3,806 870 6.97 27 8 1.80 0.01
Jun-04 347 11,382 82,453 18,846 3,171 725 7.24 56 18 4.03 0.02
Jul-04 302 9,303 66,012 15,089 2,445 559 7.10 55 17 3.81 0.03
Aug-04 243 9,241 63,806 14,584 2,552 583 6.90 68 21 4.85 0.03
Sep-04 288 12,659 87,695 20,044 3,508 802 6.93 103 37 8.41 0.04
Oct-04 291 8,437 55,770 12,747 2,425 554 6.61 79 37 8.35 0.07
Nov-04 329 5,767 45,541 10,409 1,980 453 7.90 134 44 9.96 0.10
Dec-04 333 10,321 72,593 16,593 2,792 638 7.03 154 41 9.27 0.06
Jan-05 273 8,384 61,205 13,990 2,550 583 7.30 131 45 10.29 0.07
Feb-05 251 10,156 73,588 16,820 3,066 701 7.25 133 43 9.86 0.06
Mar-05 303 6,486 53,812 12,300 2,242 513 8.30 305 90 20.54 0.17
2004-05 1,151 124,308 887,294 202,810 3,028 692 7.14 1,278 410 93.74 0.05
Apr-05 204 6,079 54,616 12,243 2,483 557 8.98 98 37 8.29 0.07
Contd...

113
114
Contd...
Table 5-1 : Business Growth of WDM Segment

Month/Year All Trades Retail Trade

No. of Number Trading Volume Average Daily Trading Average Number Trading Volume Share in
active of Volume Trade Size of Total Trading
securities Trades Trades Volume
(Rs. cr.) ( US $ mn) (Rs. cr.) ( US $ mn) (Rs. cr.) (Rs. cr.) ( US $ mn) (%)
May-05 256 9,376 70,113 15,717 2,805 629 7.48 120 44 9.86 0.06
Jun-05 268 14,213 96,108 21,544 3,696 829 6.76 108 27 6.05 0.03
Jul-05 185 8,042 52,309 11,726 2,092 469 6.50 52 13 2.91 0.02
Aug-05 274 5,361 44,717 10,024 1,789 401 8.34 108 36 8.07 0.08
Sep-05 258 4,127 31,960 7,164 1,278 287 7.74 68 24 5.38 0.08
Oct-05 192 2,987 25,387 5,691 1,209 271 8.50 57 22 4.93 0.09
Nov-05 186 2,822 24,360 5,461 1,218 273 8.63 46 20 4.48 0.08
Dec-05 222 2,505 20,771 4,656 944 212 8.29 60 27 6.05 0.13
Jan-06 180 2,572 21,607 4,844 1,080 242 8.40 54 17 3.81 0.08
Feb-06 145 2,075 16,485 3,695 868 194 7.94 39 17 3.81 0.10
Mar-06 224 1,732 17,089 3,831 814 182 9.87 82 26 5.83 0.15
2005-06 897 61,891 475,523 106,596 1,755 393 7.68 892 310 69.49 0.07
Apr-06 159 1,962 23,184 5,319 1,364 313 11.82 19 7 1.63 0.03
May-06 174 1,755 17,986 4,126 818 188 10.25 19 6 1.35 0.03
Jun-06 168 950 11,790 2,705 536 123 12.41 47 12 2.68 0.10
Jul-06 146 1,169 12,710 2,916 605 139 10.87 27 8 1.92 0.07
Aug-06 170 2,341 23,561 5,405 1,071 246 10.06 39 14 3.10 0.06
Sep-06 198 2,336 23,396 5,367 1,114 256 10.02 42 6 1.48 0.03
Oct-06 124 1,676 15,810 3,627 832 191 9.43 – – -– –
Nov-06 185 2,938 29,339 6,731 1,334 306 9.99 15 4 0.88 0.01
Contd...
 Contd...
Table 5-1 : Business Growth of WDM Segment

Month/Year All Trades Retail Trade

No. of Number Trading Volume Average Daily Trading Average Number Trading Volume Share in
active of Volume Trade Size of Total Trading
securities Trades Trades Volume
(Rs. cr.) ( US $ mn) (Rs. cr.) ( US $ mn) (Rs. cr.) (Rs. cr.) ( US $ mn) (%)
Dec-06 170 1,244 14,868 3,411 708 162 11.95 33 4 0.86 0.03
Jan-07 140 1,332 18,026 4,135 901 207 13.53 35 14 3.24 0.08
Feb-07 108 920 14,245 3,268 791 182 15.48 49 14 3.12 0.10
Mar-07 178 952 14,192 3,256 710 163 14.91 74 13 3.01 0.09
2006-07 762 19,575 219,106 50,265 898 206 11.19 399 102 23.29 0.05
Apr-07 98 928 17,159 4,293 903 226 18.49 12 3 0.75 0.02
May-07 145 1,093 17,483 4,374 833 208 16.00 18 6 1.50 0.03
Jun-07 143 1,065 17,335 4,337 825 207 16.28 38 6 1.50 0.03
Jul-07 184 2,089 33,815 8,460 1,537 385 16.19 9 3 0.75 0.01
Aug-07 128 1,230 21,431 5,362 1,021 255 17.42 8 4 1.00 0.02
Sep-07 148 934 16,902 4,229 845 211 18.10 27 4 1.00 0.02
Oct-07 147 1,411 25,493 6,378 1,159 290 18.07 10 4 1.00 0.02
Nov-07 110 1,083 17,704 4,429 843 211 16.35 7 2 0.50 0.01
Dec-07 117 1,585 32,865 8,223 1,730 433 20.74 12 4 1.00 0.01
Jan-08 144 2,359 42,724 10,689 1,858 465 18.11 27 7 1.75 0.02
Feb-08 118 1,497 24,044 6,015 1,145 286 16.06 7 2 0.50 0.01
Mar-08 148 905 15,362 3,843 853 214 16.97 36 4 1.00 0.03
2007-08 601 16,179 282,317 70,632 1,138 285 17.45 211 49 12.26 0.02

115
 Table 5-2 : WDM Transactions in Government Securities

Month / Outright Transactions Repo Transactions Total % Share

Year Dated State Trea- Total Dated Trea- Total (5+8) in SGL
Securities Govern- sury (2+3+4) Securi- sury (6+7) Out-
ment Bills ties Bills right
Securi- Transac-
ties tions

1 2 3 4 5 6 7 8 9 10
1994-95 2,947 79 2,634 5,660 – – – 5,660 –
(June-March)
1995-96 6,813 176 2,255 9,243 739 5 744 9,988 –
1996-97 26,891 298 10,912 38,101 162 45 207 38,308 –
1997-98 79,564 931 17,021 97,515 4,225 1,845 6,070 103,585 –
1998-99 78,973 860 10,586 90,419 4,741 120 4,861 95,280 –
1999-00 278,866 2,082 10,644 291,592 1,933 363 2,296 293,888 –
2000-01 388,098 1,256 23,142 412,496 1,600 – 1,600 414,096 –
Apr-01 42,110 292 2,888 45,290 – – – 45,290 –
May-01 79,516 133 2,594 82,243 – – – 82,243 –
Jun-01 78,794 55 2,344 81,193 – – – 81,193 –
Jul-01 79,945 121 2,834 82,900 216 – 216 83,116 –
Aug-01 72,543 68 1,546 74,157 131 – 131 74,288 –
Sep-01 59,704 100 2,137 61,941 – – – 61,941 –
Oct-01 77,611 160 1,656 79,427 25 50 75 79,502 –
Nov-01 94,348 109 2,651 97,108 37 10 47 97,155 –
Dec-01 59,854 23 1,615 61,492 50 – 50 61,542 –
Jan-02 106,148 114 3,164 109,426 10 – 10 109,436 –
Feb-02 96,712 124 1,191 98,027 – – – 98,027 –
Mar-02 52,816 113 863 53,792 79 – 79 53,871 –
2001-02 900,101 1,412 25,483 926,996 548 60 608 927,604 –
Apr-02 72,359 308 1,597 74,264 195 28 223 74,487 72.75
May-02 47,694 177 2,553 50,424 255 – 255 50,679 71.13
Jun-02 49,123 134 1,699 50,956 215 30 245 51,201 80.90
Jul-02 91,317 61 2,460 93,838 43 – 43 93,881 74.94
Aug-02 93,594 129 2,933 96,656 134 109 243 96,899 74.51
Sep-02 63,979 594 1,350 65,923 75 159 234 66,157 72.91
Oct-02 100,032 234 2,537 102,803 25 144 169 102,972 78.01
Nov-02 126,158 328 2,660 129,146 150 17 167 129,313 73.38
Dec-02 111,536 148 2,449 114,133 134 44 178 114,311 73.44
Jan-03 130,558 101 4,570 135,229 100 150 250 135,479 70.79
Feb-03 61,641 89 2,987 64,717 – – – 64,717 82.48
Mar-03 48,593 265 3,605 52,463 65 205 270 52,733 66.96
2002-03 996,584 2,568 31,400 1,030,552 1,391 886 2,277 1,032,829 74.01

Contd...

116
Contd...
Table 5-2 : WDM Transactions in Government Securities

Month / Outright Transactions Repo Transactions Total % Share

Year Dated State Trea- Total Dated Trea- Total (5+8) in SGL
Securities Govern- sury (2+3+4) Securi- sury (6+7) Out-
ment Bills ties Bills right
Securi- Transac-
ties tions

1 2 3 4 5 6 7 8 9 10
Apr-03 91,857 91 5,001 96,949 23 – 23 96,972 76.14
May-03 114,924 249 3,790 118,963 – – – 118,963 74.56
Jun-03 120,554 732 2,883 124,169 67 50 117 124,286 76.90
Jul-03 123,426 352 4,182 127,960 20 10 30 127,990 76.87
Aug-03 153,121 713 4,236 158,070 – – – 158,070 72.23
Sep-03 113,766 554 6,470 120,790 13 – 13 120,803 80.65
Oct-03 132,676 318 5,619 138,613 – – – 138,613 72.33
Nov-03 73,805 322 4,631 78,758 – – – 78,758 79.02
Dec-03 76,346 268 4,480 81,094 – – – 81,094 77.23
Jan-04 69,909 422 4,639 74,970 – – – 74,970 75.67
Feb-04 55,619 277 3,945 59,841 – – – 59,841 72.56
Mar-04 87,836 385 5,721 93,942 – – – 93,942 67.05
2003-04 1,213,839 4,683 55,597 1,274,119 123 60 183 1,274,302 74.89
Apr-04 123,050 338 5,340 128,728 27 15 42 128,770 70.90
May-04 79,292 759 8,085 88,137 28 31 59 88,196 70.40
Jun-04 68,629 1,282 8,766 78,678 23 – 23 78,700 62.77
Jul-04 53,035 864 9,034 62,934 45 25 70 63,003 69.07
Aug-04 54,514 206 6,330 61,049 21 77 98 61,147 66.40
Sep-04 73,815 639 9,923 84,377 – – – 84,377 69.50
Oct-04 44,692 1,454 7,593 53,740 – – – 53,740 65.55
Nov-04 31,034 909 11,665 43,608 – – – 43,608 64.37
Dec-04 55,894 1,033 12,162 69,090 – – – 69,090 65.51
Jan-05 44,323 844 13,146 58,313 – – – 58,313 67.42
Feb-05 54,136 310 15,727 70,173 – – – 70,173 69.70
Mar-05 33,298 315 16,888 50,500 – – – 50,500 61.62
2004-05 715,711 8,954 124,660 849,325 144 147 292 849,617 67.36
Apr-05 30,569 27 21,748 52,343 – – – 52,343 58.83
May-05 50,410 916 15,921 67,248 – – – 67,248 67.72
Jun-05 85,381 1,178 6,208 92,767 – – – 92,767 71.47
Jul-05 45,085 282 4,469 49,836 – – – 49,836 68.14
Aug-05 25,958 898 14,733 41,590 – – – 41,590 61.31
Sep-05 21,037 1,173 6,923 29,133 – – – 29,133 58.96
Oct-05 14,424 771 8,474 23,668 – – – 23,668 60.89

Contd...

117
 Contd...
Table 5-2 : WDM Transactions in Government Securities

Month / Outright Transactions Repo Transactions Total % Share

Year Dated State Trea- Total Dated Trea- Total (5+8) in SGL
Securities Govern- sury (2+3+4) Securi- sury (6+7) Out-
ment Bills ties Bills right
Securi- Transac-
ties tions

1 2 3 4 5 6 7 8 9 10
Nov-05 15,860 725 6,844 23,429 – – – 23,429 60.25
Dec-05 12,791 582 5,998 19,371 – – – 19,371 56.91
Jan-06 13,902 289 5,808 19,999 – – – 19,999 62.08
Feb-06 12,216 232 3,262 15,711 – – – 15,711 58.64
Mar-06 10,556 321 4,830 15,707 – – – 15,707 54.64
2005-06 338,190 7,393 105,218 450,802 – – – 450,802 63.67
Apr-06 15,346 158 6,729 22,233 – – – 22,233 55.66
May-06 12,380 466 3,462 16,309 – – – 16,309 43.13
Jun-06 5,994 421 4,298 10,713 – – – 10,713 39.54
Jul-06 6,715 282 4,536 11,533 – – – 11,533 47.87
Aug-06 14,706 294 7,540 22,540 – – – 22,540 50.36
Sep-06 17,072 416 4,832 22,320 – – – 22,320 52.29
Oct-06 11,355 88 3,683 15,125 – – – 15,125 55.64
Nov-06 22,697 267 5,313 28,277 – – – 28,277 57.73
Dec-06 10,776 435 2,880 14,091 – – – 14,091 56.53
Jan-07 13,159 124 3,346 16,629 – – – 16,629 59.48
Feb-07 10,021 161 2,863 13,046 – – – 13,046 53.55
Mar-07 9,712 325 2,471 12,508 – – – 12,508 46.33
2006-07 149,933 3,436 51,954 205,324 – – – 205,324 51.70
Apr-07 12,058 40 4,308 16,405 – – – 16,405 51.97
May-07 11,159 517 4,708 16,384 – – – 16,384 57.63
Jun-07 9,701 263 6,209 16,173 – – – 16,173 51.28
Jul-07 22,357 275 7,259 29,891 – – – 29,891 55.76
Aug-07 14,112 82 5,356 19,550 – – – 19,550 50.84
Sep-07 12,371 62 3,278 15,710 – – – 15,710 53.53
Oct-07 11,670 95 11,229 22,994 – – – 22,994 41.06
Nov-07 10,631 283 5,546 16,460 – – – 16,460 52.97
Dec-07 26,084 204 5,568 31,856 – – – 31,856 64.15
Jan-08 31,917 165 6,354 38,436 – – – 38,436 51.35
Feb-08 18,954 60 3,243 22,258 – – – 22,258 49.89
Mar-08 11,309 46 2,937 14,292 – – – 14,292 45.88
2007-08 192,322 2,092 65,995 260,409 – – – 260,409 52.05

118
Table 5-3 : Security-wise and Participant-wise Distribution of WDM Trades
(In per cent)
Month & Security-wise Distribution Participant-wise Distribution
Year
Gov- T-Bills PSU Others Trad- FIs/ Pri- Indian For-
ern- /Inst. ing MFs/ mary Banks eign
ment Bonds Mem- Corpo- Dealers Banks
Securi- bers rates
ties
1994-95 44.63 38.84 12.15 4.38 57.82 6.43 0.02 14.16 21.57
(June-March)
1995-96 65.13 19.04 9.69 6.14 23.48 7.60 1.16 30.07 37.69
1996-97 64.70 25.92 6.55 2.84 22.95 3.81 6.10 30.01 37.13
1997-98 76.14 16.96 3.64 3.26 19.75 4.30 12.06 41.24 22.65
1998-99 80.19 10.15 4.78 4.88 15.48 4.93 14.64 42.12 22.83
1999-00 92.99 3.62 1.60 1.79 18.63 4.18 19.42 42.72 15.05
2000-01 91.22 5.40 1.84 1.54 23.24 4.18 22.14 33.54 16.90
Apr-01 91.61 6.24 1.43 0.72 18.82 3.01 25.17 36.81 16.19
May-01 94.84 3.09 1.36 0.71 19.55 3.99 25.28 38.40 12.78
Jun-01 95.77 2.85 0.88 0.50 19.92 3.58 22.88 41.31 12.31
Jul-01 94.86 3.35 1.14 0.65 20.51 4.78 20.60 41.66 12.45
Aug-01 95.99 2.04 1.19 0.78 21.71 3.53 24.49 39.05 11.22
Sep-01 94.63 3.38 1.31 0.68 25.33 4.17 24.19 31.78 14.53
Oct-01 96.21 2.11 1.03 0.65 26.98 4.19 23.74 34.58 10.51
Nov-01 95.76 2.70 0.67 0.87 25.96 3.97 24.49 34.66 10.92
Dec-01 96.02 2.59 0.83 0.56 26.51 4.65 23.11 33.89 11.84
Jan-02 95.11 2.83 0.88 1.18 25.43 4.46 19.19 36.09 14.83
Feb-02 95.58 1.18 1.59 1.65 25.16 4.53 19.78 34.26 16.27
Mar-02 94.68 1.54 2.03 1.75 24.23 4.61 19.43 35.84 15.89
2001-02 95.24 2.70 1.16 0.91 23.52 4.16 22.50 36.60 13.22
Apr-02 94.22 2.10 1.97 1.71 25.45 5.11 22.33 34.45 12.66
May-02 90.38 4.79 1.89 2.94 24.42 2.71 22.08 33.70 17.09
Jun-02 90.81 3.17 1.91 4.11 22.59 3.05 19.17 39.29 15.90
Jul-02 93.55 2.52 1.58 2.35 22.64 2.83 22.19 40.27 12.07
Aug-02 93.65 3.03 2.23 1.09 22.44 3.60 21.83 41.67 10.46
Sep-02 94.70 2.21 1.76 1.33 22.46 4.27 24.02 39.06 10.19
Oct-02 94.49 2.53 1.64 1.34 24.52 4.18 23.92 39.11 8.27
Nov-02 95.78 2.02 1.24 0.96 23.73 3.53 21.01 44.01 7.72
Dec-02 95.26 2.12 1.58 1.04 24.70 3.88 24.78 41.31 5.33
Jan-03 93.59 3.38 2.17 0.86 26.37 3.67 22.96 39.02 7.98
Feb-03 92.17 4.46 2.42 0.95 28.87 4.82 17.75 31.83 16.73
Mar-03 88.97 6.93 2.75 1.35 32.12 3.49 17.67 30.13 16.59
2002-03 93.62 3.02 1.87 1.49 24.81 3.77 22.03 38.77 10.62
Contd...

