Fact Book

2008

NATIONAL STOCK EXCHANGE OF INDIA LIMITED
June 2008

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SECTION 1 – NATIONAL STOCK EXCHANGE OF INDIA
Genesis ......................................................................................................... 3
Ownership And Management ..................................................................... 3
Market Segments And Products .................................................................. 3
Achievements / Milestones.......................................................................... 6
Facts And Figures ...................................................................................... 11
Technology ................................................................................................ 11
Application Systems .................................................................................. 12
NSE Family ............................................................................................... 14
NSCCL .............................................................................................. 14
NSDL ................................................................................................. 15
NSE Infotech Services Ltd.................................................................... 15
NSE.IT ............................................................................................... 15
IISL .................................................................................................... 16
NCDEX ............................................................................................. 16
NCCL ................................................................................................ 16
PXI..................................................................................................... 16
SECTION 2 – MEMBERSHIP ADMINISTRATION
Eligibility Criteria...................................................................................... 21
Trading Membership ................................................................................. 21
Clearing Membership ................................................................................ 22
Growth And Distribution Of Members .................................................... 22
Transaction Charges .................................................................................. 23
SECTION 3 – LISTING OF SECURITIES
Benefits Of Listing On NSE ...................................................................... 31
Listing Criteria........................................................................................... 32
Listing Agreement ..................................................................................... 32
Compliance By Listed Companies............................................................. 32
Disclosures By Listed Companies .............................................................. 32
De-Listing .................................................................................................. 33
CM Segment .............................................................................................. 34
Listing Fees ................................................................................................ 34

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

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

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

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TABLES
SECTION 1
1-1

Board of Directors ............................................................ 17

1-2

Executive Committees...................................................... 18
SECTION 2

2-1 (a)

Eligibility Criteria for Membership ................................. 24

2-1 (b)

Requirements for Professional Clearing
Membership ...................................................................... 25

2-2

Growth and Distribution of Members ............................. 25
SECTION 3

3-1

Listing Criteria for Companies on CM
Segment of NSE ............................................................... 38

3-2

Companies Listed/ Permitted to Trade/Available
for Trading on the CM Segment ...................................... 40

3-3

Share holding Pattern at the end of March 2008 of
Companies Listed on NSE .............................................. 43

3-4

Eligibility Criteria for Securities on WDM Segment ....... 44

3-5

Securities Available for Trading on WDM Segment
(as on March 31) ............................................................... 45

3-6

Initial Public Offerings (IPOs) during 2007-08 ................. 46

3-7

FPOs during 2007-08 ........................................................ 50

3-8

Rights Issues during 2007-08 ............................................. 50

3-9

Preferential Allotments by NSE Listed Companies
during 2007-08 .................................................................. 51

3-10

Amount raised through QIP during 2007-08 ................... 56
SECTION 4

4-1

Business Growth of CM Segment .................................... 72

4-2

Percentage Share of Top ‘N’ Securities /Members
in Turnover ...................................................................... 75

4-3

‘50’ Most Active Securities during 2007-08 in
Terms of Trading Value ................................................... 76

4-4

Top ‘50’ Companies by Market Capitalisation
as on March 31, 2008 ........................................................ 78

4-5

Industry Wise Classification of Top ‘50’ Companies
by Trading Volume and Market Capitalisation ............... 80

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4-6

NSE’s Most Active Trading days during
the year 2007-08 ................................................................ 81

4-7

Individual Securities Single day Trading Records ............ 81

4-8

FII turnover on derivative Market
Segment of Exchange ........................................................ 81

4-9

Market Capitalisation of Securities in the
CM Segment ..................................................................... 82

4-10

Composition of S&P CNX Nifty Index as on
March 31, 2008 ................................................................. 84

4-11

Composition of CNX NIFTY Junior Index as on March 31, 2008 ........................................................ 85

4-12

Industry-wise Weightages of S&P CNX NIFTY
Securities as on 31st March, 2008 ..................................... 87

4-13

S&P CNX NIFTY Index ................................................. 87

4-14

CNX NIFTY Junior Index .............................................. 90

4-15

Performance of NSE Indices during
the year 2007-08 ................................................................ 93

4-16

Details of Mutual Funds and Exchange Traded
Funds Listed on NSE ....................................................... 93
(a)

List of Mutual Funds (MF’s) and Exchange Traded
Funds (ETF’s) ................................................................... 93

(b)

No of Trades and Trading Value ...................................... 94

4-17

Settlement Cycle and Process in CM Segment
& Settlement Process ........................................................ 94

4-18

Settlement Statistics in CM Segment ................................ 96
SECTION 5

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5-1

Business Growth of WDM Segment ...............................111

5-2

WDM Transactions in Government Securities ...............116

5-3

Security-wise and Participant –wise Distribution
of WDM Trades ..............................................................119

5-4

Share of Top ‘N’ Securities/Trading Members/
Participants in Turnover in WDM Segment ...................122

5-5

Market Capitalisation of WDM Securities ......................123

5-6

FIMMDA NSE-MIBID/MIBOR Rates...........................128

5-7

1 day Value-at-Risk (99%) for Government of India
Securities Traded as on March 31, 2008...........................131

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SECTION 6
6-1

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

6-2

Contract Specification for Index
Futures and Options........................................................163

6-3

Contract Specification for Stock
Futures and Options........................................................166

6-4

Business Growth of Futures & Options
Market Segment...............................................................167

6-5

Sector-wise Trading Value of Top 5 companies
in the F&O Segment (2007-08) ........................................172

6-6

Participant wise Trading Value in the
F&O Segment (2007-08) ..................................................174

6-7

FII Gross turnover on derivative Market
Segment of Exchange .......................................................175

6-8 (a)

Number of Members in different turnover
brackets during 2007-08 ...................................................176

(b)

No. of members in different Turnover Brackets in
Futures and Options Segment for 2007-08 .....................177

(c)

Segment wise Contribution of Top ‘N’ Members to
turnover on Futures and Options segment .....................176

6-9

Top 20 Futures contracts according to number
of contracts 2007-08 .........................................................178

6-10

Top 20 Option contracts according to no. of
contracts traded 2007-08 .................................................179

6-11

Number of trades in the Futures & Options
Segment 2007-08 ..............................................................179

6-12

Settlement Statistics in F&O Segment ............................180
SECTION 7

7-1

Receipt and Disposal of Investor Grievance....................187

7-2

Status Report of Arbitration Matters ..............................187
SECTION 8

8-1

NCFM Modules ..............................................................194

8-2

Studies under the NSE Research Initiative ......................195

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CHARTS
SECTION 1
1-1

Market Segment Indications - Trading Volume ................. 5

1-2

Market Segment Indicators - Market Capitalisation........... 6
SECTION 3

3-1

No. of Companies Listed ................................................. 37
SECTION 4

4-1

Business Growth of Capital Market Segment .................. 75

4-2

Movement of Sectoral Indices : 2007-08 ........................... 92
SECTION 5

5-1

Business Growth of WDM Segment ...............................104

5-2 (a)

Security-wise Distribution of WDM Trades (2007-08) ....105

(b)

Participant-wise distribution of
WDM trades (2007-08) .....................................................105

5-3

Overnight MIBID/MIBOR Rates, 2006-07 from 3 April 2007 to 31st March 2008 ............................108

5-4

Zero Coupon Yield Curve, 2007-08 ................................109
SECTION 6

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6-1

Business Growth of F&O Segment .................................140

6-2

Product wise Number of Contracts
Traded during 2007-08 .....................................................141

6-3

Product wise trading volumes during 2007-08.................142

6-4

Participant wise F&O Turnover during 2007-08 ............144

National Stock Exchange
of India

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National Stock Exchange of India

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Genesis
NSE was given recognition as a stock exchange in April 1993 and started operations in
June 1994, with trading on the Wholesale Debt Market Segment. Subsequently, it launched
the Capital Market Segment in November 1994 as a trading platform for Equities and the
Futures and Options segment in June 2000 for various derivative instruments.

Ownership and Management
The NSE is owned by a set of leading financial institutions, banks, insurance companies
and other financial intermediaries. It is managed by professionals, who do not directly
or indirectly trade on the Exchange. The trading rights are with trading members who
offer their services to the investors. The Board of NSE comprises of senior executives
from promoter institutions and eminent professionals, without having any representation
from trading members.
While the Board deals with the broad policy issues, the Executive Committees (ECs),
which include trading members, formed under the Articles of Association and the
Rules of NSE for different market segments, set out rules and parameters to manage the
day-to-day affairs of the Exchange. The day-to-day management of the Exchange is
delegated to the Managing Director and CEO who is supported by a team of professional
staff. Therefore, though the role of trading members at NSE is to the extent of providing
only trading services to the investors, the Exchange involves trading members in the
process of consultation and participation in vital inputs towards decision making.
Tables 1-1 and 1-2 gives the composition of its Board of Directors and the Executive
Committees.

Market Segments and Products
NSE provides a trading platform for of all types of securities for investors under
one roof – Equity, Corporate Debt, Central and State Government Securities,
T-Bills, Commercial Paper (CPs), Certificate of Deposits (CDs), Warrants, Mutual
Funds (MFs) units, Exchange Traded Funds (ETFs), Derivatives like Index Futures,
Index Options, Stock Futures, Stock Options. The Exchange provides trading in
3 different segments viz., Wholesale Debt Market (WDM) segment, Capital Market (CM)
segment and the Futures & Options (F&O) segment
The Wholesale Debt Market segment provides the trading platform for trading of a wide
range of debt securities which includes State and Central Government securities, T-Bills,
PSU Bonds, Corporate debentures, CPs, CDs etc. However, along with these financial
instruments, NSE has also launched various products e.g. FIMMDA-NSE MIBID/MIBOR

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owing to the market need. A reference rate is said to be an accurate measure of the market
price. In the fixed income market, it is the interest rate that the market respects and
closely matches. In response to this, NSE started computing and disseminating the NSE
Mumbai Inter-bank Bid Rate (MIBID) and NSE Mumbai Inter-Bank Offer Rate (MIBOR).
Owing to the robust methodology of computation of these rates and its extensive use,
this product has become very popular among the market participants. Keeping in mind
the requirements of the banking industry, FIs, MFs, insurance companies, who have
substantial investments in sovereign papers, NSE also started the dissemination of its
yet another product, the ‘Zero Coupon Yield Curve’. This helps in valuation of sovereign
securities across all maturities irrespective of its liquidity in the market. The increased
activity in the government securities market in India and simultaneous emergence of
MFs (Gilt MFs) had given rise to the need for a well defined bond index to measure
the returns in the bond market. NSE constructed such an index the, ‘NSE Government
Securities Index’. This index provides a benchmark for portfolio management by various
investment managers and gilt funds.
The Capital Market segment offers a fully automated screen based trading system, known
as the National Exchange for Automated Trading (NEAT) system. This operates on a
price/time priority basis and enables members from across the country to trade with
enormous ease and efficiency. Various types of securities e.g. equity shares, warrants,
debentures etc. are traded on this system. The average daily turnover in the CM Segment
of the Exchange during 2007-08 was nearly Rs. 14,148 crore. (US $ 3,540 million).
Futures & Options segment of NSE provides trading in derivatives instruments like
Index Futures, Index Options, Stock Options, Stock Futures. Though only eight years
into its’ operations, the futures and options segment of NSE has made a mark for itself
globally. In the Futures and Options segment, trading in S&P CNX Nifty Index, CNX
IT index, Bank Nifty Index, CNX Nifty Junior, CNX 100 index, Nifty Midcap 50 index
and single stocks are available. The average daily turnover in the F&O Segment of the
Exchange during 2007-08 was nearly Rs. 52,153 cr. (US $ 13,048 millions).
The statistical details of these segments are presented in the tables and charts below :

Market Segments – Selected Indicators
At end of March 2008
Segments

No. of Securities/Contracts Available

1,069

1,236 a

WDM

62

3,566

F&O

942

23,466 b

Total

1,075 c

28,268

CM

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No. of Members

a

Excludes suspended securities.

b

3 Nifty index Futures, 3 CNX IT Futures, 3 Bank Nifty Futures, 3 CNX 100 futures,
3 Nifty Junior index futures, 3 Nifty Midcap50 futures, 3 Mini Nifty Futures,
681 stock futures, 520 Nifty index options, 124 CNX IT options, 296 Bank Nifty
options, 146 CNX 100 options, 312 Nifty Junior index options , 112 Nifty Midcap
50 options, 142 Mini Nifty Options, 21,094 stock option and 18 interest rate futures
contracts.

c

Do not add up to total because of multiple membership.

Trading Value
(Rs. cr)
Segment/Year

2004-05

2005-06

2006-07

2007-08

CM

1,140,072

1,569,558

1,945,287

3,551,038

F&O

2,547,053

4,824,250

7,356,271

13,090,478

887,294

475,523

219,106

282,317

4,574,418

6,869,332

9,520,664

16,923,833

WDM
Total

Market Segments Indicators- Trading Volume

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Market Capitalisation (As at end March)
(Rs. cr)
Segment/Year

Mar-05

Mar-06

Mar-07

Mar-08

CM

1,585,585

2,813,201

3,367,350

4,858,122

WDM

1,461,734

1,567,574

1,784,801

2,123,346

Total

3,047,319

4,380,775

5,152,151

6,981,468

Market Segment Indicators- Market Capitalisation

Achievements/Milestones
Month/Year
November 1992
April 1993
June 1994
November 1994
March 1995
April 1995
July 1995
October 1995
April 1996
April 1996

Event
Incorporation
Recognition as a stock exchange.
WDM segment goes live.
CM segment goes live through VSAT.
Establishment of Investor Grievance Cell.
Establishment of NSCCL, the first Clearing Corporation.
Establishment of Investor Protection Fund.
Became largest stock exchange in the country.
Commencement of clearing and settlement by NSCCL.
Launch of S&P CNX Nifty.
Contd...

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Contd...

Month/Year
June 1996
November 1996
November 1996
December 1996
December 1996
December 1996
November 1997
May 1998
May 1998
July 1998
August 1998
April 1999
October 1999
January 2000
February 2000
June 2000
September 2000
June 2001
July 2001
November 2001
December 2001
January 2002
May 2002
October 2002
January 2003
June 2003
August 2003
June 2004
August 2004

Event
Establishment of Settlement Guarantee Fund.
Setting up of National Securities Depository Ltd., first
depository in India, co-promoted by NSE.
‘Best IT Usage’ award by Computer Society of India.
Commencement of trading/settlement in dematerialised
securities.
Dataquest award for ‘Top IT User’.
Launch of CNX Nifty Junior.
‘Best IT Usage’ award by Computer Society of India.
Promotion of joint venture, India Index Services & Products
Limited (IISL) (along with CRISIL) for index services.
Launch of NSE’s Web-site : www.nseindia.com.
Launch of ‘NSE’s Certification Programme in Financial
Markets’. (NCFM)
‘CYBER CORPORATE OF THE YEAR 1998’ award.
‘CHIP Web Award’ by CHIP magazine.
Setting up of NSE.IT Ltd.
Launch of NSE Research Initiative.
Internet Trading in CM segment.
Commencement of Derivatives Trading (in Index Futures).
Launch of Zero Coupon Yield Curve.
Commencement of Trading in Index Options
Commencement of Trading in Options on Individual
Securities
Commencement of Trading in Futures on Individual
Securities
Launch of NSE VAR for Government Securities
Launch of Exchange Traded Funds (ETFs).
NSE wins the Wharton-Infosys business Transformation
Award in the organization-wide transformation category
Launch of Government Securities Index
Launch of Retail Debt of Government Securities
Launch of Exchange Traded Interest Rate derivatives on
Notional 91 day T-bills and Notional 10 year bonds
Launch of Futures and Options on CNX IT Index
Launch of STP Interoperability
Launch of NSE electronic interface for listed companies
Contd...

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Contd...

Month/Year
March 2005
June 2005
August 2006
December 2006
January 2007
March 2007
March 2007
June 2007
October 2007
January 2008
March 2008
April 2008
April 2008
June 2008

Event
‘India Innovation Award’ by EMPI Business School, New
Delhi
Launch of Futures & Options on BANK Nifty Index
Setting up of NSE Infotech Services Ltd.
‘Derivative Exchange of the Year’, by Asia Risk magazine
Launch of NSE – CNBC TV 18 media centre
NSE, CRISIL announce launch of India Bond Watch.com
Launch of Gold BeES- Exchange Traded Fund (ETF).(First
Gold ETF)
Launch of Futures & Options on CNX 100 and CNX Nifty
Junior contracts.
Launch of Futures & Options on Nifty Midcap 50
Launch of Mini Nifty derivative contracts
Launch of long term option contracts on S&P CNX Nifty
Index.
Launch of Securities Lending & Borrowing Scheme
Launch of - India VIX - The Volatility Index
Setting up of Power Exchange India Ltd.

Developments during the year.

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

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

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To begin with, the SLB would be operated through Clearing Corporation/Clearing
House of stock exchanges having nation-wide terminals who will be registered as
Approved Intermediaries (AIs) under the SLS, 1997.

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

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

All categories of investors including retail, institutional etc. will be permitted to
borrow and lend securities. The borrowers and lenders would access the platform
for lending/borrowing set up by the AIs through the clearing members (CMs) who
are authorized by the AIs in this regard.

The tenure of lending/borrowing would be fixed as standardised contracts. To start
with, contracts with tenure of 7 trading days may be introduced.

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

The settlement of the lending and borrowing transactions should be done on a
gross basis at the level of the clients i.e. no netting of transactions at any level will
be permitted.

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

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

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

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

Cross Margining
Many trading members undertake transactions on both the cash and derivative segments
of an Exchange. They keep separate deposits with the exchange for taking positions in
two different segments. In order to improve the efficiency of the use of the margin capital
by market participants and as in initial step towards cross margining across cash and
derivatives markets SEBI allowed Cross Margining benefit in May 2008.
For Cross margining the stock positions of the institutions in capital market segment
after confirmation by the custodian on T+1 day shall be compared with the stock
futures position of the same institution in derivative segment based on the CP code of
the institution at the end of the day. The position shall be considered for cross margining
only if the position in the capital market segment off set the position in the derivative
segment.
SEBI has allowed the following to start with: a. Cross margin is available for institutional
trades. b. Cross margin is available to positions in cash market having corresponding offsetting positions in the stock futures market. c. For positions in the cash market which
have corresponding offsetting positions in the stock futures, VaR margin is not be levied
on the cash market position to the extent of the off-setting stock futures market position.
d. Extreme Loss margin and Market to Market margin shall continue to be levied on the
entire cash market position. e. The near-month stock futures positions are not considered
for cross-margin benefit three days prior to expiry (the last Thursday of every month)
and there will be no change in the margins on the F & O positions.

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

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

Stock Market Records
Sr.

Parameter

Date

Magnitude

No.
Capital Market Segment
1

Record number of trades

January 03, 2008

6,812,991

2

Record daily turnover (quantity)

September 26, 2007

11,353 lakhs

3

Record daily turnover (value)

November 01, 2007

Rs.28,476.07 cr.
(US $ 7,124.36 mn.)

4

Record market capitalisation

January 07, 2008

Rs.6,745,724.00 cr.
(US $ 1,687,696.77 mn.)

5

Record value of S&P CNX Nifty Index

January 08, 2008

6357.10

6

Record value of CNX Nifty Junior Index

January 04, 2008

13209.35

Clearing & Settlement
Record Pay-in/Pay-out (Rolling Settlement):
1

Funds Pay-in/Pay-out

October 23,2007 *

Rs.4,567.70 cr.
(US $ 1,142.78 mn.)

2

Securities Pay-in/Pay-out (Value)

December 31,2007 * Rs.9,195.56 cr.
(US $ 2,300.62 mn.)

3

Securities Pay-in/Pay-out (Qty)

October 01,2007 *

2,788.30 lakhs

* Settlement Date
Derivatives (F&O segment)
1

Record number of trades

October 18,2007

1,420,967

2

Record daily turnover (value)

October 18,2007

Rs. 110,563 cr.
(US $ 27,661.50 mn.)

Wholesale Debt Market Segment
1

Record daily turnover (value)

August 25,2003

Rs.13,911.57 cr.
(US $ 3,179.79 mn.)

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

11

competitive edge and ensure timeliness and satisfaction in customer service. In recognition
of the fact that technology will continue to redefine the shape of the securities industry,
NSE stresses on innovation and sustained investment in technology to remain ahead
of competition. NSE is the first exchange in the world to use satellite communication
technology for trading. It uses satellite communication technology to energise participation
from about 2,956 VSATs from nearly 245 cities spread all over the country.
Its trading system, called National Exchange for Automated Trading (NEAT), is a state
of-the-art client server based application. At the server end, all trading information is
stored in an in-memory database to achieve minimum response time and maximum
system availability for users. It has uptime record of 99.7%. For all trades entered into
NEAT system, there is uniform response time of less than 1.5 seconds. NSE has been
continuously undertaking capacity enhancement measures so as to effectively meet the
requirements of increased users and associated trading loads. NSE has also put in place
NIBIS (NSE’s Internet Based Information System) for on-line real-time dissemination of
trading information over the Internet.
As part of its business continuity plan, NSE has established a disaster back-up site at
Chennai along with its entire infrastructure, including the satellite earth station and the
high-speed optical fibre link with its main site at Mumbai. This site at Chennai is a replica
of the production environment at Mumbai. The transaction data is backed up on near real
time basis from the main site to the disaster back-up site through the 2 mbps high-speed
link to keep both the sites all the time synchronized with each other.

Application Systems
The various application systems that NSE uses for its trading as well clearing and settlement
and other operations form the backbone of the Exchange. The application systems used for
the day-to-day functioning of the Exchange can be divided into (a) Front end applications
and (b) Back office applications.
In the front end, there are 6 applications: (i) NEAT – CM system takes care of trading of
securities in the Capital Market segment that includes equities, debentures/notes as well
as retail Gilts. The NEAT – CM application has a split architecture wherein the split is on
the securities and users. The application runs on three Stratus systems with Open Strata
Link (OSL). The application has been benchmarked to support 15,000 users and handle
more than 15 million trades daily. This application also provides data feed for processing
to some other systems like Index, OPMS through TCP/IP. This is a direct interface with
the trading members of the CM segment of the Exchange for entering the orders into the
main system. There is a two way communication between the NSE main system and the
front end terminal of the trading member. (ii) NEAT – WDM system takes care of trading
of securities in the Wholesale Debt Market (WDM) segment that includes Gilts, Corporate
Bonds, CPs, T-Bills, etc. This is a direct interface with the trading members of the WDM
segment of the Exchange for entering the orders/trades into the main system. There is a
two way communication between the NSE main system and the front end terminal of

12

the trading member. (iii) NEAT – F&O system takes care of trading of securities in the
Futures and Options (F&O) segment that includes Futures on Index as well as individual
stocks and Options on Index as well as individual stocks. This is a direct interface with
the trading members of the F&O segment of the Exchange for entering the orders into
the main system. There is a two way communication between the NSE main system and
the front end terminal of the trading member. (iv) NEAT – IPO system is an interface to
help the initial public offering of companies which are issuing the stocks to raise capital
from the market. This is a direct interface with the trading members of the CM segment
who are registered for undertaking order entry on behalf of their clients for IPOs. NSE
uses the NEAT IPO system that allows bidding in several issues concurrently. There is
a two way communication between the NSE main system and the front end terminal of
the trading member. (v) NEAT – MF system is an interface with the trading members of
the CM segment for order collection of designated Mutual Funds units (vi) Surveillance
system offers the users a facility to comprehensively monitor the trading activity and
analyse the trade data online and offline.
In the back office, the following important application systems are operative : (a) NCSS
(Nationwide Clearing and Settlement System) is the clearing and settlement system of
the NSCCL for the trades executed in the CM segment of the Exchange. The system has
3 important interfaces – OLTL (Online Trade loading) that takes each and every trade
executed on real time basis and allocates the same to the clearing members, Depository
Interface that connects the depositories for settlement of securities and Clearing Bank
Interface that connects the thirteen clearing banks for settlement of funds. It also interfaces
with the clearing members for all required reports. Through collateral management system
it keeps an account of all available collaterals on behalf of all trading/clearing members
and integrates the same with the position monitoring of the trading/clearing members.
The system also generates base capital adequacy reports. (b) FOCASS is the clearing
and settlement system of the NSCCL for the trades executed in the F&O segment of
the Exchange. It interfaces with the clearing members for all required reports. Through
collateral management system it keeps an account of all available collaterals on behalf of
all trading/clearing members and integrates the same with the position monitoring of
the trading/clearing members. The system also generates base capital adequacy reports.
(c) OPMS – the online position monitoring system that keeps track of all trades
executed for a trading member vis-à-vis its capital adequacy, (d) PRISM is the parallel
risk management system for F&O trades using Standard Portfolio Analysis (SPAN).
It is a system for comprehensive monitoring and load balancing of an array of parallel
processors that provides complete fault tolerance. It provides real time information on
initial margin value, mark to market profit or loss, collateral amounts, contract-wise
latest prices, contract-wise open interest and limits. The system also tracks online real
time client level portfolio base upfront margining and monitoring (e) Data warehousing
that is the central repository of all data in CM as well as F&O segment of the Exchange,
(f) Listing system that captures the data from the companies which are listed in the
Exchange for corporate governance and integrates the same to the trading system for
necessary broadcasts for data dissemination process and (g) Membership system that keeps
track of all required details of the Trading Members of the Exchange.

13

NSE Family
NSCCL
National Securities Clearing Corporation Ltd. (NSCCL), a wholly-owned subsidiary
of NSE, was set up in August 1995. It was the first clearing corporation in the country
to provide novation/settlement guarantee that revolutionized the entire concept of
settlement system in India. It commenced clearing operations in April 1996. It has
been set up to bring and sustain confidence in clearing and settlement of securities; to
promote and maintain short and consistent settlement cycles; to provide counter-party
risk guarantee, and to operate a tight risk containment system. It carries out the clearing
and settlement of the trades executed in the equities and derivatives segments of the NSE.
It operates a well-defined settlement cycle and there are no deviations or deferments from
this cycle. It aggregates trades over a trading period T, nets the positions to determine the
liabilities of members and ensures movement of funds and securities to meet respective
liabilities. It also operates Subsidiary General Ledger (SGL) for settling trades in
government securities for its constituents. It has been managing clearing and settlement
functions since its inception without a single failure or clubbing of settlements.
It assumes the counter-party risk of each member and guarantees financial settlement.
It also undertakes settlement of transactions on other stock exchanges like the Over
the Counter Exchange of India. It operates Mutual Fund Service System to clear and
settle purchase and redemption of mutual fund units for individual investors. It has tied
up with 13 Clearing Banks viz., Canara Bank, Citi bank N.A, HSBC Ltd., HDFC Bank,
IndusInd Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank Lt,. Bank of India, IDBI
Bank, Standard Chartered Bank, State Bank of India and Union Bank of India for funds
settlement while it has direct connectivity with depositories for settlement of securities.
It has also initiated a working capital facility in association with the clearing banks that
helps clearing members to meet their working capital requirements. Any clearing bank
interested in utilizing this facility has to enter into an agreement with NSCCL and with
the clearing member.
NSCCL has also introduced the facility of direct payout to clients’ account on both the
depositories. It ascertains from each clearing member, the beneficiary account details of
their respective clients who are due to receive pay out of securities. It has provided its
members with a front-end for creating the file through which the information is provided
to NSCCL. Based on the information received from members, it sends payout instructions
to the depositories, so that the client receives the pay out of securities directly to their
accounts on the pay-out day.
NSCCL currently settles trades under T+2 rolling settlement. It has the credit of
continuously upgrading the clearing and settlement procedures and has also brought
Indian financial markets in line with international markets. It has put in place online
real-time monitoring and surveillance system to keep track of the trading and clearing
members’ outstanding positions and each member is allowed to trade/operate within the

14

pre-set limits fixed according to the funds available with the Exchange on behalf of the
member. The online surveillance mechanism also generates various alerts/reports on any
price/volume movements of securities not in line with the trends/patterns.

NSDL
Prior to trading in a dematerialized environment, settlement of trades required moving
the securities physically from the seller to the ultimate buyer, through the seller’s broker
and buyer’s broker, which involved lot of time and the risk of delay somewhere along the
chain. Further, the system of transfer of ownership was grossly inefficient as every transfer
involved physical movement of paper to the issuer for registration, with the change of
ownership being evidenced by an endorsement on the security certificate. In many cases,
the process of transfer took much longer than stipulated in the then regulations. Theft,
forgery, mutilation of certificates and other irregularities were rampant. All these added
to the costs and delays in settlement, restricted liquidity. To obviate these problems, NSE
to promote dematerialization of securities joined hands with UTI and IDBI to set up the
first depository in India called the “National Securities Depository Limited” (NSDL).
The depository system gained quick acceptance and in a very short span of time it was
able to achieve the objective of eradicating the paper from the trading and settlement of
securities, and was also able to get rid of the risks associated with fake/forged/stolen/bad
paper. Dematerialized delivery today constitutes almost 100% of total of the total delivery
based settlement.

NSE Infotech Services Ltd
NSE Infotech Services Ltd Information Technology has been the back bone of
conceptualization, formation, running and the success of National Stock Exchange of
India Limited (NSE). NSE has been at the forefront in spearheading technology changes
in the securities market. It was important to give a special thrust and focus on Information
Technology to retain the primacy in the market. Towards this a wholly owned subsidiary
M/s. NSE Infotech Services Limited (NSETECH) was incorporated to cater to the needs
of NSE and all it’s group companies exclusively.

