Fact Book-2009

Fact Book
2009
NATIONAL STOCK EXCHANGE OF INDIA LIMITED

June 2009
C O N T E N T S
SECTION 1- NATIONAL STOCK EXCHANGE OF INDIA

Introduction .......................................................................................................3
Incorporation and Management .........................................................................4
Market Segments And Products .........................................................................4
Achievements/Milestones ..................................................................................8
Developments during the year ...........................................................................9
Facts And Figures .............................................................................................11
Technology ......................................................................................................12
NSE Family ......................................................................................................16
NSCCL ............................................................................................................16
NSDL ...............................................................................................................16
NSE Infotech services Ltd ...............................................................................17
NSE.IT ............................................................................................................17
IISL ...............................................................................................................17
Dotex International Ltd. ..................................................................................18
NCDEX ...........................................................................................................18
NCCL ..............................................................................................................18
PXIL ...............................................................................................................18
SECTION 2- MEMBERSHIP ADMINISTRATION
Eligibility Criteria ............................................................................................23
Trading Membership ........................................................................................23
Clearing Membership .......................................................................................24
Currency Derivative Membership ...................................................................24
Growth and Distribution Of Members ...........................................................25
Transaction Charges.........................................................................................25
SECTION 3- LISTING OF SECURITIES
Benefits Of Listing On NSE ............................................................................33
Listing Criteria .................................................................................................33
Listing Agreement ............................................................................................34
Compliance By Listed Companies ...................................................................34
Disclosures By Listed Companies ....................................................................34
De-Listing .........................................................................................................34
CM Segment .....................................................................................................35
Listing Fees .......................................................................................................36
Contd...
i
Contd...
Shareholding Pattern ........................................................................................36

WDM Segment .................................................................................................37
Funds Mobilisation On the Exchange..............................................................37
Initial Public Offerings (IPO’s) .................................................................... 37
Rights Issues .................................................................................................. 38
Preferential Allotment/ Private Placement ................................................ 38
QIPs .............................................................................................................. 38
SECTION 4- CAPITAL MARKET SEGMENT
NEAT System ..................................................................................................55
Market Performance ........................................................................................56
Trading Volume ........................................................................................... 56
Liquidity ....................................................................................................... 56
Distribution of turnover .............................................................................. 57
Market Capitalisation .................................................................................. 57
Sectoral Distribution .................................................................................... 58
Trading Records during 2008-09 ................................................................. 58
Internet Trading .......................................................................................... 58
On-line IPOs................................................................................................. 59
Indices...............................................................................................................59
Volatility Index ............................................................................................ 60
Mutual Funds And Exchange Traded Funds ...................................................61
Charges .............................................................................................................61
Clearing & Settlement ......................................................................................62
Settlement Agencies ...................................................................................... 63
Settlement Cycles .......................................................................................... 64
Settlement Statistics ...................................................................................... 64
Risk Management System ................................................................................65
Capital Adequacy ......................................................................................... 65
On-Lime Monitoring.................................................................................... 65
Surveillance, Investigation & Inspection ..........................................................65
Margin Requirements .......................................................................................66
Categorisation of newly listed securities ..........................................................66
Value at Risk Margin........................................................................................67
Extreme Loss Margin .......................................................................................67
Mark to Market Margin ...................................................................................67
Contd...
ii
Contd...
Close out Facility .............................................................................................68

Index –based Market wide Circuit Breakers ....................................................68
Settlement Guarantee Fund .............................................................................69
SECTION 5- WHOLESALE DEBT MARKET SEGMENT
Trading Mechanism..........................................................................................97
Market Performance ........................................................................................98
Turnover ....................................................................................................... 98
Market Capitalistion ................................................................................. 100
Transaction Charges....................................................................................... 100
Settlement....................................................................................................... 100
FIMMDA-NSE MIBID/MIBOR ...................................................................101
Zero Coupon Yield Curve ............................................................................. 102
NSE-VAR System .......................................................................................... 103
GOI- bond Index ............................................................................................ 103
SECTION 6- FUTURES &OPTIONS SEGMENT
Trading Mechanism........................................................................................ 118
Contract Specification .................................................................................... 118
Selection Criteria For Stocks And Index Eligibility For Trading ..................120
Trading Value & Contracts Traded ...............................................................121
Product wise turnover on F&O segment.................................................... 123
Futures and Options on Benchmark Indices .............................................. 123
Sectorwise Stock Futures & Options Turnover ......................................... 124
Participant wise turnover on F&O Segment ............................................. 125
Member wise turnover on the Exchange .................................................... 125
High Volume Members ............................................................................... 125
Internet Trading ......................................................................................... 126
Traded Value Records ................................................................................ 126
Top 20 Futures And Options Contracts ........................................................127
Number of Trades .......................................................................................... 127
Charges ........................................................................................................... 127
Clearing And Settlement ................................................................................ 128
Clearing Mechanism ................................................................................... 129
Settlement Mechanism ................................................................................ 129
Settlement Statistics .................................................................................... 131
Risk Management System .............................................................................. 131
Contd...
iii
Contd...
NSE-SPAN® .................................................................................................. 132

Margins ....................................................................................................... 133
Position Limits .......................................................................................... 134
SECTION 7- CURRENCY DERIVATIVES SEGMENT
Trading Mechanism........................................................................................ 159
Contract Specifications for Currency Futures ...............................................160
Turnover ........................................................................................................ 161
Traded Value Records .................................................................................... 162
Charges ........................................................................................................... 162
Clearing and Settlement ................................................................................. 163
Clearing Entities ........................................................................................ 163
Clearing Mechanism .................................................................................. 163
Settlement Mechanism ............................................................................... 164
Settlement Statistics ................................................................................... 165
Risk Management ........................................................................................... 165
Margining System ...................................................................................... 166
Position Limits for Currency Futures ....................................................... 167
SECTION 8- INVESTOR SERVICES, ARBITRATION
Investor Services ............................................................................................. 171
Arbitration ..................................................................................................... 172
SECTION 9- KNOWLEGDE INITIATIVE
NSE’s Certification in Financial Markets ......................................................177
Launch of New NCFM Modules ...................................................................177
NCFM Tests conducted in Regional languages..............................................178
CBSE- NSE joint Certification in Financial Markets.....................................178
NSE Research Initiative ................................................................................. 178
Investor Awareness and Education Programmes ..........................................178
National Institute of Securities (NISM) ........................................................179
Launch of Currency Derivatives Certification Examination by NISM ........179
SPAN® is a registered trademark of the Chicago Mercantile Exchange (CME) used here under license.
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National Stock Exchange
of India 1
2
National Stock Exchange of India 1
Since its inception in 1992, National Stock Exchange of India has been at the vanguard
of change in the Indian securities market. This period has seen remarkable changes in
markets, from how capital is raised and traded, to how transactions are cleared and
settled.
The market has grown in scope and scale in a way that could not have been imagined at
the time. Average daily trading volumes have jumped from Rs. 17 crore in 1994-95 when
NSE started its Cash Market segment to Rs.11,325 crore in 2008-09. Similarly, market
capitalization of listed Indian firms went up from Rs.363,350 crore at the end of March
1995 to Rs.2,896,194 crore at end March 2009. Indian equity markets are today among
the most deep and vibrant markets in the world.
This transformation was the result of a number of initiatives led by the Government,
market regulators and infrastructure providers like exchanges and depositories. NSE’s
efforts in this area have included the creation of the first clearing corporation in the
country in the form of the National Securities Clearing Corporation Limited (NSCCL).
NSCCL today provides central counterparty services and manages settlement risk for
multiple products, and is a major factor in the confidence market participants have in
the ability of Indian markets to handle extreme shocks without causing any defaults.
NSCCL is also the first clearing corporation in the country to receive.
NSE has many other firsts to its name, including the first systematic process of member
inspections, a sophisticated market surveillance system, and a country wide high capacity
data network supporting close to 200,000 dealer terminals.
The year 2008-09 was an eventful year for NSE, as it saw the launch of new and
important products for the securities market. Introduction of Mini Nifty Futures and
Options contracts on S&P CNX Nifty during the year has given retail investors an
increased ability to participate in index futures and options trading. NSE also started
publishing the first volatility index in the country India VIX*. Market participants
now have an important tool to assess volatility and create trading strategies to exploit
volatility movements. In May 2008, NSE developed a new trading application, NOW,
or ‘NEAT on Web’. The NOW platform allows trading members to connect to the
exchange through the internet, and has resulted in a significant reduction in both the
access cost and turnaround time for providing access. This year also saw a watershed in
the Indian currency market in the form of a currency futures contract. NSE was the first
stock exchange in the country to launch the contract on August 29, 2008 in USDINR
pair. The contract was an instant success, and currently has daily trading volumes in
excess of Rs. 2,000 crore and open interest in excess of Rs. 1,000 crore. Other significant
developments include Long term Options Contracts on S&P CNX Nifty, Short selling
* “VIX” is a trademark of Chicago Board Options Exchange, Incorporated ("CBOE") and Standard & Poor’s has
granted a license to NSE, with permission from CBOE, to use such mark in the name of the India VIX and for
purposes relating to the India VIX.
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and Securities Lending and Borrowing Scheme, Direct Market Access (DMA), Futures
and Options contracts on S&P CNX Defty index and the NSE E-Bids for Debt Segment.
Further NSE also ventured into a new segment by promoting a Power Exchange (Power
Exchange India Ltd -PXIL) along with NCDEX.
Today, NSE offers a wide range of products for multiple markets, including equity
shares, Exchange Traded Funds (ETF) , Mutual Funds, Debt instruments, Index futures
and Options, Stock Futures and Options and Currency futures. Our Exchange has
more than 1,400 companies listed in the Capital Market and more than 95% of these
companies are actively traded. The debt market has more than 3,954 securities available
for trading. Index futures and options trade on seven different indices and on more than
230 stocks in stock futures and options. In currency futures contracts are currently
traded in the USDINR pair. Globally, NSE is ranked first in single stock futures in
terms of number of contracts traded, and third in stock index futures and stock index
options. We also rank third in terms of number of equity shares traded and are the
eighth largest derivatives exchange in the world.
Incorporation and Management

The NSE is owned by a set of leading Indian and International financial institutions,
banks, insurance companies, private equity funds, mutual funds, venture capital funds
etc. NSE was incorporated in November 1992, and received recognition as a stock
exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993. 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 and Currency Futures. The Exchange provides trading
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in 4 different segments viz., Wholesale Debt Market (WDM) segment, Capital Market
(CM) segment, Futures & Options (F&O) segment and the Currency Derivatives
Segment (trading on which commenced on August 29, 2008)
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 also launched various products e.g. FIMMDA-NSE
MIBID/MIBOR owing to the market need. A reference rate is said to be an accurate
measure of the market price. In the fixed income market, it is the interest rate that
the market respects and closely matches. In response to this, NSE started computing
and disseminating the NSE Mumbai Inter-bank Bid Rate (MIBID) and NSE Mumbai
Inter-Bank Offer Rate (MIBOR). Owing to the robust methodology of computation
of these rates and its extensive use, this product 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, ‘NSE Government Securities Index’. This index provides a benchmark for
portfolio management by various investment managers and gilt funds. The average daily
turnover in the WDM Segment is Rs.1,394 crore (US $ 273.60 million) during 2008-09.
The Capital Market (CM) 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 2008-09 was Rs. 11,325 crore. (US $ 2,223 million).
Futures & Options (F&O) segment of NSE provides trading in derivatives instruments
like Index Futures, Index Options, Stock Options, Stock Futures. 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 , S&P CNX Defty and single
stocks are available. The average daily turnover in the F&O Segment of the Exchange
during 2008-09 was Rs.45,311 crore (US $ 8,893 million).
Currency Derivatives Segment (CDS) at NSE commenced operations on August 29,

2008. with the launch of Currency futures trading in US Dollar-Indian Rupee (USD-
INR). On the very first day of operations a total number of 65,798 contracts valued at
Rs.291 crore were traded on the Exchange. Since then trading activity in this segment
has been witnessing a rapid growth. During August 29, 2008 to March 31, 2009 the
segment reported a trading value of Rs.162,272 crore (US $ 31,849 million). A total
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number of 518 trading members which includes 22 banks have taken membership in
this market segment as at end March 2009.
Trading Value
(Rs.crore)
Segment/Year 2005-06 2006-07 2007-08 2008-09
CM 1,569,558 1,945,287 3,551,038 2,752,023
F&O 4,824,250 7,356,271 13,090,478 11,010,482
CDS* – – – 162,272
WDM 475,523 219,106 282,317 335,952
Total 6,869,332 9,520,664 16,923,833 14,260,729

* Trading in Currency Futures on Currency Derivatives Segment (CDS) commenced on August 29, 2008
the trading value is from August 29, 2008 to 31st March 2009.
Market Segments Indicators- Trading Volume
Market Capitalisation (As at end March)
(Rs.crore)
Segment/Year Mar-06 Mar-07 Mar-08 Mar-09
CM 2,813,201 3,367,350 4,858,122 2,896,194
WDM 1,567,574 1,784,801 2,123,346 2,848,315
Total 4,380,775 5,152,151 6,981,468 5,744,510
6
Market Segment Indicators- Market Capitalisation
NSEs Worldwide Ranking in 2008 (Jan-Dec)

• NSE Ranks 3rd in Number of Trades in Equity Shares.
• NSE Ranks 2nd in terms of Number of Contracts traded in Single Stock Futures.
• NSE Ranks 3rd in terms of Number of Contracts traded in Stock Index Futures.
• NSE Ranks 4th in terms of Number of Contracts traded in Stock Index Options.
• NSE is the 8th Largest Derivatives Exchange in the World.
Source:WFE & FIA
NSEs Worldwide Ranking for the period Jan-April 2009

• NSE Ranks 1st in terms of Number of Contracts traded in Single Stock Futures
• NSE Ranks 3rd in terms of Number of Contracts traded in Stock Index Futures.
• NSE Ranks 3rd in terms of Number of Contracts traded in Stock Index Options.
• NSE Ranks 4th in Number of Trades in Equity Shares.
Source:WFE & FIA
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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.
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.
November 1996 Setting up of National Securities Depository Ltd., first depository
in India, co-promoted by NSE.
December 1996 Commencement of trading/settlement in dematerialised securities.
December 1996 Launch of CNX Nifty Junior.
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)
October 1999 Setting up of NSE.IT Ltd.
June 2000 Commencement of Derivatives Trading (in Index Futures).
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
January 2002 Launch of Exchange Traded Funds (ETFs).
August 2003 Launch of Futures and Options on CNX IT Index
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
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
April 2008 Direct Market Access (DMA)
June 2008 Setting up of Power Exchange India Ltd.
July 2008 Launch of NOW ‘Neat on Web’
August 2008 Launch of Currency Derivatives Segment with commencement of
trading on Currency Futures on August 29, 2008.
September 2008 Launch of ASBA (Applications supported by Blocked Amount)
December2008 Launch of derivative contracts in DEFTY index
February 2009 Cross Margining Benefit in CM and F&O Segment
March 2009 Launch of NSE E-Bids for Debt Segment
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Developments during the year.
The year 2008-09 was a significant year wherein major securities market reforms and
launch of new products took place.
April 2008 Launch of India VIX*
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.
India VIX is a volatility index based on the Nifty 50 Index Option prices. From the best
bid-ask prices of Nifty 50 Options contracts, a volatility figure (%) is calculated which
indicates the expected market volatility over the next 30 calendar days.
April 2008 Launch of Securities Lending & Borrowing Scheme
A Securities Lending & Borrowing mechanism allows market participants to take short
positions effectively with less cost. It also provides the holder of idle securities with an
alternative to earn a return on such holdings without risk.
The Exchange launched a Securities Lending & Borrowing Scheme (SLBS) on April
21, 2008. The Exchange provides automated, screen based, order matching platform
to participants to execute lending and borrowing transactions. Securities available for
trading in F&O segment of the Exchange have been initially permitted to trade in this
segment.
The SLBS was revised from December 22, 2008 to increase the trading time & the
lending/borrowing period.
April 2008 Direct Market Access
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 gives 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.
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April 2008 CBCS - Corporate Bond Clearing and Settlement
CBCS is a corporate bond reporting and integrated clearing system. The platform
supports trade reporting system where both sides of a corporate bond trade report
the deal to the platform. The deal can then be cleared through a settlement system if
required. CBCS fills an important need in the corporate bond clearing and settlement
space. As transaction volumes rise in the corporate bond market, participants will need
to use common clearing and settlement facilities in order to reduce risks and increase
settlement efficiency.
July 2008 NOW ‘Neat on Web’
NSE is also offering internet based trading services to NSE members. This facility is
branded as NOW ‘Neat on Web’. NOW provides an internet portal for NSE members
and their authorized clients to transact orders and trades to the various market of
NSE viz. CM, F&O and Currency. The members can also access NOW through their
existing VSAT/Leased line, in addition to internet links. The various features provided
by NOW are:
(a) Comprehensive Administration features
(b) Flexible Risk Management System
(c) High speed dealer terminals
(d) Online trading facility for investors
August 2008 Launch of Currency Futures
On August 29, 2008, NSE launched trading in currency future contracts for the first
time in India. To start with 12 monthly future contracts on the USD-INR pair have
been made available for trading. The minimum lot size has been kept small at USD 1000
and applicable margins are also comparably very low due to the less volatile nature of
the underlying.
September 2008 ASBA – Application supported by blocked amount
ASBA is an application for subscribing to an issue, containing an authorisation to block

the application money in a bank account.
The ASBA process is available in all public issues made through the book building
route. An ASBA investor has to submit an ASBA physically or electronically through
the internet banking facility, to the SCSB with whom the bank account to be blocked, is
maintained. The SCSB then blocks the application money in the bank account specified
in the ASBA, on the basis of an authorisation to this effect given by the account
holder in the ASBA. The application money remains blocked in the bank account till
finalisation of the basis of allotment in the issue or till withdrawal/ failure of the issue
or till withdrawal/ rejection of the application, as the case may be. The application
data is thereafter uploaded by the SCSB in the electronic bidding system through a web
enabled interface provided by the NSE.
10
December 2008 Launch of derivative contracts on S&P CNX DEFTY index
The Exchange introduced trading in futures and options contracts of S&P CNX Defty
index from December 10, 2008. S&P CNX Defty is S&P CNX Nifty, measured in US
dollars.
February 2009 Cross Margining Benefit
On February 9, 2009, Cross margining was made available for positions across index
futures to stock/stock futures and stock futures to stocks. It is available to all categories
of market participant and benefit is computed on online real time basis.
March 2009 NSE e-bids
NSE e-bids, NSE’s latest offering for credit markets, is an open bidding platform for FIIs
to bid for allotments under the overall FII debt limits. After a one time signup, FIIs can
bid for allotments and get updates of results.
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 2009 as cited in the table
below :
Facts & Figures upto March 31, 2009
Sr. Parameter Date Magnitude

No.
Capital Market Segment
1. Number of Members March 31, 2009 1,181
2. Number of Securities available for trading March 31, 2009 1,583
3. Number of VSATs March 31, 2009 2,648
4. Number of Cities covered March 31, 2009 201
5. Settlement Guarantee Fund March 31, 2009 Rs.4,843.50 crore (US $
950.64 million)
6. Investor Protection Fund March 31, 2009 Rs.285.36 crore (US $ 56
million)
6 Record number of trades January 7, 2009 8,959,510
7 Record daily turnover (quantity) January 7, 2009 12,599.46 lakh
8. Record daily turnover (value) November 01, 2007 Rs.28,476.07 cr. (US $
7,124.36 mn.)
9. Record market capitalisation January 07, 2008 Rs.6,745,724.00 cr. (US $
1,687,696.77 mn.)
10. Record value of S&P CNX Nifty Index January 08, 2008 6357.10
11. Record value of CNX Nifty Junior Index January 04, 2008 13209.35
Contd...
11
Contd...
Sr. Parameter Date Magnitude

No.
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) January 12, 2009 * 3,511.61 lakhs
* Settlement Date
Derivatives (F&O segment)
1. Number of Members March 31, 2009 1,055
2. Number of Contracts available for trading March 31, 2009 19,480 a
3. Settlement Guarantee Fund March 31, 2009 Rs.23,655.86 crore
(US $ 4,642.95 million)
4. Investor Protection Fund March 31, 2009 Rs.50.65 crore (US $ 9.94
million)
5. Record number of trades January 7, 2009 1,874,697
6. Record daily turnover (value) October 18,2007 Rs. 110,564 crore
(US $ 27,661.50 mn.)
7. Record Number of Contracts Traded January 7, 2009 4,757,297
Currency Derivatives Segment (Currency Futures)
1. Number of Members March 31, 2009 518
2. Record Daily turnover March 20, 2009 Rs.3,911 crore
3. Record number of trades March 20, 2009 25,702
4. Record number of contracts March 20, 2009 7,75,933
Wholesale Debt Market Segment
1. Number of Members March 31, 2008 62
2. Record daily turnover (value) August 25,2003 Rs.13,911.57 cr. (US $
3,179.79 mn.)
a No. of contracts available for trading in F&O segment as on 31st March 2009 includes 3 Nifty index
Futures, 3 CNX IT Futures , 3 Bank Nifty Futures, 3 CNX 100 Futures , 3 Nifty Junior Futures, 3 Nifty
Midcap50 futures, 3 Mini Nifty Futures, 3 Defty Futures, 700 stock futures, 768 Nifty index options, 110
CNX IT options, 152 Bank Nifty options, 114 CNX 100 options, 132 Nifty Junior index options ,86 Nifty
Midcap50 options, 114 Mini Nifty Options, 126 Defty Options, 17,136 stock option and 18 interest rate
futures contracts
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
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the organisation to retain its competitive edge and ensure timeliness and satisfaction in
customer service. In recognition of the fact that technology will continue to redefine the
shape of the securities industry, NSE stresses on innovation and sustained investment
in technology to remain ahead of competition. NSE is the first exchange in the world
to use satellite communication technology for trading. It uses satellite communication
technology to energize participation from about 2,648 VSATs from nearly 201 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 (NSEs 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 synchronised with each other.
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 office, 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 two Stratus systems with Open
Strata Link (OSL). The application has been benchmarked to support 15,000
users and handle more than 3 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
13
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 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) NEAT- CD system is trading system for currency derivatives. Currently,

currency futures are trading in the segment.
The exchange also provides a facility to its members to use their own front end software
through the CTCL (computer to computer link) facility. The member can either develop
his own software or use products developed by CTCL vendors.
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 13 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
14
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) CDCSS is the clearing and settlement system for trades executed in the
currency derivative segment.Through collateral management system it keeps
an account of all available collateral 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 report.
(c) Surveillance system offers the users a facility to comprehensively monitor the
trading activity and analyse the trade data online and offline.
(d) OPMS – the online position monitoring system that keeps track of all trades
executed for a trading member vis-à-vis its capital adequacy.
(e) 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.
(f) PRISM-CD is the risk management system of the currency derivatives segment.
It is similar in features to the PRISM of F&O Segment.
(f) Data warehousing that is the central repository of all data in CM as well as
F&O segment of the Exchange.
(g) 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
(h) Membership system that keeps track of all required details of the Trading
Members of the Exchange.
The exchange operates and manages a nationwide IP network of over 2500 VSATs
and 2169 Leased Lines. In the new IP network, members have an advantage of a more
generic and latest IP protocol and an overall better design, in terms of bandwidth and
resilience.
NOW
NSE is also offering internet based trading services to NSE members. This facility
is branded as NOW ‘NEAT on Web’. NOW provides an internet portal for NSE
members and their authorized clients to transact orders and trades to the various market
of NSE viz. CM, F&O and Currency. The members can also access NOW through their
15
existing VSAT/Leased line, in addition to internet links. The various features provided
by NOW are:
(a) Comprehensive Administration features
(b) Flexible Risk Management System
(c) High speed dealer terminals
(d) Online trading facility for investors
NSE Family
NSCCL
The National Securities Clearing Corporation Ltd. (NSCCL), a wholly-owned subsidiary

of NSE, was incorporated in August 1995 and commenced clearing corporation in April
1996. 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 was 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 from the same. It also
operates Subsidiary General Ledger (SGL) for settling trades in government securities
for its constituents. It is the first clearing corporation in the country to establish the
Settlement Guarantee Fund (SGF) in June 1996. It has been managing, clearing and
settlement functions since its inception without a single failure or clubbing of settlements.
NSCCL has also introduced the facility of direct payout to clients account on both the
depositories viz., NSDL and CDSL.
Today NSCCL settles trades under the T+2 rolling settlement. It has the credit of
continuously upgrading the clearing and settlement procedures and has also bought
Indian financial markets in line with international markets
CRISIL has assigned its highest corporate credit rating of ‘AAA’ to the National
Securities Clearing Corporation Ltd (NSCCL). ‘AAA’ rating indicates highest degree
of strength with regard to honouring debt obligations. NSCCL is the first Indian
Clearing Corporation to get this rating. The rating reflects NSCCL’s status as Clearing
Corporation for NSE, India’s largest stock exchange. The rating also factors in NSCCL’s
rigorous risk management controls and adequate settlement guarantee cover.
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
16
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 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
17
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.
DOTEX INTERNATIONAL LTD.
The data and info-vending products of NSE are provided through a separate company
DotEx International Ltd., a 100% subsidiary of NSE, which is a professional set-up
dedicated solely for this purpose. DotEx data provides products like : On-line streaming
data feed, Intra-day Snapshot data feed, end of day data and Historical Data.
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.
PXIL
A National Level Power Exchange by the name of Power Exchange India Limited
(PXIL) 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). PXIL 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.
18
Table 1-1 : Board of Directors*
1 Mr. S. B. Mathur Chairman

Former Chairman, Life Insurance Corporation of India
2 Mr. Ravi Narain Managing Director

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, 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

Former 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 on May 19, 2009
19
Table 1-2 : Executive Committees*
I CM & WDM SEGMENTS

1 Mr. Ravi Narain MD &CEO, National Stock Exchange of Chairman
India Limited
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. Vivek Agarwal Director,M/s. East India Securities Trading Member
Limited
7 Mr. Mayank Shah Director,M/s. Anagram Capital Limited
8 Mr. Y. H. Malegam Chairman Emeritus, S.B.Billimoria & Co. Public Representative
Chartered Accountants
9 Ms. Chitra Ramkrishna Deputy Managing Director, National Other Nominees
Stock Exchange of India 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 of Chairman
India Limited
2 Mr. D.C.Anjaria Director, International Finance Solutions Public Representative
Pvt. Ltd.
3 Prof. V. Ravi Anshuman Indian Institute of Management, Bangalore Public Representative
4 Mr. Sunil Godhwani Managing Director, Religare Securities Trading Member
Ltd.
5 Mr. Shailesh Haribhakti Executive Chairman and Managing Public Representative
Partner, BDO Haribhakti
6 Mr. Ketan Marwadi Managing Director, Marwadi Shares and Trading Member
Finance Limited
7 Mr. A.V. Rajwade Forex and Treasury Management Public Representative
Consultant
8 Mr. M. Raghavendra Ex-General Manager, General Insurance Other Nominees
Corporation of India
Stock Exchange of India Ltd
10 Ms. T. S. Jagadharini Vice President, National Stock Exchange Other Nominees
of India Limited
III CDS SEGMENT
1 Mr. Ravi Narain Managing Director & CEO, National Chairman
Stock Exchange of India Limited
2 Mr. V. Srikanth Managing Director, Head of Markets, Trading Member
Citibank N.A.
3 Dr. R. H. Patil Chairman, The Clearing Corporation of Public Representative
India Limited
4 Mr. M. G.Bhide Former Chairman, Bank of India Public Representative
5 Mr. Suresh Senapaty Chief Financial Officer & Director,Wipro Public Representative
Limited
Stock Exchange of India Limited
* As on May 19, 2009
20
Membership
Administration 2
22
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
• CM Segment, the WDM and the F&O segment.
• Currency Derivatives (CD) segment.
• CD along with either or all segments listed above.
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
23
be graduates and must possess at least two years’ experience in securities markets. The
applicant for trading membership/any of its partners/shareholders/directors must not
have been 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. 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%
of paid-up equity capital of unlisted corporate entity. In case of listed corporate entity,
persons named as promoters in any document for offer of securities to the public or
existing shareholders or in the shareholding pattern disclosed by the corporate trading
member under the provisions of the Listing Agreement, whichever is later, is deemed
to be in control.
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 in the different market segments are presented in Tables 2-1A
to 2-1C. With effect from July 1, 2008 a processing fee of Rs. 10,000/- and an admission
fee of Rs.5,00,000/- is charged for taking up new membership.
Currency Derivatives Membership

Trading in Currency Derivatives commenced on August 29, 2008 at NSE. As of March
2009 a total number of 518 members are registered in this segment. The membership of
the currency futures market is separate from the membership of the equity derivative
segment or the cash segment. Membership for both trading and clearing, in the currency
futures market is subject to the guidelines issued by the SEBI. Table 2-1 D contains the
Eligibility Criteria for Membership in Currency Derivatives for Corporates, Individuals
and Firms. Banks authorized by the Reserve Bank of India under section 10 of the Foreign
Exchange Management Act, 1999 as ‘AD Category - I bank’ are permitted to become
trading and clearing members of the currency futures market of the recognized stock
exchanges, on their own account and on behalf of their clients, subject to fulfilling the
following minimum prudential requirements as mentioned below :
a) Minimum net worth of Rs. 500 crores.
b) Minimum CRAR of 10 per cent.
24
c) Net NPA should not exceed 3 per cent.
d) Made net profit for last 3 years.
Growth and Distribution of Members