119
 Contd...
Table 5-3 : Security-wise and Participant-wise Distribution of WDM Trades
(In per cent)
Month & Security-wise Distribution Participant-wise Distribution
Year
Gov- T-Bills PSU Others Trad- FIs/ Pri- Indian For-
ern- /Inst. ing MFs/ mary Banks eign
ment Bonds Mem- Corpo- Dealers Banks
Securi- bers rates
ties
Apr-03 91.01 4.95 2.67 1.37 32.55 3.40 18.65 35.91 9.49
May-03 93.36 3.07 2.09 1.48 32.28 3.83 18.74 36.89 8.26
Jun-03 95.80 2.32 1.11 0.77 33.59 3.58 19.03 37.08 6.72
Jul-03 94.48 3.20 1.67 0.65 33.15 5.10 17.77 37.37 6.61
Aug-03 94.53 2.60 2.15 0.72 33.34 4.97 16.34 39.09 6.26
Sep-03 91.32 5.17 2.56 0.95 36.13 5.33 15.32 37.01 6.21
Oct-03 92.74 3.92 2.40 0.94 35.78 5.81 16.38 35.86 6.17
Nov-03 91.62 5.72 1.68 0.98 40.68 5.16 14.61 33.90 5.65
Dec-03 91.31 5.34 2.24 1.11 35.49 4.25 16.00 37.65 6.61
Jan-04 90.71 5.98 1.66 1.65 35.78 4.47 17.38 34.85 7.52
Feb-04 90.89 6.42 1.78 0.91 36.32 3.93 17.28 32.54 9.93
Mar-04 89.29 5.79 2.48 2.44 36.21 3.96 16.30 33.82 9.71
2003-04 92.60 4.23 2.06 1.11 34.80 4.56 17.03 36.36 7.25
Apr-04 92.46 4.01 1.72 1.81 33.75 5.69 18.92 35.71 5.93
May-04 87.67 8.89 1.89 1.55 32.90 5.24 17.88 35.57 8.41
Jun-04 84.82 10.63 2.55 2.00 30.78 6.03 19.60 33.96 9.63
Jul-04 81.72 13.72 2.07 2.49 33.33 7.03 19.15 28.88 11.61
Aug-04 85.79 10.04 2.15 2.02 32.27 6.04 20.60 25.23 15.86
Sep-04 84.90 11.32 1.54 2.24 33.97 4.99 21.49 25.79 13.76
Oct-04 82.74 13.61 1.58 2.07 34.17 4.54 18.64 27.08 15.57
Nov-04 70.14 25.61 1.96 2.29 36.30 4.28 16.73 23.30 19.39
Dec-04 78.42 16.75 1.88 2.95 39.94 3.33 18.10 23.94 14.69
Jan-05 73.80 21.48 2.15 2.57 34.07 4.04 16.80 26.64 18.45
Feb-05 73.99 21.37 2.51 2.13 34.26 4.66 15.27 29.74 16.07
Mar-05 62.46 31.38 2.42 3.74 33.15 4.73 16.91 33.49 11.72
2004-05 81.69 14.07 2.01 2.23 33.96 5.14 18.50 29.89 12.51
Apr-05 56.02 39.82 1.87 2.29 31.34 4.28 17.15 31.77 15.46
May-05 73.20 22.71 1.42 2.67 31.72 4.29 23.11 28.21 12.67
Jun-05 90.06 6.46 1.86 1.62 30.05 3.72 22.71 29.07 14.45
Jul-05 86.73 8.54 2.31 2.42 30.93 2.43 26.42 25.71 14.51
Aug-05 60.06 32.95 3.40 3.59 34.44 3.81 19.56 27.82 14.37
Sep-05 69.49 21.66 4.51 4.34 35.57 5.83 18.74 31.77 8.09
Oct-05 59.85 33.38 4.21 2.56 35.34 2.66 21.77 27.15 13.08

Contd...

120
Contd...
Table 5-3 : Security-wise and Participant-wise Distribution of WDM Trades
(In per cent)
Month & Security-wise Distribution Participant-wise Distribution
Year
Gov- T-Bills PSU Others Trad- FIs/ Pri- Indian For-
ern- /Inst. ing MFs/ mary Banks eign
ment Bonds Mem- Corpo- Dealers Banks
Securi- bers rates
ties
Nov-05 68.08 28.10 2.33 1.49 29.18 4.99 21.29 29.98 14.56
Dec-05 64.38 28.88 3.31 3.43 34.37 4.40 18.84 30.90 11.49
Jan-06 65.68 26.88 3.38 4.06 29.92 3.32 24.79 22.11 19.86
Feb-06 75.51 19.79 1.13 3.57 31.84 3.71 26.57 21.17 16.71
Mar-06 63.65 28.27 5.56 2.52 35.76 4.16 22.10 20.47 17.51
2005-06 72.67 22.13 2.56 2.64 32.01 3.92 21.89 28.07 14.11
Apr-06 66.87 29.03 2.21 1.89 26.13 2.31 23.05 29.11 19.40
May-06 71.43 19.25 2.79 6.53 30.34 2.58 22.11 28.21 16.76
Jun-06 54.41 36.45 4.25 4.89 29.40 3.18 24.39 29.24 13.79
Jul-06 55.05 34.92 2.88 6.00 29.60 1.85 20.56 24.33 23.66
Aug-06 63.67 32.00 0.85 3.48 26.44 2.93 17.69 29.68 23.26
Sep-06 74.75 20.65 1.54 3.06 32.27 2.48 19.48 29.80 15.97
Oct-06 72.37 23.30 1.44 2.89 31.93 1.46 22.08 27.31 17.22
Nov-06 78.27 18.11 1.35 2.27 28.53 2.80 19.04 29.07 20.56
Dec-06 75.40 19.37 1.16 4.07 33.32 3.18 17.59 23.48 22.43
Jan-07 73.69 18.56 2.63 5.12 31.91 2.41 24.81 21.18 19.69
Feb-07 71.48 20.10 2.04 6.38 42.33 3.16 12.44 17.10 24.97
Mar-07 70.72 17.41 3.02 8.85 35.13 4.43 13.70 14.91 31.83
2006-07 70.00 23.71 2.02 4.27 30.88 2.70 19.82 26.03 20.57
Apr-07 70.51 25.10 0.96 3.43 30.34 1.86 16.91 28.04 22.85
May-07 66.38 27.33 1.06 5.23 40.84 0.77 11.22 23.69 23.48
Jun-07 57.48 35.82 1.48 5.22 38.07 1.55 12.96 27.77 19.64
Jul-07 66.93 21.47 6.79 4.81 40.23 3.40 12.27 27.42 16.68
Aug-07 66.23 24.99 4.15 4.63 45.76 2.83 7.62 19.07 24.72
Sep-07 73.56 19.39 2.17 4.89 45.38 2.00 5.25 22.34 25.03
Oct-07 46.15 44.05 5.00 4.80 48.56 1.56 5.54 23.76 20.58
Nov-07 61.65 31.33 2.57 4.45 41.50 1.91 6.99 17.03 32.57
Dec-07 79.99 16.94 0.96 2.11 32.37 2.41 7.19 25.76 32.27
Jan-08 75.09 14.87 3.79 6.25 37.81 2.87 7.03 22.07 30.22
Feb-08 79.08 13.49 4.19 3.24 29.95 3.15 7.75 25.15 34.00
Mar-08 73.92 19.12 2.61 4.35 25.77 1.78 4.85 20.95 46.65
2007-08 68.84 23.40 3.27 4.49 38.15 2.34 8.64 23.78 27.09

121
 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
2007-08 39.65 53.31 68.35 79.64 89.55
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 –
2007-08 65.32 80.24 97.60 100.00 –
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
2007-08 28.36 40.64 55.58 61.77 61.84

122
 Table 5-5 : Market Capitalisation of WDM Securities

Month/ Govt. PSU State T-bills Others Total Govt. PSU State T-bills Others
Year securities bonds loans securities bonds loans
(Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (US $ mn) (in percent)
Jun-94 60,719 20,439 1,833 18,476 20,052 121,518 38,663 49.97 16.82 1.51 15.20 16.50
Mar-95 86,175 25,675 5,867 17,129 23,334 158,181 50,328 54.48 16.23 3.71 10.83 14.75
Mar-96 125,492 30,074 13,850 8,452 29,915 207,783 60,490 60.40 14.47 6.67 4.07 14.40
Mar-97 169,830 36,211 18,891 13,460 54,380 292,772 81,598 58.01 12.37 6.45 4.60 18.57
Mar-98 196,290 35,323 23,989 17,497 70,091 343,191 86,818 57.20 10.29 6.99 5.10 20.42
Mar-99 260,002 34,994 30,516 11,292 74,666 411,470 96,976 63.19 8.50 7.42 2.74 18.15
Mar-00 319,865 39,357 39,477 15,345 79,989 494,033 113,258 64.75 7.97 7.99 3.11 16.19
Mar-01 397,228 36,365 44,624 17,725 84,894 580,836 124,536 68.39 6.26 7.68 3.05 14.62
Apr-01 424,161 36,199 45,095 18,667 85,251 609,373 125,385 69.61 5.94 7.40 3.06 13.99
May-01 438,203 36,315 46,940 18,538 85,374 625,370 128,677 70.07 5.81 7.51 2.96 13.65
Jun-01 442,290 38,865 47,302 21,056 84,917 634,430 130,541 69.71 6.13 7.46 3.32 13.38
Jul-01 461,383 39,442 47,810 22,272 83,273 654,181 134,605 70.53 6.03 7.31 3.40 12.73
Aug-01 470,148 42,719 50,711 23,041 82,835 669,455 137,748 70.23 6.38 7.57 3.44 12.37
Sep-01 474,779 42,781 50,217 23,347 87,037 678,161 139,539 70.01 6.31 7.40 3.44 12.83
Oct-01 490,781 42,343 52,367 23,652 87,776 696,920 143,399 70.42 6.08 7.51 3.39 12.59
Nov-01 512,702 43,260 53,829 23,586 87,856 721,234 148,402 71.09 6.00 7.46 3.27 12.18
Dec-01 514,171 41,823 54,771 24,266 87,467 722,497 148,662 71.17 5.79 7.58 3.36 12.11
Jan-02 529,896 41,566 57,955 24,004 88,087 741,508 152,574 71.46 5.61 7.82 3.24 11.88
Feb-02 541,401 41,130 59,675 24,366 89,520 756,092 155,574 71.61 5.44 7.89 3.22 11.84

Contd...

123
124
Contd...
Table 5-5 : Market Capitalisation of WDM Securities

Month/ Govt. PSU State T-bills Others Total Govt. PSU State T-bills Others
Year securities bonds loans securities bonds loans
(Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (US $ mn) (in percent)
Mar-02 542,601 39,944 61,385 23,849 89,016 756,794 155,719 71.70 5.28 8.11 3.15 11.76
Apr-02 555,394 40,716 63,106 24,218 89,079 772,513 162,634 71.89 5.27 8.17 3.13 11.54
May-02 554,137 40,333 64,065 24,745 89,410 772,690 162,672 71.72 5.22 8.29 3.20 11.57
Jun-02 562,242 39,759 66,649 25,188 89,098 782,936 164,829 71.81 5.08 8.51 3.22 11.38
Jul-02 586,790 39,643 66,718 26,065 87,604 806,821 169,857 72.73 4.91 8.27 3.23 10.86
Aug-02 601,410 39,872 66,424 26,580 86,493 820,779 172,796 73.27 4.86 8.09 3.24 10.54
Sep-02 602,201 40,003 67,074 27,101 86,264 822,643 173,188 73.20 4.86 8.15 3.29 10.50
Oct-02 617,840 40,127 68,589 27,797 86,276 840,629 176,975 73.50 4.77 8.16 3.31 10.26
Nov-02 636,392 39,902 69,500 28,377 65,280 839,451 176,727 75.81 4.75 8.28 3.38 7.78
Dec-02 655,148 39,431 70,368 30,852 65,058 860,857 181,233 76.10 4.58 8.17 3.58 7.57
Jan-03 662,766 39,588 70,932 34,934 65,210 873,430 183,880 75.88 4.53 8.12 4.00 7.47
Feb-03 659,078 38,404 71,115 36,156 63,226 867,979 182,732 75.93 4.42 8.19 4.17 7.29
Mar-03 658,002 38,383 72,094 34,919 61,084 864,481 181,996 76.12 4.44 8.34 4.04 7.06
Apr-03 684,912 39,661 72,295 32,880 62,163 891,912 205,557 76.79 4.45 8.11 3.69 6.96
May-03 710,420 42,015 70,214 32,147 62,110 916,905 211,317 77.48 4.58 7.66 3.51 6.77
Jun-03 743,561 42,165 71,846 32,809 63,514 953,895 219,842 77.95 4.42 7.53 3.44 6.66
Jul-03 783,875 42,478 71,950 32,515 63,859 994,677 229,241 78.81 4.27 7.23 3.27 6.42
Aug-03 798,850 44,945 74,674 36,520 65,140 1,020,129 235,107 78.31 4.41 7.32 3.58 6.38
Sep-03 807,001 44,439 76,353 40,255 61,990 1,030,038 237,391 78.35 4.31 7.41 3.91 6.02
Contd...
 Contd...
Table 5-5 : Market Capitalisation of WDM Securities

Month/ Govt. PSU State T-bills Others Total Govt. PSU State T-bills Others
Year securities bonds loans securities bonds loans
(Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (US $ mn) (in percent)
Oct-03 956,295 44,544 77,037 40,703 61,092 1,179,671 271,876 81.06 3.78 6.53 3.45 5.18
Nov-03 954,259 44,486 77,154 36,507 60,223 1,172,629 270,253 81.38 3.79 6.58 3.11 5.14
Dec-03 959,903 46,436 77,292 32,639 62,656 1,178,926 271,705 81.42 3.94 6.56 2.77 5.31
Jan-04 967,351 46,121 78,305 32,232 68,060 1,192,070 274,734 81.15 3.87 6.57 2.70 5.71
Feb-04 968,155 49,224 79,036 32,229 71,507 1,200,151 276,596 80.67 4.10 6.59 2.69 5.95
Mar-04 959,302 56,832 79,340 32,692 87,698 1,215,864 280,218 78.90 4.67 6.53 2.69 7.21
Apr-04 972,543 54,001 76,391 40,556 68,703 1,212,194 277,073 80.23 4.45 6.30 3.35 5.67
May-04 969,036 61,591 77,105 48,825 71,634 1,228,191 280,729 78.90 5.01 6.28 3.98 5.83
Jun-04 990,244 66,080 77,589 56,155 79,209 1,269,276 290,120 78.02 5.21 6.11 4.42 6.24
Jul-04 985,695 67,400 179,858 59,462 80,684 1,373,099 313,851 71.79 4.91 13.10 4.33 5.87
Aug-04 975,712 67,763 185,864 59,894 81,510 1,370,744 313,313 71.18 4.94 13.56 4.37 5.95
Sep-04 997,163 67,606 185,359 60,608 83,292 1,394,027 318,635 71.53 4.85 13.30 4.35 5.97
Oct-04 987,454 68,546 183,771 63,755 84,207 1,387,733 317,196 71.16 4.94 13.24 4.59 6.07
Nov-04 981,238 67,667 183,462 60,897 83,464 1,376,727 314,680 71.27 4.92 13.33 4.42 6.06
Dec-04 996,341 67,940 214,519 62,083 86,623 1,427,506 326,287 69.80 4.76 15.03 4.35 6.06
Jan-05 1,002,006 67,813 214,898 63,679 86,240 1,434,635 327,917 69.84 4.73 14.98 4.44 6.01
Feb-05 1,010,936 67,255 223,395 69,660 89,493 1,460,739 333,883 69.21 4.60 15.29 4.77 6.13
Mar-05 1,006,107 68,398 223,208 73,502 90,519 1,461,734 334,111 68.83 4.68 15.27 5.03 6.19
Apr-05 1,003,339 67,934 223,513 78,624 90,983 1,464,393 328,266 68.52 4.64 15.26 5.37 6.21
Contd...