NSE.IT
NSE.IT Limited, a 100% technology subsidiary of NSE, was incorporated in October
1999 to provide thrust to NSE’s technology edge, concomitant with its overall goal of
harnessing latest technology for optimum business use. It provides the securities industry
with technology that ensures transparency and efficiency in the trading, clearing and
risk management systems. Additionally, NSE.IT provides consultancy services in the
areas of data warehousing, internet and business continuity plans. Amongst various
products launched by NSE.IT are NEAT XS, a Computer-To-Computer Link (CTCL)
order routing system, NEAT iXS, an internet trading system and Probos, professional
broker’s back office system. NSE.IT also offers an e-learning portal, finvarsity
(www.finvarsity.com) dedicated to the finance sector. The site is powered by Enlitor - a

15

learning management system developed by NSE.IT jointly with an e-learning partner. New
initiatives include payment gateways, products for derivatives segments and Enterprise
Management Services.

IISL
India Index Services and Products Limited (IISL), a joint venture of CRISIL and NSE, was
set up in May 1998 to provide indices and index services. It has a licensing and marketing
agreement with Standard and Poor’s (S&P), the world’s leading provider of investible
equity indices, for co-branding equity indices. IISL is India’s first specialized company
focusing upon the index as a core product. It provides a broad range of services, products
and professional index services. It maintains over 96 equity indices comprising broad-based
benchmark indices, sectoral indices and customised indices. Many investment and risk
management products based on IISL indices have developed in the recent past, within India
and abroad. These include index based derivatives on NSE and on Singapore Exchange,
India’s first exchange traded fund, a number of index funds, and Licensing of the Index
for various structured products

NCDEX
NSE joined hand with other financial institutions in India to promote the NCDEX which
provides for a world class commodity exchange platform for Market Participants to
trade in wide spectrum of commodity derivatives. Currently NCDEX facilitates trading
of 48 agro based commodities, 2 precious metal, 6 base metal, 3 energy products and
3 polymers.

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

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

16

Table 1-1 : Board of Directors*

*

1

Mr. S. B. Mathur

Chairman

2

Mr. Ravi Narain
National Stock Exchange of India Ltd.

MD & CEO

3

Ms. Chitra Ramkrishna
National Stock Exchange of India Ltd.

Deputy Managing Director

4

Mr. C. Achuthan
Former Presiding Officer, Securities Appellate Tribunal

Director

5

Mr. Anjan Barua
Chief General Manager ( Global Markets), State Bank of India

Director

6

Rear Admiral Madan Mohan Chopra AVSM (Retd.)

Director

7

Mr. A. P. Kurian
Chairman, Association of Mutual Funds in India

Director

8

Dr. Rajiv B. Lall
Managing Director & CEO, Infrastructure Development
Finance Company Limited

Director

9

Mr. Lawrence Leibowitz
Group EVP and Head of US Markets & Global Technology
NYSE Euronext

Director

10

Mr. Anand G. Mahindra
Vice Chairman & Managing Director, Mahindra & Mahindra
Ltd.

Director

11

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

Director

12

Prof. (Dr.) K. R. S. Murthy
Professor & Former Director, Indian Institute of Management,
Bangalore

Director

13

Dr. R. H. Patil
Chairman, The Clearing Corporation of India Limited

Director

14

Ms. Bhagyam Ramani
General Manager, General Insurance Corporation of India

Director

15

Dr. V. A. Sastry

Director

16

Mr. Onkar Nath Singh
Ex-Chairman & Mananging Director
Industrial Investment Bank of India Ltd.

Director

17

Mr. Justice B.N.Srikrishna (Retd.)
Former Judge, Supreme Court of India

Director

18

Mr. T. S. Vijayan
Chairman
Life Insurance Corporation of India

Director

As of July 15, 2008.

17

Table 1-2 : Executive Committees

*

18

I

CM & WDM SEGMENTS

1

Mr. Ravi Narain

MD & CEO, National Stock Exchange
of India Ltd.

Chairman

2

Mr. Ashok Kumar Agarwal

Chairman, Globe Capital Market Ltd.

Trading Member

3

Mr. D. C. Anjaria

Director, International Financial
Solutions Pvt. Ltd.

Public Representative

4

Mr. Vimal Bhandari

Country Manager – India AEGON
International NV

Public Representative

5

Mr. C. J. George

Managing Director, Geojit Financial
Services Ltd.

Trading Member

6

Mr. Y. H. Malegam

Chairman Emeritus, S.B.Billimoria &
Co. Chartered Accountants

Public Representative

7

Ms. Chitra Ramkrishna

Deputy Managing Director, National
Stock Exchange of India Ltd

Other Nominees

8

Mr. Rashesh Shah

Director, Edelweiss Securities Pvt. Ltd.

Trading Member

9

Mr. Ramesh Kumar Somani

Whole-time Director, Eureka Stock &
Share Broking Services Ltd

Trading Member

10

Mr. P. M. Venkatasubramanian

Ex-Managing Director, GIC

Other Nominees

11

Mr. Gagan Rai

Managing Director & CEO, National
Securities Depository Limited

Other Nominees

II

F&O MARKET SEGMENT

1

Mr. Ravi Narain

MD & CEO, National Stock Exchange
of India Ltd.

Chairman

2

Mr. D.C.Anjaria

Director, International Finance
Solutions Pvt. Ltd.

Public Representative

3

Prof. V. Ravi Anshuman

Indian Institute of Management
Bangalore

Public Representative

4

Mr. Sunil Godhwani

Managing Director, Religare Securities
Ltd.

Trading Member

5

Mr. Shailesh Haribhakti

Chairman Haribhakti Group

Public Representative

6

Mr. Ketan Marwadi

Managing Director, Marwadi Shares
and Finance Limited

Trading Member

7

Mr. M. Raghavendra

Ex-General Manager, General Insurance Other Nominees
Corporation of India

8

Ms. Chitra Ramkrishna

Deputy Managing Director, National
Stock Exchange of India Ltd

Other Nominees

9

Ms. T. S. Jagadharini

Vice President, National Stock
Exchange of India Limited

Other Nominees

As of July 15, 2008.

Membership
Administration

2

20

Membership Administration

2

The trading in NSE has a three tier structure-the trading platform provided by the
Exchange, the broking and intermediary services and the investing community. The
trading members have been provided exclusive rights to trade subject to their continuously
fulfilling the obligation under the Rules, Regulations, Byelaws, Circulars, etc. of the
Exchange. The trading members are subject to its regulatory discipline. Any person
can become a trading member by complying with the prescribed eligibility criteria and
exit by surrendering trading membership without any hidden/overt cost. There are no
entry/exit barriers to trading membership.

Eligibility Criteria
The Exchange stresses on factors such as corporate structure, capital adequacy, track
record, education, experience, etc. while granting trading rights to its members. This
reflects a conscious effort by the Exchange to ensure quality broking services which enables
to build and sustain confidence in the Exchange’s operations. The standards stipulated by
the Exchange for trading membership are substantially in excess of the minimum statutory
requirements as also in comparison to those stipulated by other exchanges in India. The
exposure and volume of transactions that can be undertaken by a trading member are
linked to liquid assets in the form of cash, bank guarantees, etc. deposited by the member
with the Exchange as part of the membership requirements.
The trading members are admitted to the different segments of the Exchange subject
to the provisions of the Securities Contracts (Regulation) Act, 1956, the Securities and
Exchange Board of India Act, 1992, the rules, circulars, notifications, guidelines, etc.,
issued there under and the byelaws, Rules and Regulations of the Exchange. All trading
members are registered with SEBI.

Trading Membership
A prospective trading member is admitted to any of the following combinations of
market segments:

Wholesale Debt Market (WDM) segment,

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

CM Segment and the WDM segment, or

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

In order to be admitted as a trading member, the individual trading member/at
least two partners of the applicant firm/at least two directors of the applicant
corporate must be graduates and must possess at least two years’ experience in
securities markets. The applicant for trading membership/any of its partners/

21

shareholders/directors must not have been declared defaulters on any stock
exchange, must not be debarred by SEBI for being associated with capital market as
intermediaries and must not be engaged in any fund-based activity. For the F&O
segment, at least two dealers should also have passed SEBI-approved certification test
for derivatives. In case of corporate applicant, the minimum paid up capital should be
Rs. 30 lakh and the dominant promoter/shareholder group should hold at least 51%
(40% in case of listed companies) of paid-up equity capital of such corporate entity.
The net worth required for trading members on CM & F&O Segment is 100 lakh,
however, a net worth of Rs. 300 lakh is required for members clearing for self as well as
for other trading members.

Clearing Membership
The trades executed on the Exchange may be cleared and settled by a clearing member.
The trading members in the CM segment are also clearing members. In the F&O segment,
some members, who are registered with SEBI as self-clearing members, clear and settle
their own trades. Certain others, registered as trading member-cum-clearing member, clear
and settle their own trades as well as trades of other trading members. Besides this, there
is a special category of members, called professional clearing members (PCMs), who do
not trade but only clear trades executed by others. This means that some members clear
and settle their trades through a trading member-cum-clearing member or a PCM, not
themselves. The members clearing their own trades or trades of others, and the PCMs
are required to bring in additional security deposits in respect of every trading member
whose trades they undertake to clear and settle. The requirements of trading membership
and clearing membership are presented in Tables 2-1A and 2-1B.

Growth and Distribution of Members
As at end March 2008, the Exchange had 1,075 members. A large majority (91.72 %) of
them were corporate members, and the remaining, individuals and firms. There were
1,069, 63 and 942 members in the CM, WDM and F&O segments respectively. The growth
of membership on NSE is presented in Table 2-2. The distribution of trading members
on the Exchange as at end March 2008 is presented below:

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

22

WDM
Segment

CM &
WDM
Segment

CM, WDM
& F&O
Segment

CM &
F&O
Segment

Total

Corporates

97

6

8

48

827

986

Individuals

10

0

0

0

34

44

Firms

12

0

0

0

33

45

Total

119

6

8

48

894

1,075

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

Transaction Charges
In addition to annual fees, members are required to pay transaction charges on trades
undertaken by them. They pay transaction charges at the rate of Rs. 3.5 for every
Rs. 1 lakh of turnover in the CM segment. The transaction charges payable to the exchange
by the trading member for the trades executed by him on the F&O segment are fixed at
the rate of Rs. 2 per lakh of turnover (0.002%) subject to a minimum of Rs. 1,00,000 per
year. However, for the transactions in the options sub-segment the transaction charges
will be levied on the premium value at the rate of 0.05% (each side) instead of on the strike
price as levied earlier. The Exchange has waived the transaction charges for Wholesale
Debt Market Segment of the Exchange for the period April 1, 2007 to March 31, 2008.

23

24
25

25**
1

Individual trading member/ two partners/two At least two directors A t l e a s t t w o
directors should
directors should be graduates. Dealers should should be graduates.
be graduates.
also have passed SEBI approved certification
test for derivatives and Capital Market (Basic
or Dealers) Module of NCFM.

Collateral Security Deposit (CSD)

Annual Subscription

Education

1

At least two directors should be
graduates. Dealers should also have
passed SEBI approved certification
test for derivatives and Capital Market
(Basic or Dealers) Module of NCFM.

2

25**

275**

200*

The Applicant/Partners/Directors should
not be defaulters on any stock exchange.
They must not be debarred by SEBI for
being associated with capital market as
intermediaries They must be engaged solely
in the business of securities and must not be
engaged in any fund-based activity.

-----------------------Two year’s experience in securities market-----------------------

2

Nil

150

200

30

Corporates

CM, WDM and F&O Segment

(All values in Rs. lakh)

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.

Additional Rs. 25 lakh is required for clearing membership (self-clearing member/members clearing for self as well as for others) in the F&O segment. In addition, a

as for other trading members.

No additional networth is required for self-clearing members in the F&O segment. However, a networth of Rs. 300 lakh is required for members clearing for self as well

Track Record

**

*

250

Interest Free Security Deposit 125**
(IFSD)

Experience

200

100*

30

Net Worth

30

30

Corporates

WDM Segment

Paid-up capital
(in case of corporates)

Corporates

CM and WDM Segment

Individuals/Firms/Corporates

CM and F&O Segment

Constitution

Particulars

Table 2-1A : Eligibility Criteria for Memberhip

Table 2-1B : Requirements for Professional Clearing Memberhip
(All values in Rs. lakh)
Particulars

CM Segment

Eligibility

F&O Segment

CM and F&O
Segment

Trading Member of NSE/SEBI Registered Custodians/Recognised Banks

Net Worth

300

300

300

Interest Free Security
Deposit (IFSD) *

25

25

34

Collateral Security
Deposit (CSD)

25

25

50

Annual Subscription

2.5

Nil

2.5

*

The Professional Clearing Member (PCM) is required to bring in IFSD of Rs. 2 lakh
and CSD of Rs. 8 lakh per trading member whose trades he undertakes to clear in
the F&O segment and IFSD of Rs. 6 lakh and CSD of Rs. 17.5 lakh (Rs. 9 lakh and
Rs. 25 lakh respectively for corporate Members) per trading member in the CM
segment.

Table 2-2 : Growth and Distribution of Members
Trading Members
Month/Year
(end of period)

CM Segment

WDM
Segment

F&O
Segment

Total *

Professional
Clearing
Member

Mar-95

348

88

353

Mar-96

890

104

895

Mar-97

1,013

111

1,019

Mar-98

964

108

970

Mar-99

918

99

924

Mar-00

883

94

892

Mar-01

973

90

340

980

13

Mar-02

928

88

484

936

13

Apr-02

927

89

502

935

13

May-02

926

88

501

934

13

Jun-02

920

86

449

928

13

Jul-02

918

85

521

926

13

Aug-02

914

84

532

921

13

Sep-02

912

84

532

919

13

Oct-02

907

82

540

914

13
Contd...

25

Contd...

Table 2-2 : Growth and Distribution of Members
Trading Members
Month/Year
(end of period)

CM Segment

WDM
Segment

F&O
Segment

Total *

Professional
Clearing
Member

Nov-02

899

82

539

906

13

Dec-02

894

81

544

901

14

Jan-03

891

81

546

899

13

Feb-03

889

79

551

897

13

Mar-03

887

78

553

895

13

Apr-03

882

77

561

890

13

May-03

874

77

566

882

13

Jun-03

870

77

568

879

13

Jul-03

863

75

568

872

13

Aug-03

859

75

568

869

13

Sep-03

860

75

574

871

14

Oct-03

860

75

578

871

14

Nov-03

857

75

579

868

14

Dec-03

860

75

583

871

14

Jan-04

861

76

584

872

14

Feb-04

861

76

588

872

16

Mar-04

862

78

589

874

16

Apr-04

860

75

595

872

16

May-04

860

75

599

872

17

Jun-04

863

75

614

874

17

Jul-04

865

75

621

876

17

Aug-04

866

75

621

877

17

Sep-04

866

74

620

876

17

Oct-04

869

76

625

880

17

Nov-04

868

74

628

879

17

Dec-04

867

74

634

878

17

Jan-05

872

74

646

883

17

Feb-05

876

75

652

886

16

Mar-05

881

75

661

891

17

Apr-05

884

75

667

894

17

May-05

886

75

676

896

17

Jun-05

885

75

679

895

17

Jul-05

883

74

679

893

16

Aug-05

887

71

695

896

17
Contd...

26

Contd...

Table 2-2 : Growth and Distribution of Members
Trading Members
Month/Year
(end of period)

CM Segment

WDM
Segment

F&O
Segment

Total *

Professional
Clearing
Member

Sep-05

892

70

702

899

17

Oct-05

900

70

704

907

17

Nov-05

902

70

706

909

17

Dec-05

903

70

716

910

17

Jan-06

915

70

731

922

17

Feb-06

920

68

753

927

19

Mar-06

933

68

767

940

19

Apr-06

937

68

776

944

17

May-06

937

68

776

944

17

Jun-06

950

68

789

957

18

Jul-06

950

68

789

957

18

Aug-06

964

68

804

971

19

Sep-06

966

68

806

973

19

Oct-06

965

66

805

972

19

Nov-06

972

66

811

979

19

Dec-06

978

64

819

985

19

Jan-07

991

64

832

998

19

Feb-07

995

63

836

1,002

19

1,002

63

845

1,009

19

Mar-07
Apr-07

1,003

62

849

1,009

19

May-07

1,005

62

851

1,011

19

Jun-07

1,008

62

859

1,014

19

Jul-07

1,018

62

884

1,024

19

Aug-07

1,014

62

871

1,020

19

Sep-07

1,016

62

877

1,022

19

Oct-07

1,018

62

884

1,024

19

Nov-07

1,018

62

884

1,024

19

Dec-07

1,025

62

892

1,031

19

Jan-08

1,033

62

901

1,039

19

Feb-08

1,051

62

919

1,057

19

Mar-08

1,069

62

942

1,075

19

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

27

28

Listing of Securities

3

30

Listing of Securities

3

The stocks, bonds and other securities issued by issuers require listing for providing
liquidity to investors. Listing means formal admission of a security to the trading platform
of the Exchange. It provides liquidity to investors without compromising the need of the
issuer for capital and ensures effective monitoring of conduct of the issuer and trading
of the securities in the interest of investors. The issuer wishing to have trading privileges
for its securities satisfies listing requirements prescribed in the relevant statutes and in the
listing regulations of the Exchange. It also agrees to pay the listing fees and comply with
listing requirements on a continuous basis. All the issuers who list their securities have
to satisfy the corporate governance requirement framed by regulators.

Benefits of Listing on NSE
The benefits of listing on NSE are as enumerated below:

NSE provides a trading platform that extends across the length and breadth of the
country. Listing on NSE thus, enables issuers to reach and service investors across
the country.

NSE being the largest stock exchange in terms of trading volumes, the securities trade
at low impact cost and are highly liquid. This in turn reduces the cost of trading to
the investor.

The trading system of NSE provides unparallel level of trade and post-trade
information. The best 5 buy and sell orders are displayed on the trading system
and the total number of securities available for buying and selling is also displayed.
This helps the investor to know the depth of the market. Further, corporate
announcements, results, corporate actions etc are also available on the trading system,
thus reducing scope for price manipulation or misuse.

The facility of making initial public offers (IPOs), using NSE’s network and software,
results in significant reduction in cost and time of issues.

NSE’s web-site www.nseindia.com provides a link to the web-sites of the companies
that are listed on NSE, so that visitors interested in any company can visit that
company’s web-site from the NSE site.

Listed companies are provided with monthly trade statistics for the securities of the
company listed on the Exchange.

The listing fee is nominal.

31

Listing Criteria
The Exchange has laid down criteria for listing of new issues by companies through
IPOs, companies listed on other exchanges in conformity with the Securities
Contracts (Regulation) Rules, 1957 and directions of the Central Government and
the Securities and Exchange Board of India (SEBI). The criteria include minimum
paid-up capital and market capitalisation, company/promoter’s track record, etc.
The listing criteria for companies in the CM Segment are presented in Table 3-1. The
issuers of securities are required to adhere to provisions of the Securities Contracts
(Regulation) Act, 1956, the Companies Act, 1956, the Securities and Exchange Board
of India Act, 1992, and the rules, circulars, notifications, guidelines, etc. prescribed
there under.

Listing Agreement
All companies seeking listing of their securities on the Exchange are required to enter
into a formal listing agreement with the Exchange. The agreement specifies all the
quantitative and qualitative requirements to be continuously complied with by the
issuer for continued listing. The Exchange monitors such compliance and companies
who do not comply with the provisions of the listing agreement may be suspended from
trading on the Exchange. The agreement is being increasingly used as a means to improve
corporate governance.

Compliance by Listed Companies
NSE has institutionalised a process of verifying compliance of various conditions
of the listing agreement. It conducts a periodic review for compliance on account
of announcement of book closure/record date, announcement of quarterly results,
submission of shareholding pattern, annual reports, appointment of compliance officer,
corporate governance report, investor grievances and various disclosures etc.

Disclosures by Listed Companies
It is essential that all critical price sensitive/material information relating to securities
is made available to the market participants and the investors immediately to enable
them to take informed decisions in respect of their investments in securities. The
Exchange therefore ensures certain important timely disclosures by listed companies
and disseminates them to market through the NEAT terminals and through its
website. These disclosures include corporate actions, quarterly/half yearly results,
decisions at board meeting, non-promoters’ holding, announcements / press
releases etc.

32

De-listing
There are two kinds of delisting which can be done from the Exchanges as per the SEBI
(Delisting of Securities) Guidelines, 2003 in the following manner:

Voluntary De-listing of Companies
Any promoter or acquirer desirous of delisting securities of the company under the
provisions of these guidelines shall obtain the prior approval of shareholders of the
company by a special resolution passed at its general meeting, make a public announcement
in the manner provided in these guidelines, make an application to the delisting exchange
in the form specified by the exchange, and comply with such other additional conditions
as may be specified by the concerned stock exchanges from where securities are to be
de-listed. Any promoter of a company which desires to de-list from the stock exchange
shall also determine an exit price for delisting of securities in accordance with the book
building process as stated in the guidelines. The stock exchanges shall provide the
infrastructure facility for display of the price at the terminal of the trading members
to enable the investors to access the price on the screen to bring transparency to the
delisting process.

Compulsory De-listing of Companies
The stock exchanges may de-list companies which have been suspended for a minimum
period of six months for non-compliance with the listing agreement. The stock exchanges
shall give adequate and wide public notice through newspapers and also give a show cause
notice to a company. The exchange shall provide a time period of 15 days within which
representation may be made to the exchange by any person who may be aggrieved by
the proposed delisting.
The Stock Exchanges may, after consideration of the representation received from
the aggrieved persons, delist the securities of such companies. The stock exchange
shall ensure that adequate and wide public notice is given through newspaper and on
the notice boards/trading systems of the stock exchanges and shall ensure disclosure
in all such notices of the fair value of such securities. The stock exchange shall display
the name of such company on its website. Where the securities of the company
are de-listed by an exchange, the promoter of the company shall be liable to
compensate the security holders of the company by paying them the fair value of the
securities held by them and acquiring their securities, subject to their option to remain
security-holders with the company.
The table below gives the names of the six companies delisted from the Exchange during
2007-08.

33

Sr. No.

Name of the Company

Date of Delisting

1

Yokogawa India Limited

10-May-07

2

Wartsila India Ltd

19-Jun-07

3

FCI OEN Connectors Limited

17-Sep-07

4

Panasonic AVC Networks India Co. Limited.

14-Dec-07

5

Essar Steel Limited

24-Dec-07

6

iGate Global Solutions Limited

4-Feb-08

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

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

Listing Fees in the CM Segment
Sr.
No.

Listing Fees

Amount
(Rs.)

1

Initial Listing Fees

2

Annual Listing Fees (based on paid up share, bond and/ or
debenture and/or debt capital, etc.)

25,000

a)

Upto Rs. 1 Crore

10,000

b)

Above Rs. 1 Crore and upto Rs.5 Crores

15,000

c)

Above Rs. 5 Crore and upto Rs.10 Crores

25,000

d)

Above Rs. 10 Crore and upto Rs.20 Crores

45,000

e)

Above Rs. 20 Crore and upto Rs.30 Crores

70,000

f)

Above Rs. 30 Crore and upto Rs.40 Crores

75,000

g)

Above Rs. 40 Crore and upto Rs.50 Crores

80,000
Contd...

34

Contd...

Listing Fees in the CM Segment
Sr.
No.

Listing Fees

Amount
(Rs.)

h)

Above Rs. 50 Crores and upto Rs.100 Crores

1,30,000

i)

Above Rs. 100 Crore and upto Rs.150 Crores

1,50,000

j)

Above Rs. 150 Crore and upto Rs.200 Crores

1,80,000

k)

Above Rs. 200 Crore and upto Rs.250 Crores

2,05,000

l)

Above Rs. 250 Crore and upto Rs.300 Crores

2,30,000

m)

Above Rs. 300 Crore and upto Rs.350 Crores

2,55,000

n)

Above Rs. 350 Crore and upto Rs.400 Crores

2,80,000

o)

Above Rs. 400 Crore and upto Rs.450 Crores

3,25,000

p)

Above Rs. 450 Crore and upto Rs.500 Crores

3,75,000

Companies which have a paid up share, bond and/ or debenture and/or debt capital,
etc. of more than Rs.500 crores will have to pay minimum fees of Rs.3,75,000 and an
additional listing fees of Rs.2,500 for every increase of Rs.5 crores or part thereof in the
paid up share, bond and/ or debenture and/or debt capital, etc.
Companies which have a paid up share, bond and/ or debenture and/or debt capital,
etc. of more than Rs.1,000 crores will have to pay minimum fees of Rs.6,30,000 and an
additional listing fees of Rs.2,750 for every increase of Rs.5 crores or part thereof in the
paid up share, bond and/ or debenture and/or debt capital, etc.

Shareholding Pattern
In the interest of transparency, the issuers are required to disclose shareholding pattern
on a quarterly basis. Table 3-3 presents the sector-wise shareholding pattern at end March 2008 of companies listed on NSE. On an average, the promoters hold more
than 56.12% of total shares. Though non-promoter holding is nearly 41.91 %, Indian
public held only 13.07% and the institutional holdings by Financial Institutions / Banks
/ Central Government / State Government / Insurance Companies, FIIs, MFs, VCF’s
accounted for 19.37 %.

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

35

for trading in the WDM segment. Amongst other requirements, privately placed debt
paper of banks, institutions and corporates require an investment grade credit rating to
be eligible for listing. The listing requirements for securities on the WDM segment are
presented in Table 3-4.
The growth of securities available for trading on the WDM segment is presented in
Table 3-5. As at end March 2008, 3,566 securities with issued capital of Rs.2,103,082 crore
(US $ 526,165) and a market capitalisation of Rs.2,123,346 crore (US $ 531,235) were
available for trading on the WDM segment.

FUNDS MOBILISATION ON THE EXCHANGE
During the year 2007-08, the resources raised through Public Issues, Rights Issues, QIP
and Preferential Allotments is summarized in the table below.
Particulars

No. of
Issues

Amount

Amount

(Rs.cr)

(US $ mn)

Public Issues

77

62,483.70

15,632.65

IPOs

74

41,899.13

10,482.64

FPOs

3

20,584.57

5,150.01

Rights Issues

14

13,413.79

3,355.96

QIP

33

24,434.17

6,113.13

Preferential Allotment

174

24,026.97

6,011.25

Total

298

124,358.64

31,112.99

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

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

36

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

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

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

Chart 3-1 Number of Companies Listed

37

Table 3-1 : Listing Criteria for Companies on the CM Segment of NSE
Criteria

Initial Public Offerings (IPOs)

Companies listed on other exchanges

Paid-up Equity
PUEC ≥ Rs. 10 cr. and
Capital (PUEC)/
MC ≥ Rs. 25 cr.
Market Capitalisation
(MC) /Net Worth

PUEC ≥ Rs. 10 cr. and
MC ≥ Rs. 25 cr. OR
PUEC ≥ Rs. 25 cr. OR
MC ≥ Rs. 50 cr. OR
The company shall have a net worth
of not less than Rs.50 crores in each of
the preceding financial years.

Company/
Promoter’s Track
Record

Atleast three years track record of
either

Atleast 3 years track record of either
(a) the applicant seeking listing OR
(b) the promoters/promoting
company incorporated in or
outside India OR
(c) Partnership firm and
subsequently converted into
Company not in existence as
a Company for three years)
and approaches the Exchange
for listing. The Company
subsequently formed would
be considered for listing only
on fulfillment of conditions
stipulated by SEBI in this regard.

(a) the applicant seeking listing; OR
(b) the promoters/promoting
company, incorporated in or
outside India.

Dividend Record
/ Net worth /
Distributable Profits

Dividend paid in at least 2 out of the
last 3 financial years immediately
preceding the year in which the
application has been made OR The
networth of the applicants atleast
Rs.50 crores OR The applicant has
distributable profits in at least two out
of the last three financial years.

Listing

Listed on any other recognised 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
stock exchanges/regulatory
authority in past 3 yrs.

(a) No disciplinary action by other
stock exchanges/regulatory
authority in past 3 yrs.

(b) Satisfactory redressal mechanism
for investor grievances,

(b) Satisfactory redressal mechanism
for investor grievances,

(c) distribution of shareholding and

(c) distribution of shareholding and

(d) details of litigation record in past
3 years.

(d) details of litigation record in past
3 years.

(e) Track record of Directors of the
Company

(e) Track record of Directors of the
Company
(f)

38

Change in control of a
Company/Utilisation of funds
raised from public

Note:
1.

2.

(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.

(a)

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

(b)

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

3.

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

4.

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

5.

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

6.

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

39

Table 3-2 : Companies Listed/Permitted to Trade/Available for
Trading on the CM Segment
Month/Year
(end of period)

No. of
Companies
Listed*

No. of
Companies
Permitted to
Trade*

No. of
Companies
Available for
Trading*@

Market
Market
Capitalisation* Capitalisation*
(Rs. crore)

(US $ mn)

Nov-94

0

300

300

292,637

93,108

Mar-95

135

543

678

363,350

115,606

Mar-96

422

847

1,269

401,459

116,873

Mar-97

550

934

1,484

419,367

116,880

Mar-98

612

745

1,357

481,503

121,807

Mar-99

648

609

1,254

491,175

115,761

Mar-00

720

479

1,152

1,020,426

240,496

Apr-00

725

473

1,145

846,391

181,473

May-00

733

431

1,109

790,478

169,485

Jun-00

741

423

1,109

852,554

182,795

Jul-00

747

410

1,094

746,402

160,035

Aug-00

751

410

1,089

794,516

170,351

Sep-00

758

379

1,070

730,350

156,593

Oct-00

764

377

1,067

707,121

151,613

Nov-00

767

376

1,070

764,177

163,846

Dec-00

775

350

1,050

760,391

163,034

Jan-01

778

348

1,050

807,641

173,165

Feb-01

782

320

1,026

789,600

169,297

Mar-01

785

320

1,029

657,847

141,048

Apr-01

790

319

1,031

653,720

133,959

May-01

789

318

1,030

592,437

121,401

Jun-01

790

292

1,001

569,797

116,762

Jul-01

785

294

994

574,260

117,676

Aug-01

786

293

994

575,242

117,877

Sep-01

788

293

987

509,105

104,325

Oct-01

789

292

986

535,846

109,805

Nov-01

788

268

956

581,386

119,136

Dec-01

788

268

956

552,908

113,301

Jan-02

794

199

893

563,683

115,509

Feb-02

791

198

889

621,523

127,361

Mar-02

793

197

890

636,861

130,504

Apr-02

800

173

865

649,551

136,748

May-02

798

172

863

631,609

132,970

Jun-02

799

170

848

659,991

138,945

Jul-02

799

163

841

608,643

128,135
Contd...