As at end March 2009, the Exchange had 1,227 members. A large majority (88.59%) of
them were corporate members, and the remaining, individuals, firms and banks. The
growth of membership on NSE is presented in Table 2-2. A total of 31,798 (1,630
corporates, 2,240 partnership firms and 27,928 individuals) sub-brokers were affiliated
to 585 trading members of the Exchange on March 31, 2009.
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 lakh
per year. However, in the options sub-segment the transaction charges are levied on the
premium value at the rate of 0.05% (each side) instead of on the strike price as levied
earlier. Derivatives on S&P CNX Defty were launched on December 10, 2008. Transaction
charges have been waived in respect of all trades done in the futures and options contracts
of S&P CNX Defty till September 30, 2009. In order to encourage active participation
in the Currency Derivatives segment, the Exchange, has waived the transaction charges
till June 30, 2009. Transaction charges in the Wholesale Debt Market Segment too have
been waived for the period April 1, 2009 to March 31, 2010.
25
26
Table 2-1 A : Eligibility Criteria for Membership Corporates
(Amount in Rs. lakh)
Particulars/ Segments CM CM and F&O WDM CM and WDM CM,WDM and F&O
Minimum Paid-up capital 30 30 30 30 30
Net Worth 100 100 (Membership in CM 200 200 200(Membership in WDM segment,
segment and Trading/ CM segment and Trading/Trading
Trading and self clearing and Self Clearing membership in F&O
membership in F&O segment) 300(Membership in WDM
segment) 300 (Membership segment, CM segment and Trading
in CM segment and Trading and Clearing membership in F&O
and Clearing membership segment)
in F&O segment)
Interest Free Security Deposit
85 110 150 235 260
(IFSD) with NSEIL
Interest Free Security Deposit (IFSD)
15 15 * NIL 15 15 *
with NSCCL
Collateral Security Deposit (CSD)
25 25** NIL 25 25**
with NSCCL
Annual Subscription 1 1 1 2 2
Advance Minimum Transaction
NIL 1 NIL NIL 1
Charges for Futures Segment
Education Two directors should be Two directors should be Two directors should Two directors should Two directors should be graduates.
graduates. Dealers should graduates. Dealers should be graduates. Dealers be graduates. Dealers Dealers should also have passed
also have passed SEBI also have passed SEBI should also have passed should also have passed FIMMDA-NSE Debt Market (Basic
approved certification approved certification FIMMDA-NSE Debt FIMMDA-NSE Debt Module) of NCFM Capital Market
test for Capital Market test for Derivatives and Market (Basic Module) Market (Basic Module) of Module of NCFM.& SEBI approved
Module of NCFM. Capital Market Module of of NCFM. NCFM. & Capital Market certification test for Derivatives
NCFM. Module of NCFM.
Experience ---------------Two year’s experience in securities market-----------------------
Track Record The 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.
Net worth requirement for Professional Clearing members in F&O segment is Rs. 300 lakhs. Further a Professional Clearing member needs to bring IFSD of 25 lakhs with NSCCL and
Collateral Security Deposit (CSD) of 25 lakhs with NSCCL as deposits.
* Additional IFSD of 25 lakhs with NSCCL is required for Trading and Clearing (TM-CM) and for Trading and Self clearing member (TM/SCM).
** Additional Collateral Security Deposit (CSD) of 25 lakh with NSCCL is required for Trading and Clearing (TM-CM) and for Trading and Self clearing member (TM/SCM).
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.
27
28
Table 2-1 C : Eligibility Criteria for Membership- Individuals/ Partnership Firms.
Particulars CM CM and F&O WDM CM and WDM CM,WDM and F&O
Net Worth 75 75 (Membership in CM segment 200 200 200 (Membership in WDM segment,
and Trading membership in F&O CM segment and Trading/Trading
segment) and Self Clearing membership in F&O
segment)
100 (Membership in CM segment and
Trading and Self clearing membership 300 (Membership in WDM segment,CM
in the F&O segment) segment and Trading and clearing
membership on F&O segment)
300 (Membership in CM segment and
Trading and Clearing membership in
F&O segment)

26.5 51.5 150 176.5 201.5
(IFSD) with NSEIL
6 6* NIL 6 6*
(IFSD) with NSCCL
Collateral Security Deposit (CSD)
17.5 17.5 ** NIL 17.5 17.5 **
with NSCCL
Annual Subscription 0.5 0.5 1 1.5 1.5
Advance Minimum Transaction

NIL 1 NIL NIL 1
Charges for Futures Segment
* Additional IFSD of 25 lakhs with NSCCL is required for Trading and Clearing Member (TM-CM) and for Trading and Self clearing member (TM/SCM).
** Additional Collateral Security Deposit (CSD) of 25 lakh with NSCCL is required for Trading and Clearing (TM-CM) and for Trading and Self clearing member (TM/SCM).
Table 2-1 D : CURRENCY DERIVATIVES- Corporates, Individuals and Firms
Particulars NSE Members NCDEX Members New Applicants Professional
Clearing
Membership
Trading Trading cum Trading Trading cum Trading Trading cum
Membership Clearing Membership Clearing Membership Clearing
Membership Membership Membership
Networth 100 1000 100 1000 100 1000 1000
Interest Free Security Deposit (IFSD) 2 2 2 2 2 2 –
with NSEIL
Collateral Security Deposit (CSD) 8 8 10.5 13 13 18 –
with NSEIL
Interest Free Security Deposit (IFSD) – 25 – 25 – 25 –
with NSCCL
Collateral Security Deposit (CSD) – 25 – 25 – 25 25
with NSCCL
Clearing member pays Rs. 10 lakhs for clearing every trading member’s trades in cash & non-cash form.
In case the member is opting for membership of any other segment(s) in combination with the membership of Currency Derivatives segment, the applicable net worth will be the
minimum net worth required for the other segment(s) or the minimum net worth requir
29
30
Table 2-2 : Growth and Distribution of Members
CD along with
Month/Year CM & WDM CM, WDM & CM & F&O Professional
CM Segment WDM Segment CD Segment any of the other Total
(end of period) Segment F&O Segment Segment Clearing Member
Segments *
Apr-07 145 6 9 47 802 -- -- 1,009 19
May-07 145 6 9 47 804 -- -- 1,011 19
Jun-07 140 6 9 47 812 -- -- 1,014 19
Jul-07 139 6 9 47 812 -- -- 1,013 19
Aug-07 134 6 9 47 824 -- -- 1,020 19
Sep-07 131 6 8 48 829 -- -- 1,022 19
Oct-07 126 6 8 48 836 -- -- 1,024 19
Nov-07 126 6 8 48 836 -- -- 1,024 19
Dec-07 125 6 8 48 844 -- -- 1,031 19
Jan-08 124 6 8 48 853 -- -- 1,039 19
Feb-08 124 6 8 48 871 -- -- 1,057 19
Mar-08 119 6 8 48 894 -- -- 1,075 19
Apr-08 120 6 8 48 902 -- -- 1,084 19
May-08 119 6 8 48 913 -- -- 1,094 19
Jun-08 118 6 8 48 935 -- -- 1,115 19
Jul-08 117 6 8 48 943 -- -- 1,122 19
Aug-08 118 6 9 48 951 12 304 1,144 19
Sep-08 118 6 9 47 960 17 317 1,157 19
Oct-08 121 6 9 47 964 17 359 1,164 19
Nov-08 119 6 9 47 973 19 369 1,173 19
Dec-08 119 6 9 47 981 22 424 1,184 20
Jan-09 119 6 9 47 994 26 442 1,201 20
Feb-09 118 6 9 47 1,003 35 460 1,218 20
Mar-09 117 6 9 47 1008 40 478 1,227 20
* This includes membership in Currency Derivatives Segment (CDS) along with either of the other segments (CM, WDM, F&O) and not included in total because of multiple
membership.
Listing of Securities 3
32
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 of the securities of the
company listed on the Exchange.
• The listing fee is nominal.
Listing Criteria
The Exchange has laid down criteria for listing of new issues by companies through
IPOs, companies listed on other exchanges, etc. in conformity with the Securities
33
Contracts (Regulation) Rules, 1957, SEBI Guidelines and other relevant guidelines/acts.
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.
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 are required 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
34
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 should also determine an exit price for delisting of securities
in accordance with the book building process as stated in the guidelines. The stock
exchanges shall provide the infrastructure facility for display of the price at the terminal
of the trading members to enable the investors to access the price on the screen to bring
transparency to the delisting process.
Compulsory De-listing of Companies
The stock exchanges may de-list companies which have been suspended for a minimum
period of six months for non-compliance with the listing agreement. The stock exchanges
have to give adequate and wide public notice through newspapers and also give a show
cause 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
companies delisted during 2008-09 are mentioned in the table below.
Sr. No. Name of the Company Date of Delisting
1 Bosch Chassis Systems India Limited 7-Nov-08
2 Pentamedia Graphics Limited 09-Jan-09
3 Pentasoft Technologies Limited 09-Jan-09
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 2009, 1,432
companies were listed while 1,291 companies available for trading. These securities had
a market capitalisation of Rs. 2,896,194 crore (US $ 568,439 million). The growth of
securities available for trading on the CM segment is presented in Table 3-2.
35
Listing Fees
The listing fees charged by the Exchange are presented in the following table:
Listing Fees in the CM Segment
Amount
Sr. No. Listing Fees
(Rs.)
1 Initial Listing Fees 25,000
Annual Listing Fees (based on paid up share, bond and/ or
2
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
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
2009 of companies listed on NSE. On an average, the promoters hold more than 57.86%
36
of total shares. Though the public shareholding is nearly 40.49 %, Indian public held
only 13.29% and the institutional holdings by (Financial Institutions, Banks, Central
and State governments, Insurance companies , FIIs , MFs, VCF’s and FVCF’s) accounted
for 17.34 %.
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
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 2009, 3,954 securities with issued capital of Rs. 2,848,315 crore (US $
559,041 million) and a market capitalisation of Rs.2,848,315 crore (US $ 559,041 million)
were available for trading on the WDM segment.
FUNDS MOBILISATION ON THE EXCHANGE

During the year 2008-09, the resources raised through Public Issues, Rights Issues, QIP
and Preferential Allotments is summarized in the table below.
Particulars No. of Issues Amount Mobilised

(Rs. Cr.) (US $ mn.)
Public Issues 19 3,833.48 752.40
IPOs 19 3,833.48 752.40
FPOs – – –
Rights Issues 17 31,656.37 6,213.22
QIP 2 188.82 37.06
Preferential Allotment 168 40,607.80 7,970.13
Total 206 76,286.46 14,972.81
Initial Public Offerings (IPO’s)

During the year 2008-09, 19 companies were listed through IPO mobilizing an amount of
Rs 3,833 crore (US $ 752.40 million). Tata Capital Ltd. came out with an IPO for non-
convertible Debentures (NCD) mobilizing Rs. 1,500 crore (US $ 294.41 million) which
was the third largest IPO. KSK Energy Ventures Limited was the largest IPO raising Rs.
830.66 crore (US $ 163.04 million) followed by Gammon Infrastructure Projects Limited
raising Rs. 276.39 crore (US $ 54.25 million) The details of IPOs listed on NSE during
2008-09 is presented in Table 3-6.
37
RIGHTS ISSUES
There were 17 Rights issues during 2008-09, out of which State Bank of India was the
largest in terms of issue size of Rs.16,722.27 crore (US $ 3,282.09 million). The details of
Rights Issues listed on NSE during 2008-09 is presented in Table 3-7.
PREFERENTIAL ALLOTMENT/PRIVATE PLACEMENT

During 2008-09, there were 169 preferential allotments that raised Rs.40,607.80 crore (US
$ 7,970.13 million). The details of Preferential Allotment listed on NSE during 2008-09
are presented in Table 3-8.
QIPs
The amount raised through 2 QIPs during 2008-09, was Rs.188.82 crore (US $ 37.06
million).The details of QIPs are presented in Table 3-9.
Chart 3-1 : Number of Companies Listed
38
Table 3-1 : Listing Criteria for Companies on the CM Segment of NSE
Criteria Initial Public Offerings (IPOs) Companies listed on other exchanges
Paid-up Equity PUEC ≥ Rs. 10 cr. and PUEC ≥ Rs. 10 cr. and
Capital (PUEC)/ MC ≥ Rs. 25 cr. MC ≥ Rs. 25 cr. OR
Market PUEC ≥ Rs. 25 cr. OR
Capitalisation
MC ≥ Rs. 50 cr. OR
(MC) /Net Worth
The company shall have a net worth of
not less than Rs.50 crores in each of the
preceding financial years.
Company/ Atleast 3 years track record of either Atleast three years track record of
Promoter’s Track a) the applicant seeking listing OR either
Record a) the applicant seeking listing; OR
b) the promoters/promoting
company incorporated in or b) the promoters/promoting company,
outside India OR incorporated in or outside India.
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 / last 3 financial years immediately
Distributable Profits 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.
Listing – Listed on any other stock exchange for

at least last three years OR listed on the
exchange having nationwide trading
terminals for at least one year.
Other Requirements (a) No disciplinary action by other (a) No disciplinary action by other
stock exchanges/regulatory stock exchanges/regulatory
authority in past 3 yrs. authority in past 3 yrs.
(b) Satisfactory redressal mechanism (b) Satisfactory redressal mechanism for
for investor grievances, investor grievances,
(c) distribution of shareholding (c ) distribution of shareholding and
(d) details of litigation record in past (d) details of litigation record in past
3 years 3 years.
(e) Track record of Directors of the (e) Track record of Directors of the
Company Company
(f) Change in control of a Company/
Utilisation of funds raised from
public
39
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 as quoted on the National Stock Exchange during the last
twelve months and if the shares are not traded on the National Stock Exchange
such average price on any of the recognised Stock Exchanges where those shares
are 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.
40
Table 3-2 : Companies Listed,Permitted to Trade, Available for
Trading on the CM Segment
Month/Year No. of No. of No. of Market Capitalisation *

(end of period) Companies Companies Companies
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
Mar-01 785 320 1,029 657,847 141,048
Mar-02 793 197 890 636,861 130,504
Mar-03 818 107 788 537,133 113,081
Mar-04 909 18 787 1,120,976 258,349
Mar-05 970 1 839 1,585,585 362,419
Mar-06 1,069 – 929 2,813,201 630,621
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
Apr-08 1,390 – 1,244 5,442,780 1,068,259
May-08 1,398 – 1,252 5,098,873 1,000,760
Jun-08 1,407 – 1,262 4,103,651 805,427
Jul-08 1,417 – 1,272 4,432,427 869,956
Aug-08 1,422 – 1,278 4,472,461 877,814
Sep-08 1,424 – 1,278 3,900,185 765,493
Oct-08 1,431 – 1,282 2,820,388 553,560
Nov-08 1,430 – 1,286 2,653,281 520,762
Dec-08 1,428 – 1,283 2,916,768 572,477
Jan-09 1,427 – 1,286 2,798,707 549,305
Feb-09 1,425 – 1,284 2,675,622 525,147
Mar-09 1,432 – 1,291 2,896,194 568,439
* At the end of the period
@ Excludes suspended companies.
41
42
Table 3-3 : Shareholding Pattern at the end of March 2009 of companies Listed on NSE
(In per cent)
Sectors Promoters Public Shares held
Institutional Non- Institutional by
Custodians
Indian Foreign Financial Foreign Mutual Venture Any other Bodies Individuals Any Other and against
Promoters Promoters Institutions/ Institutional Funds Capital Corporate which
Banks/Central Investors Funds Depository
Government/ including Receipts
State Foreign have been
Government(s) / Venture issued
Insurance Capital
Companies Funds
Banks 46.34 1.08 9.54 14.27 3.83 0.00 0.63 5.64 13.59 1.05 4.02
Engineering 26.39 1.95 10.92 7.34 11.57 0.00 0.75 9.05 22.49 8.37 1.17
Finance 43.63 2.10 8.58 13.01 2.92 0.03 1.61 6.22 15.85 5.38 0.66
FMCG 18.19 16.08 12.81 12.72 8.11 0.00 0.00 4.91 13.23 13.54 0.42
Information Technology 39.22 7.86 2.32 12.44 2.17 0.39 0.22 7.88 17.86 6.71 2.94
Infrastructure 73.91 1.54 3.32 7.31 2.11 0.03 0.02 3.67 6.66 1.22 0.20
Manufacturing 48.18 9.12 6.63 7.28 3.12 0.05 0.26 6.43 15.16 2.33 1.44
Media & Entertainment 48.38 4.86 2.77 11.42 5.72 0.26 0.00 8.48 14.93 1.91 1.28
Petrochemicals 56.53 7.77 4.38 4.77 2.11 0.00 0.26 5.71 11.61 2.55 4.31
Pharmaceuticals 39.32 12.96 4.90 7.88 3.51 0.19 0.06 6.93 19.57 3.56 1.11
Services 44.14 13.86 5.43 8.39 3.30 0.20 0.00 6.99 13.38 3.42 0.88
Telecommunication 53.89 8.06 4.65 6.85 1.73 0.00 0.03 3.59 9.93 10.27 0.98
Miscellaneous 45.02 2.59 2.14 8.39 2.95 0.00 0.11 9.32 22.37 6.52 0.59
Number of Shares 97,388,396,771 13,366,653,976 11,068,483,433 16,087,186,434 5,924,758,415 117,438,911 501,700,319 11,102,308,040 25,437,750,995 7,255,117,324 3,154,419,003
% to Total Number of Shares 50.88 6.98 5.78 8.40 3.10 0.06 0.26 5.80 13.29 3.79 1.65
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
• Tax exemption and Regulations under which the securities are issued.
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.
43
Table 3-5 : Securities Available for Trading on WDM Segment
(as on March 31)
Securities 2008 2009
Number Amount Amount Number Amount Amount
(Rs.cr) (US $ mn) (Rs.cr) (US $ mn)
Government Securities 1,336 1,682,607 420,968 1,391 2,272,333 445,993
T-Bills 52 113,947 28,508 52 147,617 28,973
PSU Bonds 777 97,282 24,339 783 129,499 25,417
Institutional Bonds 262 32,419 8,111 263 57,628 11,311
Bank Bonds 396 99,615 24,922 459 132,662 26,038
Corporate Bonds 738 76,489 19,136 1,000 107,782 21,154
Others 5 723 181 6 795 156
Total 3,566 2,103,082 526,165 3,954 2,848,315 559,041
44
Table 3-6 : Initial Public Offerings (IPOs) during 2008-09
Sr. Company Name Sector Issue size Date of No. of Issue Price Close Close Price Price Appreciation/ Price Appreciation/
No. Listing Securities Price on at end of Depreciation on the Depreciation at end March
issued first day March 2009 first day of trading 2009
of trading with the issue price with the issue price
(Rs.cr) (Rs.) (%)
1 Gammon Infrastructure Projects Limited Infrastructure 276.39 3-Apr-08 16,550,000 167.00 158.15 52.00 (5.30) (68.86)
2 Sita Shree Food Products Limited Manufacturing 31.50 7-Apr-08 10,500,000 30.00 43.70 5.65 45.67 (81.17)
3 Titagarh Wagons Limited Manufacturing 128.72 21-Apr-08 2,383,768 540.00 706.85 141.70 30.90 (73.76)
4 Kiri Dyes and Chemicals Limited Manufacturing 56.25 22-Apr-08 3,750,053 150.00 158.95 129.25 5.97 (13.83)
5 Gokul Refoils and Solvent Limited Manufacturing 139.59 4-Jun-08 7,158,392 195.00 182.05 205.85 (6.64) 5.56
6 Sejal Architectural Glass Limited Manufacturing 105.73 1-Jul-08 9,194,155 115.00 81.25 22.90 (29.35) (80.09)
7 Archidply Industries Limited Manufacturing 48.96 4-Jul-08 6,615,720 74.00 50.70 13.55 (31.49) (81.69)
8 First Winner Industries Limited Manufacturing 68.75 8-Jul-08 5,500,043 125.00 89.20 12.60 (28.64) (89.92)
9 Lotus Eye Care Hospital Limited Services 38.00 11-Jul-08 10,000,000 38.00 35.65 28.05 (6.18) (26.18)
10 KSK Energy Ventures Limited Infrastructure 830.66 14-Jul-08 34,611,000 240.00 191.75 189.55 (20.10) (21.02)
11 Birla Cotsyn (India) Limited Manufacturing 144.18 30-Jul-08 102,982,730 14.00 9.45 3.45 (32.50) (75.36)
12 Vishal Information Technologies Limited Services 41.86 11-Aug-08 2,790,829 150.00 194.60 35.80 29.73 (76.13)
13 Nu Tek India Limited Telecommunication 86.40 27-Aug-08 4,500,000 192.00 199.15 29.35 3.72 (84.71)
14 Resurgere Mines & Minerals India Limited Manufacturing 120.15 1-Sep-08 4,450,000 270.00 533.55 45.25 97.61 (83.24)
15 Austral Coke & Projects Limited Manufacturing 142.30 4-Sep-08 7,260,000 196.00 225.95 225.10 15.28 14.85
Contd...
45
46
Contd...
Sr. Company Name Sector Issue size Date of No. of Issue Price Close Close Price Price Appreciation/ Price Appreciation/
of trading with the issue price with the issue price
(Rs.cr) (Rs.) (%)
16 20 Microns Limited Manufacturing 23.93 6-Oct-08 4,351,251 55.00 33.65 15.10 (38.82) (72.55)
17 Alkali Metals Limited Manufacturing 26.27 6-Nov-08 2,550,000 103.00 173.40 234.30 68.35 127.48
18 Edserv Softsystems Limited Services 23.84 2-Mar-09 3,973,908 60.00 137.70 19.55 129.50 (67.42)
Initial Public Offerings (IPOs) of Non-convertible Debentures (NCDs) during 2008-09

Sr. Company Name & Series Sector Issue size Date of No. of Issue Price Close Close Price Price Appreciation/ Price Appreciation/
of trading
(Rs.cr) (Rs.) (Rs.) (Rs.) (%) (%)
1 Tata Capital Limited- N1 61.71 17-Mar-09 6,171 100,000.00 102,010.66 108,000.00 2.01 8.00
Tata Capital Limited-N2 162.59 17-Mar-09 1,625,906 1,000.00 1,032.44 1,074.00 3.24 7.40
FINANCE
Tata Capital Limited- N3 745.74 17-Mar-09 7,457,427 1,000.00 1,037.45 1,074.94 3.75 7.49
Tata Capital Limited-N4 529.96 17-Mar-09 5,299,567 1,000.00 1,020.68 1,087.50 2.07 8.75
Table 3-7 : Rights Issues during 2008-09
S. No. Company Name Amount Amount Date of Listing

Mobilised Mobilised
(Rs. Crore) (US $ mn)
1 State Bank Of India 16,722.27 3,282.09 7-Apr-2008
2 The Dhanalakshmi Bank Ltd. 198.76 39.01 8-May-2008
3 Network 18 Fincap Limited 102.96 20.21 22-May-2008
4 Godrej Consumer Products Limited 396.46 77.81 27-May-2008
5 The Indian Hotels Company Limited 843.88 165.63 30-May-2008
6 The Indian Hotels Company Limited 602.79 118.31 2-Jun-2008
7 Century Extrusions Limited 13.20 2.59 11-Aug-2008
8 Entegra Limited 127.15 24.96 16-Sep-2008
9 The Oudh Sugar Mills Ltd 23.99 4.71 19-Sep-2008
10 JK Tyre & Industries Limited 87.25 17.12 25-Sep-2008
11 Hindalco Industries Ltd. 4,544.63 891.98 24-Oct-2008
12 Tata Investment Corporation Ltd. 447.74 87.88 4-Nov-2008
13 Tata Motors Limited 4,139.33 812.43 4-Nov-2008
14 Tata Motors Limited 1,957.36 384.17 5-Nov-2008
15 Federal-Mogul Goetze (India) Limited. 128.86 25.29 22-Dec-2008
16 Dish TV India Limited 1,139.93 223.73 23-Jan-2009
17 Thomas Cook (India) Ltd 179.81 35.29 28-Jan-2009
Total 31,656.37 6,213.22
47
Table 3-8 : Preferential Allotments by NSE Listed Companies during 2008-09
S. Amount Raised Amount Raised

Company Name
No. Rs. Crore US $ mn
1 Aditya Birla Nuvo Limited 341.27 66.98

2 Allied Digital Services Limited 61.84 12.14
3 Agro Dutch Industries Limited 8.95 1.76
4 Aksh Optifibre Limited 11.30 2.22
5 Alkyl Amines Chemicals Ltd. 10.00 1.96
6 Allcargo Global Logistics Limited 0.09 0.02
7 Alok Industries Limited 109.48 21.49
8 Alphageo (India) Limited 7.51 1.47
9 Ansal Housing and Construction Limited 18.17 3.57
10 Antarctica Ltd 1.25 0.25
11 Apollo Hospitals Enterprise Ltd 68.60 13.46
12 Apollo Tyres Ltd 82.04 16.10
13 Aptech Limited 30.09 5.91
14 Arihant Foundations & Housing Ltd 2.30 0.45
15 Aro Granite Industries Limited 4.43 0.87
16 Arvind Limited 49.92 9.80
17 Assam Company Limited 188.33 36.96
18 Aurionpro Solutions Limited 95.97 18.84
19 Autoline Industries Limited 52.92 10.39
20 Autolite (India) Limited 0.50 0.10
21 B.A.G Films and Media Limited 69.54 13.65
22 Banco Products (I) Ltd 10.17 2.00
23 Banswara Syntex Limited 2.84 0.56
24 Bartronics India Limited 60.19 11.81
25 Blue Coast Hotels and Resorts Limited 42.77 8.40
26 BOC India Limited 597.30 117.23
27 Bombay Rayon Fashions Limited 126.27 24.78
28 Cairn India Limited 2534.59 497.47
29 Cinevistaas Limited 3.18 0.62
30 Classic Diamonds (India) Limited 5.60 1.10
31 Core Projects and Technologies Limited 33.00 6.48
32 Cubex Tubings Ltd. 9.58 1.88
33 Cybertech Systems And Software Ltd. 2.32 0.46
34 Delta Corp Limited 123.45 24.23
35 Dwarikesh Sugar Industries Limited 7.52 1.47
Contd...
48
Contd...

Company Name
36 Easun Reyrolle Ltd 17.23 3.38

37 Electrosteel Castings Ltd 46.44 9.11
38 Electrotherm (India) Ltd. 140.50 27.58
39 Era Infra Engineering Limited 243.54 47.80
40 Escorts Ltd 30.26 5.94
41 Everonn Systems India Limited 91.39 17.94
42 Fresenius Kabi Oncology Limited 7.12 1.40
43 Garware Wall Ropes Ltd. 19.91 3.91
44 Garware Offshore Services Limited 31.33 6.15
45 GATI LIMITED 59.65 11.71
46 Gemini Communication Limited 1.73 0.34
47 Genesys International Corporation Limited 6.37 1.25
48 Genus Power Infrastructures Limited 19.90 3.91
49 The Great Eastern Shipping Co. Limited 0.31 0.06
50 Goldstone Infratech Limited 33.00 6.48
51 Goldstone Technologies Ltd. 5.44 1.07
52 GTL Infrastructure Limited 382.02 74.98
53 Gujarat NRE Coke Ltd. 30.00 5.89
54 Havells India Limited 155.25 30.47
55 Himadri Chemicals And Industries Ltd 7.79 1.53
56 Heritage Foods (India) Ltd. 48.81 9.58
57 Hikal Limited 64.46 12.65
58 Himatsingka Seide Ltd 3.33 0.65
59 Horizon Infrastructure Limited 1.65 0.32
60 ibn18 Broadcast Limited 225.18 44.20
61 ICSA (India) Limited 60.16 11.81
62 Idea Cellular Limited 7294.48 1,431.69
63 Ifb Agro Industries Ltd 2.01 0.39
64 Ifb Industries Ltd. 8.70 1.71
65 IMP Powers Ltd 23.02 4.52
66 Indo Asian Fusegear Limited 12.00 2.36
67 Ind-Swift Laboratories Ltd. 17.06 3.35
68 Infotech Enterprises Ltd 98.06 19.25
69 IOL Netcom Limited 6.65 1.31
70 Jayant Agro Organics Ltd. 18.00 3.53
71 JBF Industries Ltd. 30.63 6.01
Contd...
49
Contd...
Company Name
72 JCT Electronics Limited 114.34 22.44

73 JHS Svendgaard Laboratories Limited 1.84 0.36
74 JIK Industries Limited 30.04 5.90
75 Jindal Drilling And Industries Limited 153.60 30.15
76 Jain Irrigation Systems Limited 99.63 19.55
77 Jain Irrigation Systems Limited 52.72 10.35
78 JK Lakshmi Cement Limited 40.00 7.85
79 JMT Auto Limited 3.24 0.64
80 Jaiprakash Associates Limited 397.00 77.92
81 JSL Limited 118.68 23.29
82 JSW Steel Limited 217.60 42.71
83 Kalindee Rail Nirman (Engineers) Limited 3.60 0.71
84 Karuturi Global Limited 195.28 38.33
85 Khandwala Securities Limited 2.67 0.52
86 Kinetic Motor Company Limited 6.50 1.28
87 Klg Systel Ltd. 27.93 5.48
88 KDL Biotech Limited 8.73 1.71
89 Kopran Ltd. 4.53 0.89
90 K S Oils Limited 130.75 25.66
91 Lakshmi Energy and Foods Limited 58.91 11.56
92 Logix Microsystems Limited 10.63 2.09
93 Lyka Labs Ltd 6.70 1.31
94 Maars Software International Ltd. 7.72 1.52
95 Magma Fincorp Limited 32.29 6.34
96 Maharashtra Seamless Ltd 0.00 0.00
97 Malwa Cotton Spg. Mills Ltd 4.00 0.79
98 Marksans Pharma Limited 16.90 3.32
99 Mcnally Bharat Engineering Company Limited 20.97 4.11
100 Micro Technologies (India) Limited 5.01 0.98
101 Mid-Day Multimedia Limited 10.00 1.96
102 Morepen Laboratories Ltd 11.59 2.28
103 NCL Industries Limited 6.37 1.25
104 Neocure Therapeutics Ltd 3.90 0.76
105 Nuchem Ltd 0.75 0.15
106 Onward Technologies Ltd 5.94 1.17
107 Orchid Chemicals Ltd 92.38 18.13
Contd...
50
Contd...
Company Name
108 Pantaloon Retail (India) Ltd. 427.00 83.81

109 Parekh Aluminex Limited 80.59 15.82
110 Patel Integrated Logistics Limited 13.32 2.61
111 Pearl Polymers Ltd 1.22 0.24
112 Phillips Carbon Black Ltd. 44.70 8.77
113 Pioneer Embroideries Limited 1.73 0.34
114 Pitti Laminations Limited 2.88 0.57
115 Ponni Sugars (Erode) Limited 2.00 0.39
116 Prajay Engineers Syndicate Limited 80.30 15.76
117 Prakash Industries Ltd 148.75 29.20
118 Premier Limited 16.97 3.33
119 Prime Securities Limited 51.43 10.09
120 Provogue (India) Limited 373.52 73.31
121 Radico Khaitan Limited 92.00 18.06
122 Rain Commodities Limited 101.27 19.88
123 Ranbaxy Laboratories Ltd 3409.22 669.13
124 Reliance Industries Ltd 16824.00 3,302.06
125 Shree Renuka Sugars Limited 37.54 7.37
126 Radha Madhav Corporation Limited 38.80 7.62
127 Rohit Ferro-Tech Limited 21.59 4.24
128 Rpg Cables Ltd 43.68 8.57
129 Ruchi Soya Industries Ltd. 49.60 9.74
130 Sagar Cements Ltd. 75.45 14.81
131 Sah Petroleums Limited 31.98 6.28
132 Sambhaav Media Limited 13.28 2.61
133 Sanghvi Movers Ltd. 12.31 2.42
134 Sb&T International Ltd 2.00 0.39
135 SEL Manufacturing Company Limited 36.08 7.08
136 Shri Lakshmi Cotsyn Limited 14.19 2.79
137 Shriram City Union Finance Limited 186.00 36.51
138 Simbhaoli Sugars Limited 6.37 1.25
139 Simplex Infrastructures Limited 8.02 1.57
140 Sintex Industries Ltd. 122.23 23.99
141 S. Kumars Nationwide Ltd 43.73 8.58
142 Sona Koyo Steering Systems Ltd. 16.26 3.19
143 SREI Infrastructure Finance Limited 72.00 14.13
Contd...
51
Contd...