125
126
Contd...
Table 5-5 : Market Capitalisation of WDM Securities

Month/ Govt. PSU State T-bills Others Total Govt. PSU State T-bills Others
Year securities bonds loans securities bonds loans
(Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (US $ mn) (in percent)
May-05 1,010,569 72,388 216,585 82,378 90,512 1,472,432 330,068 68.63 4.92 14.71 5.59 6.15
Jun-05 1,014,558 74,699 224,475 90,679 90,814 1,495,225 335,177 67.85 5.00 15.01 6.06 6.08
Jul-05 1,025,814 75,701 224,402 84,249 93,657 1,503,823 337,104 68.21 5.03 14.92 5.60 6.24
Aug-05 1,036,004 76,248 224,717 87,372 93,559 1,517,900 340,260 68.25 5.02 14.80 5.76 6.17
Sep-05 1,020,612 76,190 233,134 102,280 94,862 1,527,078 342,317 66.83 4.99 15.27 6.70 6.21
Oct-05 1,020,975 78,117 233,038 103,352 94,755 1,530,237 343,026 66.72 5.10 15.23 6.75 6.20
Nov-05 1,044,287 78,182 235,991 98,400 97,444 1,554,304 348,421 67.19 5.03 15.18 6.33 6.27
Dec-05 1,051,521 78,721 236,282 81,843 100,981 1,549,348 347,310 67.87 5.08 15.25 5.28 6.52
Jan-06 1,058,461 84,207 236,843 72,107 103,561 1,555,179 348,617 68.06 5.41 15.23 4.64 6.66
Feb-06 1,058,681 83,573 240,427 67,257 103,510 1,553,448 348,229 68.15 5.38 15.48 4.33 6.66
Mar-06 1,059,789 88,716 241,927 70,186 106,956 1,567,574 351,395 67.61 5.66 15.43 4.48 6.82
Apr-06 1,059,866 88,294 242,182 66,364 108,072 1,564,778 358,976 67.73 5.64 15.48 4.24 6.91
May-06 1,060,527 88,897 241,126 72,611 112,708 1,575,869 361,521 67.30 5.64 15.30 4.61 7.15
Jun-06 1,066,643 88,590 240,690 75,670 112,658 1,584,251 363,444 67.33 5.59 15.19 4.78 7.11
Jul-06 1,058,045 88,817 241,578 83,515 113,902 1,585,857 363,812 66.72 5.60 15.23 5.27 7.18
Aug-06 1,066,887 88,530 242,161 92,007 117,118 1,606,702 368,594 66.40 5.51 15.07 5.73 7.29
Sep-06 1,080,169 88,499 241,723 94,348 127,896 1,632,635 374,544 66.16 5.42 14.81 5.78 7.83
Oct-06 1,092,791 87,461 241,944 93,432 132,136 1,647,763 378,014 66.32 5.31 14.68 5.67 8.02
Nov-06 1,131,558 89,496 243,299 99,829 136,386 1,700,568 390,128 66.54 5.26 14.31 5.87 8.02
Contd...
 Contd...
Table 5-5 : Market Capitalisation of WDM Securities

Month/ Govt. PSU State T-bills Others Total Govt. PSU State T-bills Others
Year securities bonds loans securities bonds loans
(Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (US $ mn) (in percent)
Dec-06 1,145,496 91,368 244,879 96,625 139,699 1,718,067 394,142 66.67 5.32 14.25 5.62 8.13
Jan-07 1,149,001 90,521 244,323 103,402 140,270 1,727,518 396,311 66.51 5.24 14.14 5.99 8.12
Feb-07 1,171,593 91,947 247,203 99,749 142,240 1,752,732 402,095 66.84 5.25 14.10 5.69 8.12
Mar-07 1,182,278 89,628 249,847 115,183 147,865 1,784,801 409,452 66.24 5.02 14.00 6.45 8.28
Apr-07 1,188,185 90,289 245,888 119,433 153,134 1,796,928 449,569 66.12 5.02 13.68 6.65 8.53
May-07 1,193,749 90,293 247,105 125,892 155,634 1,812,673 453,508 65.86 4.98 13.63 6.95 8.58
Jun-07 1,216,175 88,940 250,399 144,375 161,619 1,861,509 465,727 65.33 4.78 13.45 7.76 8.68
Jul-07 1,252,307 91,300 247,614 150,513 162,866 1,904,600 476,507 65.75 4.79 13.00 7.90 8.55
Aug-07 1,268,344 90,283 255,601 154,924 167,655 1,936,806 484,565 65.49 4.66 13.20 8.00 8.66
Sep-07 1,282,109 91,467 258,683 145,437 176,891 1,954,586 489,013 65.59 4.68 13.23 7.44 9.05
Oct-07 1,309,579 92,094 263,329 155,473 180,585 2,001,060 500,641 65.44 4.60 13.16 7.77 9.02
Nov-07 1,314,985 94,626 268,667 143,650 184,816 2,006,743 502,062 65.53 4.72 13.39 7.16 9.21
Dec-07 1,318,419 94,287 278,966 124,169 186,740 2,002,581 501,021 65.84 4.71 13.93 6.20 9.32
Jan-08 1,357,485 96,542 294,341 124,393 197,104 2,069,865 517,855 65.58 4.66 14.22 6.01 9.53
Feb-08 1,386,566 97,433 307,112 120,665 201,300 2,113,076 528,666 65.62 4.61 14.53 5.71 9.53
Mar-08 1,392,219 96,268 315,661 111,562 207,636 2,123,346 531,235 65.57 4.53 14.87 5.25 9.77

127
 Table 5-6 : FIMMDA NSE MIBID/MIBOR Rates

Month/ OVERNIGHT 14 DAY AT 1 MONTH RATE 3 MONTH RATE

Date AT 9.40 a.m.* 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

Contd...

128
Contd...
Table 5-6 : FIMMDA NSE MIBID/MIBOR Rates

Month/ OVERNIGHT 14 DAY AT 1 MONTH RATE 3 MONTH RATE

Date AT 9.40 a.m.* 11.30 a.m.** AT 11.30 a.m.*** AT 11.30 a.m.***
MIBID MIBOR MIBID MIBOR MIBID MIBOR MIBID MIBOR
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
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

Contd...

129
 Contd...
Table 5-6 : FIMMDA NSE MIBID/MIBOR Rates

Month/ OVERNIGHT 14 DAY AT 1 MONTH RATE 3 MONTH RATE

Date AT 9.40 a.m.* 11.30 a.m.** AT 11.30 a.m.*** AT 11.30 a.m.***
MIBID MIBOR MIBID MIBOR MIBID MIBOR MIBID MIBOR
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
30-Apr-07 9.03 9.34 8.55 9.62 9.22 10.42 10.05 11.12
31-May-07 0.89 1.16 5.74 6.69 7.34 8.27 8.86 9.72
29-Jun-07 8.66 8.96 7.33 8.13 7.44 8.49 8.69 9.59
30-Jun-07 2.23 3.18 6.80 7.78 6.97 8.15 8.39 9.31
31-Jul-07 0.13 0.19 3.36 4.56 5.45 6.22 6.45 7.54
31-Aug-07 6.05 6.15 6.15 6.85 6.70 7.51 7.61 8.47
28-Sep-07 8.74 9.08 6.22 6.83 7.07 7.85 7.78 8.45
31-Oct-07 6.08 6.15 5.83 6.72 6.29 7.13 7.24 7.90
30-Nov-07 7.66 7.75 6.57 7.56 6.83 7.88 7.52 8.50
31-Dec-07 6.87 7.02 7.27 7.86 7.58 8.07 8.01 8.56
31-Jan-08 6.82 6.93 6.30 7.34 6.65 7.78 7.51 8.54
29-Feb-08 7.12 7.26 7.08 8.25 7.61 8.75 8.59 9.61
31-Mar-08 8.96 9.16 7.49 9.17 8.00 9.46 8.74 9.82

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.

130
 Table 5-7 : 1-day Value-at-Risk (99%) for Government of India Securities
Traded as on March 31, 2008

Security Security Issue Normal Weighted Historical Weighted EVT Clean Accrued_
Type Name Name Normal Simulation Historical Price Interest
Simulation (off
NSE-
ZCYC)

GS CG2009 6.65% 0.627 1.289 0.788 1.08 0.731 99.015 3.25

GS CG2010 5.87% 0.77 1.621 0.985 1.51 0.866 97.01 1.45

GS CG2013 7.27% 1.037 1.475 1.144 1.435 0.925 97.252 0.57

GS CG2017 7.99% 1.456 1.888 1.364 1.597 1.145 99.431 1.82

GS CG2027 8.26% 2.868 3.439 3.331 3.388 2.562 98.46 1.35

GS CG2036 8.33% 4.161 4.365 5.261 3.943 3.955 97.215 2.64

TB 182D 80808 0.326 0.72 0.412 0.815 0.385 97.362 0.00

TB 182D 130608 0.208 0.472 0.272 0.48 0.246 98.492 0.00

TB 182D 180408 0.058 0.134 0.076 0.128 0.068 99.631 0.00

131
132
Futures & Options
Segment 6
134
 Futures & Options Segment 6
The Futures and Options segment of NSE witnessed commendable achievements during
2007-08. In addition to the launch of new products, it also witnessed huge volumes.
NSE being the most vibrant exchange in the country created a niche for itself on the
international front. In the year 2007, NSE ranked as the ninth largest derivatives exchange
in the world, the second largest exchange in terms of number of contracts traded in single
stock futures and the third largest in terms number of contracts traded in the index
futures category.

The derivatives trading at 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 options on S&P CNX Nifty Index, futures and options on CNX IT Index,
Bank Nifty Index, CNX Nifty Junior, CNX 100, Nifty Midcap 50 Indices and single
stocks. The various products on the derivative segment of NSE and their date of launch
is shown in the table below.

Products available for trading on Derivatives Segment

Products on Derivative Segment Date of Launch

S&P CNX Nifty Futures June 12, 2000
S&P CNX Nifty Options June 4, 2001
Single Stock Options July 2, 2001
Single Stock Futures November 9, 2001
Interest Rate Futures June 24, 2003
CNX IT Futures & Options August 29, 2003
Bank Nifty Futures & Options June 13, 2005
CNX Nifty Junior Futures & Options June 1, 2007
CNX 100 Futures & Options June 1, 2007
Nifty Midcap 50 Futures & Options October 5, 2007
Mini Nifty Futures & Options on S&P CNX Nifty January 1, 2008
Long term Options on S&P CNX Nifty March 3, 2008

Number of Securities on which F&O Contracts were

available for Trading (2007-08)

Month/Year Number of securities*

Apr-07 155

May-07 186

Jun-07 187

Jul-07 191

Aug-07 195

Contd...

135
 Contd...
Number of Securities on which F&O Contracts were
available for Trading (2007-08)

Month/Year Number of securities*

Sep-07 207

Oct-07 208

Nov-07 224

Dec-07 225

Jan-08 224

Feb-08 228

Mar-08 228

2007-08 228

* at the end of the month

Trading on single stock options commenced on July 2, 2001 while trading on single stock
futures were launched on November 9, 2001. The list of securities on which single stock
futures and options are available at NSE along with their launch date and market lot is
shown in Table 6-1.

Since inception, NSE established itself as the sole market leader in the Futures & Options
segment in the country and during 2007-08, it accounted for 98.18 % of the 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.

136
 Contract Specification

The contract specification for derivative products traded on NSE are summarised in
Table 6-2 & Table 6-3.

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, CNX 100 and Nifty Midcap
50 while stock futures and options are based on individual securities. Stock futures and
options were available on 228 securities as of June 20, 2008. During January 2008, Mini
futures and options contracts on S&P CNX Nifty were introduced for trading while long
term options contracts on S&P CNX Nifty were introduced in March 2008.

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 the 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.

The long term option contracts are available for 3 serial month contracts, 3 quarterly
months of the cycle March / June / September / December and 5 following semi-annual
months of the cycle June / December. Thus, at any point in time there are atleast 3 year
tenure option available.

Introduction of strike prices for option contracts

Stock Options

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 strike prices
for every option type (i.e Call & Put) during the trading month. At any time, there are
atleast three strikes in-the-money (ITM), three strikes out-of-the-money (OTM) and one
strike at-the-money (ATM). The table below gives details of generation of strike price
interval for stock options.

Generation of strikes for Stock Options

Price of underlying Strike Price Interval Schemes of Strikes

Less than or equal to Rs.50 2.5 3-1-3
> Rs.50 - Rs.250 5 3-1-3
> Rs.250 - Rs. 500 10 3-1-3
> Rs.500 - Rs.1000 20 3-1-3
> Rs.1000 - Rs.2500 30 3-1-3
> Rs.2500 50 3-1-3

137
 Index Options

The number of strikes provided in options on Indices- S&P CNX Nifty, CNX Nifty
Junior, CNX 100, CNX IT, Bank Nifty and Nifty Midcap 50 are related to the range in
which previous day’s closing value of the index falls as per the table below.

Generation of strikes for Index Options

Index Level Strike Interval Scheme of strikes (ITM-ATM-OTM)

Upto 2000 25 4-1-4
2001 to 4000 50 4-1-4
>4000 to 6000 50 5-1-5
>6000 50 6-1-6

Selection Criteria for Stocks and Index eligibility for trading

Eligibility Criteria of Stocks

• The stocks are 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 is not less than
Rs.1 lakh. For this purpose, a stock’s quarter-sigma order size means 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 is not less than Rs. 50 crore. The market
wide position limit (number of shares) are 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 is 20% of
the number of shares held by non-promoters in the relevant underlying security
i.e. free-float holding.
• If an existing security fails to meet the eligibility criteria for three months
consecutively, then no fresh month contract are issued on that security.
• However, the existing unexpired contracts may be permitted to trade till expiry and
new strikes may also be introduced in the existing contract months.

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 should have a weightage
of more than 5% in the index.

138
• 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
are issued on that index. However, the existing unexpired contacts are 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.

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 stocks for derivatives trading especially on account of corporate

restructuring

The eligibility criteria for stocks for derivatives trading on account of corporate
restructuring is as under. All the following conditions should be met in the case of shares
of a company undergoing restructuring through any means for eligibility to reintroduce
derivative contracts on that company from the first day of listing of the post restructured
company/(s) (as the case may be) stock (herein referred to as post restructured company)
in the underlying market,

a) The Futures and options contracts on the stock of the original (pre restructure)
company were traded on any exchange prior to its restructuring;

b) The pre restructured company had a market capitalisation of at least Rs.1000 crores
prior to its restructuring;

c) The post restructured company would be treated like a new stock and if it is, in the
opinion of the exchange, likely to be at least one-third the size of the pre restructuring
company in terms of revenues, or assets, or (where appropriate) analyst valuations;
and

d) In the opinion of the exchange, the scheme of restructuring does not suggest that
the post restructured company would have any characteristic (for example
extremely low free float) that would render the company ineligible for derivatives
trading.

If the above conditions are satisfied, then the exchange takes the following course of
action in dealing with the existing derivative contracts on the pre-restructured company
and introduction of fresh contracts on the post restructured company

139
 a) In the contract month in which the post restructured company begins to trade, the
Exchange introduce near month, middle month and far month derivative contracts
on the stock of the restructured company.

b) In subsequent contract months, the normal rules for entry and exit of stocks in terms
of eligibility requirements would apply. If these tests are not met, the exchange shall
not permit further derivative contracts on this stock and future month series shall
not be introduced.

Trading Value & Contracts Traded

The total turnover on the F&O Segment surged by an impressive 77.95 % to

Rs. 13,090,478 crore (US $ 3,275,076 million ) during 2007-08 as compared with
Rs. 7,356,271 crore (US $ 1,687,605 million) during 2006-07. The average daily turnover
during 2007-08 was Rs.52,153 crore (US $ 13,048 million), a year on year growth of
76.53 %. The business growth of F&O segment and the number of contracts traded during
the year is presented in Table 6-4 and Chart 6-1.

Chart 6-1 : Business Growth of F&O Segment

In the year 2007-08, total number of contracts traded in Futures & Options Segment
aggregated to 43 crore, out of which 36 crore contracts were traded in Futures Segment
and 7 crore contracts in Options Segment. During 2007-08, 48 % of the contracts traded
on the F&O Segment of NSE were in stock futures followed by index futures (37 %),
contracts traded on stock options was 13 % while 2 % of the contracts were traded on
stock options (Chart 6-2).

140
 Chart 6-2 : Product wise Number of Contracts Traded during 2007-08

Product wise turnover on F&O Segment:

During 2007-08, the traded value of index futures saw a year-on-year growth of 50.45 %
and amounted to Rs.3,820,667 crore (US $ 955,884 million) in 2007-08 as against
Rs.2,539,575 crore (US $ 582,605 million) during 2006-07.

The traded value in stock futures saw growth of 97.04 % to Rs.7,548,563 crore
(US $ 1,888,557 million) during 2007-08 over the turnover of Rs.3,830,972 crore
(US $ 878,865 million) in 2006-07. The stock futures category saw the highest year on
year growth in terms of turnover.

Index options recorded turnover of Rs.1,362,111 crore (US $ 340,783 million) during
2007-08 , an increase of 72 % over the turnover of Rs.791,913 crore (US $ 181,673 million)
during 2006-07.

Stock options recorded turnover of Rs. 3,59,137 crore (US $ 89,852 million) during
2007-08 , an increase of 85 % over the turnover of Rs. 193,811 crore (US $ 4,4,462 million)
during 2006-07.

Stock futures accounted for 58.83 % of the total turnover during the 2007-08 fiscal
followed by the trading in index futures at 28.21 % (Chart 6-3). At the end of March 2008,
there were 228 stock futures available for trading.