40

Contd...

Table 3-2 : Companies Listed/Permitted to Trade/Available for
Trading on the CM Segment
Month/Year
(end of period)

Aug-02

No. of
Companies
Listed*

No. of
Companies
Permitted to
Trade*

799

161

Sep-02

801

Oct-02

803

Nov-02

No. of
Companies
Available for
Trading*@

Market
Market
Capitalisation* Capitalisation*
(Rs. crore)

(US $ mn)

839

632,618

133,183

161

840

599,603

126,232

119

803

606,788

127,745

805

118

788

645,388

135,871

Dec-02

809

116

788

672,862

141,655

Jan-03

814

112

789

572,277

120,479

Feb-03

818

107

788

581,985

122,523

Mar-03

818

107

788

537,133

113,081

Apr-03

830

78

771

530,630

122,293

May-03

847

61

769

612,030

141,053

Jun-03

853

52

769

678,550

156,384

Jul-03

865

44

774

719,144

165,740

Aug-03

873

35

775

836,650

192,821

Sep-03

883

27

774

863,480

199,004

Oct-03

887

26

776

926,747

213,585

Nov-03

891

23

777

979,541

225,753

Dec-03

897

23

779

1,167,028

268,962

Jan-04

904

22

786

1,116,150

257,237

Feb-04

907

21

788

1,110,954

256,039

Mar-04

909

18

787

1,120,976

258,349

Apr-04

918

18

795

1,171,828

267,846

May-04

928

16

804

950,494

217,256

Jun-04

940

12

813

979,700

223,931

Jul-04

929

12

815

1,066,087

243,677

Aug-04

936

9

820

1,143,075

261,274

Sep-04

945

7

824

1,227,550

280,583

Oct-04

950

6

828

1,253,825

286,589

Nov-04

954

6

831

1,446,292

330,581

Dec-04

957

6

832

1,579,161

360,951

Jan-05

958

5

833

1,557,444

355,987

Feb-05

964

4

837

1,614,597

369,051

Mar-05

970

1

839

1,585,585

362,419

Apr-05

973

1

836

1,517,908

340,262

May-05

977

1

842

1,654,995

370,992

Jun-05

987

1

854

1,727,502

387,245
Contd...

41

Contd...

Table 3-2 : Companies Listed/Permitted to Trade/Available for
Trading on the CM Segment
Month/Year
(end of period)

Jul-05

No. of
Companies
Listed*

No. of
Companies
Permitted to
Trade*

999

868

Market
Market
Capitalisation* Capitalisation*
(Rs. crore)
1,848,740

(US $ mn)
414,423

Aug-05

1,006

1

875

1,957,491

438,801

Sep-05

1,016

1

883

2,098,263

470,357

Oct-05

1,019

1

881

1,927,645

432,111

Nov-05

1,025

886

2,166,823

485,726

Dec-05

1,036

896

2,322,392

520,599

Jan-06

1,043

903

2,434,395

545,706

Feb-06

1,051

911

2,512,083

563,121

Mar-06

1,069

929

2,813,201

630,621

Apr-06

1,089

944

2,990,200

685,983

May-06

1,093

952

2,612,639

599,367

Jun-06

1,099

962

2,524,659

579,183

Jul-06

1,095

956

2,514,261

576,798

Aug-06

1,099

958

2,777,401

637,165

Sep-06

1,116

969

2,994,132

686,885

Oct-06

1,127

981

3,138,319

719,963

Nov-06

1,137

991

3,373,652

773,951

Dec-06

1,158

1,016

3,426,236

786,014

Jan-07

1,185

1,040

3,571,487

819,336

Feb-07

1,208

1,063

3,296,931

756,350

Mar-07

1,228

1,084

3,367,350

772,505

Apr-07

1,246

1,104

3,650,368

913,277

May-07

1,267

1,126

3,898,078

975,251

Jun-07

1,283

1,143

3,978,381

995,342

Jul-07

1,293

1,150

4,317,571

1,080,203

Aug-07

1,316

1,170

4,296,994

1,075,055

Sep-07

1,319

1,173

4,886,561

1,222,557

Oct-07

1,327

1,180

5,722,227

1,431,630

Nov-07

1,343

1,197

5,876,742

1,470,288

Dec-07

1,353

1,207

6,543,272

1,637,046

Jan-08

1,362

1,216

5,295,387

1,324,840

Feb-08

1,372

1,227

5,419,942

1,356,003

Mar-08

1,381

1,236

4,858,122

1,215,442

* Excluding suspended companies.
@ Excludes suspended companies.

42

1

No. of
Companies
Available for
Trading*@

43

86,791,587,876

49.10

43.37

Miscellaneous

% to Total
Number of Shares

56.31

Telecommunication

Number of Shares

42.32

45.52

Services

57.57

Petrochemicals

Pharmaceuticals

44.64

44.36

Media &
Entertainment

68.99

Infrastructure

Manufacturing

16.59

40.84

Information
Technology

Finance

FMCG

29.37

41.11

Engineering

41.61

7.03

12,418,196,984

3.13

3.81

8.02

6.88

7.73

5.23

9.07

7.50

4.69

15.92

1.92

2.31

0.94

Foreign
Promoters

Promoters

Indian
Promoters

Banks

Sectors

5.36

9,469,103,255

2.67

4.22

5.46

5.34

4.20

2.26

6.55

2.35

2.90

13.88

9.44

7.88

5.80

Financial
Institutions/
Banks/
Central
Government/
State
Government(s)
/ Insurance
Companies

10.62

18,768,397,741

9.30

9.12

10.70

10.69

4.73

11.71

9.46

8.86

16.00

14.07

17.44

10.63

19.15

Foreign
Institutional
Investors

3.26

5,756,467,003

3.57

1.46

4.31

3.08

2.35

5.95

3.66

2.18

2.43

7.77

2.85

10.61

3.45

Mutual
Funds

Institutional

0.14

251,395,853

0.002

0.02

0.25

0.22

0.08

0.33

0.08

0.08

0.54

0.00

0.01

0.00

0.52

Venture
Capital
Funds
including
Foreign
Venture
Capital
Funds

0.29

15,624,851

0.001

0.02

0.05

0.08

0.25

0.00

0.34

0.00

0.30

0.00

2.00

1.32

0.49

Any other

Non-Promoters

5.81

13.07

23,102,820,441

23.08

11.14

13.35

19.83

11.62

18.07

15.49

5.73

16.74

13.55

14.49

20.87

12.94

Individuals

Non- Institutional

10,271,864,814

10.19

3.77

7.79

6.99

5.58

7.98

6.42

3.03

6.51

3.64

6.01

8.51

9.14

Bodies
Corporate

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

3.37

5,953,450,433

3.69

9.20

2.07

3.39

1.63

2.73

2.52

1.02

5.69

14.24

3.97

7.35

1.13

Any Other

1.96

3,467,066,400

1.01

0.93

2.48

1.19

4.26

1.38

1.76

0.26

3.35

0.34

0.77

1.16

4.83

Shares
held by
Custodians
and against
which
Depository
Receipts
have been
issued

Table 3-4 Eligibility Criteria for Securities on WDM Segment

Issuer

Eligibility Criteria for listing
Public Issue /Private Placement

Corporates (Public limited
companies and Private limited
companies)

Paid-up capital of Rs.10 crores; or

Market capitalisation of Rs.25 crores
(In case of unlisted companies Networth more than
Rs.25 crores)

Credit rating

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

Credit rating

Mutual Funds:

Qualifies for listing under SEBI’s Regulations

Qualifies for listing under the respective Acts, Rules or
Regulations under which the securities are issued.

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

Tax exemption and
recognition as infrastructure •
company under related
statutes/regulations

Financial Institutions u/s. 4A of
Companies Act, 1956 including
Industrial Development
Corporations

Banks

44

Credit rating

Public Issue

Private Placement

Qualifies for listing under
the respective Acts, Rules or
Regulations under which the
securities are issued.

Credit rating

Scheduled banks

Networth of Rs.50 crores or •
above

Networth of Rs.50 crores or
above

Qualifies for listing under
the respective Acts, Rules
or Regulations under which
the securities are issued.

Credit rating

Scheduled Banks

45

369

184

512

11

Institutional. Bonds

Bank Bonds

Corporate Bonds

Others

3,177

791

PSU Bonds

Total

51

1,259

Number

T-Bills

Government Securities

Securities

1,494,106

1,794

43,863

33,942

26,738

88,690

71,471

334,926

402

9,833

7,609

5,994

19,881

16,021

275,187

(US $ mn)

(Rs.cr)
1,227,608

Amount

Amount

2006

3,252

5

584

268

271

796

52

1,276

Number

1,753,771

723

54,087

66,137

28,136

90,374

117,950

1,396,365

(Rs.cr)

Amount

2007

402,333

166

12,408

15,172

6,455

20,733

27,059

320,341

(US $ mn)

Amount

3,566

5

738

396

262

777

52

1,336

Number

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

2,103,082

723

76,489

99,615

32,419

97,282

113,947

1,682,607

(Rs.cr)

Amount

2008

526,165

181

19,136

24,922

8,111

24,339

28,508

420,968

(US $ mn)

Amount

46

Orbit Corporation Limited

ICRA Limited

Advanta India Limited

Fortis Healthcare Limited

Bhagwati Banquets and Hotels Limited

Hilton Metal Forging Limited

Binani Cement Limited

MIC Electronics Limited

Insecticides (India) Limited

Nitin Fire Protection Industries Limited

Time Technoplast Limited

Glory Polyfilms Limited

Decolight Ceramics Limited

Nelcast Limited

Meghmani Organics Limited

Vishal Retail Limited

DLF Limited

Roman Tarmat Limited

Celestial Labs Limited

1

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

Company Name

2

Sr.
No.

Pharmaceuticals

Infrastructure

Infrastructure

Miscellaneous

Petrochemicals

Manufacturing

Miscellaneous

Manufacturing

Manufacturing

Miscellaneous

Petrochemicals

Telecommunication

Manufacturing

Manufacturing

Services

Miscellaneous

FMCG

Finance

Infrastructure

Sector

30.00

50.78

9187.50

110.00

102.00

95.27

43.47

39.46

123.53

64.47

36.55

76.50

153.75

38.12

92.00

496.76

216.32

85.18

100.10

(Rs.cr)

Issue
size

17-Jul-07

9-Jul-07

5-Jul-07

4-Jul-07

28-Jun-07

27-Jun-07

19-Jun-07

18-Jun-07

13-Jun-07

5-Jun-07

30-May-07

30-May-07

28-May-07

24-May-07

17-May-07

9-May-07

19-Apr-07

13-Apr-07

12-Apr-07

Date of
Listing

5000000

2901507

175000000

4074074

53684211

4350240

8049237

8220000

3921500

3393141

3177900

5100000

20500000

5445016

23000000

45996439

3380000

2581100

9100000

No. of
Securities
issued

60

175

525

270

19

219

54

48

315

190

115

150

75

70

40

108

640

330

110

(Rs.cr)

Issue
Price

67.55

319.2

569.8

753.1

26.6

207.35

44.65

62.1

480.9

484.85

109.45

338.15

69.05

67.75

49.05

100.15

845.5

803.25

128.2

Close
Price
on
first
day of
trading

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

37.3

72.75

645.75

831.3

21.1

97.3

19.85

66

791.75

404.9

46.85

715.3

62.45

27.7

71.15

83.4

1063.65

664.05

527.1

Close
Price at
end of
March
2008

12.58

82.40

8.53

178.93

40.00

(5.32)

(17.31)

29.38

52.67

155.18

(4.83)

125.43

(7.93)

(3.21)

22.63

(7.27)

32.11

143.41

16.55

(%)

Price Appreciation/ Depreciation on the first
day of trading

Contd...

(37.83)

(58.43)

23.00

207.89

11.05

(55.57)

(63.24)

37.50

151.35

113.11

(59.26)

376.87

(16.73)

(60.43)

77.88

(22.78)

66.20

101.23

379.18

(%)

Price Appreciation/ Depreciation at end
March 2008

47

Housing Development and Infrastructure Limited

Allied Digital Services Limited

Everonn Systems India Limited

Simplex Projects Limited

Alpa Laboratories Limited

Omaxe Limited

Omnitech Infosolutions Limited

IVR Prime Urban Developers Limited

Zylog Systems Limited

Central Bank of India

SEL Manufacturing Company Limited

Asian Granito India Limited

Take Solutions Limited

K.P.R. Mill Limited

Puravankara Projects Limited

Motilal Oswal Financial Services Limited

Indowind Energy Limited

Magnum Ventures Limited

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

Company Name

Manufacturing

Manufacturing

Finance

Infrastructure

Manufacturing

Information Technology

Manufacturing

Manufacturing

BANKS

Information Technology

Infrastructure

Information Technology

Infrastructure

Pharmaceuticals

Infrastructure

Information Technology

Information Technology

Infrastructure

Sector

52.92

73.35

246.07

856.28

133.02

153.30

67.90

37.25

816.00

126.00

721.65

35.00

605.94

61.07

55.51

50.02

85.93

1707.75

(Rs.cr)

Issue
size

20-Sep-07

14-Sep-07

11-Sep-07

30-Aug-07

28-Aug-07

27-Aug-07

23-Aug-07

21-Aug-07

21-Aug-07

17-Aug-07

16-Aug-07

14-Aug-07

9-Aug-07

6-Aug-07

3-Aug-07

1-Aug-07

25-Jul-07

24-Jul-07

Date of
Listing

17641184

11284600

2982710

21406880

5912100

2100000

7000000

4138410

80000000

3600000

14150000

3333333

19546520

8980600

3000397

3572964

4522435

34155000

No. of
Securities
issued

30

65

825

400

225

730

97

90

102

350

510

105

310

68

185

140

190

500

(Rs.cr)

Issue
Price

49.4

113.65

976.85

362.3

174.2

927.8

94.2

144.75

115.3

427.5

417.9

163.4

349.35

55.15

273.7

477.35

330.15

559.35

Close
Price
on
first
day of
trading

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

20

Sr.
No.

Contd...

13.85

69.3

677.35

241.05

96.05

771.65

50.75

323.85

86.9

183.1

175.55

128.95

207.35

28.45

219.6

584.35

793.4

657.25

Close
Price at
end of
March
2008

64.67

74.85

18.41

(9.43)

(22.58)

27.10

(2.89)

60.83

13.04

22.14

(18.06)

55.62

12.69

(18.90)

47.95

240.96

73.76

11.87

(%)

Price Appreciation/ Depreciation on the first
day of trading

Contd...

(53.83)

6.62

(17.90)

(39.74)

(57.31)

5.71

(47.68)

259.83

(14.80)

(47.69)

(65.58)

22.81

(33.11)

(58.16)

18.70

317.39

317.58

31.45

(%)

Price Appreciation/ Depreciation at end
March 2008

48

Kaveri Seed Company Limited

Power Grid Corporation of India Limited

Koutons Retail India Limited

Consolidated Construction Consortium Limited

Dhanus Technologies Limited

Supreme Infrastructure India Limited

Maytas Infra Limited

Religare Enterprises Limited

Varun Industries Limited

Barak Valley Cements Limited

Empee Distilleries Limited

Mundra Port and Special Economic Zone Limited

Edelweiss Capital Limited

Renaissance Jewellery Limited

Kolte - Patil Developers Limited

Kaushalya Infrastructure Development Corporation
Limited

Jyothy Laboratories Limited

Transformers And Rectifiers (India) Limited

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

Company Name

Infrastructure

Pharmaceuticals

Infrastructure

Infrastructure

Miscellaneous

Finance

Services

FMCG

Manufacturing

Manufacturing

Finance

Infrastructure

Infrastructure

Telecommunication

Infrastructure

Manufacturing

Infrastructure

FMCG

Sector

139.27

305.69

51.00

275.54

79.86

691.86

1771.00

192.20

23.77

54.01

140.16

327.45

37.53

109.30

188.70

146.26

2984.45

68.04

(Rs.cr)

Issue
size

28-Dec-07

19-Dec-07

14-Dec-2007

13-Dec-07

12-Dec-07

12-Dec-07

27-Nov-07

26-Nov-07

23-Nov-07

22-Nov-07

21-Nov-07

25-Oct-07

18-Oct-07

17-Oct-07

15-Oct-07

12-Oct-07

5-Oct-07

4-Oct-07

Date of
Listing

2995000

4430260

8500000

19002977

5324240

8386147

40250000

4804893

5660000

9001145

7576102

8850000

3475000

3835000

3700000

3524439

573932895

4002184

No. of
Securities
issued

465

690

60

145

150

825

440

400

42

60

185

370

108

285

510

415

52

170

(Rs.cr)

Issue
Price

729.25

794.05

82.45

181.35

164.9

1510.25

962.9

319.35

55.3

112.2

525.3

613.35

175.1

309.75

792.1

586.5

100.6

230.95

Close
Price
on
first
day of
trading

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

38

Sr.
No.

Contd...

395.35

785.3

35.25

95.7

71.8

827.45

578.75

153.1

32.85

61.05

372

716.3

81.45

165.6

732.7

805.3

98.3

279.9

Close
Price at
end of
March
2008

56.83

15.08

37.42

25.07

9.93

83.06

118.84

(20.16)

31.67

87.00

183.95

65.77

62.13

8.68

55.31

41.33

93.46

35.85

(%)

Price Appreciation/ Depreciation on the first
day of trading

Contd...

(14.98)

13.81

(41.25)

(34.00)

(52.13)

0.30

31.53

(61.73)

(21.79)

1.75

101.08

93.59

(24.58)

(41.89)

43.67

94.05

89.04

64.65

(%)

Price Appreciation/ Depreciation at end
March 2008

49

Information Technology
Finance

BGR Energy Systems Limited

Burnpur Cement Limited

Aries Agro Limited

Precision Pipes And Profiles Company Limited

Future Capital Holdings Limited

Reliance Power Limited

J.Kumar Infraprojects Limited

Cords Cable Industries Limited

KNR Constructions Limited

OnMobile Global Limited

Bang Overseas Limited

Shriram EPC Limited

IRB Infrastructure Developers Limited

Tulsi Extrusions Limited

GSS America Infrastructure Projects Limited

Rural Electrification Corporation Limited

V-Guard Industries Limited

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

Manufacturing

Miscellaneous

Infrastructure

Infrastructure

Manufacturing

Petrochemicals

Infrastructure

Manufacturing

Infrastructure

Infrastructure

Finance

Manufacturing

Petrochemicals

Manufacturing

Manufacturing

Information Technology

eClerx Services Limited

57

Infrastructure

Sector

Brigade Enterprises Limited

Company Name

65.60

1639.26

139.90

48.45

944.57

150.00

72.45

479.62

133.87

41.65

71.50

11563.20

491.34

75.00

58.51

26.29

438.53

101.00

745.62

(Rs.cr)

Issue
size

13-Mar-08

12-Mar-08

7-Mar-08

25-Feb-08

25-Feb-08

20-Feb-08

20-Feb-08

19-Feb-08

18-Feb-08

13-Feb-08

12-Feb-08

11-Feb-08

1-Feb-08

11-Jan-08

11-Jan-08

3-Jan-08

3-Jan-08

31-Dec-07

31-Dec-07

Date of
Listing

8000000

156120000

3497495

5700000

51057666

5000000

3500000

10900545

7874570

3085000

6500000

260000000

6422800

5000000

4500849

21910463

9136000

3206349

19118428

No. of
Securities
issued

82

105

400

85

185

300

207

440

170

135

110

450

765

150

130

12

480

315

390

(Rs.cr)

Issue
Price

75.95

121.3

500.8

140.85

189.65

286.5

174.1

518.15

154.9

139.45

103.35

372.3

909.8

136.1

251.4

48.05

901.45

449.65

379.9

Close
Price
on
first
day of
trading

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

56

Sr.
No.

Contd...

64.6

106.45

757.1

76.45

169.35

238

122.6

544.1

84.6

84.65

80.45

318

639.55

67.45

120.75

21.95

341.9

246.4

168.55

Close
Price at
end of
March
2008

(7.38)

15.52

25.20

65.71

2.51

(4.50)

(15.89)

17.76

(8.88)

3.30

(6.05)

(17.27)

18.93

(9.27)

93.38

300.42

87.80

42.75

(2.59)

(%)

Price Appreciation/ Depreciation on the first
day of trading

(21.22)

1.38

89.28

(10.06)

(8.46)

(20.67)

(40.77)

23.66

(50.24)

(37.30)

(26.86)

(29.33)

(16.40)

(55.03)

(7.12)

82.92

(28.77)

(21.78)

(56.78)

(%)

Price Appreciation/ Depreciation at end
March 2008

Table 3-7 : FPOs during 2007-08
Sr.
No.

Company
Name

Sector

Issue size

Date of
Listing

No. of
Securities
issued

Issue Price (Rs.)

6-Jul-07

58,160,431

940 (Price for the existing

(Rs.cr)
1

ICICI Bank Ltd. Banking

10,043.00

retail shareholders and
retail shareholders is
Rs. 890/-)
2

ICICI Bank Ltd. Banking

3

Bharat Earth

10,014.82

Manufacturing

6-Jul-07

99,898,476

1002.5

526.75 17-Jul-07

4,900,000

1075

Movers Ltd

Table 3-8 : Rights Issues during 2007-08
S. No.

Company Name

1

Bajaj Auto Finance Ltd

2

Cholamandalam DBS Finance Limited

3

DIC India Limited

4

Exide Industries Ltd.

5

The Federal Bank Ltd

6

Amount Mobilised

(Rs. Cr.)

(US $ mn)

1.32

0.33

199.21

49.84

51.60

12.91

150.00

37.53

2,135.74

534.34

Federal-Mogul Goetze (India) Limited.

106.33

26.60

7

GTL Infrastructure Limited

336.28

84.13

8

Hindustan Oil Exploration Co. Ltd

610.51

152.74

9

ITD Cementation India Limited

244.71

61.22

10

Lg Balakrishnan & Bros Ltd

94.42

23.62

11

Nandan Exim Limited

45.45

11.37

12

Orient Paper & Industries Ltd

160.24

40.09

13

Tata Steel Limited

9,120.85

2,281.92

14

Trent Ltd.

157.13

39.31

13,413.79

3,355.96

Total Resources Mobilised

50

Amount Mobilised

Table 3-9 Preferential Allotments by NSE Listed Companies during 2007-08
S.
No.

Company Name

Amount Raised
Rs. cr

Amount Raised
US $ mn

1

Aarvee Denims & Exports Limited

8.36

2.09

2

Agro Dutch Industries Limited

2.06

0.52

3

Ahmednagar Forgings Ltd

40.80

10.21

4

Deccan Aviation Limited

575.40

143.96

5

Alps Industries Ltd.

13.00

3.25

6

Amtek Auto Ltd

322.00

80.56

7

Amtek India Limited

96.25

24.08

8

Anant Raj Industries Limited

800.12

200.18

9

ANG Auto Limited

8.06

2.02

10

Ankur Drugs And Pharma Limited

45.76

11.45

11

Ansal Housing and Construction Limited

18.96

4.74

12

Apollo Hospitals Enterprise Ltd

426.40

106.68

13

Apollo Tyres Ltd

35.16

8.80

14

The Andhra Pradesh Paper Mills Limited

20.00

5.00

15

Aptech Limited

43.33

10.84

16

Archies Limited

3.99

1.00

17

Arihant Foundations & Housing Ltd

20.10

5.03

18

Asian Electronics Ltd

13.68

3.42

19

Aurionpro Solutions Limited

25.96

6.49

20

Axis Bank Limited

1,903.10

476.13

21

B.A.G Films and Media Limited

52.48

13.13

22

Bajaj Auto Finance Ltd

123.27

30.84

23

Balrampur Chini Mills Ltd

67.16

16.80

24

Bhartiya International Limited

10.85

2.71

25

Bilpower Limited

29.10

7.28

26

BPL Limited

18.89

4.73

27

California Software Company Limited

38.39

9.60

28

Cambridge Solutions Limited

133.65

33.44

29

CESC Ltd.

43.34

10.84

30

Clutch Auto Limited

27.38

6.85

31

Color Chips Limited

0.40

0.10

32

Core Projects and Technologies Limited

3.78

0.95

33

City Union Bank Ltd.

145.73

36.46

34

Development Credit Bank Limited

280.00

70.05

35

DCW Ltd

28.33

7.09
Contd...

51

Contd...

Table 3-9 Preferential Allotments by NSE Listed Companies during 2007-08
S.
No.

Company Name

Amount Raised
Rs. cr

Amount Raised
US $ mn

36

Dewan Housing Finance Corporation Ltd

52.99

13.26

37

Everest Kanto Cylinder Limited

88.70

22.19

38

Electrosteel Castings Ltd

54.97

13.75

39

Emco Limited

21.75

5.44

40

Era Infra Engineering Limited

50.83

12.72

41

Ess Dee Aluminium Limited

81.08

20.28

42

Four Soft Limited

19.85

4.97

43

Ganesh Housing Corporation Ltd.

7.46

1.87

44

Garware Wall Ropes Ltd.

4.99

1.25

45

Garware Offshore Services Limited

17.33

4.34

46

Gati Limited

34.45

8.62

47

Gemini Communication Limited

15.53

3.88

48

Genesys International Corporation Limited

1.09

0.27

49

Genus Power Infrastructures Limited

84.00

21.02

50

Geodesic Information Systems Limited

24.96

6.25

51

Geojit Financial Services Limited

147.69

36.95

52

GHCL Limited

16.28

4.07

53

Gitanjali Gems Limited

45.07

11.28

54

Goldiam International Limited

0.75

0.19

55

Goldstone Technologies Ltd.

15.33

3.84

56

Granules India Limited

82.87

20.73

57

Greenply Industries Ltd

6.21

1.55

58

Gujarat State Petronet Limited

107.35

26.86

59

GTC Industries Ltd

8.00

2.00

60

Gujarat NRE Coke Ltd.

52.50

13.13

61

Gujarat Sidhee Cements Ltd

4.73

1.18

62

Havells India Limited

260.00

65.05

63

Housing Development Finance Corporation Ltd.

3,114.00

779.08

64

HDFC Bank Ltd

1,390.10

347.79

65

Hexaware Technologies Limited

150.00

37.53

66

Himatsingka Seide Ltd

9.98

2.50

67

Hindalco Industries Ltd.

1,173.62

293.63

68

Hindustan Dorr-Oliver Ltd

8.00

2.00

69

I-Flex Solutions Limited

40.17

10.05

70

Indiabulls Real Estate Limited

273.83

68.51
Contd...

52

Contd...

Table 3-9 Preferential Allotments by NSE Listed Companies during 2007-08
S.
No.

Company Name

71

Indo Count Industries Ltd

72

Amount Raised
Rs. cr

Amount Raised
US $ mn

6.07

1.52

ICSA (India) Limited

53.20

13.31

73

IG Petrochemicals Ltd.

13.50

3.38

74

Indiabulls Financial Services Limited

321.17

80.35

75

India Infoline Limited

609.20

152.41

76

IMP Powers Ltd

5.91

1.48

77

Ind-Swift Laboratories Ltd.

2.35

0.59

78

Infotech Enterprises Ltd

201.01

50.29

79

ING Vysya Bank Limited

157.51

39.41

80

IOL Netcom Limited

5.68

1.42

81

Jai Corp Limited

611.75

153.05

82

Jayant Agro Organics Ltd.

3.90

0.98

83

JIK Industries Limited

13.89

3.47

84

Jindal Saw Limited

116.53

29.15

85

Jain Irrigation Systems Limited

47.59

11.91

86

Jindal Stainless Limited

102.77

25.71

87

JSW Steel Limited

190.40

47.64

88

Jyoti Structures Ltd

5.27

1.32

89

Kanoria Chemicals & Industries Ltd

20.34

5.09

90

Kesar Enterprises Ltd.

4.38

1.10

91

Kinetic Motor Company Limited

9.75

2.44

92

Karuturi Networks Limited

39.85

9.97

93

Kopran Ltd.

7.03

1.76

94

KPIT Cummins Infosystems Limited

38.55

9.64

95

K S Oils Limited

131.78

32.97

96

Lakshmi Precision Screws Limited

9.09

2.27

97

Lakshmi Energy and Foods Limited

37.38

9.35

98

Lloyd Electric & Engineering Ltd

50.00

12.51

99

Lumax Industries Ltd

54.00

13.51

100

Lyka Labs Ltd

27.36

6.84

101

Mahindra & Mahindra Financial Services Limited

414.20

103.63

102

Mahindra Lifespace Developers Limited

198.83

49.74

103

Malwa Cotton Spg. Mills Ltd

2.80

0.70

104

Man Industries (India) Ltd.

9.00

2.25

105

Media Video Ltd.

18.49

4.63
Contd...

53

Contd...

Table 3-9 Preferential Allotments by NSE Listed Companies during 2007-08
S.
No.

Company Name

106

Micro Technologies (India) Limited

107

Amount Raised
Rs. cr

Amount Raised
US $ mn

9.09

2.27

Mercator Lines Limited

44.00

11.01

108

MSK Projects (India) Limited

37.38

9.35

109

Nagarjuna Construction Co. Ltd

410.00

102.58

110

Nagreeka Exports Ltd

6.09

1.52

111

Nagreeka Exports Limited

6.05

1.51

112

Nava Bharat Ventures Limited

30.40

7.61

113

Nicco Corporation Limited

20.00

5.00

114

Onward Technologies Ltd

0.18

0.04

115

Opto Circuits (India) Limited

41.93

10.49

116

Pantaloon Retail (India) Ltd.