Company Name
144 Steel Strips Wheels Limited 31.35 6.15

145 Strides Arcolab Limited 201.83 39.61
146 Sterlite Technologies Limited 28.00 5.50
147 Sujana Universal Industries Limited 12.00 2.36
148 Summit Securities Limited 16.06 3.15
149 Su-Raj Diamonds and Jewellery Limited 30.77 6.04
150 Surana Corporation Limited 50.00 9.81
151 Suryajyoti Spinning Mills Limited 6.50 1.28
152 Talbros Automotive Components Limited 3.61 0.71
153 Techno Electric and Engineering Co Ltd 12.80 2.51
154 Tourism Finance Corpn Of India Ltd 63.83 12.53
155 Television Eighteen India Ltd. 111.44 21.87
156 UFLEX Limited 179.07 35.15
157 United Phosphorous Limited 206.96 40.62
158 UTV Software Communications Limited 842.58 165.37
159 Vakrangee Softwares Limited 54.23 10.64
160 Viceroy Hotels Limited 78.37 15.38
161 Vijay Shanthi Builders Limited 3.53 0.69
162 Visu International Limited 4.38 0.86
163 VLS Finance Ltd. 4.00 0.79
164 Walchandnagar Industries Ltd 50.72 9.95
165 Webel-SL Energy Systems Limited 3.75 0.74
166 Welspun Gujarat Stahl Rohren Limited 150.01 29.44
167 West Coast Paper Mills Ltd 22.25 4.37
168 XL Telecom Limited 16.34 3.21
169 Xpro India Limited 2.08 0.41
Total 40,607.80 7,970.13
Table 3-9 : Amount raised through QIP during 2008-09
Sr. Amount Raised

Name of the company
No (Rs.cr) (US $ mn)
1 Dynamatic Technologies Ltd. 74.53 14.63
2 ibn18 Broadcast Limited 114.29 22.43
TOTAL 188.82 37.06
52
Capital Market Segment 4
54
Capital Market Segment 4
The Trading on the NSE’s capital market commenced on November 4, 1995 and has
been witnessing a substantial growth over the years. The growth of NSE turnover
figures shows a substantial rise from Rs. 1,805 crore (US $ 574.29 million) in the year
1994-95 to Rs. 2,752,023 crore (US $ 540,141.59 million) in 2008-09. With the increase
in volumes, efficient and transparent trading platform, a wide 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. The CM segment of NSE provides an efficient and transparent platform for
trading of equity, preference shares, debentures, warrants, exchange traded funds as well
as retail Government securities.
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 192 cities, but also from
the personal computers in the homes of investors through the Internet.
55
Market Performance
Trading Volume
Over the years the Capital market has witnessed a growth in the trading volumes
from Rs. 1,805 crore (US $ 574.29 million) in 1994-95 the volumes increased to
Rs. 2,752,023 crore (US $ 540,142 million) in 2008-09. The average daily trading volume
increased from Rs. 17 crore during 1994-95 to Rs. 11,325 crore (US $ 2,223 million)
during 2008-09. In the reporting year 2008-09 the volumes decreased by 22.50 % to
Rs. 2,752,023 crore (US $ 540,142 million) from Rs. 3,551,038 crore (US $ 888,426 million)
during 2007-08. The business growth of the CM segment is presented in Table 4-1 and
Chart 4-1.
Chart 4-1 : Business Growth of Capital Market Segment
Liquidity
The liquidity in the CM segment, as measured by the turnover ratio, has witnessed a
steady increase and reached nearly 95.02 % during the year 2008-2009 compared to
73.09% during the year 2007-08. The securities available for trading for more than 100
days accounted for 97.85% as indicated in the table below:
Frequency Distribution of Securities Traded During 2008-09
No. of Days Traded No. of Securities % to Total

Above 100 1,273 97.85
91-100 5 0.38
81-90 4 0.31
71-80 0 0.00
61-70 1 0.08
Contd...
56
Contd...
No. of Days Traded No. of Securities % to Total
51-60 2 0.15
41-50 4 0.31
31-40 4 0.31
21-30 2 0.15
11-20 3 0.23
1-10 3 0.23
Total 1,301 100.00
The percentage of companies traded compared to the number of companies available for
trading is quite high at more than 99% for all the months during the fiscal 2008-09. The
month wise statistics are indicated in the table below:
Trading Frequency of Companies during the period 2008-09
Month Companies Available No. of companies % of Traded to

for Trading* Traded Available for Trading
Apr-08 1,244 1,240 99.68
May-08 1,252 1,246 99.52
Jun-08 1,262 1,256 99.52
Jul-08 1,272 1,267 99.61
Aug-08 1,278 1,274 99.69
Sep-08 1,278 1,275 99.77
Oct-08 1,282 1,277 99.61
Nov-08 1,286 1,282 99.69
Dec-08 1,283 1,282 99.92
Jan-09 1,286 1,281 99.61
Feb-09 1,284 1,280 99.69
Mar-09 1,291 1,283 99.38
*At the end of the period. Includes listed/permitted to trade companies but excludes suspended
companies
Distribution of Turnover
The concentration of trading among top ‘N’ Securities/members is presented in Table

4-2. It is observed that the top ‘5’ and ‘100’ securities account for about 20.48 % and 87.69
% of total turnover in the CM segment in 2008-09. The top ‘50’ securities accounted for
74.66 % of the total turnover, details of which are presented in Table 4-3.
Member-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
2008-09, top ‘5’ brokers accounted for only 13.56% of turnover, while top ‘100’ brokers
accounted for 75.42% of total turnover.
Market Capitalisation
The total market capitalisation of securities available for trading on the CM segment
increased from Rs. 363,350 crore (US $ 115,606 million) as at end March 1995 to
57
Rs. 2,896,194 crore (US $ 568,439 million) as at end March 2009. The Market capitalization
witnessed a huge decrease of 40.38 % during 2008-09 as compared to the market
capitalization of Rs.4,858,122 crore (US $ 1,215,442 million) in 2007-08. The details of
‘50’ top companies by market capitalisation, which accounted for 70.48 % of total market
capitalisation as at end March 2009, are presented in Table 4-4.
Sectoral Distribution
Table 4-5 presents the sectoral classification of ‘Top 50’ companies based on their
trading value and on their Market capitalization. The trading value of the banking stocks
featuring in the ‘Top 50’ witnessed a rise and contributed to 14.98 % of the trading
value in comparison to 9.35 % in the previous fiscal 2007-08. Amongst the other sectors
there has been no significant change in the contribution of the “Top 50 companies” in
comparison to the previous fiscal.
The infrastructure sector continued to dominate with 18.78 % of the trading value in
the “Top 50” companies . On the other hand the Petrochemicals sector too continued
to have the maximum share of 26.67 % of the market capitalisation in the “Top 50
companies”.
On the whole the Infrastructure, Petrochemicals, Manufacturing and Banking sector

continue to be the major contributors in the share of trading value and market
capitalisation of the “Top 50” companies.
Trading Records during 2008-09
Ten of NSE’s most Active trading days in terms of trading values are presented in Table
4-6 . During the fiscal, the highest trading value of Rs.20,418.14 cr (US $ 4,007 million).
THE Individual Securities Single day Trading Records are presented in Table 4-7.
Internet Trading –
At the end of March 2009, a total number of 349 members were permitted to allow
investor’s web based access to NSE’s trading system. The members of the exchange in turn
had registered 5,627,789 clients for web based access as on March 31, 2009. During the year
2008-09 10.58 % of the trading value in the Capital Market segment (Rs. 582,070 - US $
114,243 million) was routed and executed through the internet. The table below shows
the growth of internet trading from the fiscal years 2007-08 and 2008-09.
Year Enabled Registered Internet Internet % of total

Members* Clients* Trading Trading trading
Volume Volume volume
(Rs. crore) (US $ million)
2007-08 305 4,405,134 649,658 162,536 9.15
2008-09 349 5,627,789 582,070 114,243 10.58
* At the end of the financial year

Note : Figures for IBT turnover and registered clients are as reported by trading members to the Exchange
Figures of Turnover are Buy Turnover + Sell turnover.
58
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. 298 companies have
used the on-line IPO system of NSE by the end of March 2009.
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.
Chart 4-2 : Movement of Sectoral Indices: 2007-08
The S&P CNX Nifty accounted for 65.35% of total market capitalisation as at end March
2009, while the CNX Nifty Junior accounted for 9.894% of market capitalisation (Table
4-8). The compositions of these two indices as at end March 2009 are presented in Table
59
4-9 and Table 4-10. The industry wise weightages of securities included in S&P CNX
Nifty are presented in Table 4-11. The movements in S&P CNX Nifty and CNX Nifty
Junior are presented in Table 4-12 and Table 4-13 respectively. The Performance of few
of the indices is presented in Table 4-14.
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.
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 :
60
• 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
Table 4-15 (A) & (B) presents the details of the names and volumes of Mutual funds and
Exchange traded funds listed on the exchange. At the end of March 2009 a total of 11
Mutual funds and 14 Exchange traded funds were listed on the exchange.
Charges
Brokerage 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.
Transaction Charges
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.
Securities Transaction Tax
STT is levied on all transactions of sale and / or purchase of equity shares and units
of equity oriented fund and sale of derivatives entered into in a recognised stock
exchange.
61
The existing rates are as follows :-
Sr. Taxable securities transaction Rate (%) Payable by

No
1 Purchase of an equity share in a company or a unit of an equity 0.125 Purchaser.
oriented fund, where –
(a) the transaction of such purchase is entered into in a recog-
nised stock exchange; and
(b) the contract for the purchase of such share or unit is settled
by the actual delivery or transfer of such share or unit.
2 Sale of an equity share in a company or a unit of an equity 0.125 Seller.
(a) the transaction of such sale is entered into in a recognised
stock exchange; and
(b) the contract for the sale of such share or unit is settled by
the actual delivery or transfer of such share or unit.
3 Sale of an equity share in a company or a unit of an equity 0.025 Seller.
(a) the transaction of such sale is entered into in a recognised
stock exchange; and
(b) the contract for the sale of such share or unit is settled
otherwise than by the actual delivery or transfer of such
share or unit.
Contribution to Investor Protection Fund (CM Segment)
The trading members contribute to Investor Protection Fund of CM Segment at the

rate Re. 1/- per Rs 100 crores of the traded value (each side) in case of Capital Market
segment
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
62
depositories by the prescribed pay-in time. The depositories move the securities
available in the accounts of members to the account of the NSCCL. Likewise members
with funds obligations make available required funds in the designated accounts
with clearing banks by the prescribed pay-in time. The NSCCL sends electronic
instructions to the clearing banks to debit member’s accounts to the extent of payment
obligations. The banks process these instructions, debit accounts of members and
credit accounts of the NSCCL.
(e) Pay-out of Funds and Securities : After processing for shortages of funds/securities
and arranging for movement of funds from surplus banks to deficit banks through
RBI clearing, the NSCCL sends electronic instructions to the depositories/clearing
banks to release pay-out of securities/funds. The depositories and clearing banks debit
accounts of the NSCCL and credit accounts of members. Settlement is complete upon
release of pay-out of funds and securities to custodians/members.
(f) Risk Management : A sound risk management system is integral to an efficient settlement
system. The NSCCL ensures that trading members’ obligations are commensurate
with their net worth. It has put in place a comprehensive risk management system,
which is constantly monitored and upgraded to pre-empt market failures. It monitors
the track record and performance of members and their net worth; undertakes on-
line monitoring of members’ positions and exposure in the market, collects margins
from members and automatically disables members if the limits are breached. The
risk management methods adopted by NSE have brought the Indian financial market
in line with the international markets.
Settlement Agencies
The NSCCL, with the help of clearing members, custodians, clearing banks and
depositories settles the trades executed on exchanges. The roles of each of these entities
are explained below:
(a) NSCCL : The NSCCL is responsible for post-trade activities of a stock exchange.
Clearing and settlement of trades and risk management are its central functions. It
clears all trades, determines obligations of members, arranges for pay-in of funds/
securities, receives funds/securities, processes for shortages in funds/securities, arranges
for pay-out of funds/securities to members, guarantees settlement, and collects and
maintains margins/collateral/base capital/other funds. It is the counterparty to all
settlement obligations of the members.
(b) Clearing Members : They are responsible for settling their obligations as determined
by the NSCCL. They have to make available funds and/or securities in the designated
accounts with clearing bank/depositories, as the case may be, to meet their obligations
on the settlement day.
(c) Custodians : Custodian is a clearing member but not a trading member. They settle
trades assigned to them by trading members. They are required to confirm whether
they are going to settle a particular trade or not. If it is confirmed, the NSCCL
63
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
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 4-16. 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 4-17. During 2008-09,
NSCCL settled trades for Rs. 2,749,450 crore (US $ 539,637 million.) of which 22.44%
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
64
securities were delivered in demat form in 2008-09. Short deliveries averaged around
0.21 % of total delivery in 2008-09.
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:
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.
On-Line Monitoring
NSCCL has put in place an on-line monitoring and surveillance system, whereby exposure
of the members is monitored on a real time basis. A system of alerts has been built in so
that both the member and the NSCCL are alerted as per pre-set levels (reaching 70%,
85%, 90%, 95% and 100%) as and when the members approach these limits. The system
enables NSSCL to further check the micro-details of members’ positions, if required and
take pro-active action.
The on-line surveillance mechanism also generates alerts/reports on any price/volume

movement of securities not in line with past trends/patterns. Open positions of securities
are also analyzed. For this purpose the exchange maintains various databases to generate
alerts. These alerts are scrutinized and if necessary taken up for follow up action. Besides
this, rumors in the print media are tracked and where they are found to be price sensitive,
companies are approached to verify the same. This is then informed to the members and
the public.
Surveillance , Inspection and 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
65
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.
As per regulatory requirement, a minimum of 20% of the active trading members in the
Capital Market segment and 50 % of active trading members in the derivatives segment
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.
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 for Group I & II category, 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 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 move from one group to another group from the 1st of the
next month.
• For securities that have been listed for less than six months, the trading frequency
and the impact cost 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.
66
In case any corporate action results in a change in ISIN, then the securities bearing the
new ISIN shall be treated as newly listed security for group categorization.
Daily margin, comprises of VaR margin, Extreme Loss margin and Mark to Market
margin.
1) Value at Risk Margin :

All securities are classified into three groups for the purpose of VaR margin
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 is 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, would be the higher of the daily Index VaR based
on NSE Nifty 50 or BSE Sensex. The index VaR would be subject to a minimum
of 5%.
Security specific Margin: NSCCL may stipulate security specific margins for the
securities from time to time.
The VaR margin rate computed as mentioned above will be charged on the net
outstanding position (buy value-sell value) of the respective clients on the respective
securities across all open settlements. There would be no netting off of positions
across different settlements. The VaR margin shall be collected on an upfront basis by
adjusting against the total liquid assets of the member at the time of trade. The VaR
margin so collected shall be released on completion of pay-in of the settlement
The VaR numbers are recomputed six times during the day taking into account price
and volatilities at various time intervals and are provided on the website of the
Exchange.
2) Extreme Loss Margin

The Extreme Loss Margin for any security is be higher of 5%, or 1.5 times the standard
deviation of daily logarithmic returns of the security price in the last six months.
The Extreme Loss Margin is be collected/ adjusted against the total liquid assets of
the member on a real time basis
3) Mark to Market Margin

Mark to market loss 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 is considered
67
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.
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 be released on completion of pay-in of the
settlement.
Close Out Facility
An online facility to close–out open positions of members in the capital market segment
whose trading facility is withdrawn for any reason, has been provided with effect from
June 13, 2007,
On disablement, the trading members will be allowed to place close-out orders through
this facility. Only orders which result in reduction of existing open positions at the client
level would be accepted through the close-out facility in the normal market. Members
would not be allowed to create any fresh position when in the close-out mode, to place
close out orders with custodial participant code and to close out open positions of securities
in trade for trade segment.
Index-based Market-wide Circuit Breakers
a. 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 trading on all equity and equity derivatives markets across
the country. The breakers are triggered by movements in either Nifty 50 or Sensex,
whichever is breached earlier.
• In case of a 10% movement in 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 would continue trading.
• In case of a 15% movement of either index, there should 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 should be a one-hour halt. If the 15% trigger is
reached on or after 2:00 p.m. the trading should halt for remainder of the day.
• In case of a 20% movement of the index, trading should 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
68
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
• Price bands of 20% (either way) on all the remaining securities (including debentures,
warrants, preference shares etc. which are traded on CM segment of NSE),
• No price bands are applicable on scrip on which derivative products are available
or scrips included in indices on which derivative products are available. However
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.
The price bands for the securities in the Limited Physical Market are the same as those
applicable for the securities in the Normal Market. For Auction market the price bands
of 20% are applicable.
Settlement Guarantee Fund
The Settlement Guarantee Fund provides a cushion for any residual risk and operates
like a self-insurance mechanism wherein members themselves contribute to the fund. In
the event of a trading member failing to meet his settlement obligation, then the fund
is utilized 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.
69
70
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 $ (%) (Rs. lakh) (Rs. cr.) (US $ mn.) (Rs. cr.) (US $ mn.)
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 1,144 203.62 307,222 1,264,337 271,084 657,847 141,048
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
2002-03 251 899 2,397 364,066 617,989 130,103 2,462 518 115.05 364,049 617,984 130,102 537,133 113,081
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
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
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
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 – 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 – 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 – 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 – 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 – 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 – 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 – 170,945 455,589 113,983 5,722,227 1,431,630
Contd...
Contd...
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 $ (%) (Rs. lakh) (Rs. cr.) (US $ mn.) (Rs. cr.) (US $ mn.)
mn.)
Nov-07 22 1,189 1,180 170,588 414,419 103,683 18,837 4,713 – 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 – 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 – 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 – 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 – 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
Apr-08 20 1,240 1,079 114,280 271,227 53,234 13,561 2,662 – 114,280 271,227 53,234 5,442,780 1,068,259
May-08 20 1,246 1,071 115,014 277,923 54,548 13,896 2,727 – 115,014 277,923 54,548 5,098,873 1,000,760
Jun-08 21 1,256 1,115 108,548 264,428 51,900 12,592 2,471 – 108,548 264,428 51,900 4,103,651 805,427
Jul-08 23 1,267 1,337 134,285 295,816 58,060 12,862 2,524 – 134,285 295,816 58,060 4,432,427 869,956
Aug-08 20 1,274 1,067 104,352 234,251 45,977 11,713 2,299 – 104,352 234,251 45,977 4,472,461 877,814
Sep-08 21 1,275 1,132 102,202 262,261 51,474 12,489 2,451 – 102,202 262,261 51,474 3,900,185 765,493
Oct-08 20 1,277 1,178 109,299 216,198 42,433 10,810 2,122 – 109,299 216,198 42,433 2,820,388 553,560
Nov-08 18 1,282 1,099 106,848 173,123 33,979 9,618 1,888 – 106,848 173,123 33,979 2,653,281 520,762
Dec-08 21 1,282 1,302 144,793 212,956 41,797 10,141 1,990 – 144,793 212,956 41,797 2,916,768 572,477
Jan-09 20 1,281 1,222 145,254 191,184 37,524 9,559 1,876 – 145,254 191,184 37,524 2,798,707 549,305
Feb-09 19 1,280 969 111,865 149,857 29,413 7,887 1,548 – 111,865 149,857 29,413 2,675,622 525,147
Mar-09 20 1,283 1,081 129,614 202,799 39,803 10,140 1,990 – 129,614 202,799 39,803 2,896,194 568,439
2008-09 243 1,277 13,650 1,426,355 2,752,023 540,142 11,325 2,223 95.02 1,426,355 2,752,023 540,142 2,896,194 568,439
71
Table 4-2 : Percentage Share of Top ‘N’ Securities/Member in Turnover
No. of Securities/Members
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
2008-09 20.48 32.58 56.36 74.66 87.69
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
2008-09 13.56 23.62 43.55 61.21 75.42
72
Table 4-3 : ‘50’ Most Active Securities during 2008-09 in
Terms of Trading Value
Rank Name of Security & Trading Value % Share Market Capitalisation % Share
Industry in Total as on March 31,2009 in Total
(Rs. cr.) (US $ mn.) Trading (Rs. cr.) (US $ mn.) Market
Value Capitali-
sation
1 Reliance Industries Ltd-- 198,440 38,948 7.21 239,965 47,098 8.29
Petrochemicals
2 ICICI Bank Ltd.--Banks 118,915 23,340 4.32 37,034 7,269 1.28
3 Reliance Capital 99,308 19,491 3.61 8,682 1,704 0.30

Limited--Finance
4 Bharti Airtel Limited-- 74,260 14,575 2.70 118,782 23,314 4.10
Telecommunication
5 State Bank Of India-- 72,639 14,257 2.64 67,748 13,297 2.34
Banks
6 Larsen & Toubro Ltd.-- 71,991 14,130 2.62 39,316 7,717 1.36
Engineering
7 Infosys Technologies 68,397 13,424 2.49 75,837 14,885 2.62
Ltd--Information
Technology
8 Reliance Infrastructure 67,355 13,220 2.45 11,743 2,305 0.41
Ltd--Infrastructure
9 Housing Development 62,914 12,348 2.29 40,171 7,884 1.39
Finance Corporation
Ltd.--Finance
10 DLF Limited-- 62,493 12,266 2.27 28,395 5,573 0.98
Infrastructure
11 Bharat Heavy 62,234 12,215 2.26 73,944 14,513 2.55
Electricals Ltd--
Manufacturing
12 Reliance 54,372 10,672 1.98 36,090 7,083 1.25
Communications
Limited--
Telecommunication
13 Satyam Computer 50,476 9,907 1.83 2,591 509 0.09
Services Ltd--
Information
Technology
14 Reliance Natural 49,831 9,780 1.81 7,325 1,438 0.25
Resources Limited--
Manufacturing
15 Reliance Petroleum 49,592 9,734 1.80 42,795 8,399 1.48
Limited--Petrochemicals
16 Tata Steel Limited-- 44,236 8,682 1.61 15,047 2,953 0.52
Manufacturing
17 Jaiprakash Associates 41,968 8,237 1.52 9,956 1,954 0.34
Limited--Infrastructure
18 Axis Bank Limited-- 41,853 8,215 1.52 14,897 2,924 0.51
Banks
Contd...
73
Contd...
Value Capitali-
sation
19 Oil & Natural 41,681 8,181 1.51 166,875 32,753 5.76
Gas Corpn Ltd--
Petrochemicals
20 HDFC Bank Ltd--Banks 39,775 7,807 1.45 41,406 8,127 1.43
21 Suzlon Energy Limited- 37,557 7,371 1.36 6,345 1,245 0.22

-Manufacturing
22 Housing Development 37,260 7,313 1.35 2,255 443 0.08
And Infrastructure
Limited--
Infrastructure
23 Unitech Ltd-- 37,082 7,278 1.35 5,666 1,112 0.20
Infrastructure
24 Educomp Solutions 34,471 6,766 1.25 3,608 708 0.12
Limited
--Information
Technology
25 Steel Authority 31,898 6,261 1.16 39,838 7,819 1.38
Of India Ltd.--
Manufacturing
26 Cairn India Limited-- 28,547 5,603 1.04 34,918 6,853 1.21
Petrochemicals
27 NTPC Limited-- 28,149 5,525 1.02 148,295 29,106 5.12
Infrastructure
28 IFCI Limited--Finance 27,195 5,338 0.99 1,471 289 0.05
29 Ranbaxy Laboratories 26,974 5,294 0.98 6,966 1,367 0.24

Ltd--Pharmaceuticals
30 Tata Consultancy 24,268 4,763 0.88 52,703 10,344 1.82
Services Limited--
Information
Technology
31 Indiabulls Real Estate 24,175 4,745 0.88 2,560 502 0.09
32 Sterlite Industries 24,141 4,738 0.88 25,335 4,973 0.87
( India ) Limited--
Manufacturing
33 Sesa Goa Ltd.-- 22,887 4,492 0.83 7,841 1,539 0.27
Manufacturing
34 ITC Ltd.--FMCG 22,655 4,447 0.82 69,770 13,694 2.41
35 Reliance Power 22,307 4,378 0.81 24,531 4,815 0.85

36 Punj Lloyd Limited-- 20,775 4,078 0.75 2,762 542 0.10
Infrastructure
37 Jindal Steel & Power 20,541 4,032 0.75 18,644 3,659 0.64
Ltd.--Manufacturing
Contd...
74
Contd...
Value Capitali-
sation
38 Chambal Fertilizers 20,135 3,952 0.73 1,742 342 0.06
& Chemicals Ltd--
Petrochemicals
39 Kotak Mahindra Bank 19,072 3,743 0.69 9,755 1,915 0.34
Limited--Banks
40 Hindustan Unilever 18,411 3,614 0.67 51,770 10,161 1.79
Limited--FMCG
41 Essar Oil Limited-- 18,357 3,603 0.67 8,717 1,711 0.30
Petrochemicals
42 United Spirits Limited- 16,627 3,263 0.60 6,500 1,276 0.22
-FMCG
43 Tata Power Co. Ltd.-- 16,559 3,250 0.60 17,019 3,340 0.59
Infrastructure
44 Bank Of India--Banks 15,524 3,047 0.56 11,522 2,261 0.40
45 Infrastructure 15,524 3,047 0.56 7,007 1,375 0.24

Development
Finance Company
Limited--Finance
46 Maruti Suzuki India 15,311 3,005 0.56 22,531 4,422 0.78
Limited--Manufacturing
47 Aban Offshore Ltd.-- 14,674 2,880 0.53 1,503 295 0.05
Petrochemicals
48 GMR Infrastructure 14,095 2,766 0.51 17,269 3,389 0.60
49 Akruti City Limited-- 13,614 2,672 0.49 5,716 1,122 0.20
Infrastructure
50 Shree Renuka Sugars 13,033 2,558 0.47 2,517 494 0.09
Total 2,054,549 403,248 74.66 1,695,672 332,811 58.55
75
Table 4-4 : Top ‘50’ Companies by Market Capitalisation as on
March 31, 2009
Rank Name of Security & Market % Share Trading Volume Dur- % Share
Industry Capitalisation in Total ing2008-09 in
Market Total
(Rs. cr.) (US $ mn.) Capitali- (Rs. cr.) (US $ mn.) Trading
sation Volume
1 Reliance Industries Ltd-- 239,965 47,098 8.29 198,440 38,948 7.21
Petrochemicals
2 Oil & Natural Gas Corpn 166,875 32,753 5.76 41,681 8,181 1.51
Ltd--Petrochemicals
3 NTPC Limited-- 148,295 29,106 5.12 28,149 5,525 1.02
Infrastructure
4 Bharti Airtel Limited-- 118,782 23,314 4.10 74,260 14,575 2.70
Telecommunication
5 Infosys Technologies Ltd-- 75,837 14,885 2.62 68,397 13,424 2.49
Information Technology
6 Bharat Heavy Electricals 73,944 14,513 2.55 62,234 12,215 2.26
Ltd--Manufacturing
7 ITCLtd.--FMCG 69,770 13,694 2.41 22,655 4,447 0.82
8 State Bank Of India--Banks 67,748 13,297 2.34 72,639 14,257 2.64
9 NMDC Ltd. 61,770 12,124 2.13 476 93 0.02