141
 Chart 6-3 : Product wise trading volumes during 2007-08

Futures and Options on Benchmark Indices

The details of traded volumes on Index Futures and Options, having the underlying as
the NSE indices is shown in the table below.

Benchmark Indices Contracts & Trading Volume in F&O

Segment of NSE (2007-08)

Products Underlying No. of Turnover

Contracts
(Rs.cr) (US $ mn)

NIFTY S&P CNX Nifty 208,198,647 5,112,864 1,279,175

BANKNIFTY BANK Nifty 2,075,132 37,514 9,386

MINIFTY S&P CNX Nifty 229,889 21,304 5,330

JUNIOR CNX Nifty Junior 211,418 5,354 1,340

CNXIT CNX IT 20,158 5,045 1,262

CNX100 CNX 100 1,217,577 425 106

Nifty Midcap 50 Nifty Midcap 50 11,796 273 68

TOTAL 211,964,617 5,182,778 1,296,667

During 2007-08, the S&P CNX Nifty Index accounted for more than 98 % of the turnover
in Index futures and options. Around 15 crore futures contracts and 6 crore option
contracts were traded on S&P CNX Nifty. The S&P CNX Nifty accounted for 98.92 %
of the total contracts traded.

142
Sectorwise Stock Futures & Options Turnover

Sectorwise turnover of stock futures and options is presented in the table below.
Companies belonging to the manufacturing sector accounted for 25.68 % of total stock
futures and options turnover on the Exchange followed by the stocks in petrochemicals
sector (16.17 %) and the stocks in the infrastructure sector (15.76 %).

Sectorwise Classification of turnover in F&O segment (2007-08)

Sector Total Turnover

(Rs. cr) ( US $ mn)

Manufacturing 2,032,057.67 508,118.76

Petrochemicals 1,278,682.43 319,910.54

Infrastructure 1,521,507.32 380,662.33

Banks 784,305.99 196,223.67

Finance 706,161.38 176,672.85

Telecommunication 548,008.89 137,382.00

Information Technology 385,714.09 96,500.90

Engineering 185,067.53 46,301.61

Pharmaceuticals 169,654.04 42,445.34

Fast Moving Consuming Goods (FMCG) 113,100.15 28,296.26

Services 79,157.65 19,804.27

Media & Entertainment 65,231.89 16,320.21

Miscellaneous 39,050.60 9,769.98

TOTAL 7,907,699.63 1,978,408.71

The stock futures and option turnover of top 5 companies in each sector for the period
2007-08 is presented in Table 6-5.

Participant wise turnover on F&O Segment:

During 2007-08, the retail investors accounted for 62.97 % of the turnover on the F&O
segment of the Exchange. The gross turnover of the retail participants in the F&O Segment
amounted to Rs.16,485,724 crore (US $ 4,124,524 million) during 2007-08 followed by the
Proprietory segment with gross turnover of Rs.6,439,196 crore (US $ 1,611,007million) and
the Institutional players with gross turnover of Rs. 3,256,034 crore (US $ 814,619million).
The share of retail participants and institutional participants in the gross turnover was
24.59 % and 12.44 % respectively.

The month wise details of the turnover for the participants in the F&O segment is
presented in Table 6-6 and Chart 6-4.

143
 Chart 6-4 : Participant wise F&O Turnover during 2007-08

FII Turnover on NSE:

Out of the total institutional turnover of Rs.3,256,034 crore (US $ 814,619 million),
FIIs accounted for a share of 76.89 % . The gross turnover of FIIs amounted to
Rs.2,503,511 crore (US $ 626,348 million) as compared with Rs.1,286,211 crore
(US $ 295,070 million) during 2006-07. The FII share in derivatives turnover rose to
9.56 % during 2007-08 from 8.74 % in the corresponding period last year (Table 6-7).

Memberwise turnover on the Exchange:

During 2007-08, there were 691 members which accounted for turnover of
Rs.1,000 crore and more while 54 members registered turnover between Rs.500 crore
and Rs.1,000 crore collectively in the futures and options category. In the month of
October 2007, 400 trading members accounted for a turnover of Rs.1,000 crore and
more, which was the highest number of members during the fiscal year 2007-08.

The number of members in different turnover brackets in Futures and Options segment
is presented 6-8a & b. Around 79 % of the trading members generated turnover of
Rs.1,000 crore and more in futures trading. In the options segment, only 35 % of the
trading members had a turnover of Rs.1,000 crore and more while 65 % trading members
had turnover of less than Rs.1,000 crore.

High Volume Members

The turnover of the top ‘5’ and ‘10’ members accounted to Rs.1,591,692.26 crore
(US $ 39,822.17 million) and Rs.2,614,923 crore (US $ 65,422.14 million) respectively in
2007-08 in the Futures segment. However, the turnover of the top ‘5’ and ‘10’ members

144
in the options segment accounted to Rs.395,886.91 crore (US $ 9,904.60 million)
and Rs. 585,224.12 crore (US $ 14,641.58 million) respectively in the same period
(Table 6-8 c).

In the Futures segment, the share of top 5 and top ‘10’ members in turnover was 14% and
23% respectively , while in the options segment the share of top 5 and top 10 trading
members in in turnover was 23% and 34 % respectively.

Internet Trading

At the end of March 2008, a total number of 305 members were permitted to allow
investor’s web based access to NSE’s trading system. The members of the exchange in
turn had registered 3,432,771 clients for web based access as on March 31, 2008. In the
Futures and Options Segment the trading volume of Rs.2,417,165 crore (US $ 604,745
million) during the year 2007-08, constituting 18.47 % of total trading volume was routed
and executed through the internet. The following table shows the growth of internet
trading during the during 2006-07 and 2007-08.

Internet Trading in the F&O Segment of the Exchange

Year Enabled Registered Internet Internet % of Total

members * clients * Trading Value Trading Value Trading
Volume
(Rs.cr.) (US $ mn)
2006-07 242 1,616,218 1,214,961 278,725 16.52
2007-08 305 3,432,771 2,417,165 604,745 18.47

* At the end of financial year.

Traded Value Records

Trading volumes in the F&O Segment during 2007-08 reached a high of Rs.110,564 crore
(US $ 27,661.75 million) on October 18, 2007. The following table the traded value records
achieved in the F&O Segment of the Exchange during 2007-08.

Records Achieved in the F&O Segment during 2007-08

Product Traded Value (Rs. crores) Date

Index Futures 34,583 18-Oct-07
Stock Futures 71,195 1-Nov-07
Index Options 11,804 18-Oct-07
Stock Options 3,746 18-Oct-07
Total F&O Traded Value 1,10,564 18-Oct-07

Top 20 Futures and Option contracts

During 2007-08, top 20 Futures and options contracts in terms of number of contracts
traded have been presented in Table 6-9 and Table 6-10.

145
 The top 20 Futures contracts accounted for 45.67 % of the total no. of contracts traded
in the Futures segment while top 20 Option contracts accounted for 17.05 % of the total
option contracts traded during 2007-08.

Among the top 20 future contracts, Nifty August 2007 futures accounted for 11.04 %
of the total no. of contracts while Nifty January 2008 futures and Nifty October 2007
contributed 9.48 % and 9.44 % respectively.

Top 3 option contracts on the basis of turnover during 2007-08 were Nifty August 2007
PE 4300, Nifty August 2007 PE 4200 and Nifty May 2007 CE 4100. Together these three
option contracts formed 17.41 % of the total turnover of top 20 option contracts.

Number of Trades
During 2007-08, maximum number of trades in the F&O Segment were witnessed in Stock
Futures (75.75 %), Index futures (15.28 %), Index Options (5.13 %) and Stock Options
(3.84 %) as mentioned in the table below.

Number of Trades in F&O Segment (2007-08)

Products Number of Trades (%)

Stock Futures 75.75
Index Futures 15.28
Index Options 5.13
Stock Options 3.84
TOTAL 100

The details of month wise trades on Index futures & options and stock futures & options
is presented in Table 6-11.

Charges
Brokerage 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.

Transaction Charges

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.

146
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.

Securities Transaction Tax

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, 2008.

Taxable securities transaction Rate (%) Taxable Value Payable by

Sale of an option in securities 0.017 Option premium Seller

Sale of an option in securities, where option is 0.125 Settlement Price Purchaser

exercised

Sale of a futures in securities 0.017 Sale Price Seller

Value of taxable securities transaction relating to an “option in securities” will be the

option premium, in case of sale of an option in securities.

Value of taxable securities transaction relating to an “option in securities” will be the

settlement price, in case of sale of an option in securities, where option is exercised.

Contribution to Investor Protection Fund (F&O Segment)

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.

Clearing And Settlement

Settlement Statistics

All derivative contracts are currently cash settled. The participants discharge their
obligations through payment/receipt of cash. During 2007-08, such cash settlement
amounted to Rs. 1,565,192.40 crore (US $ 392,278.80 million). The settlement of futures
and options involved Rs.1,459,668 crore (US $ 365,191 million) and Rs. 105,524.30
(US $ 26,401 million) respectively. The details of settlement in the futures and options
segment is presented in Table 6-12.

147
 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).

148
 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.

• 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 actual profit or loss per unit of the option
from the CM who has been assigned the option contract.

149
 Exercise settlement value is debited/credited to the relevant CMs clearing bank
account on T+1 day (T=exercise date).

• 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+1 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 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.

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:

150
• 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.

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.

* SPAN ® is a registered trademark of the Chicago Mercantile Exchange (CME) used here under license.

151
 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, and

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 volatilities
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. 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.

152
• 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.

Position Limits

The market wide limit of open position (in terms of the number of underlying stock)
on futures and option contracts on a particular underlying stock should be 20% of the
number of shares held by non-promoters in the relevant underlying security i.e. free–float
holding. This limit is applicable on all open positions in all futures and option contracts
on a particular underlying stock. The enforcement of the market wide limits is done in
the following manner:
• At end of the day the exchange tests whether the market wide open interest for any
scrip exceeds 95% of the market wide position limit for that scrip. In case it does so,
the exchange takes note of open position of all client/TMs as at end of that day for
that scrip and from next day onwards they can trade only to decrease their positions
through offsetting positions.
• At the end of each day during which the ban on fresh positions is in force for any
scrip, the exchange tests whether any member or client has increased his existing
positions or has created a new position in that scrip. If so, that client is subject to a
penalty equal to a specified percentage (or basis points) of the increase in the position
(in terms of notional value). The penalty is recovered before trading begins next
day.
• The normal trading in the scrip is resumed after the open outstanding position comes
down to 80% or below of the market wide position limit. Further, the exchange
also checks on a monthly basis, whether a stock has remained subject to the ban on
new position for a significant part of the month consistently for three months. If
so, then the exchange phases out derivative contracts on that underlying

153
 Trading Member wise Position Limits

Index Futures Contract:

The trading member position limits in equity index futures contracts is higher of
Rs.500 Crore or 15% of the total open interest in the market in equity index futures
contracts. This limit would be applicable on open positions in all futures contracts on a
particular underlying index.

Index Options Contract:

The trading member position limits in equity index option contracts is higher of
Rs.500 Crore or 15% of the total open interest in the market in equity index option
contracts. This limit would be applicable on open positions in all option contracts on a
particular underlying index.

Futures and Option contracts on individual securities :

i. For stocks having applicable market-wise position limit (MWPL) of Rs. 500 crores or
more, the combined futures and options position limit is 20% of applicable MWPL
or Rs. 300 crores, whichever is lower and within which stock futures position cannot
exceed 10% of applicable MWPL or Rs. 150 crores, whichever is lower.
ii. For stocks having applicable market-wise position limit (MWPL) less than
Rs. 500 crores, the combined futures and options position limit would be 20% of
applicable MWPL and futures position cannot exceed 20% of applicable MWPL or
Rs. 50 crore which ever is lower. The Clearing Corporation shall specify the trading
member-wise position limits on the last trading day of the month which shall be
reckoned for the purpose during the next month.

Client level position limits

The gross open position for each client, across all the derivative contracts on an underlying,
should not exceed 1% of the free float market capitalization (in terms of number of
shares) or 5% of the open interest in all derivative contracts in the same underlying stock
(in terms of number of shares) whichever is higher.

Disclosure for Client Positions in Index based contracts

Any person or persons acting in concert who together own 15% or more of the open
interest on a particular underlying index is required to report this fact to the Exchange/
Clearing Corporation. Failure to do so shall be treated as a violation and shall attract
appropriate penal and disciplinary action in accordance with the Rules, Byelaws and
Regulations of Clearing Corporation.

Position limits for FII, Mutual Funds:

FII & MF Position limits in Index options contracts : FII & MF position limit in all
index options contracts on a particular underlying index is Rs.500 Crores or 15 % of

154
the total open interest of the market in index options, whichever is higher. This limit
would be applicable on open positions in all options contracts on a particular underlying
index.

FII & MF Position limits in Index futures contracts : FII & MF position limit in all
index futures contracts on a particular underlying index is Rs. 500 crores or 15 % of the
total open interest of the market in index futures, whichever is higher. This limit would be
applicable on open positions in all futures contracts on a particular underlying index.

In addition to the above, FIIs & MF’s shall take exposure in equity index derivatives
subject to the following limits:

a) Short positions in index derivatives (short futures, short calls and long puts) not
exceeding (in notional value) the FII’s / MF’s holding of stocks.

b) Long positions in index derivatives (long futures, long calls and short puts) not
exceeding (in notional value) the FII’s / MF’s holding of cash, government securities,
T-Bills and similar instruments.

The FIIs should report to the clearing members (custodian) the extent of the FIIs holding
of stocks, cash, government securities, T-bills and similar instruments before the end of
the day. The clearing member (custodian) in turn should report the same to the exchange.
The exchange monitors the FII position limits. The position limit for sub-account is
same as that of client level position limits.

155
 Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)

Sr. Security Symbol Launch Market

No Date Lot
1 Ambuja Cements Ltd. AMBUJACEM 02-Jul-01 2062
2 Associated Cement Co. Ltd. ACC 02-Jul-01 188
3 Bharat Heavy Electricals Ltd. BHEL 02-Jul-01 75
4 Bharat Petroleum Corporation Ltd. BPCL 02-Jul-01 550
5 Cipla Ltd. CIPLA 02-Jul-01 1250
6 Dr. Reddy’S Laboratories Ltd. DRREDDY 02-Jul-01 400
7 Grasim Industries Ltd. GRASIM 02-Jul-01 88
8 Hindalco Industries Ltd. HINDALCO 02-Jul-01 1595
9 Hindustan Petroleum Corporation Ltd. HINDPETRO 02-Jul-01 1300
10 Hindustan Unilever Ltd HINDUNILVR 2-Jul-01 1000
11 Housing Development Finance Corporation Ltd. HDFC 02-Jul-01 75
12 Infosys Technologies Ltd. INFOSYSTCH 02-Jul-01 200
13 ITC Ltd. ITC 02-Jul-01 1125
14 Mahanagar Telephone Nigam Ltd. MTNL 02-Jul-01 1600
15 Mahindra & Mahindra Ltd. M&M 02-Jul-01 312
16 Ranbaxy Laboratories Ltd. RANBAXY 02-Jul-01 800
17 Reliance Industries Ltd. RELIANCE 02-Jul-01 75
18 Satyam Computer Services Ltd. SATYAMCOMP 02-Jul-01 600
19 State Bank Of India SBIN 02-Jul-01 132
20 Tata Power Co. Ltd. TATAPOWER 02-Jul-01 200
21 Tata Steel Ltd. TATASTEEL 2-Jul-01 382
22 Tata Tea Ltd. TATATEA 02-Jul-01 275
23 Bharat Electronics Ltd. BEL 31-Jan-03 138
24 HCL Technologies Ltd. HCLTECH 31-Jan-03 650
25 Hero Honda Motors Ltd. HEROHONDA 31-Jan-03 400
26 National Aluminium Co. Ltd. NATIONALUM 31-Jan-03 575
27 Oil & Natural Gas Corp. Ltd. ONGC 31-Jan-03 225
28 Polaris Software Lab Ltd. POLARIS 31-Jan-03 2800
29 Shipping Corporation Of India Ltd. SCI 31-Jan-03 800
30 Wipro Ltd. WIPRO 31-Jan-03 600
31 I-Flex Solutions Ltd. I-FLEX 30-May-03 150
32 Maruti Udyog Ltd. MARUTI 09-Jul-03 200
33 Andhra Bank ANDHRABANK 29-Aug-03 2300
34 Bank Of Baroda BANKBARODA 29-Aug-03 700
35 Bank Of India BANKINDIA 29-Aug-03 950
36 Canara Bank CANBK 29-Aug-03 800
37 HDFC Bank Ltd. HDFCBANK 29-Aug-03 200

Contd...