398.24

99.63

117

Paramount Communications Ltd

14.58

3.65

118

Parekh Aluminex Limited

18.40

4.60

119

Phoenix Lamps Ltd

42.53

10.64

120

The Phoenix Mills Limited

317.72

79.49

121

Polyplex Corporation Ltd.

20.52

5.13

122

Prajay Engineers Syndicate Limited

1.46

0.37

123

Praj Industries Ltd

87.78

21.96

124

Precision Wires India Ltd

19.49

4.88

125

Provogue (India) Limited

130.50

32.65

126

Rana Sugars Ltd

6.82

1.71

127

Rane Holdings Limited

29.70

7.43

128

Reliance Capital Limited

494.76

123.78

129

Shree Renuka Sugars Limited

62.57

15.65

130

Ramkrishna Forgings Limited

1.50

0.38

131

Radha Madhav Corporation Limited

6.57

1.64

132

Reliance Natural Resources Limited

743.85

186.10

133

RPG Cables Ltd

8.30

2.08

134

Sabero Organics Gujarat Ltd

8.50

2.13

135

Sagar Cements Ltd.

28.72

7.18

136

Saksoft Limited

3.27

0.82

137

Sangam (India) Ltd.

2.76

0.69

138

Sanghi Industries Limited

93.71

23.45

139

Sanghvi Movers Ltd.

29.69

7.43

140

South Asian Petrochem Limited

71.77

17.96
Contd...

54

Contd...

Table 3-9 Preferential Allotments by NSE Listed Companies during 2007-08
S.
No.

Company Name

Amount Raised
Rs. cr

Amount Raised
US $ mn

141

SB&T International Ltd

7.75

1.94

142

Sharyans Resources Ltd.

94.82

23.72

143

Shiv-Vani Oil & Gas Exploration Services Limited

102.50

25.64

144

Shreyans Industries Ltd

5.98

1.49

145

Sical Logistics Limited

219.05

54.80

146

Sona Koyo Steering Systems Ltd.

30.98

7.75

147

Spentex Industries Ltd

1.00

0.25

148

Shriram Transport Finance Co. Ltd.

539.20

134.90

149

Strides Arcolab Limited

1.71

0.43

150

STI India Ltd

4.08

1.02

151

Sterlite Technologies Limited

28.00

7.01

152

Subhash Projects & Marketing Ltd

134.60

33.68

153

Summit Securities Limited

28.73

7.19

154

Supreme Tex Mart Limited

14.81

3.70

155

Surana Industries Limited

24.75

6.19

156

Suryajyoti Spinning Mills Limited

3.48

0.87

157

Surya Pharmaceutical Limited

20.93

5.24

158

Tata Power Co. Ltd.

580.86

145.32

159

Tata Steel Limited

1,380.17

345.30

160

Tata Tea Ltd

204.13

51.07

161

Transport Corporation of India Limited

52.63

13.17

162

TIPS Industries Limited

11.12

2.78

163

Trent Ltd.

43.50

10.88

164

Television Eighteen India Ltd.

91.54

22.90

165

UFLEX Limited

80.50

20.14

166

Usha Martin Limited

88.74

22.20

167

Vakrangee Softwares Limited

42.18

10.55

168

Valecha Engineering Limited

21.05

5.27

169

Varun Shipping Co. Ltd.

63.75

15.95

170

Viceroy Hotels Limited

8.13

2.03

171

Welspun Gujarat Stahl Rohren Limited

68.45

17.13

172

Xpro India Limited

1.76

0.44

173

Yes Bank Limited

330.75

82.75

174

Zicom Electronic Security Systems Limited

14.34

3.59

24,026.97

6,011.25

TOTAL

55

Table 3-10 : Amount raised through QIP during 2007-08
Sr.
No

Name of the company

Amount Raised

(Rs.cr)

(US $ mn)

1

GMR Infrastructure Limited

3965.71

992.17

2

Suzlon Energy Limited

2182.70

546.08

3

IDFC Limited

2100.00

525.39

4

UTI Bank Limited

1752.43

438.44

5

Kotak Mahindra Bank Limited

1615.00

404.05

6

Bank of India

1359.81

340.21

7

GVK Power & Infrastructure Limited

1221.00

305.48

8

PTC India Limited

1199.99

300.22

9

Max India Limited

999.99

250.19

10

The Phoenix Mills Limited

980.00

245.18

11

United Phosphorous Limited

845.81

211.61

12

Punj Lloyd Limited

814.00

203.65

13

Godrej Industries Ltd.

600.00

150.11

14

India Cements Ltd.

592.49

148.23

15

CESC Limited

590.81

147.81

16

Sintex Industries Ltd.

589.50

147.49

17

Peninsula Land Limited

525.00

131.35

18

Centurion Bank of Punjab Limited

500.00

125.09

19

Simplex Infrastructures Limited

400.00

100.08

20

The South Indian Bank Ltd.

326.00

81.56

21

ING Vysya Bank Limited

192.49

48.16

22

Nitco Tiles Limited

166.01

41.53

23

Shree Renuka Sugars Limited

164.00

41.03

24

Godawari Power And Ispat limited

100.00

25.02

25

Logix Microsystems Limited

97.65

24.43

26

Sadbhav Engineering Limited

92.00

23.02

27

Escorts Limited

87.92

22.00

28

Sunil Hitech Engineering Limited

81.00

20.27

29

Birla Power Solutions Limited.

67.32

16.84

30

Escorts Limited

60.84

15.22

31

Pratibha Industries Limited

60.72

15.19

32

Parekh Aluminex Limited

54.00

13.51

33

West Coast Paper Mills Limited

49.99

12.51

244,34.17

6,113.13

TOTAL

56

Amount Raised

Capital Market Segment

4

58

Capital Market Segment

4

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

NEAT System
National Exchange for Automated Trading (NEAT) is the trading system of NSE. NEAT
facilitates a system on-line, fully automated, nationwide, anonymous, order driven,
screen-based trading. In this system a member can punch into the computer quantities of
securities and the prices at which he likes to transact and the transaction is executed as soon
as it finds a matching sale for buy order for a counter party. The numerous advantages
of the NEAT system are detailed out below :

It electronically matches orders on a price/time priority and hence cuts down on
time, cost and risk of error, as well as on fraud resulting in improved operational
efficiency.

It allows faster incorporation of price sensitive information into prevailing prices,
thus increasing the informational efficiency of markets.

It enables market participants to see the full market on real-time, making the
market transparent. It allows a large number of participants, irrespective of their
geographical locations, to trade with one another simultaneously, improving the
depth and liquidity of the market.

It provides tremendous flexibility to the users in terms of kinds of orders that can
be placed on the system. It ensures full anonymity by accepting orders, big or
small, from members without revealing their identity, thus providing equal access
to everybody.

It provides a perfect audit trail which helps to resolve disputes by logging in the
trade execution process in entirety.

The trading platform of the CM segment is accessed not only from the computer
terminals from the premises of brokers spread over about 245 cities, but also from
the personal computers in the homes of investors through the Internet.

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

59

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

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

Frequency Distribution of Securities Traded During 2007-08
No. of Days Traded

No. of Securities

% to Total

Above 100
91-100
81-90
71-80
61-70
51-60
41-50
31-40
21-30
11-20
1-10
Total

1,177
5
17
7
11
7
7
6
9
13
7
1,266

92.97
0.39
1.34
0.55
0.87
0.55
0.55
0.47
0.71
1.03
0.55
100.00

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

Trading Frequency of Companies during the period 2007-08
Month
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08

Companies Avaliable
for Trading*

Companies Traded

% of Traded to
Available for Trading

1,104
1,126
1,143
1,150
1,170
1,173
1,180
1,197
1,207
1,216
1,227
1,236

1,088
1,113
1,130
1,140
1,166
1,116
1,176
1,189
1,202
1,210
1,226
1,229

98.55
98.85
98.86
99.13
99.66
95.14
99.66
99.33
99.59
99.51
99.92
99.43

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

60

Distribution of Turnover
The concentration of trading among top ‘N’ securities/brokers is presented in Table
4-2. It is observed that the top ‘5’ and ‘100’ securities account for about 16.29 % and
77.29 % of total turnover in the CM segment in 2007-08. The top ‘50’ securities accounted
for 61.47 % of the total turnover, details of which are presented in Table 4-3.
Broker-wise distribution of turnover as presented in Table 4-2 indicates increasing diffusion
of trades among a large number of trading members over the years. During 2007-08, top
‘5’ brokers accounted for only 14.57% of turnover, while top ‘100’ brokers accounted
for 73.90% of total turnover.

Market Capitalisation
The total market capitalisation of securities available for trading on the CM segment
increased from Rs. 363,350 crore as at end March 1995 to Rs. 4,858,122 crore
(US $ 1,125,442 million) as at end March 2008. A Y-o-Y increase of 44.27 % was
witnessed during 2007-08 as compared to the market capitalization of Rs.3,367,350 crore
(US $ 772,505 million) in 2006-07. The details of ‘50’ top companies by market
capitalisation, which accounted for 65.12% of total market capitalisation as at end
March 2008, are presented in Table 4-4.

Sectoral Distribution
Table 4-5 presents the classification of ‘Top 50’ companies based on their trading value
and on their Market capitalization. A significant change in the importance of different
sectors is observed during the past few years.
The share of trading volumes in the Infrastructure sector saw a significant increase from
7.39 % in the last fiscal to 22.93 % in the current year. In terms of market capitalisation
the share increased from 7.05 % during 2006-07 to 17.05% in the current year. This sector
also holds the maximum share in terms of trading volumes and market capitalization
in the current fiscal 2007-08. Among the top ‘50’ Companies there was a significant
contribution in trading volumes from newly listed companies like DLF limited-2.53 %
(listed on 05th July, 2007), Power Grid Corporation Ltd- 1.45 % (listed on 05th October
2007), Reliance Power Ltd -0.80 % (listed on 11th February 2008) and Housing Dev &
Infra Ltd- 1.09 % (listed on 24th July,2007) which has attributed to the emergence of
this sector.
The top ‘50’ companies cover a significant share of trading volumes and market capitalistion
in the Petrochemicals sector of 17.80% and 22.94% respectively. Under this sector, among
the companies - Cairn India Limited (listed on 09th January 2008) features both in the
top 50’ traded volumes and market capitalistion.
The share of manufacturing companies in the trading volume and market capitalization
of top ‘50’ companies has been witnessing a steady increase over the years. In the current
fiscal the top ‘50’ companies with the maximum share in this sector were Rel. Nat.

61

Resources Ltd - 4.90 % in terms of trading volumes and NMDC Ltd (listed on 03rd
March 2008) 4.33 % in terms of market capitalization.
The IT sector on the other hand witnessed a slowdown in the share of top ‘50’ companies
both in terms of trading volumes and market capitalization. The share of trading volumes
decreased from 15.04 % in 2006-07 to 5.90 % in 2007-08. The market capitalization share
decreased from 18.14 % in the previous fiscal to 7.95 % in the current fiscal year.

Trading Records during 2007-08
Ten of NSE’s most Active trading days in terms of trading values are presented in Table
4-6 . During the fiscal, the month of October 07 witnessed the highest trading value of
Rs.455,589 cr (US $ 113,983 million) and maximum number of active days (03rd,17th,18th
and 20th of October 2007).

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

Enabled
Members*

Registered
Clients*

Internet
Trading
Volume
(Rs. crore)

Internet
Trading
Volume
(US $ million)

% of total
Trading
Volume

2006-07

242

2,279,098

337,524

77,432

17.35

2007-08

305

4,405,134

668,399

167,225

18.82

* At the end of the financial year

FII Turnover on NSE :
The gross turnover of FIIs amounted to Rs.1,270,521 crore ( US $ 317,869 million) as
compared with Rs.686,297 crore (US $ 157,444 million) during 2006-07.

On-line IPOs
The on-line trading system of NSE is used by companies to make IPOs through book
building. It is a fully automated screen based bidding system that allows trading members
to enter bids on behalf of their clients. All bids received by the system are numbered, time
stamped, and stored in the book till the last day of the book building process and the offer
price is determined after the bid closing date. While ensuring efficient price discovery,
this system reduces time taken for completion of the issue process. 281 companies have
used the on-line IPO system of NSE by the end of March 2008.

62

Indices
India Index Services and Products Ltd. (IISL), in technical partnership with S&P, have
developed and have been maintaining scientifically an array of indices of stock prices
on NSE. The popular indices are the S&P CNX Nifty, CNX Nifty Junior, S&P CNX
Defty, S&P CNX 500, CNX Midcap, CNX 100, Nifty Midcap 50, S&P CNX Industry
indices and CNX segment indices. S&P CNX Nifty, introduced in November 3, 1995, is
based on 50 largest and highly liquid stocks. CNX Nifty Junior, introduced in December
1996, is built out of the next 50 large and liquid stocks. These indices are monitored and
updated dynamically and are reviewed regularly. The comparative movement of major
sectoral indices along with that of S&P CNX Nifty is presented in Chart 4-2.
The S&P CNX Nifty accounted for 58.64% of total market capitalisation as at end
March 2008, while the CNX Nifty Junior accounted for 9.34% of market capitalisation
(Table 4-9). The compositions of these two indices as at end March 2008 are presented in
Table 4-10 and Table 4-11. The industry wise weightages of securities included in S&P
CNX Nifty are presented in Table 4-12.
The movements in S&P CNX Nifty and CNX Nifty Junior are presented in
Table 4-13 and Table 4-14 respectively. The Performance of few of the indices is presented
in Table 4-15. All the indices with the exception of CNX IT witnessed their record time
highs during the month of January 2008. The S&P CNX Nifty Index touched its peak of
6357.10 on January 08, 2008. It yielded a point to point positive return of 23.89% during
2007-08. The Finance index earned the highest point to point positive returns of 60.06 %
followed by the Petrochemicals index 45.30 % during the current fiscal.

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

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

63

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

Uses of Volatility Index
Volatility Index offers great advantages in terms of trading, hedging and introducing
derivative products on this index. Investors can use volatility index for various purposes
as mentioned below:

Investors’ portfolios are exposed to the market volatility. Investors could hedge
their portfolios against volatility with an off-setting position in India VIX futures
or options contracts.

Volatility index depicts the collective consensus of the market on the expected
volatility and being contrarian in nature helps in predicting the direction.
Investors therefore could appropriately use this information for taking trading
positions.

Investors could also use the implied volatility information given by the index, in
identifying mis-priced options.

Short sale positions could expose investors to directional risk. Derivatives on
volatility index could help investors in safeguarding their positions and thus avoid
systemic risk for the market Based on the experience gained with the benchmark
broad based index, sector specific volatility indices could be constructed to enable
hedging by investors in those specific sectors.

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

Transaction Charges
The maximum brokerage chargeable by trading member in respect of trades effected in
the securities admitted to dealing on the CM segment of the Exchange is fixed at 2.5%
of the contract price, exclusive of statutory levies like, securities transaction tax, SEBI
turnover fee, service tax and stamp duty. However, the brokerage charges as low as 0.10%
are also observed in the market.

64

A member is required to pay the exchange transaction charges at the rate of 0.0035%
(Rs. 3.5 per Rs. 1 lakh) of the turnover. Trading members are also required to pay securities
transaction tax (STT) on all delivery based transaction at the rate of 0.125% (payable by
both buyer and seller) and in case of non-delivery transactions at the rate of 0.025% for
equities payable by the seller only).

Clearing & Settlement
While NSE provides a platform for trading to its trading members, the National Securities
Clearing Corporation Ltd. (NSCCL) determines the funds/securities obligations of the
trading members and ensures that trading members meet their obligations. The core
processes involved in clearing and settlement are:
(a)

Trade Recording : The key details about the trades are recorded to provide basis for
settlement. These details are automatically recorded in the electronic trading system
of the exchanges.

(b)

Trade Confirmation : The parties to a trade agree upon the terms of trade like
security, quantity, price, and settlement date, but not the counterparty which is
the NSCCL. The electronic system automatically generates confirmation by direct
participants.

(c)

Determination of Obligation : The next step is determination of what counter-parties
owe, and what counter-parties are due to receive on the settlement date. The NSCCL
interposes itself as a central counterparty between the counterparties to trades and
nets the positions so that a member has security wise net obligation to receive or
deliver a security and has to either pay or receive funds.

(d)

Pay-in of Funds and Securities : The members bring in their funds/securities to the
NSCCL. They make available required securities in designated accounts with the
depositories by the prescribed pay-in time. The depositories move the securities
available in the accounts of members to the account of the NSCCL. Likewise
members with funds obligations make available required funds in the designated
accounts with clearing banks by the prescribed pay-in time. The NSCCL sends
electronic instructions to the clearing banks to debit member’s accounts to the
extent of payment obligations. The banks process these instructions, debit accounts
of members and credit accounts of the NSCCL.

(e)

Pay-out of Funds and Securities : After processing for shortages of funds /securities
and arranging for movement of funds from surplus banks to deficit banks
through RBI clearing, the NSCCL sends electronic instructions to the depositories/
clearing banks to release pay-out of securities/funds. The depositories and
clearing banks debit accounts of the NSCCL and credit accounts of members.
Settlement is complete upon release of pay-out of funds and securities to custodians/
members.

65

(f)

Risk Management : A sound risk management system is integral to an efficient
settlement system. The NSCCL ensures that trading members’ obligations are
commensurate with their net worth. It has put in place a comprehensive risk
management system, which is constantly monitored and upgraded to pre-empt
market failures. It monitors the track record and performance of members and
their net worth; undertakes on-line monitoring of members’ positions and
exposure in the market, collects margins from members and automatically
disables members if the limits are breached. The risk management methods adopted
by NSE have brought the Indian financial market in line with the international
markets.

Settlement Agencies
The NSCCL, with the help of clearing members, custodians, clearing banks and
depositories settles the trades executed on exchanges. The roles of each of these entities
are explained below:

66

(a)

NSCCL : The NSCCL is responsible for post-trade activities of a stock exchange.
Clearing and settlement of trades and risk management are its central functions. It
clears all trades, determines obligations of members, arranges for pay-in of funds/
securities, receives funds/securities, processes for shortages in funds securities,
arranges for pay-out of funds/securities to members, guarantees settlement,
and collects and maintains margins/collateral/base capital/other funds. It is the
counterparty to all settlement obligations of the members.

(b)

Clearing Members : They are responsible for settling their obligations as determined
by the NSCCL. They have to make available funds and/or securities in the
designated accounts with clearing bank/depositories, as the case may be, to meet
their obligations on the settlement day.

(c)

Custodians : Custodian is a clearing member but not a trading member. They settles
trades assigned to them by trading members. They are required to confirm whether
they are going to settle a particular trade or not. If it is confirmed, the NSCCL
assigns that obligation to that custodian and the custodian is required to settle it on
the settlement day.

(d)

Clearing Banks : Every clearing member is required to open a dedicated clearing
account with one of the clearing banks. Based on his obligation as determined through
clearing, the clearing member makes funds available in the clearing account for the
pay-in and receives funds in case of a pay-out.

(e)

Depositories : Depositories help in the settlement of the dematerialised securities.
Each custodian/clearing member is required to maintain a clearing pool account
with the depositories. He is required to make available the required securities in
the designated account on settlement day. The depository runs an electronic file to
transfer the securities from accounts of the custodians/clearing member to that of

NSCCL. As per the schedule of allocation of securities determined by the NSCCL,
the depositories transfer the securities on the pay-out day from the account of the
NSCCL to those of members/custodians.
(f)

Professional Clearing Member : NSCCL admits special category of members namely,
professional clearing members. Professional Clearing Member (PCM) may clear and
settle trades executed for their clients (individuals, institutions etc.). In such an event,
the functions and responsibilities of the PCM would be similar to Custodians. PCMs
may also undertake clearing and settlement responsibility for trading members. In
such a case, the PCM would settle the trades carried out by the trading members
connected to them. A PCM has no trading rights but has only clearing rights,
i.e. he clears the trades of his associate trading members and institutional clients.

Settlement Cycles
NSCCL clears and settles trades as per well-defined settlement cycles, as presented in
Table 4-17. Since the beginning of the financial year 2003, all securities are being traded
and settled under T+2 rolling settlement. The NSCCL notifies the consummated trade
details to clearing members/custodians on the trade day. The custodians affirm back the
trades to NSCCL by T+1 day. Based on the affirmation, NSCCL nets the positions of
counterparties to determine their obligations. A clearing member has to pay-in/pay-out
funds and/or securities. A member has a security-wise net obligation to receive/deliver
a security. The obligations are netted for a member across all securities to determine his
fund obligations and he has to either pay or receive funds. Members’ pay-in/pay-out
obligations are determined latest by T+1 day and are forwarded to them on the same
day so that they can settle their obligations on T+2 day. The securities/funds are paidin/paid-out on T+2 day and the settlement is complete in 3 days from the end of the
trading day.

Settlement Statistics
The settlement statistics of the CM segment is presented in Table 4-18. During 2007-08,
NSCCL settled trades for Rs. 3,519,919 crore (US $ 880,640 million.) of which 27.64%
were settled by delivery. However, these deliveries include only the net deliveries made
by the trading members to the clearing corporation. Of total delivery, nearly 100% of
securities were delivered in demat form in 2007-08. Short deliveries averaged around 0.27
of total delivery in 2007-08.

Risk Management System
There have been a number of experiments with different risk containment measures in
the recent pasts. NSE being aware of the importance of the risk containment measures has
a dedicated Risk Group which looks into aspects relating to the risk management. These
measures have been repeatedly reviewed and revised. The risk containment measures in
vogue are described below:

67

Capital Adequacy
The capital adequacy requirements stipulated by the NSE are substantially in excess
of the minimum statutory requirements as also in comparison to those stipulated by
other stock exchanges. A person seeking membership in the CM and F&O segment is
required to have a net worth of Rs. 1 crore, and keep an interest free security deposit of
Rs. 1.25 crore and collateral security deposit of Rs. 0.25 crore with the Exchange/NSCCL.
The deposits kept with the Exchange as part of the membership requirement may be used
towards the margin requirement of the member. Additional capital may be provided by
the member for taking additional exposure.

Margin Requirements
NSCCL imposes stringent margin requirements as a part of its risk containment
measures. The categorization of stocks for imposition of margins has the structure as
given below;

The Stocks which have traded atleast 80% of the days for the previous six months
constitute the Group I and Group II.

Out of the scrips identified above, the scrips having mean impact cost of less than
or equal to 1% are categorized under Group I and the scrips where the impact cost
is more than 1, are categorized under Group II.

The remaining stocks are classified into Group III.

The impact cost is be calculated on the 15th of each month on a rolling basis
considering the order book snapshots of the previous six months. On the basis of
the impact cost so calculated, the scrips are moved from one group to another group
from the 1st of the next month.

For securities that have been listed for less than six months, the trading frequency
and the impact cost is computed using the entire trading history of the security

Categorisation of newly listed securities
For the first month and till the time of monthly review a newly listed security is
categorised in that Group where the market capitalization of the newly listed security
exceeds or equals the market capitalization of 80% of the securities in that particular
group. Subsequently, after one month, whenever the next monthly review is carried out,
the actual trading frequency and impact cost of the security is computed, to determine
the liquidity categorization of the security.
In case any corporate action results in a change in ISIN, then the securities bearing the
new ISIN are treated as newly listed security for group categorization.
Daily margin, comprises of VaR margin, Extreme Loss margin and Mark to Market
margin.

68

1)

Value at Risk Margin :
All securities are classified into three groups for the purpose of VaR margin
For the securities listed in Group I, scrip wise daily volatility calculated using the
exponentially weighted moving average methodology is applied to daily returns in
the same manner as in the derivatives market. The scrip wise daily VaR would be
3.5 times the volatility so calculated subject to a minimum of 7.5%.
For the securities listed in Group II, the VaR margin is higher of scrip
VaR (3.5 sigma) or three times the index VaR, and it shall be scaled up by root 3.
For the securities listed in Group III, the VaR margin is equal to five times the index
VaR and scaled up by root 3.
The index VaR, for the purpose, is higher of the daily Index VaR based on
S&P CNX NIFTY or BSE SENSEX. The index VaR is subject to a minimum
of 5%.
Security specific Margin: NSCCL may stipulate security specific margins for the
securities from time to time.
The VaR margin rate computed as mentioned above is to be charged on the net
outstanding position (buy value-sell value) of the respective clients on the respective
securities across all open settlements. There is netting off of positions across different
settlements. The VaR margin is collected on an upfront basis by adjusting against the
total liquid assets of the member at the time of trade. The VaR margin so collected
is released on completion of pay-in of the settlement.
The VaR numbers are recomputed six times during the day taking into account
price and volatilities at various time intervals and are provided on the website of
the Exchange.

2)

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

3)

Mark to Market Margin
Mark to market loss is calculated by marking each transaction in security
to the closing price of the security at the end of trading. In case the security has
not been traded on a particular day, the latest available closing price at the NSE
shall be considered as the closing price. In case the net outstanding position
in any security is nil, the difference between the buy and sell values is considered
as notional loss for the purpose of calculating the mark to market margin
payable.

69

The mark to market margin (MTM) is collected from the member before the start
of the trading of the next day. The MTM margin is also collected/adjusted from/
against the cash/cash equivalent component of the liquid net worth deposited with
the Exchange.
The MTM margin so collected is released on completion of pay-in of the
settlement.

Index-based Circuit Filters
An index based market-wide circuit breaker system applies at three stages of the index
movement either way at 10%, 15% and 20%. These circuit breakers bring about a
coordinated trading halt in all equity and equity derivatives markets nation wide. The
breakers are triggered by movement of either S&P CNX Nifty or Sensex, whichever is
breached earlier.

In case of a 10% movement of either of these indices, there would be a one-hour
market halt if the movement takes place before 1:00 p.m. In case the movement
takes place at or after 1:00 p.m. but before 2:30 p.m. there would be trading halt for
½ hour. In case movement takes place at or after 2:30 p.m. there will be no trading
halt at the 10% level and market shall continue trading.

In case of a 15% movement of either index, there shall be a two-hour halt if the movement
takes place before 1 p.m. If the 15% trigger is reached on or after 1:00 p.m. but before
2:00 p.m., there shall be a one-hour halt. If the 15% trigger is reached on or after
2:00 p.m. the trading shall halt for remainder of the day.

In case of a 20% movement of the index, trading shall be halted for the remainder
of the day.

NSE may suo moto cancel the orders in the absence of any immediate confirmation from
the members that these orders are genuine or for any other reason as it may deem fit.
The Exchange views entries of non-genuine orders with utmost seriousness as this has
market-wide repercussion. As an additional measure of safety, individual scrip-wise price
bands have been fixed as below:

Daily price bands of 2% (either way) on a set of specified securities

Daily price bands of 5% (either way) on a set of specified securities

Daily price banks of 10% (either way) on specified securities

Price bands of 20% (either way) on all remaining securities (including debentures,
warrants, preference shares etc. which are traded on CM segment of NSE),

No price bands are applicable on:

scrips on which derivative products are available or
scrips included in indices on which derivatives products are available. *

70

The price bands for the securities in the Limited Physical Market as the same as those
applicable for the securities in the Normal Market.
For Auction market the price bands of 20% are applicable.
*In order to prevent members from entering orders at non-genuine prices in such securities,
the Exchange has fixed operating range of 20% for such securities.

Settlement Guarantee Fund
The Settlement Guarantee Fund (SGF), provides the cushion for any residual risk. It
operates like a self-insurance mechanism where members contribute to the Fund. In the
event of failure of a trading member to meet settlement obligations or committing a default,
the Fund is utilised to the extent required for successful completion of the settlement.
This has eliminated counter-party risk of trading on the Exchange. The market has full
confidence that settlement shall take place in time and shall be completed irrespective of
default by isolated trading members.

Surveillance, Investigation & Inspection
Surveillance & Investigation
As the securities transactions are prone to a variety of manipulations, the Exchange has
instituted a strong surveillance mechanism to protect market integrity. Surveillance
mechanism includes monitoring of orders and trades data, open positions and corporate
information that flow into the market to identify possible market abuse practices. Various
on-line and off-line alerts/reports are generated, on any price/volume movement of
securities not in line with past trends/patterns. Besides, rumors in the print media are
tracked and where they are price sensitive, companies are contacted for verification.
Replies received are informed to the members and the public.
The investigation is based on various alerts which require further analysis. If further
analysis suggests any possible irregular activity which deviates from the past trends/
patterns and concentration of trading at NSE at the client level, then a more detailed
investigation is undertaken. If the detailed investigation establishes any irregular activity,
then disciplinary action is initiated against the member. If the investigation suggests
possible irregular activity across exchanges and/or possible involvement of clients, then
the same is informed to SEBI.

Inspection
As per regulatory requirement, a minimum of 20% of the active trading members are to
be inspected every year to verify the level of compliance with various rules, byelaws and
regulations of the Exchange. Usually, inspection of more members than the regulatory
requirement is undertaken every year. The inspection randomly verifies if investor interests
are being compromised in the conduct of business by the members.

71

72

1994-95 (Nov.-Mar.)
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
Apr-01
May-01
Jun-01
Jul-01
Aug-01
Sep-01
Oct-01
Nov-01
Dec-01
Jan-02
Feb-02
Mar-02
2001-02
Apr-02
May-02
Jun-02
Jul-02
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
Jan-03
Feb-03
Mar-03
2002-03

Month & Year

102
246
250
244
251
254
251
19
22
21
22
21
20
21
20
19
23
20
19
247
22
22
20
23
21
20
21
19
21
23
19
20
251

No. of
Trading
Days






1,201
951
954
963
924
931
917
917
920
895
896
840
840
1,019
843
821
825
820
806
806
770
767
762
763
760
762
899

No. of
companies
Traded

Traded
Quantity
(lakh)
1,391
39,912
135,561
135,685
165,327
242,704
329,536
20,782
25,715
22,336
13,142
15,937
17,342
19,799
25,349
31,777
34,384
28,552
23,294
278,408
28,798
35,303
38,519
36,821
26,000
25,581
26,458
23,631
33,022
36,336
28,681
24,917
364,066

No. of
Trades
(Rs. lakh)
3
66
264
381
546
984
1,676
114
141
133
99
112
135
141
153
177
213
177
157
1,753
201
217
189
211
191
185
201
175
219
239
191
177
2,397

(Rs. cr.)
1,805
67,287
294,503
370,193
414,474
839,052
1,339,510
35,616
48,329
42,783
27,228
29,417
35,323
35,326
42,132
54,468
68,719
49,564
44,262
513,167
53,320
54,979
44,241
51,398
46,113
46,499
51,902
51,352
61,973
64,762
48,289
43,160
617,989

(US $ mn.)