Manufacturing
10 Tata Consultancy Services 52,703 10,344 1.82 24,268 4,763 0.88
Limited--
Information Technology
11 Hindustan Unilever 51,770 10,161 1.79 18,411 3,614 0.67
Limited--FMCG
12 Indian Oil Corporation 46,240 9,076 1.60 3,659 718 0.13
Ltd- Petrochemicals
13 Reliance Petroleum 42,795 8,399 1.48 49,592 9,734 1.80
Limited--Petrochemicals
14 HDFC Bank Ltd--Banks 41,406 8,127 1.43 39,775 7,807 1.45
15 Power Grid Corporation 40,237 7,897 1.39 7,472 1,466 0.27

of India Limited-
Infrastructure
16 Housing Development 40,171 7,884 1.39 62,914 12,348 2.29
Finance Corporation
Ltd.--Finance
17 Steel Authority Of India 39,838 7,819 1.38 31,898 6,261 1.16
Ltd.--Manufacturing
18 Larsen & Toubro Ltd.-- 39,316 7,717 1.36 71,991 14,130 2.62
Engineering
19 ICICI Bank Ltd.--Banks 37,034 7,269 1.28 118,915 23,340 4.32
20 Reliance Communications 36,090 7,083 1.25 54,372 10,672 1.98

Limited--
Telecommunication
Contd...
76
Contd...
Market Total
sation Volume
21 Wipro Ltd- Information 35,999 7,066 1.24 11,034 2,166 0.40
Technology
22 Cairn India Limited-- 34,918 6,853 1.21 28,547 5,603 1.04
Petrochemicals
23 GAIL (India) Limited- 31,154 6,115 1.08 11,910 2,338 0.43
Manufacturing
24 DLF Limited-- 28,395 5,573 0.98 62,493 12,266 2.27
Infrastructure
25 Sterlite Industries ( India ) 25,335 4,973 0.87 24,141 4,738 0.88
26 Reliance Power Limited-- 24,531 4,815 0.85 22,307 4,378 0.81
Infrastructure
27 Sun Pharmaceuticals 23,020 4,518 0.79 9,887 1,941 0.36
Industries Ltd-
Pharmaceuticals
28 Maruti Suzuki India 22,531 4,422 0.78 15,311 3,005 0.56
29 Hero Honda Motors Ltd.- 21,390 4,198 0.74 7,997 1,570 0.29
Manufacturing
30 Hindustan Zinc Ltd.- 19,063 3,741 0.66 1,219 239 0.04
Manufacturing
31 Jindal Steel & Power Ltd.-- 18,644 3,659 0.64 20,541 4,032 0.75
Manufacturing
32 GMR Infrastructure 17,269 3,389 0.60 14,095 2,766 0.51
33 Cipla Ltd.- 17,104 3,357 0.59 6,045 1,186 0.22
Pharmaceuticals
34 Tata Power Co. Ltd.-- 17,019 3,340 0.59 16,559 3,250 0.60
Infrastructure
35 Power Finance 16,597 3,257 0.57 2,522 495 0.09
Corporation Limited-
Finance
36 Idea Cellular Limited- 15,531 3,048 0.54 12,418 2,437 0.45
Telecommunication
37 Tata Steel Limited-- 15,047 2,953 0.52 44,236 8,682 1.61
Manufacturing
38 Axis Bank Limited--Banks 14,897 2,924 0.51 41,853 8,215 1.52
39 Tata Communications 14,773 2,900 0.51 3,288 645 0.12

Limited-
Telecommunication
40 Grasim Industries Ltd.- 14,504 2,847 0.50 6,219 1,221 0.23
Manufacturing
Contd...
77
Contd...
Market Total
sation Volume
41 Neyveli Lignite 14,076 2,763 0.49 4,396 863 0.16
Corporation Limited-
Infrastructure
42 National Aluminium 13,830 2,714 0.48 3,553 697 0.13
Company Limited-
Manufacturing
43 Bharat Petroleum Corpn. 13,596 2,668 0.47 5,560 1,091 0.20
Ltd- Petrochemicals
44 Punjab National Bank- 12,973 2,546 0.45 10,942 2,148 0.40
Banks
45 Mundra Port and Special 12,954 2,542 0.45 6,771 1,329 0.25
Economic Zone Limited-
services
46 Reliance InfrastructureLtd- 11,743 2,305 0.41 67,355 13,220 2.45
-Infrastructure
47 Bank Of India--Banks 11,522 2,261 0.40 15,524 3,047 0.56
48 ACC Limited- 10,781 2,116 0.37 6,517 1,279 0.24

Manufacturing
49 Ambuja Cements Ltd .- 10,750 2,110 0.37 3,266 641 0.12
Manufacturing
50 Mahindra & Mahindra 10,697 2,100 0.37 6,707 1,316 0.24
Ltd.- Manufacturing
Total 2,041,226 400,633 70.48 1,545,412 303,319 56.16
78
Table 4–5 : Industry Wise Classification ofTop ‘50’ Companies by Trading Volume and Market Capitalisation
Industry Trading Value (Amount) Trading Value Market Capitalisation (Amount) Market Capitalisation
(% to Total ‘Top 50 Co’s) (% to Total ‘Top 50 Co’s)
2007–08 2008–09 2007–08 2008–09 2007–08 2008–09 2007–08 2008–09
(Rs.cr.) (US $ mn.) (Rs.cr.) (US $ mn.) % (Rs.cr.) (US $ mn.) (Rs.cr.) (US $ mn.) %
Banks 204,182 5,108 307,779 60,408 9.35 14.98 283,587 7,095 185,581 36,424 8.96 9.09
Financial Services 254,523 6,368 204,941 40,224 11.66 9.97 97,743 2,445 56,767 11,142 3.09 2.78
Engineering 66,812 1,672 71,991 14,130 3.06 3.50 88,702 2,219 39,316 7,717 2.80 1.93
FMCG 26,700 668 57,693 11,324 1.22 2.81 127,532 3,191 121,540 23,855 4.03 5.95
Infrastructure 500,458 12,521 385,833 75,728 22.93 18.78 539,261 13,492 301,563 59,188 17.05 14.77
IT 128,794 3,222 177,613 34,860 5.90 8.64 251,388 6,289 164,539 32,294 7.95 8.06
Manufacturing 430,484 10,770 321,668 63,134 19.72 15.66 711,980 17,813 389,277 76,404 22.51 19.07
Petrochemicals 388,646 9,723 371,426 72,900 17.80 18.08 725,669 18,155 544,388 106,848 22.94 26.67
Pharmaceuticals – – 26,974 5,294 – 1.31 25,462 637 40,124 7,875 0.80 1.97
Services – – – 0.00 23,189 580 12,954 2,542 0.73 0.63
Telecommunications 182,192 4,558 128,631 25,247 8.35 6.26 289,080 7,232 185,176 36,345 9.14 9.07
Media & Entertainment – – – – – – – – – – –
Total 2,182,792 54,611 2,054,549 403,248 100.00 100.00 3,163,594 79,149 2,041,226 400,633 100.00 100.00
79
Table 4-6 : NSE’s Most Active Trading days during the year 2008-09
Sr Date Highest Single Day
No. Trading Value
(Rs. cr.) (US $ mn.)
1 23-Jul-2008 20,418.14 4,007.49
2 6-Aug-2008 18,615.50 3,653.68
3 29-May-2008 18,173.38 3,566.91
4 29-Apr-2008 18,087.42 3,550.03
5 24-Jul-2008 17,670.09 3,468.12
6 5-Aug-2008 17,293.10 3,394.13
7 30-Apr-2008 16,448.43 3,228.35
8 19-Sep-2008 16,294.38 3,198.11
9 18-Sep-2008 16,087.70 3,157.55
10 5-Jun-2008 16,002.37 3,140.80
Table 4-7 : Individual Securities Single day Trading Records- 2008-09
Rank Symbol Name of Company Date Traded Value

(Rs. cr.) (US $ mn.)
1 SATYAMCOMP Satyam Computer Services 7-Jan-2009 2,260 444
2 RELIANCE Reliance Industries Ltd 26-Jun-2008 2,115 415
3 RELIANCE Reliance Industries Ltd 3-Oct-2008 1,928 378
4 AKRUTI Akruti City Limited 19-Mar-2009 1,763 346
5 RELIANCE Reliance Industries Ltd 5-Jun-2008 1,732 340
6 RANBAXY Ranbaxy Labs Ltd 11-Jun-2008 1,641 322
7 RELIANCE Reliance Industries Ltd 18-Sep-2008 1,630 320
8 RCOM Reliance Communications Ltd 1-Aug-2008 1,566 307
9 RELIANCE Reliance Industries Ltd 5-Nov-2008 1,558 306
10 RELIANCE Reliance Industries Ltd 25-Jul-2008 1,544 303
Table 4-8 : 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
Mar-04 1,120,976 638,599 56.97 130,122 11.61
Mar-05 1,585,585 951,672 60.02 164,668 10.39
Mar-06 2,813,201 1,590,155 56.52 274,823 9.77
Contd...
80
Contd...
(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-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
Apr-08 5,442,780 3,108,589 57.11 522,020 9.59
May-08 5,098,873 2,933,759 57.54 468,104 9.18
Jun-08 4,103,651 2,434,104 59.32 379,051 9.24
Jul-08 4,432,427 2,617,902 59.06 421,873 9.52
Aug-08 4,472,461 2,639,434 59.02 434,157 9.71
Sep-08 3,900,185 2,406,508 61.70 385,721 9.89
Oct-08 2,820,388 1,785,998 63.32 273,943 9.71
Nov-08 2,653,281 1,706,210 64.31 245,652 9.26
Dec-08 2,916,768 1,832,610 62.83 295,471 10.13
Jan-09 2,798,707 1,790,600 63.98 269,166 9.62
Feb-09 2,675,622 1,721,191 64.33 253,285 9.47
Mar-09 2,896,194 1,892,629 65.35 286,405 9.89
Table 4-9 : Composition of S&P CNX Nifty Index as on March 31, 2009
Sl. Name of Security Issued Market Weightage Beta R2 Volatility Return Impact
No. Capital Capitali- Cost
sation
(Rs. cr.) (Rs. cr.) (%) (%) (%) (%)
1 ABB Ltd.–Electrical 42 9,042 0.48 0.89 0.53 2.36 16.20 0.09
Equipment
2 ACC Ltd.–Cement And 188 10,781 0.57 0.70 0.38 2.22 6.36 0.08
Cement Products
3 Ambuja Cements Ltd.– 304 10,750 0.57 0.88 0.41 2.25 11.09 0.13
Cement And Cement
Products
4 Axis Bank Ltd.–Banks 1,898 14,897 0.79 1.38 0.62 5.61 19.27 0.10
5 Bharti Airtel Ltd.– 490 118,782 6.28 0.96 0.61 2.79 (2.00) 0.09
Telecommunication
- Services
6 Bharat Heavy Electricals 362 73,944 3.91 1.02 0.59 2.92 7.60 0.07
Ltd.–Electrical Equipment
7 Bharat Petroleum 1,779 13,596 0.72 0.52 0.17 2.63 (1.79) 0.08
Corporation Ltd.–
Refineries
8 Cairn India Ltd.–Oil 155 34,918 1.84 1.00 0.38 3.00 10.21 0.10
Exploration/Production
Contd...
81
Contd...
sation
(Rs. cr.) (Rs. cr.) (%) (%) (%) (%)
9 Cipla Ltd.–Pharmaceuticals 341 17,104 0.90 0.51 0.31 1.83 14.91 0.10
10 DLF Ltd.–Construction 84 28,395 1.50 1.54 0.56 4.73 10.07 0.10
11 GAIL (India) Ltd.–Gas 846 31,154 1.65 0.79 0.44 2.86 20.63 0.11
12 Grasim Industries 92 14,504 0.77 0.72 0.37 2.72 15.22 0.07
Ltd.–Cement And Cement
Products
13 HCL Technologies Ltd.– 133 6,835 0.36 1.00 0.38 3.18 1.85 0.12
Computers - Software
14 Housing Development 284 40,171 2.12 1.24 0.62 4.16 10.80 0.07
Finance Corporation Ltd.–
Finance - Housing
15 HDFC Bank Ltd.–Banks 354 41,406 2.19 1.04 0.59 3.25 9.43 0.09
16 Hero Honda Motors 40 21,390 1.13 0.36 0.17 2.19 15.21 0.07
Ltd.–Automobiles - 2 And
3 Wheelers
17 Hindalco Industries Ltd.– 123 8,851 0.47 1.18 0.55 4.41 34.84 0.11
Aluminium
18 Hindustan Unilever Ltd.– 218 51,770 2.74 0.44 0.27 2.26 (6.31) 0.09
Diversified
19 ICICI Bank Ltd.–Banks 1,111 37,034 1.96 1.64 0.74 5.28 1.60 0.08
20 Idea Cellular Ltd.– 2,635 15,531 0.82 1.09 0.50 3.33 6.60 0.14
Telecommunication
- Services
21 Infosys Technologies Ltd.– 286 75,837 4.01 0.70 0.41 2.26 7.52 0.06
22 ITC Ltd.–Cigarettes 377 69,770 3.69 0.53 0.36 2.67 0.98 0.09
23 Larsen & Toubro Ltd.– 58 39,316 2.08 1.12 0.67 3.51 9.39 0.08
Engineering
24 Mahindra & Mahindra 246 10,697 0.57 0.98 0.40 3.07 23.08 0.09
Ltd.–Automobiles - 4
Wheelers
25 Maruti Suzuki India Ltd.– 144 22,531 1.19 0.72 0.37 2.44 15.14 0.07
Automobiles - 4 Wheelers
26 National Aluminium Co. 644 13,830 0.73 0.98 0.32 3.16 3.07 0.15
Ltd.–Aluminium
27 NTPC Ltd.–Power 8,245 148,295 7.84 0.79 0.56 2.04 (2.78) 0.09
28 Oil & Natural Gas 2,139 166,875 8.82 0.85 0.55 2.78 12.91 0.10
Corporation Ltd.–Oil
Exploration/Production
29 Punjab National Bank– 315 12,973 0.69 0.96 0.52 5.08 21.88 0.09
Banks
30 Power Grid Corporation 4,209 40,237 2.13 0.82 0.48 1.89 (1.34) 0.11
Of India Ltd.–Power
31 Ranbaxy Laboratories 187 6,966 0.37 0.70 0.18 4.36 2.41 0.07
Ltd.–Pharmaceuticals
32 Reliance Communications 1,032 36,090 1.91 1.50 0.59 4.62 12.48 0.08
Ltd.–Telecommunication
- Services
33 Reliance Capital Ltd.– 237 8,682 0.46 1.56 0.64 5.93 0.26 0.06
Finance
34 Reliance Industries Ltd.– 1,454 239,965 12.68 1.25 0.74 3.34 20.43 0.05
Refineries
35 Reliance Infrastructure 4,500 11,743 0.62 1.79 0.74 5.03 4.99 0.06
Ltd.–Power
Contd...
82
Contd...
sation
(Rs. cr.) (Rs. cr.) (%) (%) (%) (%)
36 Reliance Petroleum Ltd.– 4,130 42,795 2.26 1.03 0.64 3.09 24.56 0.08
Refineries
37 Reliance Power Ltd.– 134 24,531 1.30 1.04 0.25 3.34 2.40 0.09
Power
38 Steel Authority Of India 632 39,838 2.10 1.28 0.55 4.67 26.82 0.09
Ltd–Steel And Steel
Products
39 State Bank Of India–Banks 67 67,748 3.58 1.10 0.64 3.86 4.08 0.06
40 Siemens Ltd.–Electrical 142 9,039 0.48 0.99 0.41 3.63 23.07 0.09
Equipment
41 Sterlite Industries (India) 104 25,335 1.34 1.34 0.53 3.66 46.05 0.07
Ltd.–Metals
42 Sun Pharmaceutical 299 23,020 1.22 0.28 0.08 2.36 9.23 0.07
Industries Ltd.–
Pharmaceuticals
43 Suzlon Energy Ltd.– 285 6,345 0.34 1.55 0.49 4.16 4.18 0.09
Electrical Equipment
44 Tata Communications 386 14,773 0.78 1.03 0.45 3.20 28.19 0.11
Ltd.–Telecommunication
- Services
45 Tata Motors Ltd.– 220 8,112 0.43 1.15 0.50 5.15 20.76 0.07
Automobiles - 4 Wheelers
46 Tata Power Co. Ltd.– 731 17,019 0.90 1.03 0.52 3.86 5.74 0.08
Power
47 Tata Steel Ltd.–Steel And 98 15,047 0.80 1.44 0.62 5.49 19.16 0.07
Steel Products
48 Tata Consultancy Services 325 52,703 2.78 0.90 0.44 3.88 11.48 0.09
Ltd.–Computers - Software
49 Unitech Ltd.–Construction 292 5,666 0.30 1.68 0.42 5.31 23.54 0.12
50 Wipro Ltd.–Computers 43 35,999 1.90 0.99 0.52 2.70 18.51 0.08
- Software
Total 43,440 1,892,629 100.00 1.00 – 2.34 9.31 0.08
2
* Beta & R are calculated for the period 01-April-2008 to 31-March-2009
* Beta measures thedegree 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 ona security versus that of the market.
* Volatility is the Std. deviation of the daily returns for the period 01-March-2009 to 31-March-2009
* Last day of trading was 31-March-2009
* 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
83
Table 4-10 : Composition of CNX NIFTY Junior Index - as on March 31, 2009
Sl. Name of Security Issued Market Weigh- Beta R2 Volatility Returns Impact
No. Capital Capitali- tage Cost
sation
(Rs. cr.) (Rs. cr.) (%) (%) (%) (%)
1 Aditya Birla Nuvo Ltd. 95 4,227 1.48 0.85 0.40 4.70 7.01 0.23
--Textiles - Synthetic
2 Adani Enterprises Ltd. 25 6,600 2.30 0.89 0.44 1.49 9.36 0.25
--Trading
3 Andhra Bank --Banks 485 2,192 0.77 0.79 0.50 3.45 4.87 0.18
4 Apollo Tyres Ltd. -- 50 920 0.32 0.55 0.19 6.70 21.26 0.24
Tyres
5 Ashok Leyland Ltd. 133 2,415 0.84 0.70 0.38 3.21 8.36 0.18
--Automobiles - 4
Wheelers
6 Asian Paints Ltd. -- 96 7,543 2.63 0.26 0.12 1.74 -0.01 0.30
Paints
7 Bank of Baroda --Banks 364 8,537 2.98 0.89 0.48 4.35 6.47 0.13
8 Bank of India --Banks 525 11,522 4.02 1.09 0.58 3.99 -2.73 0.12
9 Bharat Electronics Ltd. 80 7,074 2.47 0.52 0.27 1.74 2.71 0.15
--Electronics - Industrial
10 Bharat Forge Ltd. -- 45 2,179 0.76 0.72 0.30 4.41 3.16 0.20
Castings/Forgings
11 Biocon Ltd. -- 100 2,863 1.00 0.62 0.25 3.61 40.69 0.19
Pharmaceuticals
12 Canara Bank --Banks 410 6,794 2.37 0.80 0.44 2.51 0.09 0.13
13 Chennai Petroleum 149 1,406 0.49 0.70 0.36 2.78 4.19 0.17
Corporation Ltd. --
Refineries
14 Container Corporation 130 9,344 3.26 0.31 0.13 1.33 13.19 0.26
of India Ltd. --Travel
And Transport
15 Corporation Bank -- 143 2,591 0.90 0.61 0.38 1.97 8.08 0.21
Banks
16 Cummins India Ltd. -- 40 3,663 1.28 0.53 0.29 1.99 18.51 0.25
Diesel Engines
17 Dr. Reddy’s 84 8,256 2.88 0.38 0.14 3.36 25.10 0.14
Laboratories Ltd. --
Pharmaceuticals
18 Glaxosmithkline 85 9,253 3.23 0.14 0.06 1.79 -8.98 0.14
Pharmaceuticals Ltd.
--Pharmaceuticals
19 Glenmark 25 3,931 1.37 0.71 0.15 4.28 8.39 0.14
--Pharmaceuticals
20 GMR Infrastructure 364 17,269 6.03 1.26 0.56 4.13 20.14 0.16
Ltd. --Construction
21 Housing Development 275 2,255 0.79 1.75 0.59 4.57 11.59 0.12
and Infrastructure Ltd.
--Construction
22 IDBI Bank Ltd. --Banks 725 3,290 1.15 1.07 0.71 3.49 -6.20 0.15
23 Infrastructure 1,295 7,007 2.45 1.43 0.61 3.52 2.27 0.13
Development Finance
Co. Ltd. --Financial
Institution
24 IFCI Ltd. --Financial 762 1,471 0.51 1.54 0.66 3.62 6.63 0.17
Institution
Contd...
84
Contd...
sation
(Rs. cr.) (Rs. cr.) (%) (%) (%) (%)
25 Indian Hotels Co. Ltd. 72 2,854 1.00 0.56 0.31 1.93 9.28 0.18
--Hotels
26 Indian Overseas Bank 545 2,484 0.87 0.97 0.49 3.97 -1.62 0.15
--Banks
27 Jindal Steel & Power 15 18,644 6.51 1.18 0.52 2.67 15.59 0.11
Ltd. --Steel And Steel
Products
28 Jaiprakash Associates 237 9,956 3.48 1.85 0.72 5.54 27.42 0.12
Ltd. --Diversified
29 JSW Steel Ltd. --Steel 187 4,355 1.52 1.19 0.40 5.72 23.72 0.13
And Steel Products
30 Kotak Mahindra Bank 346 9,755 3.41 1.34 0.64 4.84 8.77 0.14
Ltd. --Banks
31 LIC Housing Finance 85 1,906 0.67 1.15 0.53 3.34 10.51 0.12
Ltd. --Finance -
Housing
32 Lupin Ltd. -- 83 5,669 1.98 0.49 0.22 2.78 5.43 0.14
Pharmaceuticals
33 United Spirits Ltd. -- 100 6,500 2.27 0.95 0.26 3.59 4.21 0.09
Brew/Distilleries
34 Moser Baer India Ltd. -- 168 894 0.31 1.19 0.45 3.70 6.63 0.17
Computers - Hardware
35 Mphasis Ltd. -- 209 4,247 1.48 0.70 0.25 3.33 20.62 0.18
36 Mangalore Refinery & 1,753 7,187 2.51 0.91 0.46 1.60 4.86 0.24
Petrochemicals Ltd. --
Refineries
37 Mundra Port and 401 12,954 4.52 0.84 0.32 3.29 -5.37 0.20
Special Economic
Zone Ltd. --Travel And
Transport
38 Oracle Financial 42 6,219 2.17 0.80 0.28 4.00 3.32 0.16
Services Software Ltd. --
39 Patni Computer 26 1,651 0.58 0.61 0.26 3.28 31.95 0.20
Systems Ltd. --
40 Power Finance 1,148 16,597 5.79 0.83 0.49 2.74 0.17 0.19
Corporation Ltd. --
Financial Institution
41 Raymond Ltd. --Textile 61 467 0.16 0.49 0.22 2.75 -1.99 0.22
Products
42 Reliance Natural 817 7,325 2.56 1.52 0.62 6.20 8.73 0.11
Resources Ltd. --Gas
43 Sesa Goa Ltd. --Mining 79 7,841 2.74 0.91 0.35 4.55 22.96 0.09
44 Syndicate Bank --Banks 522 2,508 0.88 0.67 0.41 4.61 -1.54 0.15
45 Tech Mahindra Ltd. -- 122 3,227 1.13 0.92 0.38 2.26 6.62 0.14
46 Tata Teleservices 1,897 4,335 1.51 0.89 0.44 6.13 -3.18 0.16
(Maharashtra) Ltd.
--Telecommunication
- Services
Contd...
85
Contd...
sation
(Rs. cr.) (Rs. cr.) (%) (%) (%) (%)
47 UltraTech Cement Ltd. 124 6,864 2.40 0.60 0.27 3.21 17.28 0.23
--Cement And Cement
Products
48 Union Bank of India 505 7,418 2.59 0.82 0.46 3.66 13.31 0.15
--Banks
49 Vijaya Bank --Banks 434 1,012 0.35 0.73 0.52 2.63 -2.71 0.15
50 Wockhardt Ltd. -- 55 934 0.33 0.63 0.36 4.33 6.22 0.24
Pharmaceuticals
Total 16,517 286,405 100 1.00 -- 8.94 2.38 0.16
2
* Beta & R are calculated for the period 01-April-2008 to 31-March 2009
* 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-March 2009 to 31-March 2009
* Last day of trading was 31 March 2009
* Impact Cost for CNX Nifty Junior is for a portfolio of Rs. 25 lakhs
* Impact Cost for CNX Nifty Junior is the weightage average impact cost
Table 4-11 : Industry-wise Weightages of S&P CNX NIFTY Securities

as on 31st March, 2009
Sl. No. Industry Market Cap Weightage

(Rs. cr.)
1 Refineries 296,356 15.66%
2 Telecommunication - Services 185,176 9.78%
3 Computers - Software 180,056 9.51%
4 Power 241,824 12.78%
5 Banks 159,162 8.41%
6 Oil Exploration 201,792 10.66%
7 Electrical Equipment 98,371 5.20%
8 Construction 34,060 1.80%
9 Steel & Steel Products 54,884 2.90%
10 Engineering 39,316 2.08%
11 Cigarettes 69,770 3.69%
12 Pharmaceuticals 47,090 2.49%
13 Finance - Housing 40,171 2.12%
14 Automobile - 4 wheelers 41,340 2.18%
15 Cement & Cement Products 36,034 1.90%
16 Metals 25,335 1.34%
17 Diversified 51,770 2.74%
18 Aluminium 22,682 1.20%
19 Gas 31,154 1.65%
20 Automohiles - 2 and 3 wheelers 21,390 1.13%
21 Media & Entertainment 14,897 0.79%
Total 1,892,629 100.00%
86
Table 4-12 : 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
2001-02 1148.10 1207.00 849.95 1129.55 1.40 18.10
2002-03 1129.85 1153.30 920.10 978.20 0.99 13.36
2003-04 977.40 2014.65 920.00 1771.90 1.43 20.70
2004-05 1771.45 2183.45 1292.20 2035.65 1.61 14.60
2005-06 2035.90 3433.85 1896.30 3402.55 1.04 20.26
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
Apr-08 4735.65 5230.75 4628.75 5165.90 1.28 22.20
May-08 5265.30 5298.85 4801.90 4870.10 1.21 20.74
Jun-08 4869.25 4908.80 4021.70 4040.55 1.91 17.28
Jul-08 4039.75 4539.45 3790.20 4332.95 2.97 18.22
Aug-08 4331.60 4649.85 4201.85 4360.00 1.61 18.43
Sep-08 4356.10 4558.00 3715.05 3921.20 2.32 16.85
Oct-08 3921.85 4000.50 2252.75 2885.60 5.03 12.57
Nov-08 2885.40 3240.55 2502.90 2755.10 3.83 12.08
Dec-08 2755.15 3110.45 2570.70 2959.15 2.46 12.97
Jan-09 2963.30 3147.20 2661.65 2874.80 2.73 13.40
Feb-09 2872.35 2969.75 2677.55 2763.65 1.81 13.12
Mar-09 2764.60 3123.35 2539.45 3020.95 2.34 14.30
2008-09 4735.65 5298.85 2252.75 3020.95 2.66 14.30
* S&P CNX Nifty commenced from November 3, 1995
# At the end of the period
Note : Volatility is calculated as standard deviation of the Natural Log of returns for the respective month/
year.
87
Table 4-13 : CNX NIFTY Junior Index*
Month & Year Open High Low Close Volatility Price To