156
Contd...
Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)

Sr. Security Symbol Launch Market

No Date Lot
38 Oriental Bank Of Commerce ORIENTBANK 29-Aug-03 1200
39 Punjab National Bank PNB 29-Aug-03 600
40 Union Bank Of India UNIONBANK 29-Aug-03 2100
41 Arvind Mills Ltd. ARVINDMILL 26-Sep-03 4300
42 GAIL (India) Ltd. GAIL 26-Sep-03 750
43 Indian Oil Corporation Ltd. IOC 26-Sep-03 600
44 Syndicate Bank SYNDIBANK 26-Sep-03 1900
45 Tata Motors Ltd. TATAMOTORS 26-Dec-03 412
46 Tata Consultancy Services Ltd TCS 25-Aug-04 250
47 National Thermal Power Corporation Ltd. NTPC 05-Nov-04 1625
48 Jet Airways (India) Ltd. JETAIRWAYS 14-Mar-05 400
49 Jaiprakash Hydro-Power Ltd. JPHYDRO 18-Apr-05 3125
50 ABB Ltd. ABB 20-Apr-05 250
51 Allahabad Bank ALBK 20-Apr-05 2450
52 Ashok Leyland Ltd ASHOKLEY 20-Apr-05 4775
53 Axis Bank Ltd. AXISBANK 20-Apr-05 225
54 Bharat Forge Co Ltd BHARATFORG 20-Apr-05 1000
55 Bharti Airtel Ltd BHARTIARTL 20-Apr-05 250
56 Century Textiles Ltd CENTURYTEX 20-Apr-05 212
57 Chennai Petroleum Corporation Ltd. CHENNPETRO 20-Apr-05 900
58 Cummins India Ltd CUMMINSIND 20-Apr-05 475
59 Dabur India Ltd. DABUR 20-Apr-05 2700
60 Glaxosmithkline Pharma Ltd. GLAXO 20-Apr-05 300
61 Indian Hotels Co. Ltd. INDHOTEL 20-Apr-05 1899
62 Indian Overseas Bank IOB 20-Apr-05 1475
63 Industrial Development Bank Of India Ltd. IDBI 20-Apr-05 1200
64 Jindal Steel & Power Ltd JINDALSTEL 20-Apr-05 160
65 LIC Housing Finance Ltd LICHSGFIN 20-Apr-05 850
66 Mangalore Refinery And Petrochemicals Ltd. MRPL 20-Apr-05 2225
67 Matrix Laboratories Ltd. MATRIXLABS 20-Apr-05 1250
68 Neyveli Lignite Corporation Ltd. NEYVELILIG 20-Apr-05 1475
69 Patni Computer Syst Ltd PATNI 20-Apr-05 650
70 Reliance Capital Ltd RELCAPITAL 20-Apr-05 138
71 Siemens Ltd SIEMENS 20-Apr-05 376
72 Sterlite Industries (I) Ltd STER 20-Apr-05 219
73 Sun Pharmaceuticals India Ltd. SUNPHARMA 20-Apr-05 225

Contd...

157
 Contd...
Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)

Sr. Security Symbol Launch Market

No Date Lot
74 Tata Chemicals Ltd TATACHEM 20-Apr-05 675
75 Vijaya Bank VIJAYABANK 20-Apr-05 3450
76 Wockhardt Ltd. WOCKPHARMA 20-Apr-05 600
77 Aurobindo Pharma Ltd. AUROPHARMA 12-May-05 700
78 Bongaigaon Refinery Ltd. BONGAIREFN 12-May-05 2250
79 CESC Ltd. CESC 12-May-05 550
80 Chambal Fertilizers Ltd. CHAMBLFERT 12-May-05 3450
81 Corporation Bank CORPBANK 12-May-05 600
82 Divi’S Laboratories Ltd. DIVISLAB 12-May-05 155
83 Essar Oil Ltd. ESSAROIL 12-May-05 1412
84 Federal Bank Ltd. FEDERALBNK 12-May-05 851
85 Gujarat Narmada Fertilizer Co. Ltd. GNFC 12-May-05 1475
86 Indusind Bank Ltd. INDUSINDBK 12-May-05 1925
87 J & K Bank Ltd. J&KBANK 12-May-05 300
88 Jindal Stainless Ltd. JSTAINLESS 12-May-05 1000
89 Maharashtra Seamless Ltd. MAHSEAMLES 12-May-05 600
90 Mphasis Ltd. MPHASIS 12-May-05 800
91 NDTV Ltd. NDTV 12-May-05 550
92 Orchid Chemicals Ltd. ORCHIDCHEM 12-May-05 1050
93 Titan Industries Ltd. TITAN 12-May-05 206
94 TVS Motor Company Ltd. TVSMOTOR 12-May-05 2950
95 Alok Industries Ltd. ALOKTEXT 27-May-05 3350
96 Escorts India Ltd. ESCORTS 27-May-05 2400
97 IFCI Ltd. IFCI 27-May-05 1970
98 India Cements Ltd. INDIACEM 27-May-05 725
99 IVRCL Infrastructure & Projects Ltd. IVRCLINFRA 27-May-05 500
100 Nagarjuna Fertiliser & Chemicals Ltd. NAGARFERT 27-May-05 3500
101 SRF Ltd. SRF 27-May-05 1500
102 Strides Arcolab Ltd. STAR 27-May-05 850
103 The Karnataka Bank Ltd. KTKBANK 27-May-05 1250
104 Infrastructure Development Finance Company Ltd. IDFC 12-Aug-05 1475
105 Suzlon Energy Ltd. SUZLON 19-Oct-05 1000
106 Punj Lloyd Ltd. PUNJLLOYD 06-Jan-06 750
107 Sun Tv Network Ltd. SUNTV 24-Apr-06 1000
108 Reliance Petroleum Ltd. RPL 11-May-06 1675
109 Gmr Infrastructure Ltd. GMRINFRA 21-Aug-06 1250

Contd...

158
Contd...
Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)

Sr. Security Symbol Launch Market

No Date Lot
110 Reliance Communications Ltd. RCOM 15-Sep-06 350
111 Steel Authority Of India Ltd. SAIL 15-Sep-06 1350
112 Lanco Infratech Ltd. LITL 27-Nov-06 425
113 Parsvnath Developers Ltd. PARSVNATH 30-Nov-06 700
114 Sobha Developers Ltd. SOBHA 20-Dec-06 350
115 Aban Offshore Ltd. ABAN 29-Dec-06 50
116 Amtek Auto Ltd. AMTEKAUTO 29-Dec-06 600
117 Bajaj Hindustan Ltd. BAJAJHIND 29-Dec-06 950
118 Balrampur Chini Mills Ltd. BALRAMCHIN 29-Dec-06 2400
119 Bata India Ltd. BATAINDIA 29-Dec-06 1050
120 Bharat Earth Movers Ltd. BEML 29-Dec-06 125
121 Bombay Dyeing & Mfg. Co Ltd. BOMDYEING 29-Dec-06 300
122 Crompton Greaves Ltd. CROMPGREAV 29-Dec-06 500
123 Gateway Distriparks Ltd. GDL 29-Dec-06 2500
124 GTL Ltd. GTL 29-Dec-06 750
125 Gujarat Alkalies & Chem GUJALKALI 29-Dec-06 1400
126 Hindustan Construction Co HCC 29-Dec-06 1400
127 Jaiprakash Associates Ltd. JPASSOCIAT 29-Dec-06 750
128 Jsw Steel Ltd. JSWSTEEL 29-Dec-06 275
129 Kotak Mahindra Bank Ltd. KOTAKBANK 29-Dec-06 275
130 Lupin Ltd. LUPIN 29-Dec-06 700
131 Nagarjuna Constrn. Co. Ltd. NAGARCONST 29-Dec-06 1000
132 Praj Industries Ltd. PRAJIND 29-Dec-06 1100
133 Sesa Goa Ltd. SESAGOA 29-Dec-06 75
134 Shree Renuka Sugars Ltd. RENUKA 29-Dec-06 5000
135 Tata Teleserv(Maharastra) India Ltd TTML 29-Dec-06 5225
136 Triveni Engg. & Inds. Ltd. TRIVENI 29-Dec-06 1925
137 Ultratech Cement Ltd. ULTRACEMCO 29-Dec-06 400
138 United Spirits Ltd. MCDOWELL-N 29-Dec-06 125
139 Voltas Ltd. VOLTAS 29-Dec-06 900
140 Cairn India Limited CAIRN 09-Jan-07 1250
141 Power Finance Corporation Ltd. PFC 23-Feb-07 1200
142 Indian Bank INDIANB 01-Mar-07 1100
143 Idea Cellular Ltd. IDEA 09-Mar-07 2700
144 Aditya Birla Nuvo Limited ABIRLANUVO 14-May-07 200
145 Adlabs Films Ltd ADLABSFILM 14-May-07 225

Contd...

159
 Contd...
Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)

Sr. Security Symbol Launch Market

No Date Lot
146 Aia Engineering Limited AIAENG 14-May-07 200
147 Alstom Projects India Ltd APIL 14-May-07 200
148 Ansal Prop & Infra Ltd ANSALINFRA 14-May-07 1300
149 Birla Corporation Ltd BIRLAJUTE 14-May-07 850
150 Bombay Rayon Fashions Ltd BRFL 14-May-07 1150
151 Deccan Aviation Limited AIRDECCAN 14-May-07 850
152 Dena Bank DENABANK 14-May-07 2625
153 Educomp Solutions Ltd EDUCOMP 14-May-07 75
154 Everest Kanto Cylinder Ltd EKC 14-May-07 1000
155 Financial Technologies (I) Ltd FINANTECH 14-May-07 150
156 Hotel Leela Ventures Ltd HOTELEELA 14-May-07 3750
157 India Infoline Limited INDIAINFO 14-May-07 250
158 Kesoram Industries Ltd KESORAMIND 14-May-07 500
159 Mahindra Lifespace Developers Ltd MAHLIFE 14-May-07 350
160 Moser-Baer (I) Ltd MOSERBAER 14-May-07 825
161 Oswal Chem. & Fert. Ltd. BINDALAGRO 14-May-07 4950
162 Pantaloon Retail (I) Ltd PANTALOONR 14-May-07 500
163 Patel Engineering Ltd. PATELENG 14-May-07 250
164 Peninsula Land Limited PENINLAND 14-May-07 2750
165 Petronet Lng Limited PETRONET 14-May-07 2200
166 Rajesh Exports Ltd RAJESHEXPO 14-May-07 1650
167 Reliance Natural Resources Ltd. RNRL 14-May-07 1788
168 Rolta India Ltd ROLTA 14-May-07 900
169 Shree Cements Ltd SHREECEM 14-May-07 200
170 Sterling Biotech Ltd STERLINBIO 14-May-07 2500
171 Sterlite Technologies Ltd STRTECH 14-May-07 1050
172 Unitech Ltd UNITECH 14-May-07 900
173 United Phosphorous Ltd UNIPHOS 14-May-07 700
174 HTMT Global Solutions Ltd. HTMTGLOBAL 19-Jun-07 500
175 DLF Limited DLF 05-Jul-07 400
176 Housing Development And Infrastructure Ltd. HDIL 24-Jul-07 400
177 Omaxe Ltd. OMAXE 09-Aug-07 650
178 IVR Prime Urban Developers Ltd. IVRPRIME 16-Aug-07 800
179 Central Bank Of India CENTRALBK 21-Aug-07 2000
180 Puravankara Projects Ltd. PURVA 30-Aug-07 500
181 3I Infotech Ltd. 3IINFOTECH 06-Sep-07 2700

Contd...

160
Contd...
Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)

Sr. Security Symbol Launch Market

No Date Lot
182 Aptech Limited APTECHT 06-Sep-07 650
183 Bhushan Steel & Strips Lt BHUSANSTL 06-Sep-07 250
184 Biocon Limited. BIOCON 06-Sep-07 450
185 CMC Ltd. CMC 06-Sep-07 200
186 Havells India Limited HAVELLS 06-Sep-07 400
187 Lakshmi Machines Ltd LAXMIMACH 06-Sep-07 100
188 NIIT Technologies Ltd. NIITTECH 06-Sep-07 1200
189 Nucleus Software Exports NUCLEUS 06-Sep-07 550
190 Sasken Commu Techno Ltd SASKEN 06-Sep-07 1100
191 Tech Mahindra Limited TECHM 06-Sep-07 200
192 Tulip It Services Ltd TULIP 06-Sep-07 250
193 Welspun Guj St. Ro. Ltd. WELGUJ 06-Sep-07 800
194 Yes Bank Limited YESBANK 06-Sep-07 1100
195 Power Grid Corporation Of India Ltd. POWERGRID 05-Oct-07 1925
196 Develop Credit Bank Ltd DCB 30-Nov-07 1400
197 Gitanjali Gems Limited GITANJALI 30-Nov-07 500
198 Great Offshore Ltd GTOFFSHORE 30-Nov-07 250
199 Hindustan Oil Exploration HINDOILEXP 30-Nov-07 1600
200 Hindustan Zinc Limited HINDZINC 30-Nov-07 250
201 IBN 18 Broadcast Limited IBN18 30-Nov-07 1250
202 Info Edge (I) Ltd NAUKRI 30-Nov-07 150
203 Ispat Industries Limited ISPATIND 30-Nov-07 4150
204 Jindal Saw Limited JINDALSAW 30-Nov-07 250
205 Kpit Cummins Infosystems KPIT 30-Nov-07 1650
206 Motor Industries Co Ltd BOSCHLTD 30-Nov-07 50
207 Network 18 Fincap Ltd. NETWORK18 30-Nov-07 500
208 NIIT Limited NIITLTD 30-Nov-07 1450
209 Redington (India) Ltd. REDINGTON 30-Nov-07 500
210 Wire & Wireless (I) Ltd. WWIL 30-Nov-07 3150
211 Edelweiss Capital Ltd EDELWEISS 13-Dec-07 250
212 Brigade Enterprises Ltd. BRIGADE 31-Dec-07 550
213 Reliance Power Ltd. RPOWER 11-Feb-08 500
214 IRB Infrastructure Developers Ltd IRB 25-Feb-08 1100
215 Rural Electrification Corporation Ltd. RECLTD 12-Mar-08 1950
216 Ballarpur Industries Limited BALLARPUR 31-Mar-08 7300
217 Bajaj Auto Limited BAJAJ-AUTO 26-May-08 200

161
 Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)

Sr. Security Symbol Launch Market Remarks

No Date Lot
218 ICICI Bank Ltd. ICICIBANK 31-Jan-03 175 ICICI introduced on 02-07-01 underwent
restructuring & got reintroduced as
ICICIBANK on 31-01-03
219 Reliance RELINFRA 12-Mar-04 138 BSES introduced on 02.07.01 underwent
Infrastructure Ltd. restructuring & was reintroduced as REL
on 12-Mar-04 (Symbol now RELINFRA)
220 Tata TATACOMM 20-Apr-05 525 VSNL introduced on 02.07.01 underwent
Communications restructuring and got reintroduced as VSNL
Ltd on 20.04.05 (symbol now TATACOMM)
221 Larsen & Toubro LT 15-Sep-06 50 L&T introduced on 02.07.01 underwent
Ltd. restructuring & got reintroduced as LT
on 15-09-06
222 The Great Eastern GESHIP 27-Nov-06 600 GESHIPPING introduced on 20.04.05
Shipping Co. Ltd. underwent restructuring & got reintroduced
as GESHIP on 27-11-06
223 Zee Entertainment ZEEL 12-Feb-07 700 ZEETELE introduced on 15-Sep-06
Enterprises Ltd. underwent restructuring twice in 19-12-06
and 12-02-07 (Symbol now ZEEL)
224 Hinduja Ventures HINDUJAVEN 24-Apr-07 500 HTMT introduced on 29.12.06 underwent
Ltd. restructing & got reintroduced as
HINDUJATMT on 24-04-07. (Symbol
now HINDUJAVEN)
225 S Kumars SKUMARSYNF 14-May-07 1900 SKUMARSYNF introduced on
Nationwide Ltd 14.05.07 underwent restructuring & was
reintroduced on 24.04.08
226 Colgate Palmolive COLPAL 17-Dec-07 550 COLGATE introduced on 20.04.05
Ltd underwent restructuring & got reintroduced
as COLPAL on 17-12-07
227 Piramal Healthcare PIRHEALTH 15-Feb-08 750 NICOLASPIR introduced on 20.04.05
Ltd underwent restructuring & was
reintroduced on 15.02.08 (Symbol now
PIRHEALTH)
228 Bajaj Holdings & BAJAJHLDNG 14-Mar-08 250 BAJAJAUTO introduced on 02.07.01
Investment Ltd. underwent restructuring & got reintroduced
as BAJAJAHLDNG on 14.03.08

Table 6-1 (b) List of Indices on which Futures & Options

are available along with their market lot

Sr. No Security Symbol Market Lot

1 S&P CNX Nifty NIFTY 50
2 S&P CNX Nifty MINIFTY 20
3 CNX Nifty Junior JUNIOR 25
4 BANK Nifty BANKNIFTY 25
5 CNX 100 CNX100 50
6 CNX IT CNXIT 50
7 Nifty Midcap 50 NFTYMCAP50 75

162
 Table 6-2 : Contract Specification for Index Futures and Options

Particulars Index Futures Index Options Mini Index Futures Mini Index Options Long Term Index
Options

Security Description FUTIDX OPTIDX FUTIDX ------------------------------------OPTIDX--------------------------------------

Underlying Index S&P CNX Nifty/ CNX Nifty Junior/ CNX 100/ Bank ------------------------------------------------S&P CNX Nifty-------------------------------------------------------
Nifty/ CNX IT/Nifty Midcap 50

Style of Option NA European NA ---------------------------------------European----------------------------------

Contract Size As specified by SEBI, currently minimum Rs.2 lakhs at As specified by SEBI currently minimum Rs.1 lakh at the A s s p e c i f i e d b y S E B I
the time of introduction time of introduction currently minimum
Rs.2 lakhs at the time of
introduction

Price Step Rs. 0.05

Last Trading/Expiration Last Thursday of the expiry month or the preceding trading day, if last Thursday is a trading holiday
Day

Expiration Period 3 months Atleast 3 years

Trading Cycle A maximum of three month trading cycle - • 3 near month expiries
• Near month (One) • Three following
• Next month (Two) and quarterly expiries of
• Far month (Three). the cycle (March, June,
New contract is introduced on the next trading day following the expiry of near month contract Sept & Dec)
• After these 5 following
half yearly expiries of
cycle June / Dec )”

Contd...