97,683
192,353
287,202
7,298
9,903
8,767
5,579
6,028
7,238
7,239
8,634
11,161
14,082
10,157
9,070
105,157
11,225
11,575
9,314
10,821
9,708
9,789
10,927
10,811
13,047
13,634
10,166
9,086
130,103

Trading Value

(Rs. cr.)
17
276
1,176
1,520
1,651
3,303
5,337
1,875
2,197
2,037
1,238
1,401
1,766
1,682
2,107
2,867
2,988
2,478
2,330
2,078
2,424
2,499
2,212
2,235
2,196
2,325
2,472
2,703
2,951
2,816
2,542
2,158
2,462

(US $ mn.)




389
757
1,144
384
450
417
254
287
362
345
432
588
612
508
477
426
510
526
466
471
462
489
520
569
621
593
535
454
518

Average Daily
Trading Value
(%)
0.50
16.76
70.23
76.88
84.38
82.23
43.66
5.45
8.16
7.51
4.74
5.11
6.94
6.59
7.25
9.85
12.19
7.97
6.95
80.58
8.21
8.70
6.70
8.44
7.29
7.75
8.55
7.96
9.21
11.32
8.30
8.04
115.05

Turnover
Ratio

Table 4-1 : Business Growth of CM Segment

0
0
2
315
8,542
153,772
307,222
20,735
25,714
21,935
13,137
15,931
17,342
19,796
25,295
31,775
34,219
28,547
23,291
277,717
28,782
35,303
38,519
36,821
26,000
25,581
26,458
23,631
33,022
36,336
28,681
24,917
364,049

(lakh)

Demat
Traded
Quantity
0
0
6
351
23,818
711,706
1,264,337
35,605
48,329
42,625
27,227
29,415
35,323
35,324
42,121
54,465
68,606
49,564
44,262
512,866
53,316
54,978
44,241
51,398
46,113
46,499
51,902
51,352
61,973
64,762
48,289
43,160
617,984

(Rs. cr.)

(US $ mn.)




5,613
163,159
271,084
7,296
9,903
8,735
5,579
6,028
7,238
7,239
8,631
11,161
14,059
10,157
9,070
105,095
11,224
11,574
9,314
10,821
9,708
9,789
10,927
10,811
13,047
13,634
10,166
9,086
130,102

Demat Trading Value

Contd...

(Rs. cr.)
(US $ mn.)
363,350

401,459

419,367

481,503

491,175
115,760
1,020,426
233,933
657,847
141,048
653,720
133,959
592,437
121,401
569,797
116,762
574,260
117,676
575,242
117,878
509,105
104,325
535,846
109,805
581,386
119,136
552,908
113,301
563,683
115,509
621,523
127,361
636,861
130,504
636,861
130,504
649,551
136,748
631,609
132,970
659,991
138,945
608,643
128,135
632,618
133,183
599,603
126,232
606,788
127,745
645,388
135,871
672,862
141,655
572,277
120,479
581985
122,523
537133
113,081
537133
113,081

Market Capitalisation

73

Apr-03
May-03
Jun-03
Jul-03
Aug-03
Sep-03
Oct-03
Nov-03
Dec-03
Jan-04
Feb-04
Mar/04
2003-04
Apr-04
May-04
Jun-04
Jul-04
Aug-04
Sep-04
Oct-04
Nov-04
Dec-04
Jan-05
Feb-05
Mar-05
2004-05
Apr-05
May-05
Jun-05
Jul-05
Aug-05
Sep-05

Month & Year

Contd...

20
21
21
23
20
22
23
20
22
21
19
22
254
20
21
22
22
22
22
20
20
23
19
20
22
253
20
22
23
20
22
21

No. of
Trading
Days
738
743
744
755
752
761
728
738
754
761
763
769
804
771
776
787
793
799
809
814
816
821
823
835
870
856
829
830
843
856
864
872

No. of
companies
Traded

Traded
Quantity
(lakh)
31,448
44,001
51,896
64,906
84,554
71,848
71,768
56,716
71,754
73,340
46,484
44,586
713,300
53,686
54,651
41,987
63,058
57,543
62,666
47,274
62,548
99,326
81,575
89,665
83,705
797,685
51,265
56,516
70,485
84,134
100,717
91,996

No. of
Trades
(Rs. lakh)
207
250
267
320
322
346
358
307
379
398
308
318
3,780
319
357
336
377
358
367
299
328
475
410
425
459
4,509
367
413
477
503
570
576

(Rs. cr.)
48,971
54,690
61,586
78,878
85,347
103,345
115,595
92,886
110,373
134,269
108,718
104,877
1,099,534
100,951
98,920
84,898
93,836
86,856
88,508
75,698
82,035
115,593
99,732
99,989
113,055
1,140,072
82,718
86,802
111,397
123,008
145,731
145,393

(US $ mn.)
11,286
12,604
14,194
18,179
19,670
23,818
26,641
21,407
25,437
30,945
25,056
24,171
253,407
23,075
22,610
19,405
21,448
19,853
20,230
17,302
18,751
26,421
22,796
22,855
25,841
260,588
18,543
19,458
24,971
27,574
32,668
32,592

Trading Value

(Rs. cr.)
2,449
2,604
2,933
3,429
4,267
4,698
5,026
4,644
5,017
6,394
5,722
4,767
4,329
5,048
4,710
3,859
4,265
3,948
4,023
3,785
4,102
5,026
5,249
4,999
5,139
4,506
4,136
3,946
4,843
6,150
6,624
6,923

(US $ mn.)
564
600
676
790
983
1,083
1,158
1,070
1,156
1,474
1,319
1,099
998
1,154
1,077
882
975
902
920
865
938
1,149
1,200
1,143
1,175
1,030
927
884
1,086
1,379
1,485
1,552

Average Daily
Trading Value

9.23
8.94
9.08
10.97
10.20
11.97
12.47
9.48
9.46
12.03
9.79
9.36
98.09
8.61
10.41
8.67
8.80
7.60
7.21
6.04
5.67
7.32
6.40
6.19
7.13
71.90
5.45
5.24
6.45
6.65
7.44
6.93

(%)

Turnover
Ratio

Table 4-1 : Business Growth of CM Segment

(lakh)
31,448
44,001
51,896
64,906
84,554
71,848
71,768
56,716
71,754
73,340
46,484
44,586
713,300
53,686
54,651
41,987
63,058
57,543
62,666
47,274
62,548
99,326
81,575
89,665
83704.62
797,685
51,265
56,516
70,485
84,134
100,717
91,996

Demat
Traded
Quantity
(Rs. cr.)
(US $ mn.)
48,971
11,286
54,690
12,604
61,586
14,194
78,878
18,179
85,347
19,670
103,345
23,818
115,595
26,641
92,886
21,407
110,373
25,437
134,269
30,945
108,718
25,056
104,877
24,171
1,099,534
253,407
100,951
23,075
98,920
22,610
84,898
19,405
93,836
21,448
86,856
19,853
88,508
20,230
75,698
17,302
82,035
18,751
115,593
26,421
99,732
22,796
99,989
22,855
113,055
25,841
1,140,072
260,588
82,718
18,543
86,802
19,458
111,397
24,971
123,008
27,574
145,731
32,668
145,393
32,592

Demat Trading Value

Contd...

(Rs. cr.)
(US $ mn.)
530630
122,293
612030
141,053
678550
156,384
719145
165,740
836651
192,821
863481
199,004
926748
213,586
979541
225,753
1167029
268,963
1116150
257,237
1110954
256,039
1,120,976
258,349
1,120,976
258,349
1,171,828
267,846
950,494
217,256
979,700
223,931
1,066,087
243,677
1,143,075
261,274
1,227,550
280,583
1,253,825
286,589
1,446,292
330,581
1,579,161
360,951
1,557,444
355,987
1,614,597
369,051
1,585,585
362,419
1,585,585
362,419
1,517,908
340,262
1,654,995
370,992
1,727,502
387,246
1,848,740
414,423
1,957,491
438,801
2,098,263
470,357

Market Capitalisation

74

Oct-05
Nov-05
Dec-05
Jan-06
Feb-06
Mar-06
2005-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
Nov-06
Dec-06
Jan-07
Feb-07
Mar-07
2006-07
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
2007-08

Month & Year

Contd...

20
20
22
20
19
22
251
18
22
23
21
22
21
20
22
20
20
19
21
249
20
21
21
22
22
20
22
22
19
23
21
18
251

No. of
Trading
Days
887
872
888
893
900
920
928
935
943
950
950
949
968
973
982
1,009
1,035
1,057
1,081
1,114
1,088
1,113
1,130
1,140
1,166
1,116
1,176
1,189
1,202
1,210
1,226
1,229
1,244

No. of
companies
Traded

Traded
Quantity
(lakh)
57,670
53,870
63,699
66,717
61,629
85,788
844,486
72,892
95,371
66,748
46,146
56,443
64,385
60,823
73,071
58,581
88,354
89,807
82,836
855,456
77,081
97,911
79,636
105,315
106,218
143,797
170,945
170,588
163,965
166,821
113,588
102,604
1,498,469

No. of
Trades
(Rs. lakh)
463
434
553
554
521
658
6,089
567
694
667
537
631
648
579
747
666
699
702
710
7,847
678
802
751
897
874
919
1,227
1,180
1,088
1,252
1,072
987
11,727

(Rs. cr.)
120,810
109,578
149,908
149,442
135,374
209,395
1,569,558
177,372
201,409
151,050
118,698
130,796
144,339
138,382
189,863
170,105
175,147
180,170
167,954
1,945,287
168,567
207,585
193,648
267,227
231,241
266,050
455,589
414,419
366,385
447,138
280,176
253,012
3,551,038

(US $ mn.)
27,081
24,564
33,604
33,500
30,346
46,939
351,840
40,691
46,205
34,652
27,231
30,006
33,113
31,746
43,557
39,024
40,181
41,333
38,530
446,269
42,173
51,935
48,448
66,857
57,854
66,562
113,983
103,683
91,665
111,868
70,097
63,301
888,426

Trading Value

(Rs. cr.)
6,040
5,479
6,814
7,472
7,125
9,518
6,253
9,854
9,155
6,567
5,652
5,945
6,873
6,919
8,630
8,505
8,757
9,483
7,998
7,812
8,428
9,885
9,221
12,147
10,511
13,302
20,709
18,837
19,283
19,441
13,342
14,056
14,148

(US $ mn.)
1,354
1,228
1,527
1,675
1,597
2,134
1,402
2,261
2,100
1,507
1,297
1,364
1,577
1,587
1,980
1,951
2,009
2,175
1,835
1,792
2,109
2,473
2,307
3,039
2,630
3,328
5,181
4,713
4,824
4,864
3,338
3,517
3,540

Average Daily
Trading Value

6.27
5.06
6.45
6.14
5.39
7.44
55.79
5.93
7.71
5.98
4.72
4.71
4.82
4.41
5.63
4.96
4.90
5.46
4.99
57.77
4.62
5.33
4.87
6.19
5.38
5.44
7.96
7.05
5.60
8.44
5.17
5.21
73.09

(%)

Turnover
Ratio

Table 4-1 : Business Growth of CM Segment

(lakh)
57,670
53,870
63,699
66,717
61,629
85,788
844,486
72,892
95,371
66,748
46,146
56,443
64,385
60,823
73,071
58,581
88,354
89,807
82,836
855,456
77,081
97,911
79,636
105,315
106,218
143,797
170,945
170,588
163,965
166,821
113,588
102,604
1,498,469

Demat
Traded
Quantity
(Rs. cr.)
(US $ mn.)
120,810
27,081
109,578
24,564
149,908
33,604
149,442
33,500
135,374
30,346
209,395
46,939
1,569,558
351,840
177,372
40,691
201,409
46,205
151,050
34,652
118,698
27,231
130,796
30,006
144,339
33,113
138,382
31,746
189,863
43,557
170,105
39,024
175,147
40,181
180,170
41,333
167,954
38,530
1,945,287
446,269
168,567
42,173
207,585
51,935
193,648
48,448
267,227
66,857
231,241
57,854
266,050
66,562
455,589
113,983
414,419
103,683
366,385
91,665
447,138
111,868
280,176
70,097
253,012
63,301
3,551,038
888,426

Demat Trading Value

(Rs. cr.)
(US $ mn.)
1,927,645
432,110
2,166,823
485,726
2,322,392
520,599
2,434,395
545,706
2,512,083
563,121
2,813,201
630,621
2,813,201
630,621
2,990,200
685,983
2,612,639
599,367
2,524,659
579,183
2,514,261
576,798
2,777,401
637,165
2,994,132
686,885
3,138,319
719,963
3,373,652
773,951
3,426,236
786,014
3,571,487
819,336
3,296,931
756,350
3,367,350
772,505
3,367,350
772,505
3,650,368
913,277
3,898,078
975,251
3,978,381
995,342
4,317,571
1,080,203
4,296,994
1,075,055
4,886,561
1,222,557
5,722,227
1,431,630
5,876,742
1,470,288
6,543,272
1,637,046
5,295,387
1,324,840
5,419,942
1,356,003
4,858,122
1,215,442
4,858,122
1,215,442

Market Capitalisation

Chart 4-1 : Business Growth of Capital Market Segment

Table 4-2 : Percentage Share of Top ‘N’ Securities/Member in Turnover
Year
Securities
1994-95 (Nov.-Mar.)
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Members
1994-95 (Nov.-Mar.)
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08

5

No. of Securities/Brokers
10
25

50

100

48.77
82.98
84.55
72.98
52.56
39.56
52.15
44.43
40.58
31.04
25.88
22.15
16.97
16.29

55.92
86.60
91.96
85.17
67.11
59.22
72.90
62.92
55.41
44.87
41.65
31.35
25.25
26.78

68.98
90.89
95.70
92.41
84.71
82.31
88.93
82.24
77.8
64.32
57.98
46.39
43.46
45.46

81.14
93.54
97.03
95.76
92.03
88.69
94.57
91.56
89.16
79.44
72.40
59.22
61.94
61.47

91.07
95.87
98.19
97.90
95.98
93.66
97.46
95.91
95.38
91.03
84.26
73.12
77.22
77.29

18.19
10.65
5.94
6.29
7.73
7.86
7.78
7.14
10.26
11.58
13.52
14.62
14.72
14.57

26.60
16.56
10.08
10.59
11.96
12.99
12.76
12.29
16.41
17.36
20.20
22.57
24.27
25.71

44.37
28.61
19.67
18.81
20.77
22.78
23.00
23.63
29.07
30.34
34.97
38.17
42.61
44.70

61.71
41.93
30.57
29.21
31.66
34.41
33.86
36.32
42.49
44.05
49.01
52.57
56.71
60.11

81.12
58.59
45.95
44.24
47.02
49.96
48.79
53.40
59.15
61.37
65.09
38.45
71.22
73.90

75

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

Name of Security

Trading Value
(Rs. cr.)

% Share Market Capitalisation % Share
in Total as on March 31,2008 in Total
(US $ mn.) Trading (Rs. cr.) (US $ mn.) Market
Value
Capitalisation

1

Reliance Industries
Ltd.

180,435

45,143

5.08

329,368

82,404

6.78

2

Reliance Natural.
Resources Ltd.

106,895

26,744

3.01

16,299

4,078

0.34

3

Reliance Energy Ltd.

106,484

26,641

3.00

29,586

7,402

0.61

4

Reliance Petroleum
Ltd.

96,968

24,260

2.73

70,290

17,586

1.45

5

Reliance
Communications Ltd.

87,839

21,976

2.47

105,214

26,323

2.17

6

Reliance Capital Ltd.

83,504

20,892

2.35

30,183

7,552

0.62

7

ICICI Bank Ltd.

77,736

19,448

2.19

85,512

21,394

1.76

8

IFCI Ltd.

74,312

18,592

2.09

3,362

841

0.07

9

Infosys Technologies
Ltd.

69,809

17,465

1.97

82,362

20,606

1.70

10

Larsen & Toubro Ltd.

66,812

16,716

1.88

88,702

22,192

1.83

11

State Bank Of India

63,360

15,852

1.78

101,065

25,285

2.08

12

DLF Ltd.

55,389

13,858

1.56

110,090

27,543

2.27

13

Bharti Airtel Ltd.

54,387

13,607

1.53

156,815

39,233

3.23

14

Steel Authority Of
India

48,170

12,052

1.36

76,536

19,148

1.58

15

Tata Steel Ltd.

47,526

11,890

1.34

50,741

12,695

1.04

16

GMR Infrastructure
Ltd.

47,354

11,847

1.33

27,110

6,782

0.56

17

BHEL

47,235

11,818

1.33

100,907

25,246

2.08

18

Jaiprakash Associates
Ltd

45,654

11,422

1.29

26,519

6,635

0.55

19

NTPC Ltd.

38,833

9,716

1.09

162,106

40,557

3.34

20

HDFC Ltd.

38,579

9,652

1.09

67,560

16,903

1.39

21

Unitech Ltd.

38,565

9,649

1.09

44,838

11,218

0.92

22

Essar Oil Ltd.

36,280

9,077

1.02

23,286

5,826

0.48

23

Oil And Natural Gas
Corp.

35,359

8,846

1.00

209,727

52,471

4.32

24

Indiabulls Real Estate
Ltd.

34,039

8,516

0.96

11,753

2,940

0.24

25

Indiabulls Financial
Services Ltd.

32,611

8,159

0.92

10,563

2,643

0.22

26

Satyam Computer
Services

31,777

7,950

0.89

26,571

6,648

0.55

Contd...

76

Contd...

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

Name of Security

Trading Value
(Rs. cr.)

% Share Market Capitalisation % Share
in Total as on March 31,2008 in Total
(US $ mn.) Trading (Rs. cr.) (US $ mn.) Market
Value
Capitalisation

27

Power Grid Corp.
Ltd.

31,702

7,931

0.89

41,373

10,351

0.85

28

Suzlon Energy Ltd.

29,964

7,497

0.84

39,489

9,880

0.81

29

Sterlite Inds (Ind) Ltd.

29,347

7,342

0.83

50,621

12,665

1.04

30

Jindal Steel & Power
Ltd.

27,897

6,980

0.79

31,870

7,973

0.66

31

Tata Consultancy
Services Ltd.

27,208

6,807

0.77

79,311

19,843

1.63

32

Industrial
Development Bank
Of India Ltd.

26,764

6,696

0.75

6,457

1,615

0.13

33

ITC Ltd.

26,700

6,680

0.75

77,700

19,440

1.60

34

Infra. Dev. Fin. Co.
Ltd.

25,518

6,384

0.72

19,544

4,890

0.40

35

Tata Teleserv
(Maharastra)

24,633

6,163

0.69

5,320

1,331

0.11

36

Housing Dev & Infra
Ltd.

23,852

5,967

0.67

14,083

3,523

0.29

37

Nagarjuna Fertilizers
Ltd

23,610

5,907

0.66

1,586

397

0.03

38

Tata Motors Ltd.

23,608

5,906

0.66

24,005

6,006

0.49

39

Punj Lloyd Ltd.

22,049

5,516

0.62

9,431

2,360

0.19

40

Ispat Industries Ltd.

20,759

5,194

0.58

3,808

953

0.08

41

Tata Power Co Ltd.

20,504

5,130

0.58

25,777

6,449

0.53

42

HDFC Bank Ltd.

20,359

5,094

0.57

47,184

11,805

0.97

43

Jaiprakash
Hydropower Ltd.

18,596

4,653

0.52

2,651

663

0.05

44

ACC Ltd.

17,937

4,488

0.51

15,501

3,878

0.32

45

Reliance Power Ltd.

17,434

4,362

0.49

71,862

17,979

1.48

46

Cairn India Ltd.

15,993

4,001

0.45

39,872

9,975

0.82

47

Kotak Mahindra Bank
Ltd.

15,963

3,994

0.45

21,573

5,397

0.44

48

Hindalco Industries
Ltd

15,590

3,900

0.44

20,261

5,069

0.42

49

Maruti Suzuki India
Ltd.

15,557

3,892

0.44

23,893

5,978

0.49

50

Idea Cellular Ltd.

15,334

3,836

0.43

27,052

6,768

0.56

2,182,792

546,107

61.47 2,747,289

687,338

56.55

Total

77

Table 4-4 : Top ‘50’ Companies by Market Capitalisation
as on March 31, 2008
Rank

Name of Company

Market Capitalisation
(Rs. cr.)

(US $ mn.)

% Share
in Total
Market
Capitalisation

Trading Volume
% Share
During 2007-08
in
Total
(Rs. cr.) (US $ mn.)
Trading
Volume

1

Reliance Industries
Ltd.

329,368

82,404

6.78

180,435

45,143

5.08

2

Oil And Natural Gas
Corporation

209,727

52,471

4.32

35,359

8,846

1.00

3

NTPC Ltd.

162,106

40,557

3.34

38,833

9,716

1.09

4

Bharti Airtel Ltd.

156,815

39,233

3.23

54,387

13,607

1.53

5

NMDC Ltd.

136,979

34,270

2.82

27

7

0.0008

6

DLF Ltd.

110,090

27,543

2.27

55,389

13,858

1.56

7

Reliance
Communications Ltd.

105,214

26,323

2.17

87,839

21,976

2.47

8

State Bank Of India

101,065

25,285

2.08

63,360

15,852

1.78

9

BHEL

100,907

25,246

2.08

47,235

11,818

1.33

10

Larsen & Toubro
Ltd..

88,702

22,192

1.83

66,812

16,716

1.88

11

ICICI Bank Ltd..

85,512

21,394

1.76

77,736

19,448

2.19

12

Infosys Technologies
Ltd.

82,362

20,606

1.70

69,809

17,465

1.97

13

Tata Consultancy
Services Ltd.

79,311

19,843

1.63

27,208

6,807

0.77

14

ITC Ltd.

77,700

19,440

1.60

26,700

6,680

0.75

15

Steel Authority Of
India

76,536

19,148

1.58

48,170

12,052

1.36

16

Reliance Power Ltd.

71,862

17,979

1.48

17,434

4,362

0.49

17

Reliance Petroleum
Ltd.

70,290

17,586

1.45

96,968

24,260

2.73

18

HDFC Ltd.

67,560

16,903

1.39

38,579

9,652

1.09

19

Wipro Ltd.

63,144

15,798

1.30

11,571

2,895

0.33

20

Indian Oil Corp Ltd.

53,126

13,292

1.09

6,835

1,710

0.19

21

Tata Steel Ltd.

50,741

12,695

1.04

47,526

11,890

1.34

22

Sterlite Inds (Ind) Ltd.

50,621

12,665

1.04

29,347

7,342

0.83

23

Hindustan Unilever
Ltd.

49,832

12,467

1.03

13,120

3,283

0.37

24

HDFC Bank Ltd.

47,184

11,805

0.97

20,359

5,094

0.57

25

Unitech Ltd.

44,838

11,218

0.92

38,565

9,649

1.09

26

Power Grid Corp.
Ltd.

41,373

10,351

0.85

31,702

7,931

0.89
Contd...

78

Contd...

Table 4-4 : Top ‘50’ Companies by Market Capitalisation
as on March 31, 2008
Rank

Name of Company

Market Capitalisation
(Rs. cr.)

(US $ mn.)

% Share
in Total
Market
Capitalisation

Trading Volume
% Share
During 2007-08
in
Total
(Rs. cr.) (US $ mn.)
Trading
Volume

27

Cairn India Ltd.

39,872

9,975

0.82

15,993

4,001

0.45

28

Suzlon Energy Ltd.

39,489

9,880

0.81

29,964

7,497

0.84

29

Gail (India) Ltd.

35,978

9,001

0.74

12,926

3,234

0.36

30

Jindal Steel & Power
Ltd.

31,870

7,973

0.66

27,897

6,980

0.79

31

Reliance Capital Ltd.

30,183

7,552

0.62

83,504

20,892

2.35

32

Reliance Energy Ltd.

29,586

7,402

0.61

106,484

26,641

3.00

33

National Aluminium
Co Ltd.

29,110

7,283

0.60

2,129

533

0.06

34

Axis Bank Ltd.

28,254

7,069

0.58

14,562

3,643

0.41

35

GMR Infrastructure
Ltd..

27,110

6,782

0.56

47,354

11,847

1.33

36

Idea Cellular Ltd.

27,052

6,768

0.56

15,334

3,836

0.43

37

Satyam Computer
Services

26,571

6,648

0.55

31,777

7,950

0.89

38

Jaiprakash Associates
Ltd.

26,519

6,635

0.55

45,654

11,422

1.29

39

Tata Power Co Ltd.

25,777

6,449

0.53

20,504

5,130

0.58

40

Sun Pharmaceuticals
Ind.

25,462

6,370

0.52

5,814

1,455

0.16

41

ABB Ltd.

25,004

6,256

0.51

11,347

2,839

0.32

42

Tata Motors Ltd.

24,005

6,006

0.49

23,608

5,906

0.66

43

Maruti Suzuki India
Ltd.

23,893

5,978

0.49

15,557

3,892

0.44

44

Grasim Industries Ltd.

23,609

5,907

0.49

8,313

2,080

0.23

45

Essar Oil Ltd.

23,286

5,826

0.48

36,280

9,077

1.02

46

Mundra Port & Sez
Ltd.

23,189

5,802

0.48

9,635

2,410

0.27

47

Hindustan Zinc Ltd.

22,193

5,553

0.46

2,095

524

0.06

48

Kotak Mahindra Bank
Ltd.

21,573

5,397

0.44

15,963

3,994

0.45

49

Siemens Ltd.

20,783

5,200

0.43

12,425

3,108

0.35

50

Hindalco Industries
Ltd.

20,261

5,069

0.42

15,590

3,900

0.44

3,163,594

791,492

65.12 1,842,016

460,850

51.87

Total

79

80

25,909

45,013

88,949

181,257

407,168

164,324

23,717

Engineering

FMCG

Infrastructure

IT

Manufacturing

Petrochemicals

Pharmaceuticals

1,205,001

17,535

Media &
Entertainment

Total

92,380

Telecommunications

86,316

Financial Services

Services

72,433

(Rs.cr.)

27,644

402

2,119

544

3,770

9,341

4,158

2,041

1,033

594

1,980

1,662

(US $ mn.)

2,182,792

182,192

388,646

430,484

128,794

500,458

26,700

66,812

254,523

204,182

(Rs.cr.)

54,611

4,558

9,723

10,770

3,222

12,521

668

1,672

6,368

5,108

(US $ mn.)

2007-08

Trading Value (Amount)

2006-07

Banks

Industry

100.00

1.46

7.67

1.97

13.64

33.79

15.04

7.38

3.74

2.15

7.16

6.01

2006-07
%

100.00

8.35

17.80

19.72

5.90

22.93

1.22

3.06

11.66

9.35

2007-08

Trading Value
(% to Total ‘Top 50
Co’s)

2,201,271

255,412

51,865

481,723

453,659

399,249

155,337

102,150

45,471

53,120

203,284

(Rs.cr.)

50,499

5,859

1,190

11,051

10,407

9,159

3,564

2,343

1,043

1,219

4,664

(US $ mn.)

2006-07

3,163,594

289,080

23,189

25,462

725,669

711,980

251,388

539,261

127,532

88,702

97,743

283,587

(Rs.cr.)

79,149

7,232

580

637

18,155

17,813

6,289

13,492

3,191

2,219

2,445

7,095

(US $ mn.)

2007-08

Market Capitalisation (Amount)

100.00

11.60

2.36

21.88

20.61

18.14

7.06

4.64

2.07

2.41

9.23

2006-07
%

100.00

9.14

0.73

0.80

22.94

22.51

7.95

17.05

4.03

2.80

3.09

8.96

2007-08

Market
Capitalisation
(% to Total ‘Top
50 Co’s)

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

Table 4-6 : NSE’s Most Active Trading days during the year 2007-08
Sr No.

Date

1
2
3
4
5
6
7
8
9
10

Highest Single Day Trading Value

1-Nov-2007
18-Oct-2007
8-Jan-2008
27-Dec-2007
3-Oct-2007
3-Jan-2008
30-Oct-2007
21-Jan-2008
17-Oct-2007
6-Nov-2007

(Rs. cr.)

(US $ mn.)

28,476.07
26,030.25
25,435.15
24,976.78
24,842.41
24,710.05
24,636.21
24,525.77
24,061.67
23,764.91

7,124.36
6,512.45
6,363.56
6,248.88
6,215.26
6,182.15
6,163.68
6,136.05
6,019.93
5,945.69

Table 4-7 : Individual Securities Single day Trading Records
Rank

Symbol

Name of Company

Date

Traded Value
(Rs. cr.)

(US $ mn.)

1

RPOWER

Reliance Power Ltd.

11-Feb-2008

5,602.50

1,401.68

2

POWERGRID

Power Grid Corp. Ltd.

5-Oct-2007

4,930.56

1,233.57

3

DLF

DLF Limited

5-Jul-2007

4,346.70

1,087.49

4

RPL

Reliance Petroleum Ltd.

1-Nov-2007

3,950.54

988.38

5

RPL

Reliance Petroleum Ltd.

6-Nov-2007

3,626.62

907.33

6

RPL

Reliance Petroleum Ltd.

29-Nov-2007

3,624.58

906.82

7

RNRL

Rel. Nat. Resources Ltd.

5-Nov-2007

3,315.46

829.49

8

RNRL

Rel. Nat. Resources Ltd.