(%) Earning
Ratio#
1996-97 (Nov.-Mar.) 1000.00 1208.87 907.02 1032.95 1.76 –
1997-98 1028.30 1395.25 1016.65 1339.40 1.44 –
1998-99 1339.75 2079.10 1177.20 2069.20 2.14 18.92
1999-2000 2099.75 5365.90 1631.90 3695.75 2.46 33.47
2000-01 3720.45 3771.80 1570.20 1601.80 2.75 9.69
2001-02 1601.40 1676.25 1038.75 1566.95 1.60 6.80
2002-03 1568.40 1690.35 1231.95 1259.55 1.23 11.68
2003-04 1260.75 3702.60 1259.75 3392.05 1.57 11.93
2004-05 3398.00 4705.25 2493.70 4275.15 1.83 13.82
2005-06 4275.35 6437.40 3998.80 6412.10 0.95 20.25
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
Apr-08 7982.75 9272.25 7699.35 9170.95 1.40 18.96
May-08 9236.40 9541.00 8075.50 8221.35 1.72 16.27
Jun-08 8228.20 8305.15 6201.05 6233.20 2.43 12.08
Jul-08 6239.20 7363.20 5756.85 6936.80 3.68 13.15
Aug-08 6877.80 7177.15 6799.55 7138.30 2.02 13.68
Sep-08 7118.20 7400.25 5633.10 6043.15 2.48 12.13
Oct-08 6070.10 6203.65 3603.20 4291.30 4.83 8.44
Nov-08 4435.40 4937.65 3706.70 3848.85 3.19 7.53
Dec-08 3853.85 4695.30 3675.50 4555.70 2.30 8.99
Jan-09 4568.55 5007.25 3964.95 4230.15 2.94 8.60
Feb-09 4214.15 4337.65 3869.25 3980.55 1.70 8.12
Mar-09 3941.55 4405.60 3587.60 4336.45 2.38 8.69
2008-09 7982.75 9541.00 3587.60 4336.45 2.80 8.69
* CNX Nifty Junior commenced from November 4, 1996.
# At the end of period
Note : Volatility is calculated as standard deviation of the Natural Log of returns for the respective month/
year
88
Table 4-14 : Performance of NSE Indices during the year 2008-09
Indices Record high Date Closing index Average Y-o-Y

values Daily Returns
Value (31-03-09) Volatility
S&P CNX Nifty 5298.85 02-May-2008 3020.95 2.65 -36.26
CNX Junior 9541.00 05-May-2008 4336.45 2.79 -45.07
CNX 100 5089.95 05-May-2008 2833.55 2.65 -37.53
S&P CNX 500 4315.95 05-May-2008 2294.85 2.50 -39.89
CNX Midcap 7192.40 05-May-2008 3407.45 2.14 -45.11
Nifty Midcap 50 2823.10 05-May-2008 1165.00 2.58 -50.87
CNX FMCG 6346.89 07-May-2008 5134.66 1.75 -17.11
CNX IT 4773.65 02-Jun-2008 2318.70 2.86 -36.90
Finance 5600.00 02-May-2008 1824.86 3.05 -60.87
Petrochemicals 6600.15 21-May-2008 3222.47 2.39 -31.10
Pharmaceuticals 5402.18 17-Jun-2008 3465.02 1.58 -23.46
Table 4-15 : 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 FTCSF3YDIV Franklin Templeton Mutual Fund-Capital Safety Fund-3Y 28-May-2007
(Divdend Option)
2 FTCSF3YGRO Franklin Templeton Mutual Fund-Capital Saftey Fund 3Y 28-May-2007
(Growth Option)
3 FTCSF5YDIV Franklin Templeton Mutual Fund-Capital Safety Fund-5Y 28-May-2007
Dividend Option
4 FTCSF5YGRO Franklin Templeton Mutual Fund-Capital Safety Fund-5Y 28-May-2007
(Growth Option)
5 FTCPOF3YDV Franklin Templeton Capital Protection Oriented Fund 25-Jun-2007
6 FTCPOF3YGR Franklin Templeton Capital Protection Oriented Fund 25-Jun-2007
7 FTCPOF5YDV Franklin Templeton Capital Protection Oriented Fund 25-Jun-2007
8 FTCPOF5YGR Franklin Templeton Capital Protection Oriented Fund 25-Jun-2007
9 UFTI5-10DP UTI Mutual Fund (Fixed Term Income Fund-SrV-Plan 26-Mar-2009
X-Ret Div Payout Opt)
10 UFTI5-10DR UTI Mutual Fund (Fixed Term Income Fund-SrV-Plan 26-Mar-2009
X-Ret Div Reinvst Opt)
11 UFTI5-10GP UTI Mutual Fund (Fixed Term Income Fund-SrV-Plan 26-Mar-2009
X-Retail Growth Opt)
Contd...
89
Contd...
EXCHANGE TRADED FUNDS
Sr. Symbol Company Name Date of
No. Listing
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 1-Nov-2007
Exchange 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
13 RELBANK Reliance Mutual Fund -Banking Exchange Traded Fund 27-Jun-2008
(ETF)
14 QNIFTY Quantum Index Fund -Exchange Traded Fund (ETF) 18-Jul-2008
B : No of Trades and Trading Value
Month & Mutual Funds Exchange traded funds

Year (MF’s) (ETF’s)
No. of Trading Value No. of Trading Value
Trades (Rs. cr.) (US $ mn.) Trades (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

Contd...
90
Contd...
Month & Mutual Funds Exchange traded funds
Year (MF’s) (ETF’s)
No. of Trading Value No. of Trading Value
Trades (Rs. cr.) (US $ mn.) Trades (Rs. cr.) (US $ mn.)
Apr-08 5,632 18.97 3.72 34,930 588.88 115.58
May-08 4,605 17.19 3.37 52,396 221.75 43.52
Jun-08 5,247 26.29 5.16 50,864 252.92 49.64
Jul-08 4,685 68.13 13.37 67,007 584.22 114.67
Aug-08 2,742 14.18 2.78 81,896 237.00 46.52
Sep-08 5,622 21.35 4.19 88,739 486.11 95.41
Oct-08 5,253 20.47 4.02 147,770 541.54 106.29
Nov-08 2,513 7.09 1.39 119,429 277.60 54.48
Dec-08 2,338 14.99 2.94 111,034 309.10 60.67
Jan-09 685 0.90 0.18 85,273 268.22 52.64
Feb-09 384 0.47 0.09 102,870 310.93 61.03
Mar-09 531 0.92 0.18 95,849 322.24 63.25
2008-09 40,237 210.95 41.40 1,038,057 4,400.50 863.69
Table 4-16 : 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
91
92
Table 4-17 : Settlement Statistics in CM Segment
Month/Year No. of Traded Quantity % of Trading Trading Value of %of Securities Short % of Short Unrectified % of Funds
Trades Quantity of Shares Shares Volume Volume Shares Delive- Pay-in Delivery Delivery Bad Unrecti- Pay-in
Delive- Delive- Delive- rable to (Auctioned to Total Delivery fied Bad
rable rable to rable Value of quantity) Delive-rable (Auctioned Delivery to
Total Shares quantity) Delive-rable
Shares Traded
Traded
(lakh) (lakh) (lakh) (Rs. cr.) (US $ mn.) (Rs. cr.) (Rs. cr.) (lakh) (lakh) (Rs. cr.)
Nov 94-Mar 95 3 1,330 688 51.74 1,728 -- 898 51.97 611 6 0.85 1.76 0.26 300
1995-96 64 39,010 7,264 18.62 65,742 -- 11,775 17.91 5,805 179 2.46 32.17 0.44 3,258
1996-97 262 134,317 16,453 12.25 292,314 -- 32,640 11.17 13,790 382 2.32 66.25 0.40 7,212
1997-98 383 135,217 22,051 16.31 370,010 -- 59,775 16.15 21,713 333 1.51 72.90 0.33 10,827
1998-99 550 165,310 27,991 16.93 413,573 -- 66,204 16.01 30,755 305 1.09 69.73 0.25 12,175
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
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
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 0.0000 34,092
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
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
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
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
Contd...
Contd...
Month/Year No. of Traded Quantity % of Trading Trading Value of %of Securities Short % of Short Unrectified % of Funds
Trades Quantity of Shares Shares Volume Volume Shares Delive- Pay-in Delivery Delivery Bad Unrecti- Pay-in
Delive- Delive- Delive- rable to (Auctioned to Total Delivery fied Bad
rable rable to rable Value of quantity) Delive-rable (Auctioned Delivery to
Total Shares quantity) Delive-rable
Shares Traded
Traded
(lakh) (lakh) (lakh) (Rs. cr.) (US $ mn.) (Rs. cr.) (Rs. cr.) (lakh) (lakh) (Rs. cr.)
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
Apr-08 1,069 111,364 24,919 22.38 262,423 51,506 63,492 24.19 63,383 55 0.22 0.00 0.00 19,339
May-08 1,079 115,499 25,379 21.97 278,962 54,752 68,903 24.70 68,799 54 0.21 0.00 0.00 21,745
Jun-08 1,122 110,685 23,871 21.57 272,697 53,522 64,330 23.59 64,217 55 0.23 0.00 0.00 22,216
Jul-08 1,329 131,998 25,311 19.18 290,699 57,056 61,406 21.12 61,311 55 0.22 0.00 0.00 21,015
Aug-08 1,082 106,909 22,822 21.35 238,279 46,767 54,447 22.85 54,369 43 0.19 0.00 0.00 17,862
Sep-08 1,054 95,556 24,074 25.19 247,189 48,516 61,039 24.69 60,934 44 0.18 0.00 0.00 26,208
Oct-08 1,226 111,157 28,655 25.78 230,192 45,180 54,690 23.76 54,585 67 0.23 0.00 0.00 25,889
Nov-08 1,119 109,968 24,724 22.48 178,208 34,977 36,880 20.69 36,811 40 0.16 0.00 0.00 14,772
Dec-08 1,290 142,294 28,148 19.78 213,387 41,882 40,854 19.15 40,800 47 0.17 0.00 0.00 15,075
Jan-09 1,211 141,964 27,642 19.47 187,393 36,780 36,529 19.49 36,464 48 0.17 0.00 0.00 12,726
Feb-09 1,002 116,896 21,798 18.65 152,625 29,956 30,260 19.83 30,208 42 0.19 0.00 0.00 10,525
Mar-09 1,057 124,640 26,581 21.33 197395.5 38,743 38,706 19.61 38,617 75 0.28 0.00 0.00 13,332
2008-09 13,639 1,418,928 303,925 21.42 2,749,450 539,637 611,535 22.44 610,498 625 0.21 0.00 0.00 220,704
93
94
Wholesale Debt Market
Segment 5
96
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.
97
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 19.00 % from Rs. 282,317 crore (US $ 70,632 million) during 2007-08 to Rs.
335,952 crore (US $ 65,937 million) during 2008-09. The average daily trading volume
also accelerated from Rs.1,138 crore (US $ 285 million) during 2007-08 to Rs.1,412 crore
(US $ 277 million) in fiscal 2008-09. 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 government securities accounted for a substantial share of 69.74 %

during 2008-09 on the WDM segment. The details of transactions in different securities
are presented in Table 5-2. and Chart 5-2a There were no repo transactions recorded
from the fiscal 2005-06 onwards till the current fiscal. The WDM’s SGL Outright
Transactions as a percentage to the total SGL Outright transactions was 43.81 % in
2008-09.
The participant-wise distribution of WDM trades is presented in Table 5-3 and Chart
5-2(b). The trading members accounted for 44.65 % of the total WDM trades followed
by foreign banks which held a share of 27.26 %. Share of Indian banks in WDM trades
98
declined to 18.11 % during 2008-09 as compared with its share of 23.78 % in the
corresponding period last year.
Chart 5-2 (a) : Security-wise Distribution of WDM Trades (2008-09)
Chart 5-2 (b) : Participant-wise distribution of WDM trades (2008-09)
The share of top ‘N’ securities/trading members/participants in turnover in WDM

segment is presented in Table 5-4. The share of top ‘10’ securities decreased from 53.31 %
in 2007-08 to 43.05 % in 2008-09. The share of top ‘50’ and top ‘100’ securities accounted
for 72.45% and 83.87% respectively in the current year.
99
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. 2,848,315 crore (US $ 559,041 million) as on March 31, 2009. Central Government
securities accounted for the largest share of the market capitalisation with 64.95%. 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, 2009 to March 31, 2010.
Settlement
Settlement is on a rolling basis, i.e. there is no account period settlement. Each order
has a unique settlement date specified upfront at the time of order entry and used as a
matching parameter. It is mandatory for trades to be settled on the predefined settlement
date. The Exchange currently allows settlement periods ranging from same day (T+0)
settlement to a maximum of (T+2) for non-government securities while settlement of
all outright secondary market transactions in government securities was standardized to
T+1. In case of repo transactions in government securities, first leg can be settled either
on T+0 basis or T+1 basis.
In case of government securities, the actual settlement of funds and securities are effected
directly between participants or through Reserve Bank of India (RBI). All trades in
government securities are reported to RBI-SGL through the Negotiated Dealing System
(NDS) of RBI, and Clearing Corporation of India Limited (CCIL) provides settlement
guarantee for transactions in government securities including repos. The trades are
settled on a net basis through the DvP-III system. In the DvP-III, the settlement of
Securities and Funds are carried out on a net basis.
For securities other than government securities and T-bills, trades are settled on a gross
basis directly between participants on delivery versus payment basis.
On the scheduled settlement date, the Exchange provides data/information to the

respective member/participant regarding trades to be settled on that day with details
like security, counter party and consideration.
The settlement details for non-government securities, i.e. certificate no., Cheque no.,
constituent etc. are reported by the member/participant to the Exchange.
The Exchange closely monitors the settlement of transactions through the reporting
of settlement details by members and participants. In case of deferment of settlement
or cancellation of trade, participants are required to seek prior approval from the
Exchange. For any dispute arising in respect of the trades or settlement, the exchange
has established arbitration mechanism for resolving the same.
100
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 3 day rates from June 06, 2008, the 14-day MIBID/MIBOR from
November 10, 1998 and the 1 month and 3 month MIBID/MIBOR from December
1, 1998. In view of the robust methodology of computation of these rates and their
extensive use by market participants, these have been co-branded with Fixed Income
and Money Market Dealers Association (FIMMDA) from March 4, 2002. These are
now known as FIMMDA-NSE MIBID/MIBOR. These are presented in Table 5-6. The
Chart 5-3 presents overnight MIBID/MIBOR for 2008-09.
Chart 5-3 : Overnight MIBID/MIBOR Rates, from 02nd April 2008

to 31st March 2009
FIMMDA-NSE MIBID/MIBOR are based on rates polled by NSE from a representative

panel of 33 banks /primary dealers. Overnight Rates for Saturdays is calculated and
disseminated at 1030Hrs (IST). The 3 day rates are polled and processed on the last
working day of the week. The rates are broadcast through NEAT-WDM trading system
immediately on release and also disseminated through websites of NSE and FIMMDA ,
through leading information vendors ,financial dailies and email.
The FIMMDA-NSE MIBID/MIBOR is used as a benchmark rate for majority of deals

struck for interest rate swaps, forward rate agreements, floating rate debentures and
term deposits.
101
Zero Coupon Yield Curve
Keeping in mind the requirements of the banking industry, financial institutions,

mutual funds, insurance companies, etc. that have substantial investment in sovereign
papers, NSE disseminates a ‘Zero Coupon Yield Curve’ (NSE Zero Curve) to help in
valuation of securities across all maturities irrespective of its liquidity in the market.
This product has been developed by using Nelson-Siegel functional form to estimate the
term structure of interest rate at any given point of time and been successfully tested by
using daily WDM trades data. This is being disseminated daily.
The ZCYC depicts the relationship between spot interest rates in the economy and the
associated term to maturity. It provides daily estimates of the term structure of interest
rates using information on secondary market trades in government securities from the
WDM segment. The term structure forms the basis for the valuation of all fixed income
instruments. Modelled as a series of cashflows due at different points of time in the
future, the underlying price of such an instrument is calculated as the net present value
of the stream of cashflows. Each cashflow, in such a formulation, is discounted using
the interest rate for the associated term to maturity; the appropriate rates are read off
the estimated ZCYC. Once estimated, the interest rate-maturity mapping is used to
compute underlying valuations even for securities that do not trade on a given day.
Changes in the economy cause shifts in the term structure, changing the underlying
valuations of fixed income instruments. The daily ZCYC captures these changes, and is
used to track the value of portfolios of government securities on a day-to-day basis.
Chart 5-4 plots the spot interest rates at different maturities for the year 2008-09.
Chart 5-4 : Zero Coupon Yield Curve, 2008-09
102
NSE-VaR System
NSE has developed a VaR system for measuring the market risk inherent in Government
of India (GOI) securities. NSE-VaR system builds on the NSE database of daily yield
curves (ZCYC) and provides measures of VaR using 5 alternative methods (variance-
covariance (normal), historical simulation method, weighted normal, weighted historical
simulation and extreme value method). Together, these 5 methods provide a range of
options for market participants to choose from.
NSE-VaR system releases daily estimates of security-wise VaR at 1-day and multi-
day horizons for securities traded on WDM segment of NSE and all outstanding GoI
securities with effect from January 1, 2002. Participants can compute their portfolio
risk as weighted average of security-wise VaRs, the weights being proportionate to the
market value of a given security in their portfolio. 1-day VaR (99%) measure for GoI
Securities traded on NSE-WDM on March 31, 2009 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.
103
104
Table 5-1 : Business Growth of WDM Segment
All Trades Retail Trade

No. of Number Trading Volume Average Daily Trading Average Number Trading Volume Share in Total
Month/Year active of Trades Volume Trade of Trades Trading Volume
securities Size
(Rs. cr.) ( US $ mn) (Rs. cr.) ( US $ mn) (Rs. cr.) (Rs. cr.) ( US $ mn) (%)
1994- 95 (June-March) 183 1,021 6,781 – 30 – 6.64 168 31.00 – 0.45
1995-96 304 2,991 11,868 – 41 – 3.97 1,115 207.00 – 1.74
1996-97 524 7,804 42,278 – 145 – 5.42 1,061 201.00 – 0.47
1997-98 719 16,821 111,263 – 385 – 6.61 1,390 288.66 – 0.26
1998-99 1,071 16,092 105,469 24,857 365 86 6.55 1,522 307.77 72.54 0.29
1999-00 1,057 46,987 304,216 69,742 1,035 237 6.47 936 217.76 49.92 0.07
2000-01 1,038 64,470 428,582 91,891 1,483 318 6.65 498 131.00 28.09 0.03
2001-02 979 144,851 947,190 194,096 3,277 672 6.54 378 110.00 22.54 0.01
2002-03 1,123 167,778 1,068,701 224,990 3,598 758 6.37 1,252 300.00 63.16 0.03
2003-04 1,078 189,518 1,316,096 303,318 4,477 1,032 6.94 1,400 331.70 69.83 0.03
2004-05 1,151 124,308 887,294 202,810 3,028 692 7.14 1,278 410.13 93.74 0.05
2005-06 897 61,891 475,523 106,596 1,755 393 7.68 892 310.00 69.49 0.07
2006-07 762 19,575 219,106 50,265 898 206 11.19 399 102.52 23.29 0.05
Apr-07 98 928 17,159 4,293 903 226 18.49 12 3.09 0.75 0.02
May-07 145 1,093 17,483 4,374 833 208 16.00 18 6.00 1.50 0.03
Jun-07 143 1,065 17,335 4,337 825 207 16.28 38 6.00 1.50 0.03
Jul-07 184 2,089 33,815 8,460 1,537 385 16.19 9 3.00 0.75 0.01
Aug-07 128 1,230 21,431 5,362 1,021 255 17.42 8 4.00 1.00 0.02
Sep-07 148 934 16,902 4,229 845 211 18.10 27 4.00 1.00 0.02
Contd...
Contd...
All Trades Retail Trade

No. of Number Trading Volume Average Daily Trading Average Number Trading Volume Share in Total
Month/Year active of Trades Volume Trade of Trades Trading Volume
securities Size
(Rs. cr.) ( US $ mn) (Rs. cr.) ( US $ mn) (Rs. cr.) (Rs. cr.) ( US $ mn) (%)
Oct-07 147 1,411 25,493 6,378 1,159 290 18.07 10 4.00 1.00 0.02
Nov-07 110 1,083 17,704 4,429 843 211 16.35 7 2.00 0.50 0.01
Dec-07 117 1,585 32,865 8,223 1,730 433 20.74 12 4.00 1.00 0.01
Jan-08 144 2,359 42,724 10,689 1,858 465 18.11 27 7.00 1.75 0.02
Feb-08 118 1,497 24,044 6,015 1,145 286 16.06 7 2.00 0.50 0.01
Mar-08 148 905 15,362 3,843 853 214 16.97 36 4.00 1.00 0.03
2007-08 601 16,179 282,317 70,632 1,138 285 17.45 211 49.00 12.26 0.02
Apr-08 122 1,016 19,893 3,904 995 195 19.58 6 2.10 0.41 0.01
May-08 137 1,200 20,656 4,054 1,033 203 17.21 3 0.35 0.07 0.00
Jun-08 190 956 18,233 3,579 868 170 19.07 106 20.35 3.98 0.11
Jul-08 127 815 18,745 3,679 815 160 23.00 10 3.39 0.67 0.02
Aug-08 75 594 11,502 2,257 605 119 19.36 16 4.98 0.98 0.04
Sep-08 124 783 19,779 3,882 989 194 25.26 12 3.43 0.67 0.02
Oct-08 126 922 19,966 3,919 1,109 218 21.66 10 2.45 0.48 0.01
Nov-08 140 1,093 23,143 4,542 1,286 252 21.17 7 2.79 0.55 0.01
Dec-08 218 2,857 46,864 9,198 2,232 438 16.40 11 6.03 1.18 0.01
Jan-09 232 2,218 45,015 8,835 2,251 442 20.30 15 4.77 0.94 0.01
Feb-09 221 1,891 42,949 8,430 2,260 444 22.71 28 5.78 1.13 0.01
Mar-09 265 1,784 49,205 9,658 2,590 508 27.58 33 7.17 1.41 0.01
2008-2009 711 16,129 335,952 65,937 1,412 277 20.83 257 64.00 12.56 0.02
105
106
Table 5-2 : Security-wise Distribution of WDM Trades
Month & Year Turnover (In Rs. Cr.) Turnover (In %)

Government T-Bills PSU /Inst. Others Total Turnover Government T-Bills PSU /Inst. Bonds Others
Securities Bonds/Others Securities
1995-96 7,729 2,260 1,149 729 11,868 65.13 19.04 9.69 6.14
1996-97 27,352 10,957 2,769 1,199 42,278 64.70 25.92 6.55 2.84
1997-98 84,716 18,870 4,050 3,627 111,263 76.14 16.96 3.64 3.26
1998-99 84,576 10,705 5,041 5,147 105,469 80.19 10.15 4.78 4.88
1999-00 282,891 11,013 4,867 5,445 304,216 92.99 3.62 1.60 1.79
2000-01 390,952 23,143 7,886 6,600 428,582 91.22 5.40 1.84 1.54
2001-02 902,105 25,574 10,987 8,619 947,191 95.24 2.70 1.16 0.91
2003-03 1,000,518 32,275 19,985 15,924 1,068,701 93.62 3.02 1.87 1.49
2003-04 1,218,705 55,671 27,112 14,609 1,316,096 92.60 4.23 2.06 1.11
2004-05 724,830 124,842 17,835 19,787 887,294 81.69 14.07 2.01 2.23
2005-06 345,563 105,233 12,173 12,554 475,523 72.67 22.13 2.56 2.64
2006-07 153,370 51,954 4,418 9,365 219,106 70.00 23.71 2.02 4.27
Apr-07 12,099 4,307 165 589 17,159 70.51 25.10 0.96 3.43
May-07 11,606 4,778 185 914 17,483 66.38 27.33 1.06 5.23
Jun-07 9,964 6,209 257 905 17,335 57.48 35.82 1.48 5.22
Jul-07 22,632 7,260 2,296 1,626 33,815 66.93 21.47 6.79 4.81
Aug-07 14,193 5,355 889 992 21,431 66.23 24.99 4.15 4.63
Sep-07 12,433 3,277 367 827 16,902 73.56 19.39 2.17 4.89
Oct-07 11,765 11,230 1,275 1,224 25,493 46.15 44.05 5.00 4.80
Contd...
Contd...
Month & Year Turnover (In Rs. Cr.) Turnover (In %)

Government T-Bills PSU /Inst. Others Total Turnover Government T-Bills PSU /Inst. Bonds Others
Securities Bonds/Others Securities
Nov-07 10,914 5,547 455 788 17,704 61.65 31.33 2.57 4.45
Dec-07 26,289 5,567 316 693 32,865 79.99 16.94 0.96 2.11
Jan-08 32,082 6,353 1,619 2,670 42,724 75.09 14.87 3.79 6.25
Feb-08 19,014 3,244 1,007 779 24,044 79.08 13.49 4.19 3.24
Mar-08 11,355 2,937 401 668 15,362 73.92 19.12 2.61 4.35
2007-08 194,347 66,062 9,232 12,676 282,317 68.84 23.40 3.27 4.49
Apr-08 13,466 3,751 1,886 790 19,893 67.69 18.85 9.48 3.97
May-08 16,293 2,365 1,201 798 20,656 78.88 11.45 5.81 3.87
Jun-08 12,026 3,145 1,654 1,407 18,233 65.96 17.25 9.07 7.72
Jul-08 13,831 3,034 553 1,326 18,745 73.79 16.19 2.95 7.07
Aug-08 8,243 2,643 377 238 11,502 71.67 22.98 3.28 2.07
Sep-08 12,854 5,212 939 774 19,779 64.99 26.35 4.75 3.91
Oct-08 13,859 3,836 1,887 384 19,966 69.41 19.21 9.45 1.92
Nov-08 16,526 4,960 965 693 23,143 71.41 21.43 4.17 2.99
Dec-08 32,725 6,952 5,093 2,095 46,864 69.83 14.83 10.87 4.47
Jan-09 33,734 4,251 5,160 1,870 45,015 74.94 9.44 11.46 4.15
Feb-09 27,053 8,152 5,287 2,457 42,949 62.99 18.98 12.31 5.72
Mar-09 33,677 8,522 5,006 2,000 49,205 68.44 17.32 10.17 4.06
2008-2009 234,288 56,824 30,008 14,831 335,952 69.74 16.91 8.93 4.41
107
108
Table 5-3 : Participant wise Distribution of WDM Turnover
Month/Year Turnover (In Rs.Cr.) Turnover (In %)
Trading FIs/MFs/ Primary Indian Foreign Total Trading FIs/MFs/ Primary Indian Banks Foreign Banks
Members Corporates Dealers Banks Banks Turnover Members Corporates Dealers
1994-95
3,921 436 1 960 1,463 6,781 57.82 6.43 0.02 14.16 21.57
(June-March)
1995-96 2,787 902 138 3,569 4,473 11,868 23.48 7.60 1.16 30.07 37.69
1996-97 9,703 1,611 2,579 12,688 15,698 42,278 22.95 3.81 6.10 30.01 37.13
1997-98 21,975 4,784 13,418 45,885 25,201 111,263 19.75 4.30 12.06 41.24 22.65
1998-99 16,327 5,200 15,441 44,424 24,079 105,469 15.48 4.93 14.64 42.12 22.83
1999-00 56,675 12,716 59,079 129,961 45,785 304,216 18.63 4.18 19.42 42.72 15.05
2000-01 99,602 17,915 94,888 143,746 72,430 428,582 23.24 4.18 22.14 33.54 16.90
2001-02 222,779 39,403 213,118 346,672 125,219 947,191 23.52 4.16 22.50 36.60 13.22
2002-03 265,145 40,290 235,435 414,336 113,496 1,068,701 24.81 3.77 22.03 38.77 10.62
2003-04 458,001 60,014 224,131 478,533 95,417 1,316,096 34.80 4.56 17.03 36.36 7.25
2004-05 301,325 45,607 164,149 265,212 111,000 887,294 33.96 5.14 18.50 29.89 12.51
2005-06 152,215 18,641 104,092 133,479 67,096 475,523 32.01 3.92 21.89 28.07 14.11
2006-07 67,660 5,916 43,427 57,033 45,070 219,106 30.88 2.70 19.82 26.03 20.57
Apr-07 5,206 319 2,902 4,811 3,921 17,159 30.34 1.86 16.91 28.04 22.85
May-07 7,140 135 1,962 4,142 4,105 17,483 40.84 0.77 11.22 23.69 23.48
Jun-07 6,600 269 2,247 4,814 3,405 17,335 38.07 1.55 12.96 27.77 19.64
Jul-07 13,604 1,150 4,149 9,272 5,640 33,815 40.23 3.40 12.27 27.42 16.68
Aug-07 9,807 606 1,633 4,087 5,298 21,431 45.76 2.83 7.62 19.07 24.72
Sep-07 7,670 338 887 3,776 4,231 16,902 45.38 2.00 5.25 22.34 25.03
Contd...
Contd...
Month/Year Turnover (In Rs.Cr.) Turnover (In %)
Trading FIs/MFs/ Primary Indian Foreign Total Trading FIs/MFs/ Primary Indian Banks Foreign Banks
Members Corporates Dealers Banks Banks Turnover Members Corporates Dealers
Oct-07 12,380 398 1,412 6,057 5,247 25,493 48.56 1.56 5.54 23.76 20.58
Nov-07 7,347 338 1,238 3,015 5,766 17,704 41.50 1.91 6.99 17.03 32.57
Dec-07 10,639 792 2,363 8,466 10,606 32,865 32.37 2.41 7.19 25.76 32.27
Jan-08 16,154 1,226 3,004 9,429 12,911 42,724 37.81 2.87 7.03 22.07 30.22
Feb-08 7,201 757 1,863 6,047 8,175 24,044 29.95 3.15 7.75 25.15 34.00
Mar-08 3,959 273 745 3,218 7,166 15,362 25.77 1.78 4.85 20.95 46.65
2007-08 107,704 6,606 24,392 67,135 76,480 282,317 38.15 2.34 8.64 23.78 27.09
Apr-08 7,016 400 1,102 3,233 8,142 19,893 35.27 2.01 5.54 16.25 40.93
May-08 5,583 361 1,739 5,540 7,432 20,656 27.03 1.75 8.42 26.82 35.98
Jun-08 6,755 330 841 3,306 7,002 18,233 37.05 1.81 4.61 18.13 38.40
Jul-08 8,746 174 1,430 3,488 4,906 18,745 46.66 0.93 7.63 18.61 26.17
Aug-08 5,384 109 1,064 1,856 3,088 11,502 46.81 0.95 9.25 16.14 26.85
Sep-08 9,969 135 775 3,054 5,847 19,779 50.40 0.68 3.92 15.44 29.56
Oct-08 7,435 1,232 1,737 3,754 5,808 19,966 37.24 6.17 8.70 18.80 29.09
Nov-08 8,547 1,435 1,521 3,726 7,915 23,143 36.93 6.20 6.57 16.10 34.20
Dec-08 22,898 2,057 4,546 9,776 7,587 46,864 48.86 4.39 9.70 20.86 16.19
Jan-09 21,337 1,373 3,412 5,388 13,505 45,015 47.40 3.05 7.58 11.97 30.00
Feb-09 21,273 1,503 2,414 6,983 10,776 42,949 49.53 3.50 5.62 16.26 25.09
Mar-09 25,070 2,298 1,525 10,746 9,566 49,205 50.95 4.67 3.10 21.84 19.44
2008-09 150,014 11,408 22,106 60,851 91,573 335,952 44.65 3.40 6.58 18.11 27.26
109
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
2008-09 31.31 43.05 60.42 72.45 83.87
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 –
2008-09 69.92 82.89 98.38 100.00 –
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
2008-09 24.08 38.24 51.19 55.34 55.38
110
Table 5-5 : Market Capitalisation of WDM Securities
Month/ Govt. PSU bonds State loans T-bills Others Total Total Govt. PSU bonds State loans T-bills Others
Year securities securities
(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 84,894 580,836 113,258 68.39 6.26 7.68 3.05 14.62
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
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
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
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
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
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
Contd...
111
112
Contd...
Month/ Govt. PSU bonds State loans T-bills Others Total Total Govt. PSU bonds State loans T-bills Others
Year securities securities
(Rs.cr) (US $ mn) (in percent)