163
164
Contd...

Table 6-2 : Contract Specification for Index Futures and Options

Particulars Index Futures Index Options Mini Index Futures Mini Index Options Long Term Index
Options

Price Bands No price band however
Operating range has been
kept which is 10 % of the
base price
No Price band however
Operating range has been
kept as: Upper range - 99 %
of the base price or Rs. 20
which ever is higher. Lower
range - 0.05 (tick size)
No price band however No Price band however Operating range has been kept
Operating range has been as: Upper range - 99 % of the base price or Rs. 20 which
kept which is 10 % of the ever is higher. Lower range - 0.05 (tick size)
base price

No. of Strike Prices NA Depending on Index level NA Depending on Index level Depending on Index level
as per table 6-2(a)(1) as per table 6-2(a)(1) and expiry month as per
table 6-2(a)(2)

Strike Price Interval NA Depending on Index level NA Depending on Index level Depending on Index level
(in Rs.) as per table 6-2(b)(1) as per table 6-2(b)(1) and expiry month as per
table 6-2(b)(2)

Settlement In cash on T+1 basis

Settlement Day Last trading day

Margins Up-front initial margin on daily basis

Daily Settlement Price Closing price of futures N.A Closing price of futures N.A N.A
contract on the trading contract on the trading
day day

Final Settlement Price Closing value of the index C l o s i n g v a l u e o f t h e Closing value of underlying Closing value of underlying Index on the last trading
on expiry day underlying index on expiry Index on the last trading day day of the options contract.
day of the futures contract.
 Table 6-2 (a) : Number of strikes for Indices

Index Level First, second and 3 quarterly expiries 5 half yearly expiries
third month expiries (2)* (2)*
(1)

Upto 2000 4-1-4 6-1-6 4-1-4

>2000 upto 4000 4-1-4 6-1-6 4-1-4

>4000 upto 6000 5-1-5 8-1-8 5-1-5

>6000 6-1-6 8-1-8 6-1-6

* At present only for S & P CNX Nifty.

Table 6-2 (b) : Strike price intervals for Long Term Nifty Index Options

Index Level First, second and third 3 quarterly expiries (2) 5 half yearly expiries
month expiries (1) (2)

upto 2000 25 25 50

>2000 upto 4000 50 50 100

>4000 upto 6000 50 50 100

>6000 50 50 100

165
 Table 6-3 : Contract Specification for Stock Futures and Options

Particulars Stock Futures Stock Options

Security Description FUTSTK OPTSTK
Underlying Individual Securities
Style of Option NA American
Contract Size As specified by SEBI; Currently minimum Rs.2 lakhs at the time of
introduction
Price Steps Rs. 0.05
Expiration Period 3 months
Trading Cycle A maximum of three month trading cycle - the near month (one),
the next month (two) and the far month (three). New contract is
introduced on the next trading day following the expiry of near month
contract
Last Trading/Expiration Day Last Thursday of the expiry month or the preceding trading day, if
last Thursday is a trading holiday
Price Bands No price bands however Operating No price band however Operating
range has been kept which is 20% range has been kept which is:
of the base price. Upper range - 99% of the base
price or Rs. 20 which ever is
higher, Lower range - 0.05 (tick
size)
No. of strike Prices NA 7 strikes (3 ITM, 1 ATM and 3
OTM) for every option type (i.e
call and put)
Strike Price Interval (in Rs.) NA Depending on underlying price
level as per table 6-3 (1)
Settlement In cash on T+1 basis
Settlement Day Last trading day
Margins Up-front initial margin on daily basis
Daily Settlement Price Closing price of the futures Closing price of underlying on the
contract on the trading day day of exercise
Final Settlement Price Closing value of security on Closing price of security on
expiry day exercise day or expiry day

Table 6-3 (1) : Strike interval

Underlying price Strike price interval

0 - 50 2.5
50 - 250 5
250 - 500 10
500 - 1000 20
1000 - 2500 30
> 2500 50

Note:
ITM: In-the-Money
ATM: At-the-Money
OTM-Out-of-the-Money

166
 Table 6-4 : Business Growth of Futures & Options Market Segment
Month/ Index Futures Stock Futures Index Options Stock Options Total Average Daily
Year Trading Volume
Call Put Call Put
Contracts Trading No. of Trading No. of No- No. of No- No. of No- No. of No- No. of Trading Volume
Traded Volume Contracts Value Contracts tional Contracts tional Con- tional Con- tional Contracts
Traded Traded Trad- Traded Trad- tracts Trad- tracts Trad- Traded
ing ing Traded ing Traded ing
Vol- Vol- Vol- Vol-
ume ume ume ume
(Rs. cr.) (Rs. cr) (Rs. cr) (Rs. cr) (Rs. cr) (Rs.cr) (Rs.cr) (US $ mn) (Rs.cr) (US $ mn)
Jun-00 to 90,580 2,365 – – – – – – – – – – 90,580 2,365 555 12 2.49
Mar-01
Apr-01 13,274 292 – – – – – – – – – – 13,274 292 60 15 0.31
May-01 10,048 230 – – – – – – – – – – 10,048 230 47 10 0.21
Jun-01 26,805 590 – – 5,232 119 3,429 77 – – – – 35,466 785 161 37 0.77
Jul-01 60,644 1,309 – – 8,613 191 6,221 135 13,082 290 4,746 106 93,306 2,031 416 92 1.89
Aug-01 60,979 1,305 – – 7,598 165 5,533 119 38,971 844 12,508 263 125,589 2,696 553 128 2.63
Sep-01 154,298 2,857 – – 12,188 243 8,262 169 64,344 1,322 33,480 690 272,572 5,281 1,082 264 5.41
Oct-01 131,467 2,485 – – 16,787 326 12,324 233 85,844 1,632 43,787 801 290,209 5,477 1,122 261 5.34
Nov-01 121,697 2,484 125,946 2,811 14,994 310 7,189 145 112,499 2,372 31,484 638 413,809 8,760 1,795 438 8.98
Dec-01 109,303 2,339 309,755 7,515 12,890 287 5,513 118 84,134 1,986 28,425 674 550,020 12,919 2,647 680 13.93
Jan-02 122,182 2,660 489,793 13,261 11,285 253 3,933 85 133,947 3,836 44,498 1,253 805,638 21,348 4,375 928 19.02
Feb-02 120,662 2,747 528,947 13,939 13,941 323 4,749 107 133,630 3,635 33,055 864 834,984 21,616 4,429 1,081 22.15
Mar-02 94,229 2,185 503,415 13,989 10,446 249 4,773 111 101,708 2,863 37,387 1,094 751,958 20,491 4,199 1,078 22.09
2001-02 1,025,588 21,482 1,957,856 51,516 113,974 2,466 61,926 1,300 768,159 18,780 269,370 6,383 4,196,873 101,927 20,887 413 8.46
Apr-02 73,635 1,656 552,727 15,065 11,183 260 5,389 122 121,225 3,400 40,443 1,170 804,602 21,674 4,563 985 207.40
May-02 94,312 2,022 605,284 15,981 13,070 294 7,719 169 126,867 3,490 57,984 1,643 905,236 23,600 4,968 1,073 225.84
Jun-02 99,514 2,123 616,461 16,178 10,272 223 7,805 166 123,493 3,325 48,919 1,317 906,464 23,332 4,912 1,167 245.60
Jul-02 122,663 2,513 789,290 21,205 16,637 350 7,688 162 154,089 4,341 65,530 1,837 1,155,897 30,407 6,401 1,322 278.32
Aug-02 152,375 2,978 726,310 17,881 15,967 318 10,124 200 147,646 3,837 65,630 1,725 1,118,052 26,938 5,671 1,283 270.06

Contd...

167
168
Contd...
Table 6-4 : Business Growth of Futures & Options Market Segment
Month/ Index Futures Stock Futures Index Options Stock Options Total Average Daily
Year Trading Volume
Call Put Call Put
Contracts Trading No. of Trading No. of No- No. of No- No. of No- No. of No- No. of Trading Volume
Traded Volume Contracts Value Contracts tional Contracts tional Con- tional Con- tional Contracts
Traded Traded Trad- Traded Trad- tracts Trad- tracts Trad- Traded
ing ing Traded ing Traded ing
Vol- Vol- Vol- Vol-
ume ume ume ume
(Rs. cr.) (Rs. cr) (Rs. cr) (Rs. cr) (Rs. cr) (Rs.cr) (Rs.cr) (US $ mn) (Rs.cr) (US $ mn)
Sep-02 144,303 2,836 700,051 17,501 16,578 332 12,543 251 151,291 4,016 80,038 2,205 1,104,804 27,140 5,714 1,357 285.69
Oct-02 164,934 3,145 856,930 21,213 23,628 459 13,910 267 214,027 5,595 104,659 2,761 1,378,088 33,441 7,040 1,592 335.25
Nov-02 175,567 3,500 970,251 25,463 25,413 509 17,191 336 261,600 7,106 104,529 2,922 1,554,551 39,836 8,387 2,097 441.40
Dec-02 277,403 5,958 1,217,873 35,532 30,261 660 19,973 427 309,573 9,552 111,756 3,491 1,966,839 55,620 11,709 2,649 557.60
Jan-03 258,955 5,557 1,304,122 38,299 26,376 577 16,805 363 322,876 10,174 132,021 4,179 2,061,155 59,149 12,452 2,572 541.41
Feb-03 237803 504,032 1,198,564 32,445 26,501 571 17,681 375 268,156 7,644 114,512 3,319 1,863,217 49,395 10,399 2,600 547.31
Mar-03 325,299 6,624 1,138,980 29,770 53,788 1,116 35,739 740 255,658 7,163 140,540 3,919 1,950,004 49,332 10,386 2,467 519.28
2002-03 2,126,763 43,951 10,676,843 286,532 269,674 5,670 172,567 3,577 2,456,501 69,644 1,066,561 30,489 16,768,909 439,864 92,603 1,752 368.94
Apr-03 362,157 6,994 1,291,493 29,749 54,890 1,091 31,107 616 297,270 7,471 168,553 4,098 2,205,470 50,020 11,528 2,501 576.40
May-03 325,784 6,283 1,354,581 32,752 53,198 1,039 30,109 578 332,529 8,861 155,849 3,911 2,252,050 53,423 12,312 2,544 586.30
Jun-03 439,151 9,348 1,694,505 46,505 55,874 1,206 34,895 735 383,603 11,303 132,498 3,739 2,750,294 73,017 16,828 3,477 801.34
Jul-03 641,002 14,743 2,282,426 70,515 87,149 2,040 50,669 1,163 495,853 16,180 162,501 5,189 3,720,563 109,849 25,317 4,776 1,100.73
Aug-03 990,731 24,989 2,620,897 91,288 96,875 2,477 54,649 1,362 434,526 16,028 116,370 4,219 4,314,098 140,363 32,349 7,018 1,617.45
Sep-03 1,676,358 45,861 3,122,432 113,874 110,014 3,088 69,920 1,925 401,660 16,378 101,555 4,025 5,481,939 185,151 42,671 8,416 1,939.61
Oct-03 1,866,407 56,435 3,469,563 146,377 89,794 2,761 60,330 1,813 405,706 18,558 97,405 4,420 5,989,205 230,365 53,092 10,016 2,308.33
Nov-03 1,557,909 49,486 2,761,725 122,463 71,696 2,313 48,281 1,534 269,032 13,314 61,295 3,061 4,769,938 192,171 44,289 9,609 2,214.47
Dec-03 1,875,468 65,378 3,334,468 150,933 87,683 3,100 68,394 2,355 294,596 14,095 63,426 3,046 5,724,035 238,907 55,060 10,859 2,502.74
Jan-04 2,611,649 99,878 3,791,114 195,788 105,431 4,120 72,869 2,793 327,135 17,804 67,825 3,680 6,976,023 324,063 74,686 15,432 3,556.48
Feb-04 2,339,950 86,359 2,868,432 161,464 98,938 3,754 74,933 2,791 238,517 13,873 75,771 4,598 5,696,541 272,839 62,881 14,360 3,309.51

Contd...
 Contd...
Table 6-4 : Business Growth of Futures & Options Market Segment
Month/ Index Futures Stock Futures Index Options Stock Options Total Average Daily
Year Trading Volume
Call Put Call Put
Contracts Trading No. of Trading No. of No- No. of No- No. of No- No. of No- No. of Trading Volume
Traded Volume Contracts Value Contracts tional Contracts tional Con- tional Con- tional Contracts
Traded Traded Trad- Traded Trad- tracts Trad- tracts Trad- Traded
ing ing Traded ing Traded ing
Vol- Vol- Vol- Vol-
ume ume ume ume
(Rs. cr.) (Rs. cr) (Rs. cr) (Rs. cr) (Rs. cr) (Rs.cr) (Rs.cr) (US $ mn) (Rs.cr) (US $ mn)
Mar-04 2,505,102 88,710 3,777,206 144,243 132,352 4,811 92,364 3,357 367,722 14,309 131,874 5,051 7,006,620 260,481 60,033 11,840 2,728.75
2003-04 17,191,668 554,462 32,368,842 1,305,949 1,043,894 31,801 688,520 21,022 4,248,149 168,174 1,334,922 49,038 56,886,776 2,130,649 491,046 8,388 1,933.25
Apr-04 2,164,528 79,560 3,829,403 121,048 115,378 4,347 80,733 2,968 292,628 9,640 85,998 2,736 6,568,668 220,299 50,354 11,015 2,517.71
May-04 2,551,985 82,149 3,322,799 92,628 196,198 6,824 100,430 3,469 246,630 7,717 63,156 1,976 6,481,198 194,763 44,517 9,274 2,119.87
Jun-04 2,152,644 64,017 3,125,283 78,392 158,784 4,914 117,041 3,559 193,687 5,339 75,380 2,084 5,822,819 158,306 36,184 7,196 1,644.73
Jul-04 1,971,231 61,125 3,492,774 94,009 189,179 6,059 124,352 3,856 262,755 7,614 94,222 2,682 6,134,513 175,345 40,079 7,970 1,821.77
Aug-04 1,803,263 57,926 3,577,911 99,591 127,779 4,192 98,618 3,193 284,013 8,499 86,919 2,604 5,978,503 176,006 40,230 8,000 1,828.63
Sep-04 1,463,682 49,500 3,768,178 107,123 124,547 4,282 93,808 3,164 365,187 10,763 116,304 3,547 5,931,706 178,380 40,772 8,108 1,853.30
Oct-04 1,320,173 47,191 3,660,047 111,695 138,099 5,030 97,628 3,500 357,625 11,684 93,342 3,124 5,666,914 182,224 41,651 9,111 2,082.56
Nov-04 1,023,111 38,277 3,600,135 113,525 131,218 4,979 102,223 3,814 363,158 11,971 94,810 3,239 5,314,655 175,805 40,184 8,790 2,009.19
Dec-04 1,447,464 58,333 5,238,498 179,387 130,557 5,355 108,650 4,356 481,349 16,952 108,951 3,845 7,515,469 268,227 61,309 11,662 2,665.61
Jan-05 1,931,290 76,151 4,551,564 159,564 176,682 7,188 143,416 5,786 362,345 13,502 81,618 3,100 7,246,915 265,290 60,638 13,963 3,191.46
Feb-05 1,729,103 71,546 4,167,787 151,743 168,594 7,128 144,627 5,998 367,707 13,890 83,843 3,247 6,661,661 253,551 57,955 12,678 2,897.73
Mar-05 2,076,975 86,398 4,708,687 175,363 213,632 9,074 211,385 8,918 369,895 14,496 113,590 4,608 7,694,164 298,857 68,310 13,584 3,105.01
2004-05 21,635,449 772,174 47,043,066 1,484,067 1,870,647 69,373 1,422,911 52,581 3,946,979 132,066 1,098,133 36,792 77,017,185 2,547,053 582,183 10,067 2,301.12
Apr-05 3,332,361 65,598 4,225,623 106,129 361,544 7,295 295,020 5,981 307,994 8,203 105,955 2,764 8,628,497 195,969 43,929 9,798 2,196.47
May-05 3,545,971 70,465 4,466,404 112,882 382,530 7,726 353,975 7,056 288,137 7,642 100,602 2,609 9,137,619 208,380 46,712 9,472 2,123.25
Jun-05 3,626,288 77,218 5,783,428 163,096 421,480 9,092 331,753 7,041 385,640 11,677 104,478 3,122 10,653,067 271,246 60,804 11,793 2,643.65
Jul-05 3,451,684 77,399 6,537,794 199,638 358,867 8,130 389,154 8,642 376,129 11,735 84,989 2,623 11,198,617 308,166 69,080 15,408 3,454.00

Contd...