6-Nov-2007

3,306.10

827.15

9

MUNDRAPORT Mundra Port & Sez Ltd

27-Nov-2007

2,687.72

672.43

10

RELIANCE

12-Oct-2007

2,629.35

657.83

Reliance Industries Ltd

Table 4-8 : FII turnover on Capital Market Segment of Exchange
FII Turnover
(Rs. cr.)

Market Turnover

(US $ mn)
13,467

(Rs.cr.)

(US $ mn)

Contribution of
FII turnover to
total turnover

Apr-06

58,705

354,745

81,382

16.55

May-06

72,026

Jun-06

52,539

16,524

402,818

92,411

17.88

12,053

302,100

69,305

17.39

Jul-06

35,265

8,090

237,397

54,461

14.85

Aug-06

35,416

8,125

261,592

60,012

13.54

Sep-06

45,113

10,349

288,678

66,226

15.63

Oct-06

49,588

11,376

276,764

63,493

17.92

Nov-06

64,426

14,780

379,727

87,113

16.97

Dec-06

65,331

14,988

340,211

78,048

19.20

Jan-07

71,757

16,462

350,294

80,361

20.48
Contd...

81

Contd...

Table 4-8 : FII turnover on Capital Market Segment of Exchange
FII Turnover
(Rs. cr.)
Feb-07

68,828

Mar-07
2006-07

(US $ mn)
15,790

Market Turnover
(Rs.cr.)
360,341

(US $ mn)
82,666

Contribution of
FII turnover to
total turnover
19.10

67,303

15,440

335,907

77,061

20.04

686,297

157,444

3,890,573

892,538

17.64

Apr-08

61,119

15,291

337,134

84,347

18.13

May-08

68,084

17,034

415,170

103,870

16.40

Jun-08

63,289

15,834

387,296

96,897

16.34

Jul-08

95,036

23,777

534,454

133,714

17.78

Aug-08

82,061

20,531

462,482

115,707

17.74

Sep-08

86,233

21,574

532,100

133,125

16.21

Oct-08

171,701

42,957

911,178

227,965

18.84

Nov-08

142,088

35,549

828,840

207,366

17.14

Dec-08

117,423

29,378

732,770

183,330

16.02

Jan-08

177,582

44,429

894,276

223,737

19.86

Feb-08

101,022

25,275

560,352

140,193

18.03

Mar-08

104,883

26,241

506,025

126,601

20.73

1,270,521

317,869

7,102,077

1,776,852

17.89

2007-08

Table 4-9 : Market Capitalisation of Securities in the CM Segment
Month/Year
(end of period)
Mar-95
Mar-96
Mar-97
Mar-98
Mar-99
Mar-00
Mar-01
Mar-02
Mar-03
Apr-03
May-03
Jun-03
Jul-03
Aug-03
Sep-03
Oct-03
Nov-03
Dec-03
Jan-04
Feb-04
Mar-04
Apr-04

82

Total MC
363,350
401,459
419,367
481,503
491,175
1,020,426
657,847
636,861
537,133
530,630
612,030
678,550
719,145
836,651
863,481
926,748
979,541
1,167,029
1,116,150
1,110,954
1,120,976
1,171,828

MC of S&P
CNX Nifty

139,357
159,758
230,420
236,569
373,559
301,085
349,402
316,762
302,472
335,765
378,241
395,497
457,313
477,724
524,705
544,756
634,248
611,844
609,751
638,599
771,153

Share in Total
MC (%)

34.71
38.09
47.85
48.16
36.61
45.77
54.86
58.97
57.00
54.86
55.74
55.00
54.66
55.33
56.62
55.61
54.35
54.82
54.89
56.97
65.81

MC of CNX
Nifty Junior


25,184
34,654
53,452
98,804
31,989
42,446
34,550
45,918
60,229
64,605
73,504
88,009
95,403
103,143
108,847
132,409
130,917
129,489
130,122
139,636

(In Rs. cr.)
Share in Total
MC (%)


6.01
7.20
10.88
9.68
4.86
6.66
6.43
8.65
9.84
9.52
10.22
10.52
11.05
11.13
11.11
11.35
11.73
11.66
11.61
11.92
Contd...

Contd...

Table 4-9 : Market Capitalisation of Securities in the CM Segment
Month/Year
(end of period)
May-04
Jun-04
Jul-04
Aug-04
Sep-04
Oct-04
Nov-04
Dec-04
Jan-05
Feb-05
Mar-05
Apr-05
May-05
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
Jan-06
Feb-06
Mar-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
Nov-06
Dec-06
Jan-07
Feb-07
Mar-07
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08

Total MC
950,494
979,700
1,066,087
1,143,075
1,227,550
1,253,825
1,446,292
1,579,161
1,557,444
1,614,597
1,585,585
1,517,908
1,654,995
1,727,502
1,848,740
1,957,491
2,098,263
1,927,645
2,166,823
2,322,392
2,434,395
2,512,083
2,813,201
2,990,200
2,612,639
2,524,659
2,514,261
2,777,401
2,994,132
3,138,319
3,373,652
3,426,236
3,571,487
3,296,931
3,367,350
3,650,368
3,898,078
3,978,381
4,317,571
4,296,994
4,886,561
5,722,227
5,876,742
6,543,272
5,295,387
5,419,942
4,858,122

MC of S&P
CNX Nifty
632,652
642,325
698,209
698,427
747,280
765,067
839,857
902,831
893,674
978,440
951,672
888,639
977,445
1,040,264
1,083,537
1,118,077
1,227,424
1,119,365
1,254,781
1,350,394
1,399,294
1,434,266
1,590,155
1,663,860
1,437,366
1,495,329
1,503,314
1,633,200
1,781,134
1,860,568
1,968,913
1,975,603
2,036,797
1,869,473
1,909,448
2,096,100
2,206,712
2,219,151
2,358,907
2,331,929
2,774,625
3,328,356
3,257,297
3,522,527
2,966,421
3,016,694
2,848,773

Share in Total
MC (%)
66.56
65.56
65.49
61.10
60.88
61.02
58.07
57.17
57.38
60.60
60.02
58.54
59.06
60.22
58.61
57.12
58.50
58.07
57.91
58.15
57.48
57.09
56.52
55.64
55.02
59.23
59.79
58.80
59.49
59.29
58.36
57.66
57.03
56.70
56.70
57.42
56.61
55.78
54.64
54.27
56.78
58.17
55.43
53.83
56.02
55.66
58.64

MC of CNX
Nifty Junior
104,708
107,211
114,185
118,520
129,944
129,254
144,221
165,444
157,825
168,860
164,668
156,196
169,627
172,284
193,242
198,555
208,551
185,707
206,702
218,575
232,925
245,269
274,823
294,193
250,680
219,113
222,011
248,197
301,814
317,577
327,045
333,693
341,389
315,793
323,308
321,560
343,150
388,710
397,396
393,906
448,284
487,986
525,730
643,625
522,450
528,511
453,625

(In Rs. cr.)
Share in Total
MC (%)
11.02
10.94
10.71
10.37
10.59
10.31
9.97
10.48
10.13
10.46
10.39
10.29
10.25
9.97
10.45
10.14
9.94
9.63
9.54
9.41
9.57
9.76
9.77
9.84
9.59
8.68
8.83
8.94
10.08
10.12
9.69
9.74
9.56
9.58
9.60
8.81
8.80
9.77
9.20
9.17
9.17
8.53
8.95
9.84
9.87
9.75
9.34

83

Table 4-10 : Composition of S&P CNX Nifty Index as on March 31, 2008
Sl.
No.

84

Name of Security

Issued
Capital

Market
Capitalisation

Weightage

(Rs. cr.)

(Rs. cr.)

(%)

Beta

R2

Volatility Return Impact
Cost
(%)

(%)

(%)

1

ABB

42

25,004

0.88

0.83

0.48

3.41

2.13

2

ACC

188

15,501

0.54

0.79

0.34

2.92

3.79

0.11
0.07

3

AMBUJACEM

304

18,428

0.65

0.37

0.18

1.79

0.08

0.12

4

BHARTIARTL

1,898

156,815

5.50

0.78

0.37

3.31

0.00

0.09

5

BHEL

490

100,907

3.54

1.10

0.58

4.11

-9.86

0.09

6

BPCL

362

14,771

0.52

0.71

0.20

3.85

-12.10

0.11

7

CAIRN

1,779

39,872

1.40

0.95

0.41

5.58

-1.97

0.11

8

CIPLA

155

17,100

0.60

0.53

0.21

2.63

6.23

0.09

341

110,090

3.86

1.29

0.55

7.16

-17.24

0.09

84

9,943

0.35

0.44

0.23

2.25

1.29

0.11

846

35,978

1.26

0.94

0.38

3.13

0.48

0.09
0.10

9

DLF

10

DRREDDY

11

GAIL

12

GRASIM

92

23,609

0.83

0.80

0.53

2.86

-10.62

13

HCLTECH

133

16,845

0.59

0.87

0.37

4.62

-8.79

0.13

14

HDFC

284

67,560

2.37

0.90

0.40

5.31

-14.90

0.08

15

HDFCBANK

354

47,184

1.66

0.93

0.50

3.74

-8.62

0.09

16

HEROHONDA

40

13,869

0.49

0.45

0.18

2.33

-8.81

0.12

17

HINDALCO

123

20,261

0.71

1.19

0.50

5.29

-18.51

0.11

18

HINDUNILVR

218

49,832

1.75

0.58

0.25

2.85

0.57

0.09

19

ICICIBANK

1,111

85,512

3.00

1.10

0.55

5.35

-29.32

0.09

20

IDEA

2,635

27,052

0.95

0.80

0.34

3.41

-6.64

0.14

21

INFOSYSTCH

286

82,362

2.89

0.62

0.30

4.01

-7.00

0.08

22

ITC

377

77,700

2.73

0.67

0.32

2.79

1.73

0.08

58

88,702

3.11

1.04

0.52

4.75

-13.78

0.08

246

17,129

0.60

0.76

0.40

1.83

0.77

0.11
0.08

23

LT

24

M&M

25

MARUTI

144

23,893

0.84

0.68

0.34

2.33

-4.75

26

NATIONALUM

644

29,110

1.02

0.76

0.18

3.72

-2.66

0.15

27

NTPC

8,245

162,106

5.69

1.17

0.58

3.40

-2.67

0.09

28

ONGC

2,139

209,727

7.36

1.10

0.64

3.27

-3.60

0.10

29

PNB

315

16,088

0.56

1.03

0.49

3.72

-15.43

0.09

30

POWERGRID

0.09

31

RANBAXY

32

RCOM

33

REL

237

29,586

1.04

34

RELIANCE

1,454

329,368

11.56

35

RPL

4,500

70,290

2.47

1.32

36

SAIL

4,130

76,536

2.69

1.47

37

SATYAMCOMP

134

26,571

0.93

0.64

38

SBIN

632

101,065

3.55

0.99

39

SIEMENS

67

20,783

0.73

0.87

40

STER

142

50,621

1.78

41

SUNPHARMA

104

25,462

0.89

4,209

41,373

1.45

1.19

0.52

4.83

-10.56

187

16,361

0.57

0.60

0.31

2.45

-1.64

0.08

1,032

105,214

3.69

1.18

0.66

4.05

-11.30

0.08

1.67

0.55

6.41

-20.30

0.09

1.12

0.77

3.50

-8.02

0.08

0.48

4.28

-11.15

0.08

0.66

4.90

-27.18

0.10

0.24

3.93

-9.28

0.08

0.52

3.65

-24.22

0.08

0.38

4.13

-24.56

0.11

1.28

0.55

4.23

-14.45

0.12

0.38

0.11

2.87

0.19

0.12
Contd...

Contd...

Table 4-10 : Composition of S&P CNX Nifty Index as on March 31, 2008
Sl.
No.

Name of Security

Issued
Capital

Market
Capitalisation

Weightage

(Rs. cr.)

(Rs. cr.)

(%)

Beta

R2

Volatility Return Impact
Cost
(%)

(%)

(%)

42

SUZLON

299

39,489

1.39

1.09

0.34

5.80

-6.25

0.11

43

TATACOMM

285

14,619

0.51

0.98

0.34

4.26

0.16

0.12

44

TATAMOTORS

386

24,005

0.84

0.77

0.46

2.80

-11.09

0.09

45

TATAPOWER

220

25,777

0.90

1.20

0.38

4.21

-16.32

0.12

46

TATASTEEL

731

50,741

1.78

1.15

0.52

5.27

-13.40

0.08

47

TCS

98

79,311

2.78

0.68

0.40

3.30

-7.63

0.10

48

UNITECH

325

44,838

1.57

1.55

0.49

5.79

-23.26

0.11

49

WIPRO

292

63,144

2.22

0.69

0.35

4.39

-1.13

0.13

50

ZEEL

43

10,668

0.37

0.78

0.30

3.06

1.61

0.12

43,440 2,848,773

100.00

1.00

3.04

-9.36

0.09

Total

* Beta & R2 are calculated for the period 01-Apr-2007 to 31-Mar-2008
* Beta measures the degree to which any portfolio of stocks is affected as compared to the effect on the
market as a whole.
* The coefficient of determination (R2) measures the strength of relationship between two variables the
return on a security versus that of the market.
* Volatility is the Std. deviation of the daily returns for the period 01-Mar-2008 to 31-Mar-2008
* Last day of trading was 31-Mar-2008
* Impact Cost for S&P CNX Nifty is for a portfolio of Rs. 50 lakhs
* Impact Cost for S&P CNX Nifty is the weightage average impact cost

Table 4-11 : Composition of CNX NIFTY Junior Index as on March 31, 2008
Sl.
No.

Name of Security

1
2
3
4
5
6
7
8
9
10
11
12
13
14

ANDHRABANK
APOLLOTYRE
ASHOKLEY
ASIANPAINT
AUROPHARMA
AVENTIS
BANKBARODA
BANKINDIA
BEL
BHARATFORG
BIOCON
PFC
CADILAHC
CANBK

Issued
Capital

Market
Capitalisation

(Rs. cr.)
485
48
133
96
27
23
364
525
80
45
50
1148
63
410

(Rs. cr.)
3,570
1,966
4,709
11,509
1,566
1,762
10,321
13,300
8,539
5,948
4,305
18,611
3,184
9,229

Weigh- Beta
tage
(%)
0.78
0.43
1.03
2.51
0.34
0.38
2.25
2.90
1.86
1.30
0.94
4.05
0.69
2.01

1.00
0.83
0.94
0.22
0.65
0.41
1.02
1.08
0.62
0.60
0.63
1.08
0.40
0.99

R2

0.59
0.34
0.48
0.05
0.32
0.22
0.58
0.46
0.32
0.32
0.35
0.44
0.19
0.48

Volatility Returns Impact
Cost
(%)
3.86
4.48
2.81
2.05
4.19
3.61
4.48
5.19
2.2
4.4
3.25
4.41
3.38
4.28

(%)
-18.7
-5.92
-5.47
7.61
-11.65
-18.57
-22.53
-29.49
-25.73
-7.80
-3.55
-13.50
-2.84
-19.12

(%)
0.16
0.16
0.12
0.25
0.16
0.43
0.16
0.12
0.25
0.17
0.18
0.18
0.41
0.15
Contd...

85

Contd...

Table 4-11 : Composition of CNX NIFTY Junior Index as on March 31, 2008
Sl.
No.

Name of Security

15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

CHENNPETRO
RELCAPITAL
ULTRACEMCO
CORPBANK
CUMMINSIND
INDHOTEL
CONCOR
I-FLEX
GMRINFRA
IDBI
IFCI
MCDOWELL-N
IOB
JPASSOCIAT
KOTAKBANK
LICHSGFIN
LUPIN
MOSERBAER
MPHASIS
JINDALSTEL
NIRMA
PATNI
PFIZER
ABIRLANUVO
RNRL
RAYMOND
IDFC
TECHM
SYNDIBANK
TTML
TVSMOTOR
UNIONBANK
AXISBANK
VIJAYABANK
INGVYSYABK
WOCKPHARMA
Total

Issued
Capital

Market
Capitalisation

(Rs. cr.)
149
246
124
143
40
72
65
42
364
725
762
100
545
234
345
85
82
168
209
15
80
28
30
93
817
61
1294
121
522
1893
24
505
358
434
102
55
14,428

(Rs. cr.)
4,185
30,183
9,767
4,045
6,385
8,117
11,216
7,881
27,110
6,457
3,362
15,009
7,360
26,519
21,573
2,395
4,092
2,560
4,211
31,870
2,468
3,091
2,045
13,027
21,704
1,860
19,544
8,559
3,912
5,320
829
7,110
28,254
2,148
3,430
2,914
459,031

Weigh- Beta
tage
(%)
0.91
6.58
2.13
0.88
1.39
1.77
2.44
1.72
5.91
1.41
0.73
3.27
1.60
5.78
4.70
0.52
0.89
0.56
0.92
6.94
0.54
0.67
0.45
2.84
4.73
0.41
4.26
1.86
0.85
1.16
0.18
1.55
6.16
0.47
0.75
0.63
100.00

0.88
1.63
0.71
0.81
0.65
0.81
0.23
0.94
1.36
1.37
1.50
0.81
0.91
1.39
1.23
1.15
0.47
0.91
0.67
1.41
0.59
0.76
0.37
0.82
1.57
0.65
1.16
0.64
1.11
1.33
1.08
1.18
0.82
1.24
0.59
0.70
1.00

R2

0.35
0.72
0.45
0.37
0.32
0.53
0.06
0.42
0.62
0.71
0.49
0.30
0.48
0.59
0.62
0.45
0.28
0.38
0.26
0.42
0.18
0.28
0.22
0.42
0.44
0.27
0.59
0.29
0.62
0.56
0.46
0.56
0.42
0.66
0.24
0.45

Volatility Returns Impact
Cost
(%)
3.95
8.19
2.7
5.52
5.08
4.13
1.69
3.78
5.67
4.21
5.98
3.07
3.75
7.97
7.18
4.21
2.7
6.97
5.57
6.66
3.2
4.85
2.83
4.13
5.55
4.66
6.08
3.00
4.2
4.28
5.64
5.41
5.08
4.52
3.52
3.28
4.16

(%)
-6.52
-32.65
-13.26
-13.52
-5.19
-11.06
-1.88
-12.78
-14.82
-24.78
-34.23
-11.72
-18.39
-13.78
-21.97
-9.24
-9.99
-14.18
-12.28
-10.19
-15.76
-7.72
2.01
-18.35
-24.91
-12.28
-22.62
2.11
-23.68
-20.28
-20.32
-24.31
-22.76
-25.21
-2.12
-21.05
-17.23

(%)
0.19
0.10
0.27
0.17
0.32
0.18
0.22
0.27
0.11
0.12
0.12
0.17
0.21
0.10
0.15
0.16
0.20
0.19
0.30
0.10
0.43
0.17
0.24
0.27
0.09
0.22
0.13
0.14
0.16
0.12
0.15
0.18
0.13
0.15
0.52
0.25
0.16

* Beta & R2 are calculated for the period 01-April 2006 to 30-Mar-2007
* Beta measures the degree to which any portfolio of stocks is affected as compared to the effect on the
market as a whole.
* The coefficient of determination (R2) measures the strength of relationship between two variables, the
return on a security versus that of the market.
* Volatility is the Std. deviation of the daily returns for the period 01-Mar-2008 to 31-Mar-2008
* Last day of trading was 31-Mar-2008
* Impact Cost for CNX Nifty Junior is for a portfolio of Rs. 0.25 lakhs
* Impact Cost for CNX Nifty Junior is the weightage average impact cost

86

Table 4-12 : Industry-wise Weightages of S&P CNX NIFTY Securities
as on 31st March, 2008
Sl. No.

Industry

Market Cap
(Rs. cr.)

Weightage
(%)

1

Refineries

414,429

14.55

2

Telecommunication - Services

303,699

10.66

3

Computers - Software

268,233

9.42

4

Power

258,843

9.09

5

Banks

249,849

8.77

6

Oil Exploration

249,599

8.76

7

Electrical Equipment

186,183

6.54

8

Construction

154,927

5.44

9

Steel & Steel Products

127,277

4.47

10

Engineering

88,702

3.11

11

Cigarettes

77,700

2.73

12

Pharmaceuticals

68,866

2.42

13

Finance - Housing

67,560

2.37

14

Automobile - 4 wheelers

65,028

2.28

15

Cement & Cement Products

57,539

2.02

16

Metals

50,621

1.78

17

Diversified

49,832

1.75

18

Aluminium

49,371

1.73

19

Gas

35,978

1.26

20

Automohiles - 2 and 3 wheelers

13,869

0.49

21

Media & Entertainment

10,668

0.37

2,848,773

100

Total

Table 4-13 : S&P CNX NIFTY Index*
Month & Year

Open

High

Low

Close

Volatility
(%)

Price To
Earning
Ratio#

1995-96 (Nov.-Mar.)
1996-97
1997-98
1998-99
1999-2000
2000-01
Apr-01
May-01
Jun-01
Jul-01
Aug-01
Sep-01
Oct-01

1000.00
988.33
931.95
1117.15
1082.55
1528.70
1148.10
1125.45
1168.10
1108.35
1073.00
1054.65
914.65

1067.49
1203.11
1297.10
1247.15
1818.15
1636.95
1171.85
1207.00
1175.80
1127.15
1084.00
1059.90
1000.95

813.12
775.43
929.05
800.10
916.00
1098.75
1000.10
1096.25
1060.05
1046.90
1051.75
849.95
884.65

985.30
968.30
1116.90
1078.05
1528.45
1148.20
1125.25
1167.90
1107.90
1072.85
1053.75
913.85
971.90

1.62
1.67
1.52
1.86
1.93
1.98
2.20
0.89
1.27
1.01
0.57
2.52
0.99




16.53
24.60
17.21
14.57
15.80
15.76
15.15
15.10
13.16
13.79
Contd...

87

Contd...

Table 4-13 : S&P CNX NIFTY Index*
Month & Year

Nov-01
Dec-01
Jan-02
Feb-02
Mar-02
2001-02
Apr-02
May-02
Jun-02
Jul-02
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
Jan-03
Feb-03
Mar-03
2002-03
Apr-03
May-03
Jun-03
Jul-03
Aug-03
Sep-03
Oct-03
Nov-03
Dec-03
Jan-04
Feb-04
Mar-04
2003-04
Apr-04
May-04
Jun-04
Jul-04
Aug-04
Sep-04
Oct-04
Nov-04
Dec-04
Jan-05
Feb-05

Open

High

Low

Close

Volatility
(%)

Price To
Earning
Ratio#

973.55
1067.20
1058.85
1076.95
1142.05
1148.10
1129.85
1084.80
1029.25
1058.00
959.20
1010.90
961.15
951.45
1050.15
1093.60
1040.25
1063.55
1129.85
977.40
930.90
1006.85
1133.95
1185.80
1356.70
1416.60
1556.50
1615.85
1880.35
1809.30
1798.35
977.40
1771.45
1796.10
1483.90
1506.65
1631.55
1631.70
1744.40
1787.30
1960.75
2080.00
2057.75

1097.60
1132.65
1121.75
1205.95
1201.10
1207.00
1153.30
1136.55
1102.05
1087.40
1012.75
1024.65
983.60
1057.40
1103.95
1105.60
1075.50
1070.85
1153.30
1033.45
1013.85
1141.30
1198.50
1365.80
1430.70
1574.10
1630.25
1914.40
2014.65
1935.80
1898.70
2014.65
1912.35
1837.95
1566.50
1638.70
1658.90
1760.80
1829.45
1963.80
2088.45
2120.15
2110.15

973.55
1010.45
1052.05
1069.40
1117.85
849.95
1073.30
1020.10
1029.25
943.60
935.55
960.20
920.10
946.40
1034.10
1026.20
1034.10
974.10
920.10
920.00
930.80
1004.70
1089.30
1164.75
1285.25
1407.95
1509.15
1615.70
1756.25
1755.65
1669.70
920.00
1771.45
1292.20
1437.90
1472.55
1573.70
1619.90
1737.85
1776.70
1944.50
1894.40
2036.60

1067.15
1059.05
1075.40
1142.05
1129.55
1129.55
1084.50
1028.80
1057.80
958.90
1010.60
963.15
951.40
1050.15
1093.50
1041.85
1063.40
978.20
978.20
934.05
1006.80
1134.15
1185.85
1356.55
1417.10
1555.90
1615.25
1879.75
1809.75
1800.30
1771.90
1771.90
1796.10
1483.60
1505.60
1632.30
1631.75
1745.50
1786.90
1958.80
2080.50
2057.60
2103.25

1.25
1.22
0.99
1.48
1.18
1.40
1.11
1.35
1.13
1.01
0.85
0.72
0.84
0.70
0.97
0.80
0.89
1.09
0.99
1.38
0.74
0.94
1.04
1.52
1.81
1.52
1.30
0.96
2.18
1.69
1.48
1.43
1.40
4.21
1.46
1.29
0.99
0.83
0.97
0.68
0.74
1.67
0.78

15.46
15.35
16.99
18.38
18.10
18.10
17.86
16.19
15.73
14.30
15.04
14.33
14.47
14.24
14.83
14.13
14.42
13.36
13.36
13.14
11.65
12.95
12.84
14.95
15.43
17.15
17.81
20.73
19.96
19.74
20.70
20.70
18.68
11.94
12.64
13.63
13.64
14.59
14.93
16.39
15.32
14.68
15.02
Contd...

88

Contd...

Table 4-13 : S&P CNX NIFTY Index*
Month & Year

Mar-05
2004-05
Apr-05
May-05
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
Jan-06
Feb-06
Mar-06
2005-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
Nov-06
Dec-06
Jan-07
Feb-07
Mar-07
2006-07
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
2007-08

Open

High

Low

Close

Volatility
(%)

Price To
Earning
Ratio#

2103.10
1771.45
2035.90
1903.10
2087.80
2220.45
2312.05
2384.70
2601.00
2366.80
2651.60
2836.80
3001.30
3074.60
2035.90
3403.15
3557.55
3072.55
3128.75
3128.20
3414.00
3588.95
3744.10
3955.70
3966.25
4083.40
3745.40
3403.15
3820.00
4089.45
4296.05
4318.40
4528.85
4466.65
5021.50
5903.80
5765.45
6136.75
5140.60
5222.80
3820.00

2183.45
2183.45
2084.90
2099.35
2226.15
2332.55
2426.65
2633.90
2669.20
2727.05
2857.00
3005.10
3090.30
3433.85
3433.85
3598.95
3774.15
3134.15
3208.85
3452.30
3603.70
3782.85
3976.80
4046.85
4167.15
4245.30
3901.75
4245.30
4217.90
4306.75
4362.95
4647.95
4532.90
5055.80
5976.00
6011.95
6185.40
6357.10
5545.20
5222.80
6357.10

1971.15
1292.20
1896.30
1898.15
2061.35
2171.25
2294.25
2382.90
2307.45
2366.80
2641.95
2783.85
2928.10
3064.00
1896.30
3290.35
2896.40
2595.65
2878.25
3113.60
3328.45
3508.65
3737.00
3657.65
3833.60
3674.85
3554.50
2595.65
3617.00
3981.15
4100.80
4304.00
4002.20
4445.55
5000.95
5394.35
5676.70
4448.50
4803.60
4468.55
3617.00

2035.65
2035.65
1902.50
2087.55
2220.60
2312.30
2384.65
2601.40
2370.95
2652.25
2836.55
3001.10
3074.70
3402.55
3402.55
3557.60
3071.05
3128.20
3143.20
3413.90
3588.40
3744.10
3954.50
3966.40
4082.70
3745.30
3821.55
3821.55
4087.90
4295.80
4318.30
4528.85
4464.00
5021.35
5900.65
5762.75
6138.60
5137.45
5223.50
4734.50
4734.50

1.08
1.61
1.23
0.67
0.73
0.93
0.98
1.19
1.51
0.95
1.13
0.93
0.81
0.93
1.04
1.67
2.73
3.23
1.93
0.72
1.06
0.93
0.61
1.50
1.15
1.55
2.00
1.77
1.73
0.86
0.84
1.15
2.04
1.08
2.48
1.73
1.67
3.27
2.46
3.04
2.02

14.60
14.60
13.27
13.94
14.31
14.10
14.78
16.15
14.23
15.95
17.16
17.90
18.27
20.26
20.26
20.31
17.46
18.44
17.64
19.15
20.92
20.37
21.18
21.26
19.85
18.01
18.40
18.40
19.48
20.41
20.60
20.49
20.20
22.58
25.74
25.21
27.62
21.97
22.27
20.63
20.63

* S&P CNX Nifty commenced from November 3, 1995
# At the end of the period
Note : Volatility is the standard deviation of daily returns for the respective month/year

89

Table 4-14 : CNX NIFTY Junior Index*
Month & Year

Open

High

Low

Close

Volatility (%)

1996-97 (Nov.-Mar.)