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
Apr-08 1,437,643 98,524 314,716 110,280 207,488 2,168,651 425,643 66.29 4.54 14.51 5.09 9.57
May-08 1,438,743 98,845 317,972 126,469 210,154 2,192,183 430,262 65.63 4.51 14.50 5.77 9.59
Jun-08 1,434,072 101,085 317,095 133,061 209,648 2,194,961 430,807 65.33 4.61 14.45 6.06 9.55
Jul-08 1,424,369 101,200 319,827 133,488 207,843 2,186,727 429,191 65.14 4.63 14.63 6.10 9.50
Aug-08 1,455,397 103,866 322,447 133,768 210,117 2,225,595 436,819 65.39 4.67 14.49 6.01 9.44
Sep-08 1,471,565 108,330 325,475 135,187 213,708 2,254,265 442,447 65.28 4.81 14.44 6.00 9.48
Oct-08 1,535,826 108,922 324,218 141,680 218,959 2,329,604 457,233 65.93 4.68 13.92 6.08 9.40
Nov-08 1,621,942 111,178 332,923 146,154 230,372 2,442,569 479,405 66.40 4.55 13.63 5.98 9.43
Dec-08 1,808,270 119,165 344,721 141,888 254,872 2,668,916 523,830 67.75 4.46 12.92 5.32 9.55
Jan-09 1,848,128 129,070 364,204 145,121 265,364 2,751,888 540,115 67.16 4.69 13.23 5.27 9.64
Feb-09 1,868,684 129,609 376,820 144,336 290,538 2,809,987 551,518 66.50 4.61 13.41 5.14 10.34
Mar-09 1,849,971 129,499 422,362 147,617 298,867 2,848,315 559,041 64.95 4.55 14.83 5.18 10.49
Table 5-6 : FIMMDA NSE MIBID/MIBOR Rates 2008-09
Month/ OVERNIGHT 3 DAY AT 14 DAY AT 1 MONTH 3 MONTH

Date AT 9.40 a.m. 11.30 a.m. RATE AT RATE AT
9.40 a.m. 11.30 a.m. 11.30 a.m.
MIBID MIBOR MIBID MIBOR MIBID MIBOR MIBID MIBOR MIBID MIBOR
30-Apr-08 7.79 8.77 6.28 7.41 6.73 7.87 7.79 8.77
31-May-08 7.53 7.93 6.51 7.53 6.88 8.07 7.89 8.87
30-Jun-08 8.69 8.77 – – 8.59 9.13 8.90 9.56 9.39 9.94
31-Jul-08 8.37 8.51 – – 8.58 9.28 9.07 9.89 9.62 10.39
30-Aug-08 9.38 9.49 6.16 6.26 9.53 10.12 9.98 10.55 10.44 11.22
29-Sep-08 13.87 14.57 – – 10.75 11.84 10.78 11.77 10.97 11.86
31-Oct-08 19.14 20.30 19.48 20.73 10.24 10.63 10.13 11.08 10.84 11.73
29-Nov-08 6.48 6.82 – – 9.25 8.10 9.88 8.97 10.63 10.43
31-Dec-08 5.17 5.27 – – 6.27 7.19 7.58 8.04 8.45 8.89
31-Jan-09 4.17 4.23 – – 5.30 5.68 6.00 6.44 7.05 7.83
28-Feb-09 4.10 4.16 – – 5.04 5.37 5.72 6.18 6.99 7.64
31-Mar-09 4.78 5.02 – – 5.04 5.61 5.68 6.26 7.07 7.64
Overnight : Disseminated since June 15, 1998.

3 Day : Disseminated since June 06, 2008 is calculated and disseminated on every last working
day of the week
14 Day : Disseminated since November 10, 1998.
1 Month : Disseminated since December 1, 1998.
3 Month : Disseminated Since December 1, 1998.
Table 5-7 : 1-day Value-at-Risk (99%) for Government of India Securities

Traded as on March 31, 2009
Security Security Issue Normal Weighted Historical Weighted EVT Clean Accrued_
Type Name Name Normal Simulation Historical Price Interest
Simulation (off
NSE-
ZCYC)
GS CG2009 5.48% 0.224 0.485 0.287 0.449 0.258 100.27 1.64
GS CG2010 11.30% 0.771 2.046 0.951 1.947 0.858 107.59 1.98
GS CG2010 12.25% 0.752 1.982 0.93 1.899 0.842 108.40 3.03
GS CG2010 12.29% 0.617 1.541 0.745 1.478 0.684 106.00 2.05
GS CG2010 7.55% 0.72 1.875 0.877 1.84 0.805 102.61 2.87
GS CG2011 6.57% 0.897 2.444 1.108 2.064 0.959 101.47 0.68
GS CG2012 7.00% 1.07 2.749 1.29 4.428 1.036 101.36 0.43
GS CG2013 7.27% 1.137 2.723 1.331 1.671 0.992 101.55 0.57
GS CG2014 7.56% 1.211 2.665 1.308 1.388 0.967 102.22 3.11
GS CG2017 7.99% 1.444 2.771 1.556 3.221 1.164 104.76 1.82
GS CG2019A 6.05% 1.767 3.256 1.845 5.214 1.449 92.03 0.99
TB 182D 170409 0.059 0.12 0.076 0.106 0.066 99.82 0.00
TB 364D 120210 0.638 1.61 0.767 1.537 0.706 95.88 0.00
TB 364D 250310 0.683 1.751 0.836 1.657 0.760 95.26 0.00
TB 364D 290110 0.622 1.559 0.749 1.492 0.689 96.09 0.00
TB 91D 290509 0.184 0.393 0.237 0.638 0.209 99.35 0.00
113
114
Futures & Options
Segment 6
116
Futures & Options Segment 6
In the year 2008, NSE ranked as the eighth 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, S&P CNX
Defty and 234 single stocks (Table 6-1) as of March 2009. 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
S&P CNX Defty Futures and Options December 10, 2008
Number of Securities on which F&O Contracts were

available for Trading (2008-09)
Month/Year Number of Securities*

Apr-08 227
May-08 230
Jun-08 229
Jul-08 230
Aug-08 266
Sep-08 267
Oct-08 267
Nov-08 265
Dec-08 263
Jan-09 259
Feb-09 255
Mar-09 234
2008-09 234
* at the end of the month
117
Trading on single stock options commenced on July 2, 2001 while single stock futures
were launched on November 9, 2001.
Since inception, NSE established itself as the sole market leader in this segment in the
country and during 2008-09, it accounted for 99 % 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.
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, Nifty Midcap
50 and S&P CNX Defty while stock futures and options are based on individual
securities. Mini futures and options contracts and long term options contracts are also
available on S&P CNX Nifty. Stock futures and options were available on 234 securities
as of March 2009.
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.
118
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
Index Options
The number of strikes provided in options on Indices- S&P CNX Nifty, CNX Nifty Junior,
CNX 100, CNX IT, Bank Nifty Nifty Midcap 50 and S&P CNX Defty 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 From To Revised Strike Interval Revised number of strikes

In the money-At the money-Out of
the money
Upto 2000 2.5 4-1-4
2001 to 4000 5 6-1-6
4001 to 6000 10 6-1-6
> 6000 20 7-1-7
119
Selection Criteria for Stocks and Index eligibility for trading
Eligibility Criteria of Stocks
The eligibility criteria for inclusion of scrips in F&O segment is as under:
• The stock is chosen from amongst the top 500 stocks in terms of average daily
market capitalization 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 should not be
less than Rs. 5 lakh.
• The market wide position limit (MWPL) in the stock should not be less than Rs.
100 crore.
The criteria for exclusion of scrips in F&O segment will be as under:
For an existing F&O stock, the continued eligibility criteria is that market wide position
limit in the stock should not be less than Rs. 60 crores and stock’s median quarter-sigma
order size over the last six months shall be not less than Rs. 2 lakh. The stock is excluded
if the above criteria is not fulfilled for consecutively three months.
Further, once the stock is excluded from the F&O list, it is not considered for re-
inclusion for a period of one year.
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.
• 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.
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
120
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
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 & Contract Traded
The total turnover on the F&O Segment declined by 15.89% to Rs. 11,010,482 crore
(US $ 2,161,037 million) during 2008-09 as compared with Rs.13,090,478 crore (US
$ 3,275,076 million) during 2007-08. The average daily turnover during 2008-09 was
Rs.45,311 crore (US $ 8,893 million), a year on year decline of 13.12 %. 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.
121
Chart 6-1 : Business Growth of F&O Segment
The total number of contracts traded increased by 54.68% to 66 crore contracts during
2008-09. Out of the total contracts traded, 33.71% of the contracts were traded on
Stock futures followed by index options on which 32.26% of the contracts were traded.
Number of contracts traded on Index futures was 32.01% while 2.02% of the total
contracts were traded on stock options. (Chart 6-2).
Chart 6-2 : Product wise Number of Contracts Traded during 2008-09
122
Product wise turnover on F&O Segment:
During 2008-09, the traded value of index futures saw a year-on-year decline of 6.56
% and amounted to Rs.3,570,111 crore (US $ 700,709 million) in 2008-09 as against
Rs.3,820,667 crore (US $ 955,884 million) during 2007-08.
The traded value in stock futures declined by 53.90 % to Rs.3,479,642 crore (US $
682,952 million) during 2008-09 over the turnover of Rs.7,548,563 crore (US $ 1,888,557
million) during 2007-08.
Index options recorded turnover of Rs.3,731,502 crore (US $ 732,385 million) during
2008-09 , an increase of 173.95 % over the turnover of Rs.1,362,111 crore (US $ 340,783
Stock options recorded turnover of Rs. 229,227 crore (US $ 44,991 million) during
2008-09, a decrease of 36.17 % over the turnover of Rs. 359,137 crore (US $ 89,852
Index Options accounted for 33.89% of the total turnover during the 2008-09 fiscal
followed by the trading in index futures at 32.42 %, Stock futures (31.60%) and stock
options (2.08%) (Chart 6-3).
Chart 6-3 : Product wise trading volumes during 2008-09
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.
123
Benchmark Indices Contracts & Trading Volume in F&O
Segment of NSE (2008-09)
Products Underlying No. of Turnover

Contracts Rs.cr. US $ mn
NIFTY S&P CNX Nifty 396,820,905 7,067,827 1,387,208
BANKNIFTY BANK Nifty 7,473,386 104,377 20,486
MINIFTY S&P CNX Nifty 18,107,079 127,266 24,979
JUNIOR CNX Nifty Junior 6,370 128 25
CNXIT CNX IT 103,485 1,870 367
CNX100 CNX 100 154 3 1
Nifty Midcap 50 Nifty Midcap 50 2,459 58 11
Long term Option S&P CNX Nifty 623,416 14,585 2,863
Contracts
DEFTY S&P CNX Defty 2,709 84 17
TOTAL 423,139,963 7,316,198 1,435,956
During 2008-09, the S&P CNX Nifty Index accounted for more than 96.61 % of the
turnover in Index futures and options. The S&P CNX Nifty accounted for 93.78 % of
the total contracts.
Sectorwise Stock Futures & Options Turnover
Sectorwise turnover of stock futures and options is presented in the table below.
Companies belonging to the IT Sector and FMCG Sector accounted for 20.90 % and
20.84% respectively of the total stock futures and options turnover on the Exchange.
Sectorwise Classification of turnover of the Single Stock Futures

during 2008-09
Classification Total Turnover (Rs. crs) Total Turnover ( US $ mn)

Manufacturing 775,253 152,160
Petrochemicals 772,781 151,674
Infrastructure 609,975 119,720
Banks 490,837 96,337
Information Technology 279,708 54,899
Finance 238,199 46,752
Telecommunication 214,268 42,055
Pharmaceuticals 115,267 22,624
Engineering 99,063 19,443
FMCG 66,115 12,976
Media & Entertainment 23,654 4,643
Services 14,357 2,818
Miscellaneous 9,391 1,843
TOTAL 3,708,869 727,943
The stock futures and option turnover of top 5 companies in each sector for the period
2008-09 is presented in Table 6-5.
124
Participant wise turnover on F&O Segment:
During 2008-09, the retail investors accounted for 55.63 % 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.12,250,029 crore (US $ 2,404,324 million) followed by the
Proprietory segment with gross turnover of Rs.6,826,484 crore (US $ 1,339,840 million)
and the Institutional players with gross turnover of Rs. 2,944,454 crore (US $ 577,911
million). The share of retail participants and institutional participants in the gross
turnover was 31.00 % and 13.37 % respectively.
The month wise details of the turnover for the participants in the F&O segment is
presented in Table 6-6. Chart 6-4 shows the participantswise F&O turnover during
2008-09.
Chart 6-4 : Participant wise F&O Turnover during 2008-09
Memberwise turnover on the Exchange:
During 2008-09, there were 661 members which accounted for turnover of Rs.1,000
crore and more while 91 members registered turnover between Rs.500 crore and Rs.1,000
crore collectively in the futures and options category. In the month of September 2008,
301 trading members accounted for a turnover of Rs.1,000 crore and more, which was
the highest number of members during the fiscal year 2008-09.
The number of members in different turnover brackets in Futures and Options segment
is presented in table 6-7a & 6-7b.
High Volume Members
The turnover of the top ‘5’ and ‘10’ members accounted to Rs.1,198,458 crore (US $
235,222.39 million) and Rs.1,762,438 crore (US $ 345,915.21 million) respectively in
125
2008-09 in the Futures segment. However, the turnover of the top ‘5’ and ‘10’ members
in the options segment accounted to Rs.712,931 crore (US $ 139,927.61 million) and
Rs. 1,227,826 crore (US $ 240,986.44 million) respectively in the same period.
In the Futures segment, the share of top 5 and top ‘10’ members in turnover was 17%
and 25% respectively, while in the options segment the share of top 5 and top 10
trading members in in turnover was 18% and 31 % respectively. (Table 6-7c).
Internet Trading
At the end of March 2009, a total number of 337 members were permitted to allow
investor’s web based access to NSE’s trading system. The members of the exchange in
turn had registered 4,426,577 clients for web based access as on March 31, 2009. In the
Futures and Options Segment the trading volume of Rs.1,685,692 crore (US $ 421,739
million) during the year 2008-09, constituting 7.65 % of total trading volume was routed
and executed through the internet. The following table shows the growth of internet
trading during 2007-08 to 2008-09.
Internet Trading in the F&O Segment of the Exchange
Year Enabled Registered Internet Internet % to Total

Members* Clients* Trading Value Trading Value Trading Value
(Rs.cr) (US $ mn)
2007-08 305 3,432,780 2,372,514 593,574 9.06
2008-09 337 4,426,577 1,685,692 330,852 7.65
* At the end of Financial year.

Note : Figures for IBT turnover and registered clients are as reported by trading members to the Exchange
Figures of Turnover are Buy Turnover + Sell turnover.
Traded Value Records
Trading volumes in the F&O Segment during 2008-09 reached a high of Rs.82,698 crore
(US $ 16,231 million) on September 25, 2008. The following table gives the record
turnover of different products in the F&O Segment.
Records Achieved in the F&O Segment during 2008-09
Product Traded Value Traded Value (US $ Date

(Rs. in crores) Mn)
Index Futures 31,638 6,210 25-Jun-08
Stock Futures 32,501 6,379 29-May-08
Index Options 32,782 6,434 24-Mar-09
Stock Options 2,099 412 25-Mar-09
Total F&O Traded Value 82,698 16,231 25-Sep-08
126
Top 20 Futures and Option contracts
During 2008-09, top 20 Futures and options contracts in terms of number of contracts
traded have been presented in Table 6-8 and Table 6-9.
The top 20 Futures contracts accounted for 46.41 % of the total no. of contracts traded
in the Futures segment while top 20 Option contracts accounted for 21.61 % of the total
option contracts traded during 2008-09.
Among the top 20 future contracts, Nifty July 2008 futures accounted for 10.12 % of
the total top 20 contracts while Nifty October 2008 futures and Nifty November 2008
contributed 9.86 % and 9.17 % respectively.
Top 3 option contracts on the basis of number of contracts traded during 2008-09 were
Nifty March 2009 CE 2800, Nifty February 2009 PE 2700 and Nifty Nifty February
2009 PE 2800. Together these three option contracts formed 19.13 % of the total number
of top 20 option contracts.
Number of Trades
During 2008-09, maximum number of trades in the F&O Segment were witnessed in
Stock Futures (57.78 %), Index futures (22.21 %), Index Options (16.49 %) and Stock
Options (3.52 %) as mentioned in the table below.
Number of Trades in F&O Segment (2008-09)
Products Number of Trades (%)
Stock Futures 57.78
Index Futures 22.21
Index Options 16.49
Stock Options 3.52
TOTAL 100
The details of month wise trades on Index futures & options and stock futures & options
is presented in Table 6-10.
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.
127
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.
For a trading Member participating in trading S&P CNX Defty at any time during the
year till September 30, 2009 there would be no transaction charges. The trading member
would be required to make a lump sum contribution of Rs.500/- for the whole year as
a contribution to Investor Protection Fund.
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
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.
128
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 index cannot be delivered. The settlement
amount for a CM is netted across all their TMs/clients, across various settlements. For
the purpose of settlement, all CMs are required to open a separate bank account with
NSCCL designated clearing banks for F&O segment.
Settlement of Futures Contracts on Index or Individual Securities
Futures contracts have two types of settlements, the MTM settlement which happens
on a continuous basis at the end of each day, and the final settlement which happens on
the last trading day of the futures contract.
• MTM Settlement for Futures: The positions in futures contracts for each member
are marked-to-market to the daily settlement price of the relevant futures contract
at the end of each day. The CMs who have suffered a loss are required to pay the
mark-to-market (MTM) loss amount in cash which is in turn passed on to the CMs
who have made a MTM profit. This is known as daily mark-to-market settlement.
CMs are responsible to collect and settle the daily MTM profits/losses incurred
by the TMs and their clients clearing and settling through them. Similarly, TMs
are responsible to collect/pay losses/ profits from/to their clients by the next day.
The pay-in and pay-out of the mark-to-market settlement are effected on the day
following the trade day (T+1).
After completion of daily settlement computation, all the open positions are reset
to the daily settlement price. Such positions become the open positions for the
next day.
• 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.
129
• 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 amount and the premium receivable amount 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.
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.
130
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.
All derivative contracts are currently cash settled. The participants discharge their
obligations through payment/receipt of cash. During 2008-09, such cash settlement
amounted to Rs. 91,839.97 crore (US $ 18,025.51 million). The settlement of futures
and options involved Rs.76,691.89 crore (US $ 15,052.38 million) and Rs. 15,148.08
(US $ 2,973.13 million) respectively. The details of settlement in the futures and options
segment is presented in Table 6-11.
Risk Management System

NSCCL has developed a comprehensive risk containment mechanism for the F&O
segment. The salient features of risk containment measures on the F&O segment are:
• The financial soundness of the members is the key to risk management. Therefore,
the requirements for membership in terms of capital adequacy (net worth, security
131
deposits) are quite stringent. These requirements have already been explained in
Table 2-1 in Chapter 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® (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.
132
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.
• 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.
133
• 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.
134
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.
135
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 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.
Stock Futures & Options:
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.
For stocks having applicable market-wise position limit (MWPL) less than Rs. 500
crores, the combined futures and options position limit is 20% of applicable MWPL
and futures position cannot exceed 20 % of applicable MWPL or Rs. 50 crore which
ever is lower
136
Table 6-1 : List of Securities on which Futures & Options are available at NSE
(as on 31 March 2009)
Sr. Security Symbol Launch Market