169
170
Contd...
Table 6-4 : Business Growth of Futures & Options Market Segment
Month/ Index Futures Stock Futures Index Options Stock Options Total Average Daily
Year Trading Volume
Call Put Call Put
Contracts Trading No. of Trading No. of No- No. of No- No. of No- No. of No- No. of Trading Volume
Traded Volume Contracts Value Contracts tional Contracts tional Con- tional Con- tional Contracts
Traded Traded Trad- Traded Trad- tracts Trad- tracts Trad- Traded
ing ing Traded ing Traded ing
Vol- Vol- Vol- Vol-
ume ume ume ume
(Rs. cr.) (Rs. cr) (Rs. cr) (Rs. cr) (Rs. cr) (Rs.cr) (Rs.cr) (US $ mn) (Rs.cr) (US $ mn)
Aug-05 4,278,829 100,813 7,124,266 234,817 444,294 10,620 485,001 11,372 350,370 11,935 81,453 2,750 12,764,213 372,307 83,458 16,923 3,793.56
Sep-05 4,701,774 118,905 6,995,169 236,945 523,948 13,370 583,081 14,550 363,872 12,917 85,897 3,069 13,253,741 399,756 89,611 19,036 4,267.21
Oct-05 6,849,732 170,100 6,526,919 214,398 695,311 17,632 715,208 17,954 309,120 10,753 80,134 2,822 15,176,424 433,660 97,211 21,683 4,860.57
Nov-05 5,238,175 135,478 6,252,736 216,526 595,900 15,582 604,657 15,491 287,136 10,069 77,052 2,708 13,055,656 395,853 88,736 19,793 4,436.82
Dec-05 6,613,032 183,293 6,252,736 280,283 775,216 21,862 764,964 21,125 361,268 13,630 95,261 3,614 14,862,477 523,807 117,419 23,809 5,337.24
Jan-06 5,760,999 166,127 7,134,199 265,042 663,684 19,392 666,782 19,129 365,493 14,265 90,562 3,629 14,681,719 487,584 109,299 24,379 5,464.96
Feb-06 5,186,835 156,359 7,443,178 288,715 506,714 15,526 559,682 16,805 326,233 12,350 75,740 2,918 14,098,382 492,672 110,440 25,930 5,812.63
Mar-06 5,952,206 192,035 10,844,400 473,251 683,979 22,407 772,372 24,690 444,604 18,576 92,657 3,890 18,790,218 734,849 164,727 33,402 7,487.61
2005-06 58,537,886 1,513,791 79,586,852 2,791,721 6,413,467 168,632 6,521,649 169,837 4,165,996 143,752 1,074,780 36,518 156,300,630 4,824,250 1,081,428 19,220 4,308.48
Apr-06 5,847,035 204,238 10,021,529 460,554 773,632 27,524 715,472 24,897 393,306 17,627 67,179 2,998 17,818,153 737,839 169,268 40,991 9,403.77
May-06 7,666,525 257,328 9,082,184 409,403 929,908 33,096 725,769 25,694 317,774 14,910 41,904 1,971 18,764,064 742,401 170,315 33,746 7,741.57
Jun-06 8,437,382 243,571 6,241,247 243,954 1,118,170 34,158 793,228 23,814 206,960 8,767 57,527 2,541 16,854,514 556,804 127,737 24,209 5,553.77
Jul-06 6,103,483 186,758 5,614,044 222,538 898,796 28,378 851,659 26,334 247,562 10,279 69,314 2,968 13,784,858 477,255 109,487 22,726 5,213.68
Aug-06 5,250,973 173,334 7,530,310 229,182 807,014 27,276 789,241 25,830 358,753 11,273 87,767 2,772 14,824,058 469,666 107,746 21,348 4,897.55
Sep-06 5,081,055 177,518 8,644,137 275,430 762,499 27,130 762,222 26,517 428,237 13,791 79,316 2,560 15,757,466 522,946 119,969 24,902 5,712.83
Oct-06 4,556,984 166,974 7,929,018 272,516 622,933 23,195 729,855 26,549 400,618 13,873 74,318 2,553 14,313,726 505,658 116,003 25,283 5,800.16
Nov-06 4,644,632 180,781 10,539,507 388,800 701,372 27,568 845,270 32,450 463,369 16,886 90,369 3,343 17,284,519 649,829 149,077 29,538 6,776.25
Dec-06 5,798,118 225,288 9,261,984 347,747 961,242 38,303 1,060,753 41,416 369,743 13,989 64,886 2,419 17,516,726 669,162 153,513 33,458 7,675.64
Jan-07 4,716,781 190,592 9,364,321 350,817 738,931 30,400 902,654 36,245 438,297 16,705 71,462 2,697 16,232,446 627,456 143,945 31,373 7,197.25

Contd...
 Contd...
Table 6-4 : Business Growth of Futures & Options Market Segment
Month/ Index Futures Stock Futures Index Options Stock Options Total Average Daily
Year Trading Volume
Call Put Call Put
Contracts Trading No. of Trading No. of No- No. of No- No. of No- No. of No- No. of Trading Volume
Traded Volume Contracts Value Contracts tional Contracts tional Con- tional Con- tional Contracts
Traded Traded Trad- Traded Trad- tracts Trad- tracts Trad- Traded
ing ing Traded ing Traded ing
Vol- Vol- Vol- Vol-
ume ume ume ume
(Rs. cr.) (Rs. cr) (Rs. cr) (Rs. cr) (Rs. cr) (Rs.cr) (Rs.cr) (US $ mn) (Rs.cr) (US $ mn)
Feb-07 7,735,651 242,237 9,853,884 352,653 1,332,380 43,508 1,440,592 48,309 384,994 14,273 73,643 2,513 20,821,144 703,492 161,388 37,026 8,494.13
Mar-07 15,648,805 290,957 10,873,236 277,378 2,985,472 57,683 2,908,374 55,639 384,679 9,530 111,333 2,576 32,911,899 693,763 159,156 33,036 7,578.88
2006-07 81,487,424 2,539,575 104,955,401 3,830,972 12,632,349 398,219 12,525,089 393,693 4,394,292 161,902 889,018 31,909 216,883,573 7,356,271 1,687,605 29,543 6,777.53
Apr-07 10,383,282 205,458 10,647,866 296,629 2,402,764 48,574 2,471,698 48,576 506,497 13,735 128,860 3,315 26,540,967 616,287 154,187 30,814 7,709
May-07 10,219,149 214,523 13,350,667 400,096 1,993,761 42,577 2,061,921 42,888 625,846 19,380 132,460 3,977 28,383,804 723,443 180,996 34,450 8,619
Jun-07 11,407,865 240,797 14,287,983 451,314 2,116,761 45,568 2,224,230 46,936 579,074 18,359 115,515 3,569 30,731,428 806,542 201,787 38,407 9,609
Jul-07 10,605,483 238,577 18,888,008 647,356 1,684,458 38,415 2,537,127 56,146 850,153 28,895 172,005 5,687 34,737,234 1,015,077 253,960 46,140 11,544
Aug-07 17,052,495 363,988 15,798,351 519,385 3,158,758 69,705 3,280,921 71,256 774,381 26,769 171,019 5,629 40,235,925 1,056,731 264,381 48,033 12,017
Sep-07 10,904,564 256,470 17,653,654 670,968 2,020,510 48,370 2,599,916 59,594 797,264 31,958 143,404 5,527 34,119,312 1,072,889 268,424 53,644 13,421
Oct-07 17,842,671 485,079 24,008,470 1,120,263 2,808,150 78,731 3,599,639 95,262 984,150 47,981 142,394 6,347 49,385,474 1,833,663 458,760 83,348 20,853
Nov-07 12,668,280 365,564 18,033,294 989,113 2,014,533 60,097 1,994,175 56,855 710,304 40,297 101,327 5,379 35,521,913 1,517,304 379,611 68,968 17,255
Dec-07 9,609,209 287,357 16,565,236 849,997 1,624,354 49,964 1,805,071 53,202 578,100 30,279 71,334 3,432 30,253,304 1,274,230 318,797 67,065 16,779
Jan-08 16,148,838 450,657 23,736,610 851,213 2,018,823 60,753 1,957,642 58,074 764,989 29,383 103,561 3,800 44,730,463 1,453,881 363,743 63,212 15,815
Feb-08 14,064,211 352,226 14,491,601 421,838 2,185,165 59,931 1,934,412 50,320 427,483 12,733 82,832 2,168 33,185,704 899,217 224,973 42,820 10,713
Mar-08 15,692,532 359,970 16,126,212 330,390 2,639,845 66,131 2,231,404 54,186 404,472 8,674 93,207 1,862 37,187,672 821,215 205,458 45,623 11,414
2007-08 156,598,579 3,820,667 203,587,952 7,548,563 26,667,882 668,816 28,698,156 693,295 8,002,713 308,443 1,457,918 50,693 425,013,200 13,090,478 3,275,076 52,153 13,048

171
 Table 6-5 : Sectorwise Trading Value of Top 5 companies in the
F&O Segment (2007-08)

BANKS FMCG

Company Name Turnover Company Name Turnover

(Rs.cr) (Rs.cr)

State Bank of India Ltd. 253,267.56 ITC LTD. 46,050.47

ICICI Bank Ltd. 148,047.74 Hindustan Unilever Ltd. 23,515.2

Industrial Development Bank of 110,298.87 United Spirits Limited 20,523.94

India Ltd.

Kotak Mahindra Bank Ltd. 37,638.77 Tata Tea Ltd. 12,036.18

Bank of India Ltd. 35,193.99 Dabur India Ltd. 5,843.93

INFRASTRUCTURE MEDIA & ENTERTAINMENT

Company Name Turnover Company Name Turnover

(Rs.cr) (Rs.cr)

Reliance Energy Limited 412,919.75 Adlabs Films Ltd. 20,917.05

GMR Infrastructure Ltd 204,062.79 New Delhi Television Ltd. 19,787.91

NTPC Ltd. 134,525.69 Zee Entertainment Enterprises Ltd. 13,588.33

DLF Ltd. 108,059.61 Wire and Wireless (India) Ltd. 5,473.84

Power Grid Corporation of India 88,941.04 Sun TV Network Limited 4,072.26

Ltd.

PHARMACEUTICALS TELECOMMUNICATION

Company Name Turnover Company Name Turnover

(Rs.cr) (Rs.cr)

Divi’s Laboratories Ltd. 43,600.07 Reliance Communications Ltd. 279,751.81

Ranbaxy Laboratories Ltd. 30,481.86 Bharti Airtel Ltd. 98,213.67

CIPLA Ltd. 19,300.92 Idea Cellular Limited 55,630.72

Orchid Chemicals & Pharmaceuti- 14,455.73 Tata Teleservices (Maharashtra) Ltd. 45,946.44
cals Ltd.

Dr. Reddy’s Laboratories Ltd. 12,229.96 Mahanagar Telephone Nigam Ltd. 43,609.17

Contd...

172
Contd...

Table 6-5 : Sectorwise Trading Value of Top 5 companies in the

F&O Segment (2007-08)

FINANCE INFORMATION TECHNOLOGY

Company Name Turnover Company Name Turnover

(Rs.cr) (Rs.cr)

Reliance Capital Ltd. 372,167.48 Infosys Technologies Ltd. 97,816.91

IFCI Ltd. 113,226.23 Satyam Computer Services Ltd. 49,106.07

Infrastructure Development 84,181.08 Tata Consultancy Services Ltd. 46,323.12

Finance Company Ltd.

Power Finance Corporation Ltd. 45,799.95 WIPRO Ltd. 25,824.99

India Infoline Ltd. 38,446.71 Educomp Solutions Ltd. 24,998.91

PETROCHEMICALS MANUFACTURING

Company Name Turnover Company Name Turnover

(Rs.cr) (Rs.cr)

Reliance Industries Ltd. 516,549.8 Reliance Natural Resources Ltd. 386,341.73

Reliance Petroleum Ltd. 297,798.23 Tata Steel Ltd. 209,307.84

Essar Oil Ltd. 78,884.15 Steel Authority of India Ltd. 144,168.33

Oil & Natural Gas Corpn. Ltd. 71,942.7 Jindal Steel & Power Ltd. 92,883.11

Mangalore Refinery & 47,866.37 Bharat Heavy Electricals Ltd. 76,546.00

Petrochemicals Ltd.

SERVICES ENGINEERING

Company Name Turnover Company Name Turnover

(Rs.cr) (Rs.cr)

Deccan Aviation Ltd. 16,689.86 BEML Ltd. 5,838.5

Indian Hotels Co. Ltd. 13,588.77 Larsen & Toubro Ltd. 128,447.52

The Great Eastern Shipping 11,773.87 Praj Industries Ltd. 50,781.51

Co. Ltd.

Jet Airways (India) Ltd. 10,464.91

Hotel Leela Venture Ltd. 9,574.72

173
174
Table 6-6 : Participant wise Trading Value in the F&O Segment (2007-08)

Month/Year Institutional investors Retail Investors Proprietary Investors

Gross Traded Value % to Gross Gross Traded Value % to Gross Gross Traded Value % to Gross
Turnover Turnover Turnover
(Rs. cr.) US $ mn (Rs. cr.) US $ mn (Rs. cr.) US $ mn

Apr-07 155,557 38,918 12.62 748,614 187,294 60.74 328,402 82,162 26.64

May-07 147,921 37,008 10.22 919,717 230,102 63.57 379,247 94,883 26.21

Jun-07 193,973 48,530 12.03 1,005,414 251,542 62.33 413,697 103,502 25.64

Jul-07 253,275 63,366 12.48 1,258,173 314,779 61.97 518,705 129,774 25.55

Aug-07 303,332 75,890 14.35 1,263,505 316,113 59.79 546,625 136,759 25.86

Sep-07 258,570 64,691 12.05 1,350,709 337,931 62.95 536,498 134,225 25.00

Oct-07 390,744 97,759 10.66 2,349,707 587,868 64.07 926,875 231,893 25.27

Nov-07 258,570 64,691 8.52 2,039,421 510,238 67.21 736,618 184,293 24.27

Dec-07 310,552 77,696 12.19 1,659,533 415,195 65.11 578,375 144,702 22.70

Jan-08 399,283 99,896 13.73 1,817,156 454,630 62.49 691,323 172,960 23.78

Feb-08 311,195 77,857 17.30 1,063,876 266,169 59.16 423,363 105,920 23.54

Mar-08 273,062 68,317 16.63 1,009,899 252,664 61.48 359,468 89,934 21.89

2007-08 3,256,034 814,619 12.44 16,485,724 4,124,524 62.97 6,439,196 1,611,007 24.59
 Table 6-7 : FII Gross turnover in Derivative Market Segment of NSE

Month/Year FII Gross Turnover Market Gross Turnover Contribution of

FII turnover to
total turnover

(Rs. cr.) (US $ mn) (Rs.cr.) (US $ mn) (%)

Apr-06 108,391 24,866 1,475,664 338,533 7.35

May-06 129069.27 29,610 1484780 340,624 8.69

Jun-06 102690.44 23,558 1113594 255,470 9.22

Jul-06 82938.41 19,027 954510 218,975 8.69

Aug-06 75315.9 17,278 939324 215,491 8.02

Sep-06 89432.38 20,517 1045892 239,939 8.55

Oct-06 96119.06 22,051 1011316 232,006 9.50

Nov-06 98746.67 22,654 1299658 298,155 7.60

Dec-06 115079.5 26,400 1338324 307,025 8.60

Jan-07 120,634.83 27,675 1254912 287,890 9.61

Feb-07 129,646.2 29,742 1,406,984 322,777 9.21

Mar-07 138,148.21 31,693 1,387,526 318,313 9.96

2006-07 1,286,211 295,070 14,712,484 3,375,197 8.74

Apr-07 133,931 33,508 1,232,573 308,375 10.87

May-07 125,543 31,409 1,446,886 361,993 8.68

Jun-07 152,501 38,154 1,613,084 403,574 9.45

Jul-07 185,285 46,356 2,030,153 507,919 9.13

Aug-07 237,212 59,348 2,113,463 528,762 11.22

Sep-07 194,381 48,632 2,145,778 536,847 9.06

Oct-07 285,042 71,314 3,667,326 917,520 7.77

Nov-07 238,884 59,766 3,034,609 759,222 7.87

Dec-07 228,110 57,070 2,548,460 637,593 8.95

Jan-08 300,490 75,179 2,907,762 727,486 10.33

Feb-08 229,392 57,391 1,798,434 449,946 12.76

Mar-08 192,741 48,221 1,642,429 410,915 11.74

2007-08 2,503,511 626,348 26,180,956 6,550,151 9.56

175
 Table 6-8a : Number of Members in different turnover
brackets (F & O Segments) during 2007-08

Turnover Upto Rs. 10 Rs. 50 Rs. 250 Rs. 500 Rs. 1000
Rs. 10 crores upto crores upto crores upto crores upto crores and
Month/ crores Rs. 50 Rs. 250 Rs.500 Rs. 1000 more
Year crores crores crores crores
Apr-07 50 100 192 116 101 220
May-07 38 93 181 116 107 253
Jun-07 37 81 188 103 131 254
Jul-07 36 64 172 106 125 296
Aug-07 35 58 185 108 130 286
Sep-07 27 68 167 113 123 308
Oct-07 18 45 140 97 114 400
Nov-07 20 60 144 106 104 385
Dec-07 25 71 158 100 111 356
Jan-08 25 63 154 104 116 359
Feb-08 51 93 197 117 95 270
Mar-08 55 103 189 105 111 258
2007-08 12 13 45 37 54 691