1000.00

1997-98

1028.30

1998-99

1339.75

Price To
Earning
Ratio#

1208.87

907.02

1032.95

1.76

1395.25

1016.65

1339.40

1.44

2079.10

1177.20

2069.20

2.14

18.92

1999-2000

2099.75

5365.90

1631.90

3695.75

2.46

33.47

2000-01

3720.45

3771.80

1570.20

1601.80

2.75

9.69

Apr-01

1601.80

1638.05

1362.50

1525.20

2.62

8.47

May-01

1529.05

1676.25

1472.40

1627.15

1.20

8.61

Jun-01

1627.55

1638.90

1397.60

1415.40

1.30

8.68

Jul-01

1416.45

1438.25

1304.25

1342.55

1.17

7.14

Aug-01

1341.90

1370.25

1275.20

1277.35

0.58

6.79

Sep-01

1278.25

1292.00

1038.75

1084.40

2.68

5.90

Oct-01

1083.70

1206.65

1044.90

1174.20

0.99

6.13

Nov-01

1174.15

1376.75

1173.35

1334.15

0.96

5.95

Dec-01

1335.45

1415.85

1215.45

1298.30

1.86

5.84

Jan-02

1298.60

1358.55

1273.80

1348.55

0.91

5.28

Feb-02

1350.60

1617.05

1350.60

1495.55

2.14

6.54

Mar-02

1496.40

1611.20

1489.25

1566.95

1.11

6.80

2001-02

1601.40

1676.25

1038.75

1566.95

1.60

6.80

Apr-02

1568.40

1658.50

1564.15

1607.75

0.95

7.35

May-02

1608.25

1665.15

1448.35

1497.10

1.74

8.56

Jun-02

1497.90

1682.00

1497.90

1617.40

1.35

8.26

Jul-02

1617.40

1690.35

1429.05

1455.85

1.47

7.44

Aug-02

1455.75

1517.35

1433.05

1452.60

1.03

7.42

Sep-02

1453.45

1468.85

1255.20

1257.85

1.35

6.48

Oct-02

1256.95

1321.00

1231.95

1255.30

1.03

6.56

Nov-02

1255.60

1340.85

1243.15

1337.10

0.63

11.55

Dec-02

1337.60

1435.20

1337.20

1413.05

1.13

12.26

Jan-03

1413.25

1462.90

1353.75

1376.85

1.05

11.95

Feb-03

1377.20

1415.65

1333.75

1387.10

1.21

12.05

Mar-03

1401.00

1409.30

1255.35

1259.55

1.15

11.68

2002-03

1568.40

1690.35

1231.95

1259.55

1.23

11.68

Apr-03

1260.75

1370.80

1259.75

1339.75

1.16

16.37

May-03

1342.75

1693.15

1340.25

1664.15

1.21

20.36

Jun-03

1605.50

1804.60

1598.60

1783.70

1.46

8.39

Jul-03

1787.25

2056.85

1778.20

2012.30

1.48

9.48

Aug-03

2014.95

2287.60

1959.50

2275.25

1.66

10.46

Sep-03

2279.30

2459.35

2188.45

2456.95

1.65

11.34

Oct-03

2460.85

2679.80

2448.00

2656.15

1.65

12.26

Nov-03

2671.60

2807.05

2603.95

2801.20

1.13

12.93
Contd...

90

Contd...

Table 4-14 : CNX NIFTY Junior Index*
Month & Year

Open

High

Low

Close

Volatility (%)

Price To
Earning
Ratio#

Dec-03

2823.50

3451.40

2816.80

3405.70

1.02

15.73

Jan-04

3421.40

3702.60

3234.00

3367.65

2.55

15.56

Feb-04

3371.60

3632.10

3193.80

3330.60

1.78

15.35

Mar-04

3340.00

3488.95

3064.10

3392.05

1.55

11.93

2003-04

1260.75

3702.60

1259.75

3392.05

1.57

11.93

Apr-04

3398.00

3875.55

3398.00

3639.80

1.56

12.9

May-04

3643.80

3756.65

2493.70

2846.90

1.39

7.84

Jun-04

2898.45

3018.40

2723.50

2903.35

1.39

7.94

Jul-04

2921.30

3162.85

2804.75

3082.10

1.18

8.13

Aug-04

3088.05

3206.15

3006.70

3199.00

0.94

8.42

Sep-04

3204.55

3543.60

3204.55

3504.25

0.76

9.23

Oct-04

3512.05

3653.40

3403.70

3481.55

0.89

9.18

Nov-04

3480.40

3913.60

3466.65

3884.55

0.86

10.23

Dec-04

3896.25

4468.35

3849.05

4453.30

0.96

14.19

Jan-05

4483.65

4549.85

3999.75

4247.80

1.92

12.93

Feb-05

4249.70

4427.45

4213.95

4388.20

0.85

14.17

Mar-05

4381.00

4705.25

4113.40

4275.15

1.36

13.82

2004-05

3398.00

4705.25

2493.70

4275.15

1.83

13.82

Apr-05

4275.35

4413.40

4016.85

4024.40

1.17

13.21

May-05

4039.85

4369.05

3998.80

4364.55

0.84

14.42

Jun-05

4374.50

4573.05

4351.25

4393.25

0.877

13.89

Jul-05

4398.35

4991.50

4396.15

4919.10

1.01

15.3

Aug-05

4904.45

5173.05

4786.45

5053.00

1.15

15.86

Sep-05

5068.90

5419.90

4955.75

5303.50

1.56

16.65

Oct-05

5338.00

5443.40

4609.15

4714.45

1.37

14.63

Nov-05

4787.50

5383.20

4690.90

5242.00

0.88

16.18

Dec-05

5269.40

5591.45

5222.90

5541.45

1.22

17.11

Jan-06

5555.90

5980.50

5543.45

5882.90

1.18

17.66

Feb-06

5902.10

6132.40

5758.80

5966.65

1.03

18.06

Mar-06

6279.00

6437.40

5938.55

6412.10

0.95

20.25

2005-06

4275.35

6437.40

3998.80

6412.10

0.95

20.25

Apr-06

6415

6882.55

6199.70

6856

1.59

20.12

May-06

6923

7250.30

5116.05

5827.4

3.26

17.08

Jun-06

5901.8

5953.05

4463.75

5264.3

4.15

14.52

Jul-06

5327.15

5391.70

4735.60

5335.1

1.78

14.62

Aug-06

5330.00

6044.55

5244.15

5940.5

1.01

16.46

Sep-06

5964.55

6551.35

5924.20

6510.4

1.31

20.37

Oct-06

6531.15

6868.40

6439.90

6823.15

0.88

20.06

Nov-06

6846.10

7151.80

6734.60

6967.25

0.87

21.34
Contd...

91

Contd...

Table 4-14 : CNX NIFTY Junior Index*
Month & Year

Open

High

Low

Close

Volatility (%)

Price To
Earning
Ratio#

Dec-06

7028.85

7240.15

6420.65

7106.35

1.91

21.78

Jan-07

7131.25

7459.45

6914.25

7268.05

1.06

19.64

Feb-07

7319.50

7566.65

6537.80

6722.1

1.68

18.08

Mar-07

6719.55

7015.40

6233.80

6878.05

1.93

18.48

2006-07

6415.25

7566.65

4463.75

6878.05

2.05

18.48

Apr-07

6675.85

7554.55

6559.55

7527.30

1.53

17.23

May-07

7610.45

8153.05

7429.15

8022.55

0.95

17.30

Jun-07

8047.10

8708.35

7799.70

8699.05

1.10

20.19

Jul-07

8720.50

9247.00

8564.30

8849.60

1.13

18.71

Aug-07

8829.65

8966.25

7700.20

8632.75

2.30

18.51

Sep-07

8658.20

9838.30

8658.20

9820.90

1.11

21.06

Oct-07

9831.65

10726.65

8908.55

10643.30

2.85

21.43

Nov-07

10757.05

11740.95

10020.35

11431.65

2.05

23.09

Dec-07

11471.60

12533.95

11455.05

12488.25

1.70

26.48

Jan-08

12488.65

13209.35

8336.55

10130.00

4.40

19.89

Feb-08

10269.75

10684.40

9025.60

9636.10

2.42

19.56

Mar-08

9526.40

9526.40

7235.25

7975.75

4.16

16.69

2007-08

6675.85

13209.35

6559.55

7975.75

2.41

16.69

* CNX Nifty Junior commenced from November 4, 1996.
# At the end of period
Note : Volatility is the standard deviation of daily returns for the respective month/year

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

92

Table 4-15 : Performance of NSE Indices during the year 2007-08
Indices

Record high
Value
Date

S&P CNX Nifty
CNX Junior
CNX 100
S&P CNX 500
CNX Midcap
Nifty Midcap 50
CNX FMCG
CNX IT
Finance
Petrochemicals
Pharmaceuticals

6357.10
13209.35
6277.05
5563.50
9781.70
4047.55
6778.92
5513.40
9584.19
8616.05
5316.13

8-Jan-08
4-Jan-08
8-Jan-08
8-Jan-08
8-Jan-08
9-Jan-08
7-Jan-08
4-May-07
9-Jan-08
7-Jan-08
2-Jan-08

Closing index
values
(31-03-08)
4734.50
7975.75
4537.85
3825.85
6240.65
2371.70
5817.72
3704.95
4715.80
4664.27
4549.10

Average
Daily
Volatility
2.00
2.40
2.02
2.02
2.08
2.55
1.72
1.99
3.27
2.47
1.46

Y-o-Y Returns

23.89
15.96
22.59
21.64
28.67
22.95
23.13
-28.49
60.06
45.30
4.71

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

Sr.
No.
1
2
3
4

A: List of Mutual Funds (MF’s) and Exchange Traded Funds (ETF’s)
MUTUAL FUNDS
Symbol
Company Name
MORGANSTAN
BSCFAUG08A
BSCFAUG08B
FTCSF3YDIV

5

FTCSF3YGRO

6

FTCSF5YDIV

7

FTCSF5YGRO

8
9
10
11

FTCPOF3YDV
FTCPOF3YGR
FTCPOF5YDV
FTCPOF5YGR

1
2
3
4
5
6

NIFTYBEES
JUNIORBEES
UTISUNDER
LIQUIDBEES
BANKBEES
GOLDBEES

7
8
9

GOLDSHARE
KOTAKGOLD
PSUBNKBEES

10
11
12

KOTAKPSUBK
RELGOLD
QGOLDHALF

Morgan Stanley
Benchmark Mutual Fund
Benchmark Mutual Fund
Franklin Templeton Mutual Fund-Capital Safety Fund-3Y
(Divdend Option)
Franklin Templeton Mutual Fund-Capital Saftey Fund 3Y
(Growth Option)
Franklin Templeton Mutual Fund-Capital Safety Fund-5Y
Dividend Option
Franklin Templeton Mutual Fund-Capital Safety Fund-5Y
(Growth Option)
Franklin Templeton Capital Protection Oriented Fund
Franklin Templeton Capital Protection Oriented Fund
Franklin Templeton Capital Protection Oriented Fund
Franklin Templeton Capital Protection Oriented Fund
EXCHANGE TRADED FUNDS
Benchmark Mutual Fund
Benchmark Mutual Fund-Nifty Junior Benchmark ETF
UTI Mutual Fund
Benchmark Asset Management Company Private Limited
Benchmark Asset Management Company Pvt. Ltd.
Benchmark Mutual Fund - Gold Benchmark Exchange
Traded Scheme
UTI Mutual Fund - UTI Gold Exchange Traded Fund
Kotak Mutual Fund - Gold Exchange Traded Fund
Benchmark Mutual Fund - PSU Bank Benchmark Exchange
Traded Scheme
Kotak Mahindra Mutual Fund
Reliance Mutual Fund - Gold Exchange Traded Fund
Quantum Gold Fund -Exchange Traded Fund (ETF)

Date of
Listing
27-May-2004
21-Sep-2005
21-Sep-2005
28-May-2007
28-May-2007
28-May-2007
28-May-2007
25-Jun-2007
25-Jun-2007
25-Jun-2007
25-Jun-2007
8-Jan-2002
6-Mar-2003
16-Jul-2003
16-Jul-2003
4-Jun-2004
19-Mar-2007
17-Apr-2007
8-Aug-2007
1-Nov-2007
16-Nov-2007
26-Nov-2007
28-Feb-2008

93

Table 4-16 : Details of Mutual Funds and Exchange Traded
Funds Listed on NSE
B: No of Trades and Trading Value
Month &
Year

Mutual Funds (MF’s)
No. of
Trades

Exchange traded funds (ETF’s)

Trading Value
(Rs. cr.)

(US $ mn.)

No. of
Trades

Trading Value
(Rs. cr.)

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

107,172

288.84

72.26

294,091

1,912.55

478.50

2007-08

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

T+2 Rolling Settlement
(From April 1, 2003)
T

Custodial Confirmation

T+1

Determination of Obligation

T+1

Securities/Funds Pay-in

T+2

Securities/Funds Pay-out

T+2

Valuation Debit

T+2

Auction

T+3

Bad Delivery Reporting

T+4

Auction Pay-in/Pay-out

T+5

Close Out

T+5

Rectified Bad Delivery Pay-in/Pay-out

T+6

Re-bad Delivery Reporting

T+8

Close Out of Re-bad Delivery

T+9

T+1 means one working day after the trade day. Other T+ terms have similar meanings.

94

(US $ mn.)

95

CUSTODIANS/CMs
CLEARING BANK

DEPOSITORIES

DEPOSITORIES

CLEARING BANK

DEPOSITORIES





NSCCL
CUSTODIANS/
CMs
CUSTODIANS/
CMs

T+2

CLEARING BANK

CUSTODIANS/CMs
CUSTODIANS/CMs



NSCCL

NSCCL

NSCCL

NSCCL

DEPOSITORIES
CLEARING BANK

Securities Pay-in

FundsPay-in

Securities Pay-out

FundsPay-out

Determination of Obligation

CUSTODIANS/CMs

NSCCL

Custodial Confirmation

T+1

NSCCL

NSE

Trading

T

Settlement Process

Clearing Banks inform custodians/CMs

Depository informs custodians/CMs through DPs

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

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

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

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

Instructions to depositories to make securities available by pay-intime

Instructions to clearing banks to make funds available by pay-in
time

Download of obligation and pay-in advice of funds/securities

NSCCL notifies the consummated trade details to clearing
members/custodians who affirm back. Based on the affirmation,
NSCCL applies multilateral netting and determines obligations.

Trade details from Exchange to NSCCL
(real-time and end of day trade file).

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

96

No. of Traded
% of
Trading Volume
Value of
Trades Quantity Quantity Shares
Shares
of Shares DeliveDeliveDelive- rable to
rable
rable
Total
Shares
(lakh)
(lakh)
(lakh) Traded (Rs. cr.) (US $ mn.) (Rs. cr.)
Nov 94-Mar 95
0.3
133
69
51.74
17,280

8,980
1995-96
6
3,901
726
18.62
657,420
– 117,750
1996-97
26
13,432
1,645
12.25 2,923,140
– 326,400
1997-98
38
13,522
2,205
16.31 3,700,100
– 597,748
1998-99
55
16,531
2,799
16.93 4,135,730
974,709 662,038
1999-00
958 238,605
48,713
20.42
803,050
184,099
82,607
2000-01
1,614 304,196
50,203
16.50 1,263,898
270,990 106,277
Apr-01
87
16,323
5,643
34.57
28,226
5,784
6,083
May-01
155
27,764
6,428
23.15
51,835
10,622
7,371
Jun-01
127
22,797
5,134
22.52
43,136
8,839
5,960
Jul-01
97
13,149
2,971
22.59
29,092
5,961
3,721
Aug-01
111
15,512
3,018
19.46
28,572
5,855
3,962
Sep-01
124
16,554
3,136
18.94
33,718
6,909
3,933
Oct-01
145
19,775
3,485
17.62
35,225
7,218
4,247
Nov-01
142
22,647
4,865
21.48
37,471
7,678
5,679
Dec-01
168
29,221
5,929
20.29
53,098
10,881
7,184
Jan-02
225
38,325
5,729
14.95
71,329
14,617
7,940
Feb-02
170
26,866
6,600
24.57
48,823
10,005
7,982
Mar-02
169
25,762
6,360
24.69
47,596
9,753
7,703
2001-2002
1,720 274,695
59,299
21.59
508,121
104,123
71,766

Month/Year

% of Securities
Short
% of
UnrecDeliveShort tified Bad
Pay-in
Delivery
rable to
(Auctioned Delivery Delivery
Value of
quantity) to Total (AuctiShares
Deliveoned
Traded
rable
quantity)
(Rs. cr.)
(lakh)
(lakh)
51.98
611
0.6
0.85
0.18
17.91
5,805
18
2.46
3.22
11.17
13,790
38
2.32
6.63
16.15
21,713
33
1.51
7.29
16.01
30,755
31
1.09
6.97
10.29
79,783
635
1.30
110.13
8.41
94,962
339
0.68
11.58
21.55
5,214
16
0.28
0.043
14.22
3,752
15
0.24
0.019
13.82
4,058
14
0.27
0.010
12.79
4,020
21
0.70
0.002
13.87
3,531
31
1.03
0.003
11.66
3,807
16
0.51
0.000
12.06
4,136
40
1.15
0.000
15.16
5,468
46
0.95
0.000
13.53
6,924
48
0.81
0.000
11.13
7,849
39
0.68
0.000
16.35
7,935
39
0.59
0.000
16.18
7,658
40
0.62
0.000
14.12
64,353
364
0.61
0.08

Table 4-18 : Settlement Statistics in CM Segment

Contd...

% of
Funds
Unrect- Pay-in
ified Bad
Delivery
to
Deliverable
(Rs. cr.)
0.26
3,004
0.44
32,583
0.40
72,121
0.33 108,272
0.25 121,754
0.23
27,992
0.023
45,937
0.0008
1,915
0.0003
1,976
0.0002
1,626
0.0001
1,830
0.0001
1,847
0.00
2,068
0.00
1,954
0.00
2,311
0.00
3,035
0.00
3,440
0.00
3,016
0.00
3,030
0.0001
28,048

97

Apr-02
May-02
Jun-02
Jul-02
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
Jan-03
Feb-03
Mar-03
2002-03
Apr-03
May-03
Jun-03
Jul-03
Aug-03
Sep-03
Oct-03

Month/Year

Contd...

No. of Traded
% of
Trading Volume
Value of
Trades Quantity Quantity Shares
Shares
of Shares DeliveDeliveDelive- rable to
rable
rable
Total
Shares
(lakh)
(lakh)
(lakh) Traded (Rs. cr.) (US $ mn.) (Rs. cr.)
204
30,113
7,513
24.95
56,130
11,817
8,933
211
33,785
8,317
24.62
53,414
11,245
8,732
195
39,137
10,232
26.14
46,334
9,755
8,000
206
36,835
10,348
28.09
50,262
10,582
8,407
193
26,822
5,085
18.96
45,443
9,567
5,312
183
25,254
4,433
17.55
46,894
9,872
5,271
201
26,591
4,601
17.30
51,382
10,817
5,734
174
23,070
4,433
19.22
50,171
10,562
6,452
223
33,765
7,573
22.43
63,872
13,447
8,859
231
35,017
8,152
23.28
62,815
13,224
9,169
193
28,590
6,033
21.10
48,717
10,256
6,737
182
26,424
5,633
21.32
46,134
9,712
6,350
2,397 365,403
82,353
22.54
621,569
130,857
87,956
214
32,488
7,830
24.10
51,159
11,790
8,328
240
40,500
10,887
26.88
51,720
11,920
9,907
253
50,054
14,030
28.03
57,524
13,257
12,539
332
66,940
18,509
27.65
81,422
18,765
17,581
317
81,301
20,579
25.31
82,734
19,068
17,798
338
72,916
16,810
23.05
101,229
23,330
20,625
367
72,440
16,157
22.30
116,749
26,907
22,957

% of Securities
Short
% of
UnrecDeliveShort tified Bad
Pay-in
Delivery
rable to
(Auctioned Delivery Delivery
Value of
quantity) to Total (AuctiShares
Deliveoned
Traded
rable
quantity)
(Rs. cr.)
(lakh)
(lakh)
15.91
8,856
61
0.81
0.00
16.35
8,676
55
0.66
0.00
17.27
7,955
64
0.62
0.00
16.73
8,358
69
0.67
0.00
11.69
5,275
30
0.59
0.00
11.24
5,235
25
0.56
0.00
11.16
5,704
21
0.46
0.00
12.86
6,411
23
0.52
0.00
13.87
8,823
35
0.46
0.00
14.60
9,128
38
0.47
0.00
13.83
6,709
23
0.38
0.00
13.76
6,317
25
0.44
0.00
14.15
87,447
469
0.57
0.00
16.28
8,275
87
1.11
0.00
19.15
9,856
64
0.59
0.00
21.80
12,481
78
0.55
0.00
21.59
17,489
115
0.62
0.00
21.51
17,693
146
0.71
0.00
20.37
20,538
90
0.53
0.00
19.66
22,860
79
0.49
0.00

Table 4-18 : Settlement Statistics in CM Segment
% of
Funds
Unrect- Pay-in
ified Bad
Delivery
to
Deliverable
(Rs. cr.)
0.00
3,216
0.00
3,162
0.00
2,728
0.00
2,942
0.00
2,152
0.00
2,336
0.00
2,599
0.00
2,635
0.00
3,391
0.00
3,355
0.00
2,644
0.00
2,932
0.00
34,092
0.00
3,783
0.00
3,584
0.00
4,292
0.00
5,915
0.00
5,465
0.00
7,412
0.00
8,992
Contd...

98

Nov-03
Dec-03
Jan-04
Feb-04
Mar-04
2003-04
Apr-04
May-04
Jun-04
Jul-04
Aug-04
Sep-04
Oct-04
Nov-04
Dec-04
Jan-05
Feb-05
Mar-05
2004-05
Apr-05

Month/Year

Contd...

No. of Traded
% of
Trading Volume
Value of
Trades Quantity Quantity Shares
Shares
of Shares DeliveDeliveDelive- rable to
rable
rable
Total
Shares
(lakh)
(lakh)
(lakh) Traded (Rs. cr.) (US $ mn.) (Rs. cr.)
305
56,150
13,420
23.90
94,376
21,751
19,057
370
68,161
18,977
27.84
107,898
24,867
25,825
396
73,510
18,610
25.32
132,751
30,595
28,345
311
47,223
9,811
20.78
110,070
25,368
19,681
307
42850
9,930
23.17
103,331
23,814
18,721
3,750 704,533 175,550
24.92 1,090,963
251,432 221,364
330
54,207
12,934
23.86
103,154
23,578
21,719
351
54,779
13,855
25.29
100,203
22,904
22,727
320
39,284
8,578
21.84
81,020
18,519
13,999
392
63,779
14,038
22.01
97,309
22,242
18,164
361
58,304
13,948
23.92
89,596
20,479
18,605
345
57,337
15,588
27.19
81,913
18,723
19,656
318
51,399
15,178
29.53
79,878
18,258
21,660
319
59,124
18,965
32.08
79,921
18,268
24,359
466
95,239
27,464
28.84
115,867
26,484
33,121
411
82,113
19,497
23.74
97,755
22,344
25,031
424
88,147
22,208
25.19
100,267
22,918
28,158
466
84284
20023
23.76
114,085
26,077
29,903
4,503 787,996 202,277
25.67 1,140,969
260,793 277,101
365
51,949
13,147
25.31
83,038
18,614
21,624

% of Securities
Short
% of
UnrecDeliveShort tified Bad
Pay-in
Delivery
rable to
(Auctioned Delivery Delivery
Value of
quantity) to Total (AuctiShares
Deliveoned
Traded
rable
quantity)
(Rs. cr.)
(lakh)
(lakh)
20.19
18,981
70
0.48
0.00
23.93
25,687
109
0.53
0.00
21.35
28,220
100
0.53
0.00
17.88
19,628
32
0.33
0.00
18.12
18,634
44
0.33
0.00
20.29
220,341
1,014
0.58
0.00
21.05
21,617
64
0.50
0.00
22.68
22,668
48
0.35
0.00
17.28
13,948
29
0.33
0.00
18.67
18,099
51
0.37
0.00
20.77
18,554
55
0.40
0.00
24.00
19,585
71
0.46
0.00
27.12
21,588
70
0.46
0.00
30.48
24,269
93
0.49
0.00
28.59
32,994
135
0.49
0.00
25.61
24,945
86
0.44
0.00
28.08
28,062
89
0.40
0.00
26.21
29,792
79
0.40
0.00
24.29
276,120
871
0.43
0.00
26.04
21,538
64
0.48
0.00

Table 4-18 : Settlement Statistics in CM Segment
% of
Funds
Unrect- Pay-in
ified Bad
Delivery
to
Deliverable
(Rs. cr.)
0.00
7,157
0.00
9,171
0.00
9,677
0.00
8,438
0.00
7703.6
0.00
81,588
0.00
7,870
0.00
8,960
0.00
5,862
0.00
6,523
0.00
6,463
0.00
6,171
0.00
7,304
0.00
8,401
0.00
11,386
0.00
8,083
0.00
9,801
0.00
10,417
0.00
97,241
0.00
7,691
Contd...

99

May-05
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
Jan-06
Feb-06
Mar-06
2005-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
Nov-06

Month/Year

Contd...

No. of Traded
% of
Trading Volume
Value of
Trades Quantity Quantity Shares
Shares
of Shares DeliveDeliveDelive- rable to
rable
rable
Total
Shares
(lakh)
(lakh)
(lakh) Traded (Rs. cr.) (US $ mn.) (Rs. cr.)
414
56,278
15,274
27.14
88,444
19,826
24,560
464
66,792
18,290
27.38
106,133
23,791
30,065
474
77,979
21,012
26.95
114,729
25,718
31,308
579
100,127
28,305
28.27
152,560
34,199
42,894
537
85,354
22,995
26.94
132,088
29,609
35,618
503
64,735
18,216
28.14
135,376
30,347
33,857
425
52,006
14,164
27.24
104,748
23,481
27,653
551
62,112
17,235
27.75
142,814
32,014
36,295
550
66,010
18,607
28.19
148,258
33,234
40,098
515
60,323
17,701
29.34
133,753
29,983
37,352
624
74,773
22,293
29.81
174,899
39,206
48,029
6,000 818,438 227,240
27.77 1,516,839
340,022 409,353
570
72,868
21,024
28.85
174,555
40,045
48,907
717
99,758
30,580
30.65
216,397
49,644
66,750
667
66,330
17,780
26.81
149,842
34,375
36,217
537
46,642
13,097
28.08
121,978
27,983
30,347
627
54,989
14,843
26.99
127,807
29,320
32,573
638
61,974
17,387
28.06
140,300
32,186
39,354
577
60,676
17,918
29.53
136,036
31,208
40,449
744
72,408
21,215
29.30
183,496
42,096
52,049

% of Securities
Short
% of
UnrecDeliveShort tified Bad
Pay-in
Delivery
rable to
(Auctioned Delivery Delivery
Value of
quantity) to Total (AuctiShares
Deliveoned
Traded
rable
quantity)
(Rs. cr.)
(lakh)
(lakh)
27.77
24,449
75
0.49
0.00
28.33
29,964
76
0.42
0.00
27.29
31,198
91
0.43
0.00
28.12
42,745
121
0.43
0.00
26.97
35,463
112
0.49
0.00
25.01
33,741
72
0.40
0.00
26.40
27,574
46
0.32
0.00
25.41
36,194
51
0.29
0.00
27.05
39,964
67
0.36
0.00
27.93
37,246
55
0.31
0.00
27.46
47,899
64
0.29
0.00
26.99
407,976
894
0.39
0.00
28.02
48,761
91
0.44
0.00
30.85
66,502
121
0.40
0.00
24.17
36,126
53
0.30
0.00
24.88
30,272
35
0.27
0.00
25.49
32,477
56
0.38
0.00
28.05
39,267
58
0.33
0.00
29.73
40,344
57
0.32
0.00
28.37
51,924
62
0.29
0.00

Table 4-18 : Settlement Statistics in CM Segment
% of
Funds
Unrect- Pay-in
ified Bad
Delivery
to
Deliverable
(Rs. cr.)
0.00
7,920
0.00
10,586
0.00
10,174
0.00
13,404
0.00
10,373
0.00
13,171
0.00
9,155
0.00
11,482
0.00
13,633
0.00
10,581
0.00
13,256
0.00 131,426
0.00
13,730
0.00
26,470
0.00
13,398
0.00
11,489
0.00
9,636
0.00
12,206
0.00
11,118
0.00
15,535
Contd...

100

Dec-06
Jan-07
Feb-07
Mar-07
2006-07
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
2007-08

Month/Year

Contd...

No. of Traded
% of
Trading Volume
Value of
Trades Quantity Quantity Shares
Shares
of Shares DeliveDeliveDelive- rable to
rable
rable
Total
Shares
(lakh)
(lakh)
(lakh) Traded (Rs. cr.) (US $ mn.) (Rs. cr.)
667
58,890
17,927
30.44
172,127
39,488
48,102
698
85,757
23,554
27.47
172,210
39,507
51,855
683
87,584
22,838
26.08
176,834
40,568
51,327
731
82,638
20,910
25.30
168,512
38,658
46,505
7,857 850,515 239,074
28.11 1,940,094
445,078 544,434
674
76,643
20,619
26.90
168,181
42,077
48,349
786
95,458
24,635
25.81
199,170
49,830
55,670
752
77,909
21,663
27.81
192,100
48,061
52,825
890
106,882
30,283
28.33
264,949
66,287
75,349
871
101,384
25,753
25.40
226,239
56,602
63,766
894
135,865
34,119
25.11
252,895
63,271
73,052
1,207
172,479
41,641
24.14
444,407
111,185
121,822
1,193
169,622
37,921
22.36
415,129
103,860
107,494
1,077
163,037
40,474
24.83
374,515
93,699
110,578
1,262
167,860
41,581
24.77
449,261
112,400
126,808
1,057
111,923
24,363
21.77
281,395
70,402
72,123
982
102,166
24,918
24.39
251,676
62,966
64,967
11,645 1,481,229 367,971
24.84 3,519,919
880,640 972,803

% of Securities
Short
% of
UnrecDeliveShort tified Bad
Pay-in
Delivery
rable to
(Auctioned Delivery Delivery
Value of
quantity) to Total (AuctiShares
Deliveoned
Traded
rable
quantity)
(Rs. cr.)
(lakh)
(lakh)
27.95
48,009
50
0.28
0.00
30.11
51,719
85
0.36
0.00
29.03
51,216
59
0.26
0.00
27.60
46,431
41
0.20
0.00
28.06
543,048
769
0.32
0.00
28.75
48,228
52
0.25
0.00
27.95
55,530
64
0.26
0.00
27.50
52,702
57
0.27
0.00
28.44
75,147
97
0.32
0.00
28.19
63,651
62
0.24
0.00
28.89
72,837
93
0.27
0.00
27.41
121,561
108
0.26
0.00
25.89
107,268
108
0.28
0.00
29.53
110,277
133
0.33
0.00
28.23
126,552
122
0.29
0.00
25.63
72,014
51
0.21
0.00
25.81
64,852
49
0.20
0.00
27.64
970,618
997
0.27
0.00

Table 4-18 : Settlement Statistics in CM Segment
% of
Funds
Unrect- Pay-in
ified Bad
Delivery
to
Deliverable
(Rs. cr.)
0.00
14,340
0.00
14,250
0.00
14,023
0.00
16,992
0.00 173,188
0.00
14,528
0.00
15,431
0.00
15,074
0.00
20,938
0.00
24,264
0.00
21,496
0.00
41,417
0.00
31,607
0.00
31,670
0.00
45,524
0.00
25,790
0.00
21,804
0.00 309,543

Wholesale Debt Market
Segment

5

102

Wholesale Debt Market Segment

5

The Exchange started its trading operations in June 1994 by enabling the Wholesale Debt
Market (WDM) segment of the Exchange. This segment provides a trading platform
for a wide range of fixed income securities that includes Central government securities,
treasury bills (T-bills), state development loans (SDLs), bonds issued by public sector
undertakings (PSUs), floating rate bonds (FRBs), zero coupon bonds (ZCBs), index bonds,
commercial papers (CPs), certificates of deposit (CDs), corporate debentures, SLR and
non-SLR bonds issued by financial institutions (FIs), bonds issued by foreign institutions
and units of mutual funds (MFs).
To further encourage wider participation of all classes of investors, including the retail
investors, the Retail Debt Market segment (RDM) was launched on January 16, 2003.
This segment provides for a nation wide, anonymous, order driven, screen based trading
system in government securities. The settlement cycle is same as in the case of equity
market i.e., T+2 rolling settlement cycle.