No Date Lot
1 3I Infotech Ltd. 3IINFOTECH 06-Sep-07 10800
2 Aban Offshore Ltd. ABAN 29-Dec-06 400
3 ABB Ltd. ABB 20-Apr-05 500
4 ABG Shipyard Limited ABGSHIP 21-Aug-08 3300
5 Aditya Birla Nuvo Limited ABIRLANUVO 14-May-07 400
6 Adlabs Films Ltd ADLABSFILM 14-May-07 1800
7 Allahabad Bank ALBK 20-Apr-05 4900
8 Alok Industries Ltd. ALOKTEXT 27-May-05 22152
9 Alstom Projects India Ltd APIL 14-May-07 1200
10 Ambuja Cements Ltd. AMBUJACEM 02-Jul-01 4124
11 Amtek Auto Ltd. AMTEKAUTO 29-Dec-06 4800
12 Andhra Bank ANDHRABANK 29-Aug-03 4600
13 Aptech Limited APTECHT 06-Sep-07 3900
14 Arvind Limited ARVIND 26-Sep-03 17200
15 Ashok Leyland Ltd ASHOKLEY 20-Apr-05 19100
16 Asian Paints Limited ASIANPAINT 21-Aug-08 400
17 Associated Cement Co. Ltd. ACC 02-Jul-01 752
18 Aurobindo Pharma Ltd. AUROPHARMA 12-May-05 2800
19 Axis Bank Ltd. AXISBANK 20-Apr-05 900
20 Bajaj Auto Limited BAJAJ-AUTO 26-May-08 800
21 Bajaj Hindustan Ltd. BAJAJHIND 29-Dec-06 5700
22 Bajaj Holdings & Investment Ltd. BAJAJHLDNG 14-Mar-08 1000
23 Balaji Telefilms Ltd. BALAJITELE 21-Aug-08 5000
24 Ballarpur Industries Limited BALLARPUR 31-Mar-08 14600
25 Balrampur Chini Mills Ltd. BALRAMCHIN 29-Dec-06 9600
26 Bank Of Baroda BANKBARODA 29-Aug-03 1400
27 Bank Of India BANKINDIA 29-Aug-03 950
28 Bata India Ltd. BATAINDIA 29-Dec-06 4200
29 Bharat Earth Movers Ltd. BEML 29-Dec-06 750
30 Bharat Electronics Ltd. BEL 31-Jan-03 552
31 Bharat Forge Co Ltd BHARATFORG 20-Apr-05 4000
32 Bharat Heavy Electricals Ltd. BHEL 02-Jul-01 300
33 Bharat Petroleum Corporation Ltd. BPCL 02-Jul-01 1100
34 Bharti Airtel Ltd BHARTIARTL 20-Apr-05 500
35 Bhushan Steel & Strips Lt BHUSANSTL 06-Sep-07 1000
36 Biocon Limited. BIOCON 06-Sep-07 3600
37 Birla Corporation Ltd BIRLACORPN 14-May-07 3400
38 Bombay Dyeing & Mfg. Co Ltd. BOMDYEING 29-Dec-06 1800
Contd...
137
Contd...
No Date Lot
39 Bombay Rayon Fashions Ltd BRFL 14-May-07 2300
40 Cairn India Limited CAIRN 09-Jan-07 2500
41 Canara Bank CANBK 29-Aug-03 1600
42 Central Bank Of India CENTRALBK 21-Aug-07 8000
43 Century Textiles Ltd CENTURYTEX 20-Apr-05 1696
44 CESC Ltd. CESC 12-May-05 1100
45 Chambal Fertilizers Ltd. CHAMBLFERT 12-May-05 6900
46 Chennai Petroleum Corporation Ltd. CHENNPETRO 20-Apr-05 3600
47 Cipla Ltd. CIPLA 02-Jul-01 1250
48 Colgate Palmolive Ltd COLPAL 17-Dec-07 550
49 Container Corporation Of India Limited CONCOR 21-Aug-08 500
50 Corporation Bank CORPBANK 12-May-05 1200
51 Crompton Greaves Ltd. CROMPGREAV 29-Dec-06 2000
52 Cummins India Ltd CUMMINSIND 20-Apr-05 1900
53 Dabur India Ltd. DABUR 20-Apr-05 2700
54 Deccan Chronicle Holdings Ltd. DCHL 21-Aug-08 6800
55 Dena Bank DENABANK 14-May-07 10500
56 Develop Credit Bank Ltd DCB 30-Nov-07 14000
57 Dish Tv India Limited DISHTV 21-Aug-08 20600
58 Divi’S Laboratories Ltd. DIVISLAB 12-May-05 310
59 DLF Limited DLF 05-Jul-07 1600
60 Dr. Reddy’S Laboratories Ltd. DRREDDY 02-Jul-01 800
61 Edelweiss Capital Ltd EDELWEISS 12-Dec-07 1000
62 Educomp Solutions Ltd EDUCOMP 14-May-07 150
63 Escorts India Ltd. ESCORTS 27-May-05 9600
64 Essar Oil Ltd. ESSAROIL 12-May-05 2824
65 Everest Kanto Cylinder Ltd EKC 14-May-07 2000
66 Everonn Systems India Limited EVERONN 21-Aug-08 800
67 Federal Bank Ltd. FEDERALBNK 12-May-05 1702
68 Financial Technologies (I) Ltd FINANTECH 14-May-07 600
69 Firstsource Solutions Limited FSL 21-Aug-08 19000
70 GAIL (India) Ltd. GAIL 26-Sep-03 1125
71 Gateway Distriparks Ltd. GDL 29-Dec-06 5000
72 Gitanjali Gems Limited GITANJALI 30-Nov-07 4000
73 Glaxosmithkline Pharma Ltd. GLAXO 20-Apr-05 300
74 Gmr Infrastructure Ltd. GMRINFRA 21-Aug-06 5000
75 Grasim Industries Ltd. GRASIM 02-Jul-01 352
76 Great Offshore Ltd GTOFFSHORE 30-Nov-07 1000
77 GTL Infrastructure Limited GTLINFRA 21-Aug-08 9700
78 GTL Ltd. GTL 29-Dec-06 1500
Contd...
138
Contd...
No Date Lot
79 Gujarat Alkalies & Chem GUJALKALI 29-Dec-06 5600
80 Gujarat Narmada Fertilizer Co. Ltd. GNFC 12-May-05 5900
81 Gujarat State Petronet Limited GSPL 21-Aug-08 12200
82 GVK Power & Infrastructure Limited GVKPIL 21-Aug-08 19000
83 Havells India Limited HAVELLS 06-Sep-07 2400
84 HCL Infosystems Ltd HCL-INSYS 21-Aug-08 3400
85 HCL Technologies Ltd. HCLTECH 31-Jan-03 2600
86 HDFC Bank Ltd. HDFCBANK 29-Aug-03 400
87 Hero Honda Motors Ltd. HEROHONDA 31-Jan-03 400
88 Hindalco Industries Ltd. HINDALCO 02-Jul-01 7036
89 Hindustan Construction Co HCC 29-Dec-06 8400
90 Hindustan Oil Exploration HINDOILEXP 30-Nov-07 6400
91 Hindustan Petroleum Corporation Ltd. HINDPETRO 02-Jul-01 1300
92 Hindustan Unilever Ltd HINDUNILVR 02-Jul-01 1000
93 Hindustan Zinc Limited HINDZINC 30-Nov-07 1000
94 Hotel Leela Ventures Ltd HOTELEELA 14-May-07 15000
95 Housing Development And Infrastructure Ltd. HDIL 24-Jul-07 3096
96 Housing Development Finance Corporation Ltd. HDFC 02-Jul-01 150
97 ICICI Bank Ltd. ICICIBANK 31-Jan-03 700
98 ICSA (India) Limited ICSA 21-Aug-08 2400
99 Idea Cellular Ltd. IDEA 09-Mar-07 5400
100 IFCI Ltd. IFCI 27-May-05 15760
101 India Cements Ltd. INDIACEM 27-May-05 2900
102 India Infoline Limited INDIAINFO 14-May-07 5000
103 Indiabulls Real Estate Limited IBREALEST 21-Aug-08 2600
104 Indian Bank INDIANB 01-Mar-07 2200
105 Indian Hotels Co. Ltd. INDHOTEL 20-Apr-05 7596
106 Indian Oil Corporation Ltd. IOC 26-Sep-03 600
107 Indian Overseas Bank IOB 20-Apr-05 5900
108 Indusind Bank Ltd. INDUSINDBK 12-May-05 7700
109 Industrial Development Bank Of India Ltd. IDBI 20-Apr-05 4800
110 Infosys Technologies Ltd. INFOSYSTCH 02-Jul-01 200
111 Infrastructure Development Finance Company Ltd. IDFC 12-Aug-05 5900
112 IRB Infrastructure Developers Ltd IRB 25-Feb-08 4400
113 Ispat Industries Limited ISPATIND 30-Nov-07 24900
114 ITC Ltd. ITC 02-Jul-01 2250
115 IVRCL Infrastructure & Projects Ltd. IVRCLINFRA 27-May-05 2000
116 Jaiprakash Associates Ltd. JPASSOCIAT 29-Dec-06 4500
117 Jaiprakash Hydro-Power Ltd. JPHYDRO 18-Apr-05 12500
118 Jet Airways (India) Ltd. JETAIRWAYS 14-Mar-05 2400
Contd...
139
Contd...
No Date Lot
119 Jindal Saw Limited JINDALSAW 30-Nov-07 1000
120 Jindal Steel & Power Ltd JINDALSTEL 20-Apr-05 320
121 JSL Ltd. JSL 12-May-05 8000
122 JSW Steel Ltd. JSWSTEEL 29-Dec-06 1650
123 K S Oils Limited KSOILS 21-Aug-08 5900
124 Kesoram Industries Ltd KESORAMIND 14-May-07 2000
125 Kingfisher Airlines Limited KFA 14-May-07 8500
126 Kotak Mahindra Bank Ltd. KOTAKBANK 29-Dec-06 1100
127 KSK Energy Ventures Ltd. KSK 14-Jul-08 1700
128 Lakshmi Machines Ltd LAXMIMACH 06-Sep-07 400
129 Lanco Infratech Ltd. LITL 27-Nov-06 2550
130 Larsen & Toubro Ltd. LT 15-Sep-06 400
131 LIC Housing Finance Ltd LICHSGFIN 20-Apr-05 1700
132 Lupin Ltd. LUPIN 29-Dec-06 350
133 Mahanagar Telephone Nigam Ltd. MTNL 02-Jul-01 3200
134 Maharashtra Seamless Ltd. MAHSEAMLES 12-May-05 2400
135 Mahindra & Mahindra Ltd. M&M 02-Jul-01 1248
136 Mahindra Lifespace Developers Ltd MAHLIFE 14-May-07 1400
137 Mangalore Refinery And Petrochemicals Ltd. MRPL 20-Apr-05 8900
138 Maruti Udyog Ltd. MARUTI 09-Jul-03 800
139 Mercator Lines Limited MLL 21-Aug-08 9800
140 Mindtree Limited MINDTREE 21-Aug-08 1200
141 Monnet Ispat Ltd MONNETISPA 21-Aug-08 1800
142 Moser-Baer (I) Ltd MOSERBAER 14-May-07 4950
143 Motor Industries Co Ltd BOSCHLTD 30-Nov-07 100
144 Mphasis Ltd. MPHASIS 12-May-05 1600
145 MRF Ltd. MRF 21-Aug-08 200
146 Nagarjuna Constrn. Co. Ltd. NAGARCONST 29-Dec-06 4000
147 Nagarjuna Fertiliser & Chemicals Ltd. NAGARFERT 27-May-05 21000
148 National Aluminium Co. Ltd. NATIONALUM 31-Jan-03 2300
149 National Thermal Power Corporation Ltd. NTPC 05-Nov-04 1625
150 Nava Bharat Ventures Limited NBVENTURES 21-Aug-08 3200
151 NDTV Ltd. NDTV 12-May-05 3300
152 Network 18 Fincap Ltd. NETWORK18 30-Nov-07 2000
153 Neyveli Lignite Corporation Ltd. NEYVELILIG 20-Apr-05 5900
154 NIIT Limited NIITLTD 30-Nov-07 8700
155 Noida Toll Bridge Company Ltd NOIDATOLL 21-Aug-08 16400
156 Oil & Natural Gas Corp. Ltd. ONGC 31-Jan-03 450
157 Opto Circuits (India) Limited OPTOCIRCUI 21-Aug-08 4080
158 Oracle Financial Services Software Limited OFSS 30-May-03 600
Contd...
140
Contd...
No Date Lot
159 Orchid Chemicals Ltd. ORCHIDCHEM 12-May-05 4200
160 Oriental Bank Of Commerce ORIENTBANK 29-Aug-03 2400
161 Pantaloon Retail (I) Ltd PANTALOONR 14-May-07 1700
162 Patel Engineering Ltd. PATELENG 14-May-07 2000
163 Patni Computer Syst Ltd PATNI 20-Apr-05 2600
164 Peninsula Land Limited PENINLAND 14-May-07 16500
165 Petronet Lng Limited PETRONET 14-May-07 8800
166 Piramal Healthcare Ltd PIRHEALTH 15-Feb-08 1500
167 Polaris Software Lab Ltd. POLARIS 31-Jan-03 5600
168 Power Finance Corporation Ltd. PFC 23-Feb-07 2400
169 Power Grid Corporation Of India Ltd. POWERGRID 05-Oct-07 3850
170 Praj Industries Ltd. PRAJIND 29-Dec-06 4400
171 PTC India Limited PTC 21-Aug-08 4700
172 Punj Lloyd Ltd. PUNJLLOYD 06-Jan-06 1500
173 Punjab National Bank PNB 29-Aug-03 600
174 Rajesh Exports Ltd RAJESHEXPO 14-May-07 9900
175 Ranbaxy Laboratories Ltd. RANBAXY 02-Jul-01 1600
176 Reliance Natural Resources Ltd. RNRL 14-May-07 7152
177 Reliance Capital Ltd RELCAPITAL 20-Apr-05 552
178 Reliance Communications Ltd. RCOM 15-Sep-06 1400
179 Reliance Industrial Infrastructure Limited RIIL 21-Aug-08 800
180 Reliance Industries Ltd. RELIANCE 02-Jul-01 300
181 Reliance Infrastructure Limited RELINFRA 09-Nov-01 552
182 Reliance Petroleum Ltd. RPL 11-May-06 3350
183 Reliance Power Ltd. RPOWER 11-Feb-08 2000
184 Rolta India Ltd ROLTA 14-May-07 1800
185 Rural Electrification Corporation Ltd. RECLTD 12-Mar-08 3900
186 S Kumars Nationwide Ltd SKUMARSYNF 14-May-07 11400
187 Sesa Goa Ltd. SESAGOA 29-Dec-06 3000
188 Shipping Corporation Of India Ltd. SCI 31-Jan-03 4800
189 Shree Renuka Sugars Ltd. RENUKA 29-Dec-06 5000
190 Siemens Ltd SIEMENS 20-Apr-05 1504
191 Sintex Industries Ltd. SINTEX 21-Aug-08 1400
192 SREI Infrastructure Finance Limited SREINTFIN 21-Aug-08 7000
193 SRF Ltd. SRF 27-May-05 3000
194 State Bank Of India SBIN 02-Jul-01 264
195 Steel Authority Of India Ltd. SAIL 15-Sep-06 5400
196 Sterling Biotech Ltd STERLINBIO 14-May-07 1250
197 Sterlite Industries (I) Ltd STER 20-Apr-05 876
198 Strides Arcolab Ltd. STAR 27-May-05 3400
Contd...
141
Contd...
No Date Lot
199 Sun Pharmaceuticals India Ltd. SUNPHARMA 20-Apr-05 225
200 Sun Tv Network Ltd. SUNTV 24-Apr-06 2000
201 Suzlon Energy Ltd. SUZLON 19-Oct-05 6000
202 Syndicate Bank SYNDIBANK 26-Sep-03 3800
203 Tata Chemicals Ltd TATACHEM 20-Apr-05 2700
204 Tata Communications Ltd TATACOMM 20-Apr-05 1050
205 Tata Consultancy Services Ltd TCS 25-Aug-04 500
206 Tata Motors Ltd. TATAMOTORS 02-Jul-01 1700
207 Tata Power Co. Ltd. TATAPOWER 02-Jul-01 400
208 Tata Steel Ltd. TATASTEEL 02-Jul-01 1528
209 Tata Tea Ltd. TATATEA 02-Jul-01 550
210 Tata Teleserv(Maharastra) TTML 29-Dec-06 10450
211 Tech Mahindra Limited TECHM 06-Sep-07 1200
212 Television Eighteen India Ltd. TV-18 21-Aug-08 3400
213 The Great Eastern Shipping Co. Ltd. GESHIP 27-Nov-06 2400
214 The Karnataka Bank Ltd. KTKBANK 27-May-05 5000
215 Thermax Ltd THERMAX 21-Aug-08 1800
216 Titan Industries Ltd. TITAN 12-May-05 412
217 Torrent Power Limited TORNTPOWER 21-Aug-08 3400
218 Triveni Engg. & Inds. Ltd. TRIVENI 29-Dec-06 7700
219 Tulip It Services Ltd TULIP 06-Sep-07 1000
220 TVS Motor Company Ltd. TVSMOTOR 12-May-05 11800
221 UCO Bank UCOBANK 21-Aug-08 10000
222 Ultratech Cement Ltd. ULTRACEMCO 29-Dec-06 800
223 Union Bank Of India UNIONBANK 29-Aug-03 2100
224 Unitech Ltd UNITECH 14-May-07 9000
225 United Phosphorous Ltd UNIPHOS 14-May-07 2800
226 United Spirits Ltd. MCDOWELL-N 29-Dec-06 250
227 UTV Software Communications Limited UTVSOF 21-Aug-08 1200
228 Vijaya Bank VIJAYABANK 20-Apr-05 6900
229 Voltas Ltd. VOLTAS 29-Dec-06 5400
230 Welspun Guj St. Ro. Ltd. WELGUJ 06-Sep-07 3200
231 Wipro Ltd. WIPRO 31-Jan-03 1200
232 Wockhardt Ltd. WOCKPHARMA 20-Apr-05 2400
233 Yes Bank Limited YESBANK 06-Sep-07 4400
234 Zee Entertainment Enterprises Ltd. ZEEL 12-Feb-07 2800
142
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/S&P CNX Defty
Style of Option NA European NA ---------------------------------------European---------------------------------------
Contract Size As specified by SEBI, currently minimum Rs.2 lakhs at the As specified by SEBI currently minimum Rs.1 lakh at the As specified by SEBI
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 upto 3 months upto 3.5 years
Trading Cycle A maximum of three month trading cycle - • 3 near month expiries
• Near month (One) • Three following quarterly
• Next month (Two) and expiries of the cycle (March,
• Far month (Three). June, Sept & Dec)
New contract is introduced on the next trading day following the expiry of near month contract • After these 5 following
half yearly expiries of cycle
June / Dec )
Price Bands No price band however No Price band however No price band however No Price band however Operating range has been kept as:
Operating range has been Operating range has been Operating range has been Upper range - 99 % of the base price or Rs. 20 which ever
kept which is 10 % of the kept as: Upper range - 99 % kept which is 10 % of the is higher. Lower range - 0.05 (tick size)
base price of the base price or Rs. 20 base price
which ever is higher. Lower
range - 0.05 (tick size)
Contd...
143
144
Contd...
Particulars Index Futures Index Options Mini Index Futures Mini Index Options Long Term Index Options
No. of Strike Prices NA For every option type ( i.e NA For every option type ( i.e Call & Put)
Call & Put)
Upto 2000 - 9 strikes (4-1-4)
Upto 2000 - 9 strikes (4-1-4) 4 ITM, 1 ATM & 4 OTM
4 ITM, 1 ATM & 4 OTM
> 2001 upto 6000- 13 strikes (6-1-6)
> 2001 upto 6000- 13 6 ITM, 1 ATM, 6 OTM
strikes (6-1-6)
6 ITM, 1 ATM, 6 OTM >6000- 15 strikes (7-1-7)
7 ITM, 1 ATM, 7 ATM
>6000- 15 strikes (7-1-7)
7 ITM, 1 ATM, 7 ATM
Strike Price Interval (in NA Upto 2000 50 NA Upto 2000 50
Rs.) > 2000 100 > 2000 100
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 Premium Value (net) Closing price of futures Premium Value (net) Premium Value (net)
contract on the trading day contract on the trading day
Final Settlement Price Closing value underlying Closing value underlying Closing value underlying Closing value underlying Closing value underlying
Index on the last trading day Index on the last trading day Index on the last trading day Index on the last trading day Index on the last trading day
of the futures contract. of the Options contract. of the futures contract. of the Options contract. of the Options contract.
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 Upto 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 No price band however Operating range
however Operating has been kept which is: Upper range - 99%
range has been kept of the base price or Rs. 20 which ever is
which is 20% of the higher, Lower range - 0.05 (tick size)
base price.
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 Between 2.5 and 100 depending on the
price of underlying
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 Premium Value (net)

contract on the trading
day
Final Settlement Price Closing value Closing value of such underlying security
underlying security on on the last trading day of the options
the last trading day of contract.
the futures contract.
Note:
ITM: In-the-Money
ATM: At-the-Money
OTM-Out-of-the-Money
145
146
Table 6-4 : Business Growth of Futures & Options Market Segment
Month/ Index Futures Stock Futures Index Options Stock Options Total Average Daily
Year Call Put Call Put Trading Value
No. of Trading No. of Trading No. of Notional No. of Notional No. of Notional No. of No- No. of Trading Value
Contracts Value Contracts Value Contracts Trading Contracts Trading Contracts Trading Contracts tional Contracts
Traded Traded Traded Value Traded Value Traded Value Traded Trading Traded
Value
(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
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
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
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 1933.25
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 2301.12
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 36,518 157,619,271 4,824,250 1,081,428 19,220 4308.48
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 6777.53
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
Contd...
Contd...
Month/ Index Futures Stock Futures Index Options Stock Options Total Average Daily
Year Call Put Call Put Trading Value
No. of Trading No. of Trading No. of Notional No. of Notional No. of Notional No. of No- No. of Trading Value
Contracts Value Contracts Value Contracts Trading Contracts Trading Contracts Trading Contracts tional Contracts
Traded Traded Traded Value Traded Value Traded Value Traded Trading Traded
Value
(Rs. cr.) (Rs. cr) (Rs. cr) (Rs. cr) (Rs. cr) (Rs.cr) (US $ mn) (Rs.cr) (US $ mn)
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
Apr-08 12,063,172 280,100 15,601,531 336,901 2,672,588 67,954 2,692,643 65,611 573,744 13,139 126,146 2,725 33,729,824 766,431 150,428 38,322 7,521
May-08 11,161,427 267,641 16,693,260 380,161 2,243,173 58,115 2,835,787 70,951 740,079 17,239 166,329 3,801 33,840,055 797,908 156,606 39,895 7,830
Jun-08 17,941,870 377,939 19,154,946 375,987 6,056,056 139,919 7,508,380 168,790 740,229 17,009 199,648 4,421 51,601,129 1,084,064 212,770 51,622 10,132
Jul-08 20,423,139 395,380 22,232,227 382,601 9,144,707 198,174 7,744,997 159,035 944,602 19,354 307,688 5,630 60,797,360 1,160,174 227,708 50,442 9,900
Aug-08 14,433,984 300,449 17,594,216 324,011 7,568,163 174,797 6,267,479 137,305 820,895 16,880 208,806 4,003 46,893,543 957,445 187,919 47,872 9,396
Sep-08 19,332,343 380,198 20,076,138 332,728 12,161,148 268,033 9,237,282 193,589 1,035,531 18,688 269,124 4,636 62,111,566 1,197,872 235,107 57,042 11,196
Oct-08 21,649,445 324,962 19,858,409 239,264 12,967,476 231,565 7,769,905 132,945 689,231 9,951 200,362 2,960 63,134,828 941,646 184,818 47,082 9,241
Nov-08 19,471,367 256,950 17,949,270 187,211 10,296,361 158,042 9,624,563 134,092 561,864 6,429 241,953 2,632 58,145,378 745,356 146,292 41,409 8,127
Dec-08 20,007,895 269,997 22,262,785 230,466 11,144,623 171,697 10,014,156 141,919 927,467 10,562 436,840 4,526 64,793,766 829,166 162,741 39,484 7,750
Jan-09 17,695,542 234,141 22,814,332 215,830 10,573,686 158,702 10,641,985 150,570 1,214,695 12,872 562,425 6,004 63,502,665 778,118 152,722 38,906 7,636
Feb-09 15,750,767 205,679 17,156,838 185,121 9,986,938 147,329 11,488,263 158,270 893,075 10,387 468,695 5,585 55,744,576 712,370 139,818 37,493 7,359
Mar-09 20,497,152 276,677 10,184,028 289,362 15,617,055 228,218 15,831,030 215,881 621,556 19,332 344,986 10,461 63,095,807 1,039,931 204,108 51,997 10,205
2008-09 210,428,103 3,570,111 221,577,980 3,479,642 110,431,974 2,002,544 101,656,470 1,728,957 9,762,968 171,843 3,533,002 57,384 657,390,497 11,010,482 2,161,037 45,311 8,893
147
Table 6-5 : Sectorwise Trading Value of Top 5 companies in the F&O
Segment (2008-09)
BANKS FMCG
Company Name Turnover Company Name Turnover

(Rs.cr) (Rs.cr)
State Bank of India Ltd. 154,695.13 Hindustan Unilever Ltd. 26,806.87
ICICI Bank Ltd. 130,624.28 ITC LTD. 26,498.97
HDFC Bank 49,174.31 United Spirits Ltd. 9,724.07
AXIS Bank 38,587.19 Tata Tea Ltd. 1,704.15
Bank of India Ltd. 28,388.71 Dabur India Ltd. 897.59
INFRASTRUCTURE MEDIA & ENTERTAINMENT

(Rs.cr) (Rs.cr)
DLF Ltd. 104,071.21 Adlabs Films Ltd. 11,240.05
NTPC Ltd. 94,375.84 Zee Entertainment Enterprises Ltd. 5,416.68
Reliance Infrastrucuture Ltd. 61,957.74 Wire and Wireless (India) Ltd. 1,826.93
Housing Development and 48,544.36 New Delhi Television Ltd. 1,718.84

Infrastrucuture Limited
UNITECH Ltd. 44,534.44 Dish TV India Ltd. 1,110.56
PHARMACEUTICALS TELECOMMUNICATION

(Rs.cr) (Rs.cr)
Ranbaxy Laboratories Ltd. 58,826.24 Reliance Communications Ltd. 87,444.98
Orchid Chemicals & 12,836.9 Bharti Airtel Ltd. 75,999.36

Sun Pharmaceuticals Industries Ltd. 9,488.12 Idea Cellular Limited 22,680.14
CIPLA Ltd. 7,741.93 Tata Teleservices (Maharashtra) 11,468.56

Ltd.
Sterling Biotech Limited 6,576.48 Tata Communications Limited 7,313.08
Contd...
148
Contd...
FINANCE INFORMATION TECHNOLOGY

(Rs.cr) (Rs.cr)
Reliance Capital Ltd. 123,087.76 Infosys Technologies Ltd. 106,209.29
Housing Development Finance 41,593.76 Satyam Computer Services Ltd. 44,243.64

Corporation Ltd.
IFCI Ltd. 31,215.33 Educomp Solutions Ltd. 34,024.03
Infrastructure Development 22,356.03 Tata Consultancy Services Ltd. 28,587.54

Finance Company Ltd.
LIC Housing Finance Ltd. 5,832.87 WIPRO Ltd. 18,832.94
PETROCHEMICALS MANUFACTURING

(Rs.cr) (Rs.cr)
Reliance Industries Ltd. 368,248.83 Tata Steel Ltd. 104,187.28
Reliance Petroleum Ltd. 145,866.62 Reliance Natural Resources Ltd. 70,316.3
Oil & Natural Gas Corpn. Ltd. 62,888.53 Bharat Heavy Electricals Ltd. 65,734.51
Cairn India Ltd. 50,964.19 Shree Renuka Sugars Ltd. 65,076.77
Essar Oil Ltd. 36,248.97 Steel Authority of India Ltd. 58,808.27
SERVICES ENGINEERING

(Rs.cr) (Rs.cr)
The Great Eastern Shipping Co. 2,554.72 Larsen & Toubro Ltd. 87,232.74
Ltd.
Indian Hotels Co. Ltd. 1,965.07 Praj Industries Ltd. 10,994.26
Jet Airways (India) Ltd. 1,960.11 BEML Ltd. 356.24
Shipping Corporation of India Ltd. 1,764.49 Reliance Industrial Infrastructure 239.88

Ltd.
Hotel Leela Venture Ltd. 1,542.52 Walchandnagar Industries Ltd. 239.6
149
150
Table 6-6 : Participant wise Trading Value in the F&O Segment (2008-09)
Month/Year Institutional investors Retail Proprietary

Gross Traded Value % to Gross Gross Traded Value % to Gross Gross Traded Value % to Gross
Rs. crore US $ mn Turnover Rs. crore US $ mn Turnover Rs. crore US $ mn Turnover
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
Apr-08 266,039 52,216 17.36 852,917 167,403 55.64 413,906 81,238 27.00
May-08 274,787 53,933 17.22 876,167 171,966 54.90 444,863 87,314 27.88
Jun-08 331,733 65,110 15.30 1,158,405 227,361 53.43 677,991 133,070 31.27
Jul-08 319,854 62,778 13.78 1,265,173 248,317 54.53 735,320 144,322 31.69
Aug-08 250,935 49,251 13.10 1,079,934 211,960 56.40 584,021 114,626 30.50
Sep-08 290,713 57,058 12.13 1,361,914 267,304 56.85 743,118 145,852 31.02
Oct-08 233,594 45,848 12.40 1,034,923 203,125 54.95 614,776 120,663 32.64
Nov-08 166,700 32,718 11.18 835,439 163,972 56.04 488,574 95,893 32.77
Dec-08 178,521 35,038 10.77 934,367 183,389 56.34 545,444 107,055 32.89
Jan-09 184,701 36,251 11.87 869,059 170,571 55.84 502,477 98,622 32.29
Feb-09 183,607 36,037 12.89 807,243 158,438 56.66 433,891 85,160 30.45
Mar-09 263,270 51,672 12.66 1,174,488 230,518 56.47 642,103 126,026 30.87
2008-09 2,944,454 577,911 13.37 12,250,029 2,404,324 55.63 6,826,484 1,339,840 31.00
Table 6-7a : Number of Members in different turnover brackets during 2008-09
Turnover Upto Rs. 10 Rs. 10 Rs. 50 Rs. 250 Rs. 500 Rs. 1000
crores crores upto crores upto crores upto crores upto crores and
Month/ 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
Apr-08 55 95 218 112 103 242
May-08 59 104 215 109 110 243
Jun-08 50 100 211 109 89 289
Jul-08 58 99 195 126 85 297
Aug-08 64 114 210 117 97 273
Sep-08 58 107 219 114 87 301
Oct-08 78 130 229 102 102 246
Nov-08 90 127 251 96 102 212
Dec-08 80 112 248 106 100 237
Jan-09 93 123 253 99 110 220
Feb-09 100 124 252 103 102 215
Mar-09 72 126 201 118 104 280
2008-09 21 28 81 65 91 661
151
152
Table 6-7b : No. of members in different Turnover Brackets in Futures and Options Segment for 2008-09
Month Futures Segment Options Segment
Number of Members Number of Members
Upto Rs. Rs. 10 Rs. 50 Rs. 250 Rs. 500 Rs. 1000 Upto Rs. Rs. 10 Rs. 50 Rs. 250 Rs. 500 Rs. 1000
10 crores crores upto crores upto crores upto crores upto crores and 10 crores crores upto crores upto crores upto crores upto crores and
Rs. 50 Rs.250 Rs.500 Rs.1000 more Rs. 50 Rs.250 Rs.500 Rs.1000 more
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
Apr-08 60 110 226 115 101 213 316 189 187 43 35 55
May-08 66 111 230 106 115 212 325 189 194 38 33 61
Jun-08 62 119 234 97 98 238 271 179 180 69 43 106
Jul-08 71 121 222 106 97 243 262 163 196 64 61 114
Aug-08 80 133 229 106 102 225 291 154 209 63 57 101
Sep-08 78 121 245 118 91 233 260 163 195 73 70 125
Oct-08 103 150 251 99 95 189 297 182 181 76 38 113
Nov-08 114 152 255 105 82 170 314 190 175 68 25 106
Dec-08 96 142 269 102 94 180 316 178 171 73 47 98
Jan-09 111 158 269 97 87 176 324 180 177 68 46 103
Feb-09 120 156 273 98 93 156 314 182 191 48 55 106
Mar-09 99 142 241 108 104 207 270 179 196 67 46 143
2008-09 29 36 95 70 104 613 111 99 162 103 90 382
Table 6-7c : 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
Members Members Members Members Members Members Members Members
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
Apr-08 17 26 33 43 22 37 48 61
May-08 16 25 32 42 21 35 45 59
Jun-08 17 26 33 43 18 32 42 55
Jul-08 18 26 33 43 17 30 40 54
Aug-08 17 26 32 42 18 31 42 56
Sep-08 16 25 31 41 20 33 42 56
Oct-08 16 23 30 41 21 34 44 56
Nov-08 17 25 31 42 22 34 43 56
Dec-08 17 25 32 42 23 35 44 57
Jan-09 16 24 31 41 21 32 41 55
Feb-09 16 24 31 42 21 32 41 55
Mar-09 15 23 30 41 23 34 42 55
2008-09 17 25 31 41 18 31 40 54
153
Table 6-8 : Top 20 Futures contracts according to number of contracts 2008-09
S. Name of the Contract Number of Turnover Percentage of
No. Contracts contracts to
(Rs.cr.) (US $ mn) Top 20
contracts
1 NIFTY JULY 2008 20,297,164 416,401.39 81,727.46 10.12
2 NIFTY OCTOBER 2008 19,769,423 336,376.23 66,020.85 9.86
3 NIFTY NOVEMBER 2008 18,387,751 260,656.14 51,159.20 9.17
4 NIFTY JANUARY 2009 16,821,763 241,115.92 47,324.03 8.39
5 NIFTY MARCH 2009 15,203,849 208,752.62 40,972.06 7.58
6 NIFTY DECEMBER 2008 15,002,383 214,939.19 42,186.30 7.48
7 NIFTY JUNE 2008 14,941,873 338,642.06 66,465.57 7.45
8 NIFTY SEPTEMBER 2008 14,779,152 313,961.67 61,621.53 7.37
9 NIFTY FEBRUARY 2009 13,407,466 188,124.83 36,923.42 6.69
10 NIFTY AUGUST 2008 12,456,987 275,209.78 54,015.66 6.21
11 NIFTY MAY 2008 10,859,698 274,042.71 53,786.60 5.42
12 NIFTY APRIL 2008 8,343,235 201,452.81 39,539.32 4.16
13 NIFTY APRIL 2009 4,497,650 67,051.76 13,160.31 2.24
14 RELIANCE JULY 2008 2,491,130 39,301.30 7,713.70 1.24
15 RELIANCE JANUARY 2009 2,487,318 22,633.26 4,442.25 1.24
16 RELIANCE OCTOBER 2008 2,345,192 27,622.72 5,421.53 1.17
17 RELIANCE NOVEMBER 2008 2,307,119 20,751.84 4,072.98 1.15
18 RELIANCE DECEMBER 2008 2,157,962 19,863.41 3,898.61 1.08
19 RELIANCE JUNE 2008 2,007,933 34,002.70 6,673.74 1.00
20 RELIANCE FEBRUARY 2009 1,937,277 18,908.86 3,711.26 0.97
TOTAL 200,502,325 3,519,811.20 690,836.35 100.00
Table 6-9 : Top 20 Option contracts according to no. of contracts traded 2008-09
S. Name of the Contract Number of Turnover Percentage
No. Contracts of contracts
(Rs.cr) (US $ mn) to Top 20
contracts
1 NIFTY March 2009 CE 2800 3,224,838 46,028.25 6.62
2 NIFTY February 2009 PE 2700 3,056,883 42,109.77 6.28
3 NIFTY February 2009 PE 2800 3,039,443 43,809.91 6.24
4 NIFTY March 2009 CE 2700 2,742,878 38,082.10 5.63
5 NIFTY December 2008 CE 3000 2,722,357 41,735.03 5.59
6 NIFTY January 2009 PE 2700 2,652,939 36,698.92 5.45
7 NIFTY January 2009 PE 2800 2,590,551 37,455.22 5.32
8 NIFTY February 2009 CE 2800 2,583,973 37,171.88 5.30
9 NIFTY March 2009 PE 2600 2,566,821 34,225.26 5.27
10 NIFTY March 2009 CE 2900 2,505,805 36,878.73 5.14
11 NIFTY March 2009 PE 2700 2,499,347 34,683.97 5.13
12 NIFTY February 2009 CE 2900 2,411,719 35,799.32 4.95
13 NIFTY March 2009 PE 2500 2,371,797 30,200.65 4.87
14 NIFTY January 2009 CE 2800 2,337,225 33,470.20 4.80
15 NIFTY November 2008 PE 2700 2,088,443 29,216.45 4.29
16 NIFTY January 2009 CE 3000 2,009,187 30,995.26 4.12
17 NIFTY March 2009 CE 3000 1,912,220 28,928.38 3.93
18 NIFTY January 2009 CE 2900 1,859,902 27,610.15 3.82
19 NIFTY July 2008 CE 4300 1,788,470 39,062.20 3.67
20 NIFTY December 2008 CE 2900 1,748,845 26,223.13 3.59
TOTAL 48,713,643 710,384.78 100.00
154
Table 6-10 : Number of trades in the Futures & Options Segment 2008-09
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
Apr-08 3,271,644 11,208,858 1,224,318 544,051 16,248,871
May-08 2,816,276 12,191,813 1,047,539 685,693 16,741,321
Jun-08 4,490,539 13,547,829 2,648,194 681,604 21,368,166
Jul-08 5,557,672 15,679,079 3,713,214 933,961 25,883,926
Aug-08 4,103,495 12,452,067 3,082,063 764,533 20,402,158
Sep-08 5,289,846 13,859,395 4,276,123 844,724 24,270,088
Oct-08 5,781,231 13,374,817 4,458,908 605,226 24,220,182
Nov-08 5,779,280 12,154,631 4,857,126 584,173 23,375,210
Dec-08 6,220,608 14,899,917 4,816,107 934,064 26,870,696
Jan-09 5,136,302 14,413,326 4,226,118 1,155,822 24,931,568
Feb-09 4,631,594 11,035,948 4,021,976 870,032 20,559,550
Mar-09 5,819,745 8,438,603 5,368,456 727,417 20,354,221
2008-09 58,898,232 153,256,283 43,740,142 9,331,300 265,225,957
155
Table 6-11 : Settlement Statistics in F&O Segment
Month/Year Index/Stock Futures Index/Stock Options Total
MTM Settle- Final Settle- Premium Exercise

ment ment Settlement Settlement
(Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (Rs.cr) (US $ mn)
2000-01 84.08 1.93 -- -- 86.01 18.44