Table 6-8c : Segment wise Contribution of Top ‘N’ Members to turnover on

Futures and Options segment
(in percent)
Month Futures Segment Options Segment
Top 5 Top 10 Top 15 Top 25 Top 5 Top 10 Top 15 Top 25
Mem- Mem- Mem- Mem- Mem- Mem- Mem- Mem-
bers bers bers bers bers bers bers bers
2005-06 12 20 26 36 23 36 45 55
2006-07 14 22 28 38 23 36 46 58
Apr-07 14 24 31 41 21 35 45 59
May-07 14 23 30 39 20 33 43 57
Jun-07 14 23 30 40 21 34 43 58
Jul-07 14 23 29 39 22 34 43 57
Aug-07 15 24 30 41 20 33 43 56
Sep-07 14 23 29 39 21 33 43 56
Oct-07 14 23 30 40 23 35 44 56
Nov-07 15 23 30 40 26 37 46 58
Dec-07 15 24 31 40 25 37 45 58
Jan-08 16 24 31 41 28 39 48 59
Feb-08 17 24 30 41 25 38 48 60
Mar-08 16 24 30 40 24 37 47 59
2007-08 14 23 29 39 23 34 43 56

176
 Table 6-8b : No. of members in different Turnover Brackets in Futures and Options Segment for 2007-08

Month Futures Segment Options Segment

Number of Members Number of Members

Upto Rs. 10 Rs. 50 Rs. 250 Rs. 500 Rs. 1000 Upto Rs. 10 Rs. 50 Rs. 250 Rs. 500 Rs. 1000
Rs. 10 crores crores crores crores crores and Rs. 10 crores crores crores crores crores and
crores upto upto upto upto more crores upto upto upto upto more
Rs. 50 Rs.250 Rs.500 Rs.1000 Rs. 50 Rs.250 Rs.500 Rs.1000
crores crores crores crores crores crores crores crores

Apr-07 58 109 203 110 105 194 297 182 180 44 33 43

May-07 43 103 188 116 105 233 294 189 187 42 36 40

Jun-07 42 89 198 110 117 238 298 185 187 54 26 44

Jul-07 38 76 176 113 119 277 291 182 187 55 36 48

Aug-07 38 67 198 116 117 266 253 190 187 66 40 66

Sep-07 31 80 172 113 122 288 269 202 181 58 39 57

Oct-07 19 55 149 104 110 377 219 186 204 78 45 82

Nov-07 22 73 145 107 114 358 255 210 186 64 44 60

Dec-07 27 72 170 104 114 334 302 196 172 60 38 53

Jan-08 30 64 170 95 116 346 289 198 188 50 43 53

Feb-08 57 102 205 113 96 250 346 189 160 40 40 48

Mar-08 63 111 211 99 97 240 335 185 167 47 39 48

2007-08 13 14 50 42 57 676 98 96 176 96 91 295

177
 Table 6-9 : Top 20 Futures contracts according to number
of contracts traded 2007-08

S. Name of the Contract Number of Turnover Percentage of

No. Contracts contracts to
(Rs.cr.) (US $ mn) Top 20
contracts

1 NIFTY AUGUST 2007 18,159,676 390,091.73 97,596.13 11.04

2 NIFTY JANUARY 2008 15,600,290 450,887.27 112,806.42 9.48

3 NIFTY OCTOBER 2007 15,524,414 410,969.77 102,819.56 9.44

4 NIFTY NOVEMBER 2007 14,709,803 420,742.20 105,264.50 8.94

5 NIFTY MARCH 2008 13,639,589 328,917.19 82,291.02 8.29

6 NIFTY FEBRUARY 2008 12,780,443 331,628.11 82,969.26 7.77

7 NIFTY SEPTEMBER 2007 11,381,757 259,314.14 64,877.19 6.92

8 NIFTY MAY 2007 11,075,776 230,073.20 57,561.47 6.73

9 NIFTY JUNE 2007 10,779,814 226,492.01 56,665.50 6.55

10 NIFTY DECEMBER 2007 9,508,803 280,628.69 70,209.83 5.78

11 NIFTY JULY 2007 8,348,198 184,610.83 46,187.35 5.08

12 NIFTY APRIL 2007 7,979,010 155,816.49 38,983.36 4.85

13 NIFTY APRIL 2008 3,243,808 78,108.49 19,541.78 1.97

14 RELIANCE JANUARY 2008 2,583,400 55,968.98 14,002.75 1.57

15 RELIANCE OCTOBER 2007 1,774,938 67,334.74 16,846.32 1.08

16 RELIANCE MARCH 2008 1,710,744 29,562.02 7,396.05 1.04

17 RELIANCE NOVEMBER 2007 1,577,411 65,453.51 16,375.66 0.96

18 RELIANCE FEBRUARY 2008 1,497,880 28,230.25 7,062.86 0.91

19 RELIANCE AUGUST 2007 1,489,324 40,993.81 10,256.15 0.91

20 REL OCTOBER 2007 1,124,548 93,076.45 23,286.58 0.68

TOTAL 164,489,626 4,128,899.90 1,032,999.73 100.00

178
 Table 6-10 : Top 20 Option contracts according to no. of
contracts traded 2007-08

S. Name of the Contract Number of Turnover Percentage

No. Contracts (Rs.cr) (US $ mn) of contracts
to Top 20
contracts
1 NIFTY AUGUST 2007 PE 4300 658,870 14,511.08 3,630.49 5.96
2 NIFTY AUGUST 2007 PE 4200 640,609 13,716.20 3,431.62 5.79
3 NIFTY MAY 2007 CE 4100 625,571 13,167.81 3,294.42 5.66
4 NIFTY JUNE 2007 PE 4200 620,883 13,281.88 3,322.96 5.62
5 NIFTY AUGUST 2007 CE 4400 616,997 13,795.13 3,451.37 5.58
6 NIFTY AUGUST 2007 PE 4100 600,467 12,520.36 3,132.44 5.43
7 NIFTY MAY 2007 CE 4200 587,317 12,539.35 3,137.19 5.31
8 NIFTY AUGUST 2007 CE 4300 569,243 12,492.06 3,125.36 5.15
9 NIFTY JUNE 2007 CE 4300 561,473 12,204.11 3,053.32 5.08
10 NIFTY JUNE 2007 CE 4200 561,271 12,008.63 3,004.41 5.08
11 NIFTY OCTOBER 2007 PE 5000 532,650 13,541.03 3,387.80 4.82
12 NIFTY AUGUST 2007 PE 4400 529,870 12,010.52 3,004.88 4.79
13 NIFTY SEPTEMBER 2007 PE 4400 526,111 11,782.58 2,947.86 4.76
14 NIFTY SEPTEMBER 2007 PE 4500 507,215 11,630.83 2,909.89 4.59
15 NIFTY MAY 2007 PE 4100 503,723 10,512.35 2,630.06 4.56
16 NIFTY AUGUST 2007 CE 4200 495,909 10,646.95 2,663.74 4.49
17 NIFTY SEPTEMBER 2007 CE 4500 495,375 11,421.57 2,857.54 4.48
18 NIFTY JUNE 2007 PE 4100 474,952 9,877.80 2,471.30 4.30
19 NIFTY AUGUST 2007 CE 4500 474,933 10,849.70 2,714.46 4.30
20 NIFTY NOVEMBER 2007 CE 5900 472,726 14,289.11 3,574.96 4.28
TOTAL 11,056,165 246,799.05 61,746.07 100.00

Table 6-11 : Number of trades in the Futures & Options Segment 2007-08

Month/Year Index Futures Stock Futures Index Options Stock Options Total
Apr-07 2,038,185 8,170,413 769,882 517,312 11,495,792
May-07 2,098,729 10,413,251 707,752 630,424 13,850,156
Jun-07 2,251,004 11,127,763 716,888 578,186 14,673,841
Jul-07 1,871,019 14,313,227 616,592 818,098 17,618,936
Aug-07 3,069,790 12,159,749 1,053,308 760,914 17,043,761
Sep-07 2,125,228 13,888,158 716,206 806,026 17,535,618
Oct-07 3,554,883 18,816,027 1,349,886 983,678 24,704,474
Nov-07 2,572,671 14,446,566 919,748 709,814 18,648,799
Dec-07 1,905,167 13,298,252 720,893 568,343 16,492,655
Jan-08 3,004,614 16,404,002 812,499 635,442 20,856,557
Feb-08 3,149,318 10,189,345 904,751 399,656 14,643,070
Mar-08 3,256,450 9,961,015 1,082,078 359,972 14,659,515
2007-08 30,897,058 153,187,768 10,370,483 7,767,865 202,223,174

179
 Table 6-12 : Settlement Statistics in F&O Segment

Month/ Index/Stock Futures Index/Stock Options Total

Year MTM Final Premium Exercise
Settlement Settlement Settlement Settlement
(Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (US $ mn)
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

Contd...

180
Contd...
Table 6-12 : Settlement Statistics in F&O Segment

Month/ Index/Stock Futures Index/Stock Options Total

Year MTM Final Premium Exercise
Settlement Settlement Settlement Settlement
(Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (US $ mn)
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
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 2833.83
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 3348.25
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
Contd...

181
 Contd...
Table 6-12 : Settlement Statistics in F&O Segment

Month/ Index/Stock Futures Index/Stock Options Total

Year MTM Final Premium Exercise
Settlement Settlement Settlement Settlement
(Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (US $ mn)
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 6393.59
Apr-06 7,413.50 97.47 237.13 104.32 7,852.42 1801.43
May-06 13,594.00 135.07 326.05 124.18 14,179.30 3252.88
Jun-06 6,854.10 50.29 265.36 97.01 7,266.76 1667.07
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 1465.01
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 1486.04
Mar-07 6,012.90 58.40 456.34 136.17 6,663.81 1528.75
2006-07 61,313.70 797.54 3,194.38 1,188.84 66,494.47 15254.52
Apr-07 4,162.90 41.96 385.58 188.36 4,778.80 1,197.69
May-07 3,251.10 94.92 294.13 211.43 3,851.58 965.31
Jun-07 3,794.50 72.59 367.07 92.24 4,326.39 1,084.31
Jul-07 4,935.20 71.64 498.15 247.67 5,752.66 1,441.77
Aug-07 11,299.00 107.60 599.84 143.88 12,150.33 3,045.20
Sep-07 5,300.00 103.42 569.62 583.62 6,556.66 1,643.27
Oct-07 15,924.00 222.61 918.41 669.84 17,734.85 4,444.82
Nov-07 16,248.00 282.38 615.11 327.17 17,472.66 4,379.11
Dec-07 14,125.00 77.17 478.38 203.60 14,884.14 3,730.36
Jan-08 39,768.00 105.11 777.95 767.43 41,418.49 10,380.57
Feb-08 13,679.00 64.00 604.58 169.88 14,517.46 3,638.46
Mar-08 12,168.00 68.72 651.35 187.14 13,075.21 3,276.99
2007-08 144,654.70 1,312.12 6,760.17 3,792.26 156,519.23 39,227.88

182
Investor Grievances,
Arbitration 7
184
 Investor Grievances, Arbitration 7
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 investor 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 his 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.

Investor Grievances

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.

185
 Investor Protection Fund

Some cushion to the interests of investors is provided by the Investor Protection Fund
(IPF) 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 reviewed by
Exchange periodically maximum amount payable out of IPF was Rs. 10 lakhs upto
December 31, 2007 and same has been enhanced to Rs. 11 Lakhs in respect of claims
against members declared defaulter after January 1, 2008.

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 2008 is presented in Table 7-2.

186
 Table 7-1 : Receipt and Disposal of Investor Grievance

Year Against Members Against Companies

Pending Received Disposed Pending Pending Received Disposed Pending

at the at the at the at the
begin- end begin- end
ning ning

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

2007-08 153 1,915 1,101 967 233 964 888 309

Table 7-2 : Status Report of Arbitration Matters

Year No. of Cases Withdrawn Awards Pending

Received

1998 164 2 162 0

1999 CM 153 5 147 1

1999 WDM 2 1 1 0

2000 CM 149 6 143 0

2000 WDM 1 0 1 0

2001 CM 342 19 323 0

2001 WDM 0 0 0 0

2001 F&O 1 0 1 0

Contd...

187
 Contd...

Table 7-2 : Status Report of Arbitration Matters

Year No. of Cases Withdrawn Awards Pending

Received

2002 CM 275 7 268 0

2002 WDM 0 0 0 0

2002 F&O 5 0 5 0

2003 CM 136 4 132 0

2003 WDM 0 0 0 0

2003 F&O 17 0 17 0

2004 CM 119 6 113 0

2004 WDM 0 0 0 0

2004 F&O 42 3 39 0

2005 CM 138 3 135 0

2005 WDM 0 0 0 0

2005 F&O 66 0 66 0

2006 CM 224 5 219 0

2006 WDM 0 0 0 0

2006 F&O 191 8 183 0

2006 CO 1 0 1 0

2007 CM 275 9 249 17

2007 F&O 221 3 192 26

2008 CM upto 61 0 6 55
March 2008

2008 F&O upto 116 1 2 113

March 2008

Total 2,699 82 2,405 212

188
Knowledge Initiative 8
190
 Knowledge Initiative 8
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) 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 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

191
 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. The number
of centers from where the NCFM tests are conducted has increased in the recent past.
Currently the NCFM tests are conducted from 66 centers across the country.

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, debit 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. During the current fiscal NSE conducted the NCFM tests in Financial
Markets- A Beginners’ Module and Derivatives Module in Mauritis on July 07, 2007 and
September 19, 2007. Exams were also conducted in the Derivatives Module in Dhaka
on 26th November 2007 and 09th June 2008.

NCFM Tests conducted in other languages

All the NCFM modules were in English language. In response to the requests
received for tests to be conducted in other languages as well, NSE introduced the
Derivatives Market (Dealers) Module in Gujarati and Hindi which was launched on
February 15, 2008 and June 19, 2008 respectively.

CBSE - NSE Certification in Financial Markets

Central Board of Secondary Education (CBSE) and NSE have introduced a joint
certification in Financial Markets for standard XI and XII students. This is the first such
exercise to introduce financial literacy in schools and would provide an early exposure to
young adults to the world of finance. The course, titled “Financial Markets Management”
has been introduced by CBSE for academic year 2007 - 2008. Two financial market related
subjects, “Introduction to Financial Markets – I” and “Introduction to Financial Markets
– II” are taught in standard XI and XII students respectively. Students opting for the
course are required to take the NCFM on-line tests in “Financial Markets: A Beginners
Module” in standard XI and both Capital Markets (Dealers) Module and Derivatives
Markets (Dealers) Module, in standard XII. For the first academic year 57 schools and
1307 students have enrolled for this programme and these numbers are likely to increase
substantially in the coming years.

192
 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.

193
 Table 8-1: NCFM Modules

Sr. Name of Module Test No. of Maximum Pass Certificate

No Duration Questions Marks Marks Validity

(%) (in years)

1 Financial Markets: A Beginners’ 60 50 100 50 5

Module

2 Securities Market (Basic) Module 105 60 100 60 5

3 Capital Market (Dealers) Module 105 60 100 50 5

4 Derivatives Market (Dealers) 120 60 100 60 3

Module*

5 FIMMDA-NSE Debt Market 120 60 100 60 5

(Basic) Module

6 NSDL–Depository Operations 75 60 100 60# 5

Module

7 Commodities Market Module 120 60 100 50 3

8 AMFI-Mutual Fund (Basic) 90 62 100 50 No limit

Module

9 AMFI-Mutual Fund (Advisors) 120 72 100 50 5

Module

10 Surveillance in Stock Exchanges 120 50 100 60 5

Module

11 Corporate Governance Module 90 100 100 60 5

12 Compliance Officers (Brokers) 120 60 100 60 5

Module

13 Compliance Officers (Corpo- 120 60 100 60 5

rates) Module

Information Security Auditors 120 90 100 60

Module (Part-1
14 2
Information Security Auditors 120 90 100 60
Module (Part-2)

15 FPSB India Exam 1 to 5 120 75 140 60 –

Investment Banking Analyst 120 100 100 – –

Module (Paper 1)
16
Investment Banking Analyst 120 100 100 – –
Module (Paper 2)

* Candidates have the option to take the test in English, Gujarati or Hindi language. The workbook
for the module will however be available in ENGLISH ONLY.
# Candidates securing 80% or more marks in NSDL-Depository Operations Module ONLY
will be certified as ‘Trainers’.

194
 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: An Exploratory 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,
inclusion in 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
Stock Market?
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
Bond Market
14 The Extreme Value Volatility Estimators and Their Empirical Performance in Indian Capital
Markets
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
implications thereof
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
Contd...

195
 Contd...

Table 8-2 : Studies under the NSE Research Initiative

SL. No. Title of Study

28 Corporate Social Responsibility Initiatives by NSE NIFTY Companies - Content,
Implementation Strategies & 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
Options Market 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
Indian Firms
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
around Information Release: Empirical Evidence from India
40 On The New Transformation-Based Approach To Measuring Value-At-Risk: An Application
To Forex Market 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
43 Do the S&P CNX Nifty Index and Nifty Futures Really Lead/Lag?Error Correction Model:
A Cointegration Approach
44 Under-Pricing and long run performance of Initial Public Offerings in Indian Stock Market
45 Price & liquidity effects of stock split: An Empirical evidence from Indian stock market
46 Risk Return Dynamics of Derivative Based Investment Strategies.
Papers under Progress
1 Price Limits - Are they worth the price?
2 Correlation Dynamics and Equity Market Integration: Evidence from India
3 Price Discovery and arbitrage efficiency of Indian Equity futures & Cash market
4 Dynamic Interaction Among Mutual Fund Flows, Stock Market Return and Volatility
5 Pricing of Options on Defty
6 Volatility Persistence and the Feedback trading Hypothesis : Evidence from Indian Markets
7 Do Heterogeneous beliefs affects trading volume and asset prices

196