2001-02 505.25 21.93 164.76 93.95 785.88 161.04
2002-03 1,737.90 45.76 331.21 195.88 2,310.76 486.47
2003-04 10,821.98 138.95 858.94 476.12 12,295.98 2833.83
2004-05 13,024.18 227.50 941.06 455.87 14,648.62 3348.25
2005-06 25,585.51 597.89 1,520.58 817.84 28,521.80 6393.59
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
Apr-08 5,391.50 66.71 785.96 164.02 6,408.19 1,257.74
May-08 5,601.50 203.64 603.59 190.78 6,599.51 1,295.29
Jun-08 9,182.80 137.30 1,126.00 341.86 10,787.96 2,117.36
Jul-08 11,070.00 59.52 1,015.90 208.83 12,354.25 2,424.78
Aug-08 4,844.80 129.30 742.07 145.52 5,861.69 1,150.48
Sep-08 7,120.40 225.92 921.39 178.64 8,446.35 1,657.77
Oct-08 9,409.20 54.34 1,384.10 1,418.90 12,266.54 2,407.56
Nov-08 5,782.10 45.97 785.52 160.42 6,774.01 1,329.54
Dec-08 4,300.70 151.65 770.55 581.94 5,804.84 1,139.32
Jan-09 4,476.70 58.28 936.39 154.79 5,626.16 1,104.25
Feb-09 3,247.10 65.42 800.53 134.22 4,247.27 833.62
Mar-09 4,766.80 300.24 1,088.50 507.66 6,663.20 1,307.79
2008-09 75,193.60 1,498.29 10,960.50 4,187.58 91,839.97 18,025.51
156
Currency Derivatives
Segment 7
158
Currency Derivatives Segment 7
The Reserve Bank of India in its Annual Policy Statement for the Year 2007-08
proposed to set up a Working Group on Currency Futures to study the international
experience and suggest a suitable framework to operationalise the proposal, in line with
the current legal and regulatory framework. This Group submitted its report in April,
2008. Following this, RBI and Securities and Exchange Board of India (SEBI) jointly
constituted a Standing Technical Committee to inter-alia evolve norms and oversee
implementation of Exchange Traded Currency Derivatives. The Committee submitted
its report on May 29, 2008. This report laid down the framework for the launch of
Exchange Traded Currency Futures in terms of the eligibility norms for existing and
new Exchanges and their Clearing Corporations/Houses, eligibility criteria for members
of such Exchanges/Clearing Corporations/Houses, product design, risk management
measures, surveillance mechanism and other related issues.
The Regulatory framework for currency futures trading in the country, as laid down
by the regulators, provide that persons resident in India are permitted to participate in
the currency futures market in India subject to directions contained in the Currency
Futures (Reserve Bank) Directions, 2008, which have come into force with effect from
August 6, 2008.
The membership of the currency futures market of a recognised stock exchange has
been mandated to be separate from the membership of the equity derivative segment or
the cash segment. Banks authorized by the Reserve Bank of India under section 10 of the
Foreign Exchange Management Act, 1999 as ‘AD Category - I bank’ are permitted to
become trading and clearing members of the currency futures market of the recognized
stock exchanges, on their own account and on behalf of their clients, subject to fulfilling
certain minimum prudential requirements pertaining to net worth, non-performing
assets etc.
NSE was the first exchange to have received an in-principle approval from SEBI for
setting up currency derivative segment. National Stock Exchange was the first exchange
to launch Currency futures trading in India. The Currency Derivatives segment at NSE
commenced operations on August 29, 2008 with the launch of currency futures trading
in US Dollar-India Rupee (USD-INR).
Trading Mechanism
The Currency Derivatives trading system of NSE, called NEAT-CDS (National
Exchange for Automated Trading – Currency Derivatives Segment) trading system,
provides a fully automated screen-based trading for currency futures on a nationwide
basis as well as an online monitoring and surveillance mechanism.
The NEAT-CDS system supports an order driven market, wherein orders match
automatically. Order matching is essentially on the basis of security, its price and time.
All quantity fields are in contracts and price in Indian rupees. The exchange notifies the
159
contract size and tick size for each of the contracts traded on this segment from time
to time. When any order enters the trading system, it is an active order. It tries to find
a match on the opposite side of the book. If it finds a match, a trade is generated. If it
does not find a match, the order becomes passive and sits in the respective order book
in the system.
Contract Specifications for Currency Futures
NSE trades Currency Derivatives contracts having near 12 calendar month expiry cycles.
All contracts expire two working days prior to the last working day of every calendar
month (subject to holiday calendars). This is also the last trading day for the expiring
contract. The contract would cease to trade at 12:00 noon on the last trading day. A new
contract with 12th month expiry would be introduced immediately ensuring availability
of 12 monthly contracts for trading at any point.
The Instrument type: FUTCUR refers to 'Futures contract on currency' and Contract
symbol: USDINR denotes a currency pair of 'US Dollars – Indian Rupee'. Each futures
contract has a separate limit order book. All passive orders are stacked in the system in
terms of price-time priority and trades take place at the passive order price (order which
has come earlier and residing in the system). The best buy order for a given futures
contract will be the order to buy at the highest price whereas the best sell order will be
the order to sell at the lowest price.
The contract specification for US Dollars – Indian Rupee (USDINR) Currency

Futures is summarized in the table below.
Symbol USDINR
Market Type Normal
Instrument Type FUTCUR
Unit of trading Lots (Minimum 1 Lot)
Lot Size 1 Lot is equal to USD 1000
Underlying The exchange rate in Indian Rupees for US Dollars
Tick size 0.25 paise or INR 0.0025
Trading hours Monday to Friday
9:00 a.m. to 5:00 p.m.
Contract trading cycle 12 month trading cycle.
Last trading day Two working days prior to the last business day of the expiry month.upto
12 Noon
Final settlement day Last working day (excluding Saturdays) of the expiry month.
The last working day will be the same as that for Interbank Settlements in
Mumbai.
Quantity Freeze 10,001 or greater
Base price Theoretical price on the 1st day of the contract.
On all other days, Daily Settlement Price (DSP) of the contract
Contd...
160
Contd...
Symbol USDINR
Operating Price range Tenure upto 6 Tenure greater than 6 months
months
+/-3 % of base price +/- 5% of base price
Position limits Clients Trading Members Banks
higher of 6% of total higher of 15% of the total open higher of 15% of the
open interest or USD interest or USD 50 million total open interest
10 million or USD 100 million
Initial margin SPAN® Based Margin
Extreme loss margin 1% of MTM value of open position.
Calendar spreads Rs. 250/- per contract for all months of spread
Settlement Daily settlement : T + 1
Final settlement : T + 2
Mode of settlement Cash settled in Indian Rupees
Daily settlement price Calculated on the basis of the last half an hour weighted average price.
(DSP)
Final settlement price RBI reference rate
(FSP)
TURNOVER
Trading in Currency Futures segment commenced on August 29, 2008. On the very first
day of operations a total number of 65,798 contracts valued at Rs.291 crore were traded
on the Exchange. Since then trading activity in this segment has been witnessing a rapid
growth. The total traded volume from August 2008 till March 2009 was Rs.162,272
crore (US $ 31,849 million). Total number of contracts traded during the August 2008
to March 2009 were 32,672,768. The business growth of Currency Futures Segment is
shown in Table 7-1 and Chart 7-1.
Chart 7-1 : Business Growth of Currency Futures
SPAN® is a registered trademark of the Chicago Mercantile Exchange (CME) used here under licence.
161
Traded Value Records
Trading Volumes in the CDS Segment during 2008-09 reached a high of Rs.3,911.39
crore (US $ 767.69 million) on March 20, 2009. The following table shows the record
highs in the Currency Derivatives segment.
CDS Segment Date Number/Value
Record Number of Trades March 20, 2009 25,702
Record No. of Contracts Traded March 20, 2009 775,933
Record Daily Turnover (value in Rs. crores) March 20, 2009 Rs.3911.39
Top 5 Currency Futures Contracts
During 2008-09, top 5 Currency Futures contracts in terms of contracts traded and
trading value are presented in the table below.
Top 5 Currency Futures contracts according to number of contracts 2008-09

S. Name of the Number of Turnover Percentage of
No. Contract Contracts contracts to Top
(Rs.cr.) (US $ mn)
5 contracts
1 27-Mar-09 9,222,657 47116.17 9,247.53 34.88
2 25-Feb-09 5,783,369 28455.59 5,585.00 21.06
3 28-Jan-09 4,883,849 23867.90 4,684.57 17.67
4 29-Dec-08 4,294,228 21048.27 4,131.16 15.58
5 26-Nov-08 2,962,925 14605.98 2,866.73 10.81
Total 27,147,028 135,094 26,514.99 100.00
CHARGES
Brokerage Charges
The maximum brokerage chargeable by a trading member in relation to trades effected

in the contracts admitted to dealing on the Currency Derivatives segment of NSE is
fixed at 2.5% of the contract value.
Transaction Charges
The transaction charges payable to the exchange by the trading member for the trades
executed by him on the Currency Derivatives segment would be as prescribed by
the Exchange from time to time. In order to encourage active participation in the
Currency Derivatives Segment, the Exchange has waived the transaction charges till
June 30, 2009.
Contribution to Investor Protection Fund
The trading members are required to make a lumpsum contribution of Rs.500/- to

Investor Protection Fund of Currency Derivatives segment.
162
CLEARING AND SETTLEMENT
NSCCL undertakes clearing and settlement of all trades executed on the Currency
Derivatives Segment (CDS) 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 Entities
Clearing and settlement activities in the Currency Derivatives segment are undertaken
by NSCCL with the help of the following entities:
Clearing members
In the Currency Derivatives segment, trading member-cum-clearing member, clear and

settle their own trades as well as trades of other trading members (TMs). Besides, there
is a special category of members, called professional clearing members (PCM) who clear
and settle trades executed by TMs. The members clearing their own trades and trades of
others, and the PCMs are required to bring in additional security deposits in respect of
every TM whose trades they undertake to clear and settle.
Clearing banks
Funds settlement takes place through clearing banks. For the purpose of settlement all
clearing members are required to open a separate bank account with NSCCL designated
clearing bank for Currency Derivatives segment. The Clearing and Settlement process
comprises of the following three main activities:
1) Clearing
2) Settlement
3) Risk Management
Clearing Mechanism
The clearing mechanism essentially involves working out open positions and obligations
of clearing (trading-cum-clearing/professional clearing) members. This position is
considered for exposure and daily margin purposes. The open positions of Clearing
Members (CMs) are arrived at by aggregating the open positions of all the TMs and all
custodial participants clearing through him, in contracts in which they have traded. A
TM's open position is arrived at as the summation of his proprietary open position and
clients' open positions, in the contracts in which he has traded. While entering orders
on the trading system, TMs are required to identify the orders, whether proprietary (if
they are their own trades) or client (if entered on behalf of clients) through 'Pro/Cli'
indicator provided in the order entry screen. Proprietary positions are calculated on net
basis (buy - sell) for each contract. Clients' positions are arrived at by summing together
net (buy - sell) 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.
163
Settlement Mechanism
All futures contracts are cash settled, i.e. through exchange of cash in Indian Rupees.
The settlement amount for a CM is netted across all their TMs/clients, with respect to
their obligations on MTM settlement. Currency 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.
• Mark to Market settlement (MTM Settlement):
All futures contracts for each member are marked-to-market (MTM) to the daily
settlement price of the relevant futures contract at the end of each day. The profits/
losses are computed as the difference between:
1. The trade price and the day's settlement price for contracts executed during
the day but not squared up.
2. The previous day's settlement price and the current day's settlement price for
brought forward contracts.
3. The buy price and the sell price for contracts executed during the day and
squared up.
The CMs who have a loss are required to pay the mark-to-market (MTM)
loss amount in cash which is in turn is 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. In case a futures contract is not traded on a
day, or not traded during the last half hour, a ‘theoretical settlement price’
is computed. 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 last trading 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 T+2 working day following last
trading day of the contract (Contract expiry Day).
• 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
164
as the last half an hour weighted average price of the contract in the Currency
Derivatives Segment of NSE. The final settlement price is the RBI reference rate
on the last trading day of the futures contract. All open positions shall be marked
to market on the final settlement price. Such marked to market profit / loss shall
be paid to / received from clearing members.
During August 2008- March 2009, cash settlement for currency futures amounted to
Rs.367.37 crore (US $ 72.10 million). The details of settlement statistics for currency
futures is presented in Table 7-2.
Risk Management
NSCCL has developed a comprehensive risk containment mechanism for the Currency
Derivatives segment. The salient features of risk containment mechanism on the
Currency Derivatives segment are:
1. 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 been explained in the table
2-1 D of Chapter 2. Clearing member pays Rs. 10 lakhs for clearing every trading
member’s trades in cash & non-cash form.
2. 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
contract on a daily basis. It also follows a value at risk (VaR) based margining
through SPAN®. The CM in turn collects the initial margin from the TMs and
their respective clients.
3. 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.
4. NSCCL's on-line position monitoring system monitors the member open positions
and margins on a real-time basis vis-à-vis the deposits provided by the CM/ limits
set for the TM by the CM. The on-line position monitoring system generates alerts
whenever the margins of a member reaches X% of the capital deposited by the CM
or limits set for the TM by the CM. NSCCL monitors the CMs for initial margin
and extreme loss margin violations, while TMs are monitored for initial margin
violation.
5. 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
165
intra-day limits set up by a CM and whenever a TM exceed the limits, it stops that
particular TM from further trading.
6. A member is alerted of his position to enable him to adjust his position or bring in
additional capital. Margin violations result in withdrawal of trading facility for all
TMs of a CM in case of a violation by the CM.
7. A separate Settlement Guarantee Fund for this segment has been created out of the
capital of members.
The most critical component of risk containment mechanism for the Currency
Derivatives 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). PRISM uses SPAN® (Standard Portfolio Analysis of
Risk) system for the purpose of computation of on-line margins, based on the parameters
defined by SEBI.
Margining System
NSCCL has developed a comprehensive risk containment mechanism for the Currency
Derivatives segment. The most critical component of a risk containment mechanism
is the online position monitoring and margining system. The actual margining is done
on-line, on an intra-day basis using PRISM (Parallel Risk Management System) which is
the real-time position monitoring and risk management system. The risk of each trading
and clearing member is monitored on a real-time basis and alerts/disablement messages
are generated if the member crosses the set limits. NSCCL uses the SPAN® (Standard
Portfolio Analysis of Risk) system, a portfolio based margining system, for the purpose
of calculating initial margins.
Types of margins
The margining system for Currency Derivatives segment is explained below:
a) Initial margin: Margin in the Currency Derivatives 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 NSCCL- 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.
b) Extreme loss margin of 1% on the value of the gross open positions shall be
adjusted from the liquid assets of the clearing member on an on line, real time
basis.
166
c) 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 Limit for Currency Futures:
Client Level Position Limit
The client level position limit shall be applicable where the gross open position of the
client across all contracts exceeds 6% of the total open interest or 10 million USD,
whichever is higher.
Trading Member Level Position Limit:

The trading member position limit shall be higher of 15% of the total open interest or
50 million USD. However, the position limit for a Trading Member, which is a bank,
shall be higher of 15% of the total open interest or 100 million USD.
Clearing Member Position Limit:
No separate position limit is prescribed at the level of clearing member. However, the
clearing member should ensure that his own trading position and the position of each
trading member clearing through him are within the limits specified above.
167
Table 7-1: Business Growth Of Currency Futures
Month/ Year Open Interest
No. of Trading Trading No. of Trading Trading

Contracts Value Value Contracts Value Value
Traded (Rs. Cr.) (US $ mn) traded (Rs.Cr.) (US $ mn)
Sep-08* 1,258,099 5,763 1,131 90,871 428 84
Oct-08 2,275,261 11,142 2,187 170,202 851 167
Nov-08 3,233,679 15,969 3,134 146,262 737 145
Dec-08 4,681,593 22,840 4,483 177,520 867 170
Jan-09 4,900,904 23,980 4,707 254,797 1,247 245
Feb-09 6,416,059 31,761 6,234 315,317 1,612 316
Mar-09 9,907,173 50,817 9,974 257,554 1,313 258

Aug 08-Mar09 32,672,768 162,272 31,849 257,554 1,313 258
* Includes turnover details for August 29, 2008-the first day of trading for Currency Futures at NSE
Table 7-2 Settlement Statistics In Currency Futures Segment

(in Rs.Cr.)
Month/Year Currency Futures
MTM Settlement Final Settlement
Aug-08 0.22
Sep-08 22.86 0.77
Oct-08 52.33 0.04
Nov-08 58.56 0.95
Dec-08 58.00 1.14
Jan-09 33.76 0.31

Feb-09 59.89 0.54
Mar-09 76.19 1.82
Aug ‘08-Mar ‘09 361.80 5.57
168
Investor Services,
Arbitration 8
170
Investor Services, Arbitration 8
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 Services
NSE has put in place a system for redressal of investor grievances for matters/issues
related to/against trading members/companies. The Investor Services 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 8-1.
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
171
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
2009 is presented in Table 8-2.
172
Table 8-1 : 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
2008-09 967 5,191 5,020 1,138 309 734 983 60
Table 8-2 : 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
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
Contd...
173
Contd...
Year No. of Cases Withdrawn Awards Pending
Received
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 9 266 0
2007 F&O 221 3 218 0
2008 CM upto
61 1 60 0
March 2008
2008 F&O upto
116 1 115 0
March 2008
2008-09 CM 758 21 283 454
2008-09 F&O 2433 98 1356 979
Total 5,890 202 4,254 1,434
174
Knowledge Initiative 9
176
Knowledge Initiative 9
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 (NCFM)

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.
NCFM, has become extremely popular and is sought by the candidates as well as
employers due to its unique on-line testing and certification programme. It offers all
the certifications mandated by SEBI, NSDL, AMFI, FIMMDA and NSE itself. NCFM
offers a comprehensive range of modules covering many different areas in finance (Table
8-1). 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.
The number of centers from where the NCFM tests are conducted has increased in the
recent past. Currently the NCFM tests are conducted from around 100 centers across
the country.
Launch of New NCFM Modules

On January 7, 2009, “Mutual Funds : A Beginners’ Module’ was launched under NCFM
with a view to educate and create awareness about the role and function of mutual
funds, the different mutual fund products being offered in the markets, risk profile of
different products, the advantages of investing in mutual funds. This module is useful
for first time investors in mutual funds, young students and anyone wanting to know
about the basics of mutual funds.
On February 2, 2009 “Options Trading Strategies Module” was launched under NCFM
with a view to impart knowledge on the Options trading strategies so that investors
can manage their risks better and use these strategies to enhance their income potential
under different market conditions. This module has been introduced to explain some of
177
the important and basic Options strategies. There are 22 Options strategies covered in
this module and the tests are based on these 22 strategies.
NCFM Tests conducted in regional languages

All the NCFM modules were initially 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. In addition to this, the Capital
Market (Dealers) module test in Gujarati and Hindi languages was introduced on
February 19, 2009.
CBSE – NSE joint certification in Financial markets

CBSE and NSE introduced a joint certification in Financial Markets for std. XI and
XII. The course, titled “Financial Markets Management” had been introduced by CBSE
during 2007-2008. This was the first such exercise to introduce financial literacy in
schools. The new course comprises of various subjects, such as Languages, Economics,
Business Studies, Accounting for Business etc. Besides these, two financial market
related subjects, “Introduction to Financial Markets – I” and “Introduction to Financial
Markets – II” are taught in Std. XI and XII respectively. Students opting for the course are
required to take the NCFM on-line tests in “Financial Markets : A Beginners Module” in
Std. XI and both “Capital Markets (Dealers) Module and Derivatives Markets (Dealers)
Module”, in Std. XII.
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. The completed research papers and the paper under progress are
provided on the NSE website www.nseindia.com.
Investor Awareness and Education Programmes

NSE has been carrying out investor awareness seminars on a regular basis in various parts
of the country. During the seminars, the investors are educated about their rights and
obligations, new financial products, investment avenues and certification programmes.
Various informative booklets and material are also distributed at the seminars. Besides
covering the investors, the Exchange also reaches out to a larger number of persons across
the country as a part of a Financial Literacy campaign. The purpose is to educate the
masses about investing, various investment avenues, benefits of investing in equities and
178
upgrade the financial literacy and awareness among the masses. The higher secondary
schools and colleges is also one of the focus areas in this exercise since an early education
on investing helps the individual to take proper decision while investing in future.
Further, this also helps in increasing the overall equity investor base in the country over
a period of time with more people being acquainted with the benefits of investing in the
equity markets. During 2008-09, there were 606 investor awareness and education
programmes conducted by NSE.
National Institute of Securities Market (NISM)

Pursuant to the announcement made by the Finance Minister in his Budget Speech in
February 2005, Securities and Exchange Board of India (SEBI) established the National
Institute of Securities Markets (NISM) in Mumbai. SEBI, by establishing NISM, has
articulated the desire expressed by the Indian government to promote securities market
education and research.
Towards accomplishing the desire of Government of India and vision of SEBI, NISM
has launched an effort to deliver financial and securities education at various levels and
across various segments in India and abroad. To implement its objectives, NISM has
established six distinct schools to cater the educational needs of various constituencies
such as investor, issuers, intermediaries, regulatory staff, policy makers, academia and
future professionals of securities markets.
NISM seeks to add to market quality through educational initiatives. It is an autonomous

body governed by its Board of Governors. An international Advisory Council provides
strategic guidance to NISM. NISM brings out various publications on securities markets
with a view to enhance knowledge levels of participants in the securities industry. NISM
is mandated to develop and implement certification examinations for professionals
employed in various segments of the Indian securities markets.
Launch of Currency Derivatives

Certification Examination by NISM
NISM has launched the Currency Derivatives Certification Examination to create a
common minimum knowledge benchmark for persons working in the Currency
Derivatives market segment, in order to enable a better understanding of currency
markets and exchange traded currency future products, better quality investor service,
operational process efficiency and risk controls. As per SEBI requirement, all approved
users and sales personnel of trading members of currency derivatives segments of
recognised stock exchanges are required to obtain the necessary certification by August
10, 2009. NISM has appointed NSE as one of the test administrators for conducting
Currency Derivatives Certification Examination.
179
Table 9-1 : NCFM Modules
Sr. Name of Module Fees (Rs.) Test No. of Maxi- Pass Certifi-
No. Duration Ques- mum Marks cate
(in tions Marks (%) Validity
minutes) (in years)
1 Financial Markets: A Beginners’ 750 60 50 100 50 5
Module
2 Mutual Funds : A Beginners’ 750 60 50 100 50 5
Module
3 Securities Market (Basic) Module 1500 105 60 100 60 5
4 Capital Market (Dealers) Module * 1500 105 60 100 50 5
5 Derivatives Market (Dealers) 1500 120 60 100 60 3
Module **
6 FIMMDA-NSE Debt Market 1500 120 60 100 60 5
(Basic) Module
7 NSDL–Depository Operations 1500 75 60 100 60 # 5
Module
8 Commodities Market Module 1800 120 60 100 50 3
9 AMFI-Mutual Fund (Basic) 1000 90 62 100 50 No limit
Module
10 AMFI-Mutual Fund (Advisors) 1000 120 72 100 50 5
Module
11 Surveillance in Stock Exchanges 1500 120 50 100 60 5
Module
12 Corporate Governance Module 1500 90 100 100 60 5
13 Compliance Officers (Brokers) 1500 120 60 100 60 5
Module
14 Compliance Officers (Corporates) 1500 120 60 100 60 5
Module
Information Security Auditors 2250 120 90 100 60
Module (Part-1)
15 2
Information Security Auditors 2250 120 90 100 60
Module (Part-2)
16 FPSB India Exam 1 to 4*** 1500 per 120 75 140 60 NA
exam
17 Options Trading Strategies 1500 120 60 100 60 5
Module
* Candidates have the option to take the CMDM test in English, Gujarati or Hindi language. The workbook for
the module is presently available in ENGLISH.
** Candidates have the option to take the DMDM test in English, Gujarati or Hindi language. The workbook for
the module is also available in ENGLISH, GUJARATI and HINDI languages.
# Candidates securing 80% or more marks in NSDL-Depository Operations Module ONLY will be certified as
‘Trainers’.
*** Modules of Financial Planning Standards Board India (Certified Financial Planner Certification) i.e. (i) Risk
Analysis & Insurance Planning (ii) Retirement Planning & Employee Benefits (iii) Investment Planning and (iv)
Tax Planning & Estate Planning. The fees for FPSB Modules 1-4 are Rs. 2000/- per exam from test date April 1,
2009 onwards.
NISM Series I Certification Modules
Sr. Name of Module Fees (Rs.) Test Du- No. of Maxi- Pass Cer-
No. ration (in Ques- mum Marks* tificate #
minutes) tions Marks (%) Validity
(in years)
1 NISM-Series-I: Currency Deriva- 1000 120 60 100 60 3
tives Certification Examination
* Negative marking – 25% of the marks assigned to the question
# Passing Certificate will be issued only to those candidates who have furnished/ updated their Income Tax
Permanent Account Number (PAN) in their registration details.
180
Table 9-2 : Studies under the NSE Research Initiative
SL. Title of Study

No.
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
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
Contd...
181
Contd...
SL. Title of Study

No.
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.
47 Pricing of Options on Defty
48 Price Limits Are they Worth the Price?
49 Volatility Persistence and the Feedback trading Hypothesis: Evidence from Indian Markets
50 Dynamic Interaction among Mutual Fund Flows, Stock Market Return and Volatility
51 Correlation Dynamics in Equity Markets: Evidence from India
52 Price Discovery and Arbitrage Efficiency of Indian Equity Futures and Cash Markets
Papers under Progress
1 Do Hetrogeneous beliefs affects trading volume and asset prices.
2 Imbalance created because of structured products in India equity market
3 Forecasting Of Indian Stock Market Index Using Artificial Neural Network
4 Global Stock Futures : A Diagnostic Analysis Of a Selected Emerging And Developed Markets
With Special Reference To India
5 Price Behaviour around Block Trades on the National Stock Exchange of India.
6 Does the Stock Market Overreact? An empirical evidence of the Contrarian Returns from the
Indian Markets
7 Dynamic Relationship between Stock Return, Trading Volume and Volatility:Evidence from
Indian Stock Market
8 Stock Market Seasonality: A Study of the Indian Stock Market
9 Determinants and the Stability of Dividends in India:Application of Dynamic Partial
Adjustment Equation using Extended Instrumental Variable Approach
10 Optimal Investment Horizons for S&P CNX Nifty and its Components
11 Forecasting Volatility using High Frequency Data
12 Examining Association between S&P CNX Nifty and selected Asian and US Stock Markets
182

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Fact Book

NATIONAL STOCK EXCHANGE OF INDIA LIMITED

SECTION 1- NATIONAL STOCK EXCHANGE OF INDIA

Shareholding Pattern ........................................................................................36

Close out Facility .............................................................................................68

NSE-SPAN® .................................................................................................. 132

Incorporation and Management

Market Segments and Products

Currency Derivatives Segment (CDS) at NSE commenced operations on August 29,

Segment/Year 2005-06 2006-07 2007-08 2008-09

CM 1,569,558 1,945,287 3,551,038 2,752,023

F&O 4,824,250 7,356,271 13,090,478 11,010,482

WDM 475,523 219,106 282,317 335,952

Total 6,869,332 9,520,664 16,923,833 14,260,729

Market Segments Indicators- Trading Volume

Market Capitalisation (As at end March)

NSEs Worldwide Ranking in 2008 (Jan-Dec)

NSEs Worldwide Ranking for the period Jan-April 2009

April 2008 Launch of India VIX*

April 2008 Launch of Securities Lending & Borrowing Scheme

April 2008 Direct Market Access

July 2008 NOW ‘Neat on Web’

August 2008 Launch of Currency Futures

September 2008 ASBA – Application supported by blocked amount

ASBA is an application for subscribing to an issue, containing an authorisation to block

February 2009 Cross Margining Benefit

March 2009 NSE e-bids

FACTS AND FIGURES

Facts & Figures upto March 31, 2009

Sr. Parameter Date Magnitude

Sr. Parameter Date Magnitude

In the front office, there are 6 applications:

(v) NEAT – MF system is an interface with the trading members of the CM

(vi) NEAT- CD system is trading system for currency derivatives. Currently,

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

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

NSE Infotech Services Ltd

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

DOTEX INTERNATIONAL LTD.

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

1 Mr. S. B. Mathur Chairman

2 Mr. Ravi Narain Managing Director

3 Ms. Chitra Ramkrishna Deputy Managing Director

4 Mr. C. Achuthan Director

5 Mr. Anjan Barua Director

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

7 Mr. A. P. Kurian Director

8 Dr. Rajiv B. Lall Director

11 Mr. Y. H. Malegam Director

14 Ms. Bhagyam Ramani Director

15 Dr. V. A. Sastry Director

16 Mr. Onkar Nath Singh Director

18 Mr. T. S. Vijayan Director

* As on May 19, 2009

I CM & WDM SEGMENTS

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

Currency Derivatives Membership

Growth and Distribution of Members

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

Interest Free Security

Annual Subscription 2.5 Nil 2.5

Interest Free Security Deposit

Advance Minimum Transaction