Trading Mechanism
The WDM trading system, known as NEAT (National Exchange for Automated Trading),
is a fully automated screen based trading system that enables members across the country
to trade simultaneously with enormous ease and efficiency. It supports an anonymous
order driven market which operates on a price/time priority and provides tremendous
flexibility to users in terms of orders with various time/price/quantity related conditions
that can be placed on the system. It also provides on-line market information like total
order depth, best buys and sells available, quantity traded, the high, low and last traded
price for securities are available at all points of time.
The WDM Trading system provides two market sub-types: continuous market and
negotiated market. In the continuous market, the buyer and seller do not know each other
and they put their best buy/sell orders, which are stored in order book with price/time
priority. If orders match, it results into a trade. The trades in WDM segment are settled
directly between the participants, who take an exposure to the settlement risk attached
to any unknown counter-party. In the NEAT-WDM system, all participants can set up
their counter-party exposure limits against all probable counter-parties. This enables the
trading member/participant to reduce/ minimize the counter-party risk associated with
the counter-party to trade. A trade does not take place if both the buy/sell participants
do not invoke the counter-party exposure limit in the trading system.
In the negotiated market, the trades are normally decided by the seller and the buyer
outside the exchange, and reported to the Exchange through a trading member for
approval. Thus, deals negotiated or structured outside the exchange are disclosed to
the market through NEAT-WDM system. In negotiated market, as buyers and sellers
know each other and have agreed to trade, no counter-party exposure limit needs to be
invoked.

103

The trades on the WDM segment could be either outright trades or repo transactions with
settlement cycle of T+2 and repo periods (1 to 14 days). For every trade, it is necessary
to specify the number of settlement days and the trade type (repo or non-repo), and in
the event of a repo trade, the repo term and repo rate.

Market Performance
Turnover
The trading volume on the WDM Segment of the Exchange witnessed a year on year
increase of 28.85 % from Rs.219,106 crore (US $ 50,265 million) during 2006-07 to
Rs. 282,317 crore (US $ 70,632 million) during 2007-08. The average daily trading volume
also accelerated from Rs.898 crore (US $ 206 million) during 2006-07 to Rs.1,138 crore
(US $ 285 million) in fiscal 2007-08. The highest recorded WDM trading volume of
Rs. 13,912 crore ( US $ 3,206 million) was registered on August 25, 2003. The business
growth of the WDM segment is presented in Table 5-1 and Chart 5-1.

Chart 5-1 : Business Growth of WDM Segment

The transactions in dated government securities accounted for a substantial share of
73.85 % on the WDM segment. The details of transactions in government securities and
treasury bills, outright as well as repo transactions are presented in Table 5-2. There were
no repo transactions recorded during 2005-06, 2006-07 and 2007-08. The WDM’s SGL
Outright Transactions as a percentage to the total SGL Outright transactions was
52.05 % in 2007-08.
The security-wise and participant-wise distribution of WDM trades is presented in Table 5-3
and Chart 5-2(a&b). It is observed that the market is dominated by dated government securities

104

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

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

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

105

The share of top ‘N’ securities/trading members/participants in turnover in WDM
segment is presented in Table 5-4. The share of top ‘10’ securities increased marginally from
51.29 % in 2006-07 to 53.31 % in 2007-08. The share of top ‘50’ and top ‘100’ securities
accounted for 79.64% and 89.55% respectively in the current year.
Market Capitalisation
Market capitalisation of the WDM segment has witnessed a constant increase indicating
an increase in the number of securities available for trading on this segment. Total
market capitalisation of the securities available for trading on WDM segment
stood at Rs. 2,123,346 crore (US $ 53,123 million) as on March 31, 2008. Central
Government securities accounted for the largest share of the market capitalisation
with 65.57%. The details of market capitalisation of WDM securities are presented in
Table 5-5.

Transaction Charges
The Exchange has waived the transaction charges for the Wholesale Debt Market segment
of the Exchange for the period April 1, 2008 to March 31, 2009.

Settlement
Settlement is on a rolling basis, i.e. there is no account period settlement. Each order
has a unique settlement date specified upfront at the time of order entry and used as a
matching parameter. It is mandatory for trades to be settled on the predefined settlement
date. The Exchange currently allows settlement periods ranging from same day (T+0)
settlement to a maximum of (T+2) for non-governmentsecurities while settlement of
all outright secondary market transactions in government securities was standardized to
T+1. In case of repo transactions in government securities, first leg can be settled either
on T+0 basis or T+1 basis.
In case of government securities, the actual settlement of funds and securities are effected
directly between participants or through Reserve Bank of India (RBI). All trades in
government securities are reported to RBI-SGL through the Negotiated Dealing System
(NDS) of RBI, and Clearing Corporation of India Limited (CCIL) provides settlement
guarantee for transactions in government securities including repos. The trades are settled
on a net basis through the DvP-III system. In the DvP-III, the settlement of Securities
and Funds are carried out on a net basis.
For securities other than government securities and T-bills, trades are settled on a gross
basis directly between participants on delivery versus payment basis.
On the scheduled settlement date, the Exchange provides data/information to the
respective member/participant regarding trades to be settled on that day with details like
security, counter party and consideration.

106

The settlement details for non-government securities, i.e. certificate no., Cheque no.,
constituent etc. are reported by the member/participant to the Exchange.
The Exchange closely monitors the settlement of transactions through the reporting of
settlement details by members and participants. In case of deferment of settlement or
cancellation of trade, participants are required to seek prior approval from the Exchange.
For any dispute arising in respect of the trades or settlement, the exchange has established
arbitration mechanism for resolving the same.

Constituent SGL Facility
Subsidiary General Ledger (SGL) account is a facility provided by RBI to large banks
and financial institutions to hold their investments in government securities and
treasury bills in the electronic book entry form. Such institutions can settle their
trades for securities held in SGL through a delivery-versus-payment (DvP) mechanism,
which ensures movement of funds and securities simultaneously. As all investors
in government securities do not have an access to the SGL accounting system, RBI
has permitted such investors to hold their securities in physical stock certificate
form. They may also open a constituent SGL account with any entity authorised by
RBI for this purpose and thus avail of the DvP settlement. Such client accounts are
referred to as constituent SGL accounts.
For retail participants in the market, who otherwise have to hold securities in
physical form and settle their transactions on a bilateral basis, the NSCCL offers
constituent SGL facility. RBI has allowed NSCCL to open SGL and current accounts
for this purpose.

FIMMDA-NSE MIBID/MIBOR
A reference rate is an accurate measure of the market price. In the fixed income
market, it is an interest rate that the market respects and closely matches. On these
lines, NSE has been computing and disseminating the NSE Mumbai Inter-bank Bid Rate
(MIBID) and NSE Mumbai Inter-bank Offer Rate (MIBOR) for the overnight money
market from June 15, 1998, the 14-day MIBID/MIBOR from November 10, 1998
and the 1 month and 3 month MIBID/MIBOR from December 1, 1998. Further
the exchange introduced a 3-day FIMMDA – NSE MIBID / MIBOR on all Fridays
with effect from June 6, 2008 in addition to existing overnight rate. In view of
the robust methodology of computation of these rates and their extensive use by
market participants, these have been co-branded with Fixed Income and Money
Market Dealers Association (FIMMDA) from March 4, 2002. These are now known
as FIMMDA-NSE MIBID/MIBOR. These are presented in Table 5-6. The Chart
5-3 presents overnight MIBID/MIBOR for 2007-08.

107

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

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

Zero Coupon Yield Curve
Keeping in mind the requirements of the banking industry, financial institutions, mutual
funds, insurance companies, etc. that have substantial investment in sovereign papers,
NSE disseminates a ‘Zero Coupon Yield Curve’ (NSE Zero Curve) to help in valuation of
securities across all maturities irrespective of its liquidity in the market. This product has
been developed by using Nelson-Siegel functional form to estimate the term structure of
interest rate at any given point of time and been successfully tested by using daily WDM
trades data. This is being disseminated daily.

108

The ZCYC depicts the relationship between spot interest rates in the economy
and the associated term to maturity. It provides daily estimates of the term structure
of interest rates using information on secondary market trades in government
securities from the WDM segment. The term structure forms the basis for the valuation
of all fixed income instruments. Modelled as a series of cashflows due at different
points of time in the future, the underlying price of such an instrument is calculated
as the net present value of the stream of cashflows. Each cashflow, in such a
formulation, is discounted using the interest rate for the associated term to maturity;
the appropriate rates are read off the estimated ZCYC. Once estimated, the
interest rate-maturity mapping is used to compute underlying valuations even for
securities that do not trade on a given day. Changes in the economy cause shifts in the
term structure, changing the underlying valuations of fixed income instruments. The
daily ZCYC captures these changes, and is used to track the value of portfolios of
government securities on a day-to-day basis.
Chart 5-4 plots the spot interest rates at different maturities for the year 2007-08

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

NSE-VaR System
NSE has developed a VaR system for measuring the market risk inherent in Government
of India (GOI) securities. NSE-VaR system builds on the NSE database of daily yield curves
(ZCYC) and provides measures of VaR using 5 alternative methods (variance-covariance
(normal), historical simulation method, weighted normal, weighted historical simulation
and extreme value method). Together, these 5 methods provide a range of options for
market participants to choose from.

109

NSE-VaR system releases daily estimates of security-wise VaR at 1-day and multi-day
horizons for securities traded on WDM segment of NSE and all outstanding GoI securities
with effect from January 1, 2002. Participants can compute their portfolio risk as
weighted average of security-wise VaRs, the weights being proportionate
to the market value of a given security in their portfolio. 1-day VaR (99%)
measure for GoI Securities traded on NSE-WDM on March 30, 2007 is presented
in Table 5-7.

GOI-Bond Index
The increased activity in the government securities market in India and simultaneous
emergence of mutual (gilt) funds has given rise to the need for a well defined Bond Index
to measure returns in the bond market. The NSE-Government Securities Index prices
components off the NSE Benchmark ZCYC, so that the movements reflect returns to
an investor on account of change in interest rates only, and not those arising on account
of the impact of idiosyncratic factors. The index provides a benchmark for portfolio
management by various investment managers and gilt funds. It also forms the basis for
designing index funds and for derivative products such as options and futures. Some of
the salient features of this index are:

110

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

111

1,071

1,057

1,038

1998-99

1999-00

2000-01

200

223

215

207

196

216

167

228

254

216

979

Jun-01

Jul-01

Aug-01

Sep-01

Oct-01

Nov-01

Dec-01

Jan-02

Feb-02

Mar-02

2001-02

213

719

1997-98

220

524

1996-97

May-01

304

Apr-01

183

1995-96

No. of
active
securities

1994- 95 (June-March)

Month/Year

144,851

9,157

16,127

17,011

10,135

15,300

12,636

9,526

11,622

12,575

11,936

12,220

6,606

64,470

46,987

16,092

16,821

7,804

2,991

1,021

Number
of
Trades

947,190

55,988

101,313

111,736

62,411

98,674

80,860

63,199

75,784

84,629

82,329

83,982

46,285

428,582

304,216

105,469

111,263

42,278

11,868

6,781

(Rs. cr.)

194,096

11,473

20,761

22,897

12,789

20,220

16,570

12,951

15,530

17,342

16,871

17,209

9,485

91,891

69,742

24,857

28,146

11,783

3,455

2,157

( US $ mn)

Trading Volume

All Trades

3,277

2,434

4,405

4,298

2,600

4,290

3,234

2,528

3,158

3,255

3,293

3,359

2,314

1,483

1,035

365

385

145

41

30

(Rs. cr.)

672

499

903

881

533

879

663

518

647

667

675

688

474

318

237

86

97

40

12

10

( US $ mn)

6.54

6.11

6.28

6.57

6.16

6.45

6.40

6.63

6.52

6.73

6.90

6.87

7.01

6.65

6.47

6.55

6.61

5.42

3.97

6.64

(Rs. cr.)

378

30

44

36

21

36

17

28

44

25

28

52

17

498

936

1,522

1,390

1,061

1,115

168

Average Daily Trading Average Number
Volume
Trade Size
of
Trades

Table 5-1 : Business Growth of WDM Segment

110

9

15

13

6

16

4

4

19

5

5

8

6

131

218

308

289

201

207

31

(Rs. cr.)

22.54

1.84

3.07

2.66

1.23

3.28

0.82

0.82

3.89

1.02

1.02

1.64

1.23

28.09

49.92

72.54

73.02

56.02

60.26

9.86

( US $ mn)

Trading Volume

Retail Trade

Contd...

0.01

0.02

0.01

0.01

0.01

0.02

0.00

0.01

0.03

0.01

0.01

0.01

0.01

0.03

0.07

0.29

0.26

0.47

1.74

0.45

(%)

Share in
Total Trading
Volume

112

306

334

275

Oct-03

271

Jul-03

Sep-03

310

Jun-03

Aug-03

282

290

2002-03

May-03

1,123

Mar-03

Apr-03

229

276

Feb-03

245

260

Nov-02

253

265

Oct-02

Jan-03

251

Sep-02

Dec-02

230

232

Aug-02

Jun-02

Jul-02

206

237

May-02

254

No. of
active
securities

Apr-02

Month/Year

Contd...

20,465

17,152

22,753

18,220

18,400

18,651

15,512

167,778

8,650

10,728

21,335

18,807

21,052

16,587

10,439

15,483

14,996

8,875

8,662

12,164

Number
of
Trades

143,404

125,199

162,737

131,027

126,672

123,359

101,052

1,068,701

54,986

66,974

139,718

117,383

132,222

106,142

68,269

100,226

97,725

54,477

53,246

77,334

(Rs. cr.)

33,050

28,854

37,506

30,197

29,194

28,430

23,289

224,990

11,576

14,100

29,414

24,712

27,836

22,346

14,372

21,100

20,574

11,469

11,210

16,281

( US $ mn)

Trading Volume

All Trades

5,975

4,815

6,509

4,853

5,067

5,140

4,812

3,598

2,391

2,912

5,175

4,891

5,509

4,246

2,845

3,855

3,619

2,179

2,130

3,222

(Rs. cr.)

1,377

1,110

1,500

1,118

1,168

1,185

1,109

758

503

613

1,089

1,030

1,160

894

599

812

762

459

448

678

( US $ mn)

7.01

7.30

7.15

7.19

6.88

6.61

6.51

6.37

6.36

6.24

6.55

6.24

6.28

6.40

6.54

6.47

6.52

6.14

6.15

6.36

(Rs. cr.)

81

115

127

122

127

148

180

1,252

272

115

131

152

172

143

81

56

46

22

30

32

Average Daily Trading Average Number
Volume
Trade Size
of
Trades

Table 5-1 : Business Growth of WDM Segment

27

25

26

30

29

31

41

300

55

24

32

36

35

41

21

16

16

7

10

7

(Rs. cr.)

5.58

5.28

5.37

6.27

6.11

6.42

8.67

63.16

11.58

5.05

6.74

7.58

7.37

8.63

4.42

3.37

3.37

1.47

2.11

1.47

( US $ mn)

Trading Volume

Retail Trade

Contd...

0.02

0.02

0.02

0.02

0.02

0.02

0.04

0.03

0.10

0.04

0.02

0.03

0.03

0.04

0.03

0.02

0.02

0.01

0.02

0.01

(%)

Share in
Total Trading
Volume

113

Dec-04

303

1,151

204

Mar-05

2004-05

Apr-05

273

333

Nov-04

251

329

Oct-04

Feb-05

291

Sep-04

Jan-05

243

288

Aug-04

347

275

May-04

302

285

Apr-04

Jul-04

1,078

2003-04

Jun-04

241

372

280

Jan-04

Mar-04

247

Dec-03

Feb-04

233

No. of
active
securities

Nov-03

Month/Year

Contd...

6,079

124,308

6,486

10,156

8,384

10,321

5,767

8,437

12,659

9,241

9,303

11,382

13,097

19,075

189,518

14,017

8,675

11,407

12,529

11,737

Number
of
Trades

54,616

887,294

53,812

73,588

61,205

72,593

45,541

55,770

87,695

63,806

66,012

82,453

91,340

133,478

1,316,096

98,806

61,499

77,533

83,906

80,903

(Rs. cr.)

12,243

202,810

12,300

16,820

13,990

16,593

10,409

12,747

20,044

14,584

15,089

18,846

20,878

30,509

303,318

22,772

14,174

17,869

19,338

18,646

( US $ mn)

Trading Volume

All Trades

2,483

3,028

2,242

3,066

2,550

2,792

1,980

2,425

3,508

2,552

2,445

3,171

3,806

6,067

4,477

3,952

2,795

2,982

3,227

3,518

(Rs. cr.)

557

692

513

701

583

638

453

554

802

583

559

725

870

1,387

1,032

911

644

687

744

811

( US $ mn)

8.98

7.14

8.30

7.25

7.30

7.03

7.90

6.61

6.93

6.90

7.10

7.24

6.97

7.00

6.94

7.05

7.09

6.80

6.70

6.89

(Rs. cr.)

98

1,278

305

133

131

154

134

79

103

68

55

56

27

33

1,400

152

79

123

57

89

Average Daily Trading Average Number
Volume
Trade Size
of
Trades

Table 5-1 : Business Growth of WDM Segment

37

410

90

43

45

41

44

37

37

21

17

18

8

11

332

27

21

34

14

28

(Rs. cr.)

8.29

93.74

20.54

9.86

10.29

9.27

9.96

8.35

8.41

4.85

3.81

4.03

1.80

2.56

69.83

5.64

4.44

7.12

2.99

5.94

( US $ mn)

Trading Volume

Retail Trade

Contd...

0.07

0.05

0.17

0.06

0.07

0.06

0.10

0.07

0.04

0.03

0.03

0.02

0.01

0.01

0.03

0.03

0.03

0.04

0.02

0.03

(%)

Share in
Total Trading
Volume

114

Aug-06

185

170

Jul-06

Nov-06

146

Jun-06

198

168

May-06

124

174

Apr-06

Oct-06

159

2005-06

Sep-06

224

897

Mar-06

180

222

Dec-05

145

186

Nov-05

Feb-06

192

Oct-05

Jan-06

274

258

185

Jul-05

Sep-05

268

Jun-05

Aug-05

256

No. of
active
securities

May-05

Month/Year

Contd...

2,938

1,676

2,336

2,341

1,169

950

1,755

1,962

61,891

1,732

2,075

2,572

2,505

2,822

2,987

4,127

5,361

8,042

14,213

9,376

Number
of
Trades

29,339

15,810

23,396

23,561

12,710

11,790

17,986

23,184

475,523

17,089

16,485

21,607

20,771

24,360

25,387

31,960

44,717

52,309

96,108

70,113

(Rs. cr.)

6,731

3,627

5,367

5,405

2,916

2,705

4,126

5,319

106,596

3,831

3,695

4,844

4,656

5,461

5,691

7,164

10,024

11,726

21,544

15,717

( US $ mn)

Trading Volume

All Trades

1,334

832

1,114

1,071

605

536

818

1,364

1,755

814

868

1,080

944

1,218

1,209

1,278

1,789

2,092

3,696

2,805

(Rs. cr.)

306

191

256

246

139

123

188

313

393

182

194

242

212

273

271

287

401

469

829

629

( US $ mn)

9.99

9.43

10.02

10.06

10.87

12.41

10.25

11.82

7.68

9.87

7.94

8.40

8.29

8.63

8.50

7.74

8.34

6.50

6.76

7.48

(Rs. cr.)

15

42

39

27

47

19

19

892

82

39

54

60

46

57

68

108

52

108

120

Average Daily Trading Average Number
Volume
Trade Size
of
Trades

Table 5-1 : Business Growth of WDM Segment

4

6

14

8

12

6

7

310

26

17

17

27

20

22

24

36

13

27

44

(Rs. cr.)

0.88

-–

1.48

3.10

1.92

2.68

1.35

1.63

69.49

5.83

3.81

3.81

6.05

4.48

4.93

5.38

8.07

2.91

6.05

9.86

( US $ mn)

Trading Volume

Retail Trade

Contd...

0.01

0.03

0.06

0.07

0.10

0.03

0.03

0.07

0.15

0.10

0.08

0.13

0.08

0.09

0.08

0.08

0.02

0.03

0.06

(%)

Share in
Total Trading
Volume

115

148

147

110

117

144

Sep-07

Oct-07

Nov-07

Dec-07

Jan-08

601

128

Aug-07

2007-08

184

Jul-07

118

143

Jun-07

148

145

May-07

Mar-08

98

Apr-07

Feb-08

178

762

108

Feb-07

2006-07

140

Jan-07

Mar-07

170

No. of
active
securities

Dec-06

Month/Year

Contd...

16,179

905

1,497

2,359

1,585

1,083

1,411

934

1,230

2,089

1,065

1,093

928

19,575

952

920

1,332

1,244

Number
of
Trades

282,317

15,362

24,044

42,724

32,865

17,704

25,493

16,902

21,431

33,815

17,335

17,483

17,159

219,106

14,192

14,245

18,026

14,868

(Rs. cr.)

70,632

3,843

6,015

10,689

8,223

4,429

6,378

4,229

5,362

8,460

4,337

4,374

4,293

50,265

3,256

3,268

4,135

3,411

( US $ mn)

Trading Volume

All Trades

1,138

853

1,145

1,858

1,730

843

1,159

845

1,021

1,537

825

833

903

898

710

791

901

708

(Rs. cr.)

285

214

286

465

433

211

290

211

255

385

207

208

226

206

163

182

207

162

( US $ mn)

17.45

16.97

16.06

18.11

20.74

16.35

18.07

18.10

17.42

16.19

16.28

16.00

18.49

11.19

14.91

15.48

13.53

11.95

(Rs. cr.)

211

36

7

27

12

7

10

27

8

9

38

18

12

399

74

49

35

33

Average Daily Trading Average Number
Volume
Trade Size
of
Trades

Table 5-1 : Business Growth of WDM Segment

49

4

2

7

4

2

4

4

4

3

6

6

3

102

13

14

14

4

(Rs. cr.)

12.26

1.00

0.50

1.75

1.00

0.50

1.00

1.00

1.00

0.75

1.50

1.50

0.75

23.29

3.01

3.12

3.24

0.86

( US $ mn)

Trading Volume

Retail Trade

0.02

0.03

0.01

0.02

0.01

0.01

0.02

0.02

0.02

0.01

0.03

0.03

0.02

0.05

0.09

0.10

0.08

0.03

(%)

Share in
Total Trading
Volume

Table 5-2 : WDM Transactions in Government Securities
Month /
Year

1

Outright Transactions
Dated
State
Securities Government
Securities
2

3

Treasury
Bills

Repo Transactions

Total
Dated Trea- Total
(2+3+4) Securi- sury (6+7)
ties
Bills

4

5

6

7

8

Total
(5+8)

% Share
in SGL
Outright
Transactions

9

10

1994-95
(June-March)

2,947

79

2,634

5,660

5,660

1995-96

6,813

176

2,255

9,243

739

5

744

9,988

1996-97

26,891

298

10,912

38,101

162

45

207

38,308

1997-98

79,564

931

17,021

97,515

4,225 1,845

6,070

103,585

1998-99

78,973

860

10,586

90,419

4,741

120

4,861

95,280

1999-00

278,866

2,082

10,644

291,592

1,933

363

2,296

293,888

2000-01

388,098

1,256

23,142

412,496

1,600

1,600

414,096

Apr-01

42,110

292

2,888

45,290

45,290

May-01

79,516

133

2,594

82,243

82,243

Jun-01

78,794

55

2,344

81,193

81,193

Jul-01

79,945

121

2,834

82,900

216

216

83,116

Aug-01

72,543

68

1,546

74,157

131

131

74,288

Sep-01

59,704

100

2,137

61,941

61,941

Oct-01

77,611

160

1,656

79,427

25

50

75

79,502

Nov-01

94,348

109

2,651

97,108

37

10

47

97,155

Dec-01

59,854

23

1,615

61,492

50

50

61,542

Jan-02

106,148

114

3,164

109,426

10

10

109,436

Feb-02

96,712

124

1,191

98,027

98,027

Mar-02

52,816

113

863

53,792

79

79

53,871

900,101

1,412

25,483

926,996

548

60

608

927,604

Apr-02

72,359

308

1,597

74,264

195

28

223

74,487

72.75

May-02

47,694

177

2,553

50,424

255

255

50,679

71.13

Jun-02

49,123

134

1,699

50,956

215

30

245

51,201

80.90

Jul-02

91,317

61

2,460

93,838

43

43

93,881

74.94

Aug-02

93,594

129

2,933

96,656

134

109

243

96,899

74.51

2001-02

Sep-02

63,979

594

1,350

65,923

75

159

234

66,157

72.91

Oct-02

100,032

234

2,537

102,803

25

144

169

102,972

78.01

Nov-02

126,158

328

2,660

129,146

150

17

167

129,313

73.38

Dec-02

111,536

148

2,449

114,133

134

44

178

114,311

73.44

Jan-03

130,558

101

4,570

135,229

100

150

250

135,479

70.79

Feb-03

61,641

89

2,987

64,717

64,717

82.48

Mar-03

48,593

265

3,605

52,463

65

205

270

52,733

66.96

996,584

2,568

31,400 1,030,552

1,391

886

2,277 1,032,829

74.01

2002-03

Contd...

116

Contd...

Table 5-2 : WDM Transactions in Government Securities
Month /
Year

1

Outright Transactions
Dated
State
Securities Government
Securities
2

3

Treasury
Bills

4

Repo Transactions

Total
Dated Trea- Total
(2+3+4) Securi- sury (6+7)
ties
Bills

5

6

7

8

Total
(5+8)

% Share
in SGL
Outright
Transactions

9

10

Apr-03

91,857

91

5,001

96,949

23

23

96,972

76.14

May-03

114,924

249

3,790

118,963

118,963

74.56

Jun-03

120,554

732

2,883

124,169

67

50

117

124,286

76.90

Jul-03

123,426

352

4,182

127,960

20

10

30

127,990

76.87

Aug-03

153,121

713

4,236

158,070

158,070

72.23

Sep-03

113,766

554

6,470

120,790

13

13

120,803

80.65

Oct-03

132,676

318

5,619

138,613

138,613

72.33

Nov-03

73,805

322

4,631

78,758

78,758

79.02

Dec-03

76,346

268

4,480

81,094

81,094

77.23

Jan-04

69,909

422

4,639

74,970

74,970

75.67

Feb-04

55,619

277

3,945

59,841

59,841

72.56

Mar-04

87,836

385

5,721

93,942

93,942

67.05

1,213,839

4,683

55,597 1,274,119

123

60

183 1,274,302

74.89

123,050

338

27

15

2003-04
Apr-04

5,340

128,728

42

128,770

70.90

May-04

79,292

759

8,085

88,137

28

31

59

88,196

70.40

Jun-04

68,629

1,282

8,766

78,678

23

23

78,700

62.77

Jul-04

53,035

864

9,034

62,934

45

25

70

63,003

69.07

Aug-04

54,514

206

6,330

61,049

21

77

98

61,147

66.40

Sep-04

73,815

639

9,923

84,377

84,377

69.50

Oct-04

44,692

1,454

7,593

53,740

53,740

65.55

Nov-04

31,034

909

11,665

43,608

43,608

64.37

Dec-04

55,894

1,033

12,162

69,090

69,090

65.51

Jan-05

44,323

844

13,146

58,313

58,313

67.42

Feb-05

54,136

310

15,727

70,173

70,173

69.70

Mar-05

33,298

315

16,888

50,500

50,500

61.62

8,954 124,660

2004-05

849,325

144

147

292

849,617

67.36

Apr-05

715,711
30,569

27

21,748

52,343

52,343

58.83

May-05

50,410

916

15,921

67,248

67,248

67.72

Jun-05

85,381

1,178

6,208

92,767

92,767

71.47

Jul-05

45,085

282

4,469

49,836

49,836

68.14

Aug-05

25,958

898

14,733

41,590

41,590

61.31

Sep-05

21,037

1,173

6,923

29,133

29,133

58.96

Oct-05

14,424

771

8,474

23,668

23,668

60.89
Contd...

117

Contd...

Table 5-2 : WDM Transactions in Government Securities
Month /
Year

1

Dated
State
Securities Government
Securities
2

3

Treasury
Bills

4

Repo Transactions

Total
Dated Trea- Total
(2+3+4) Securi- sury (6+7)
ties
Bills

5

6

7

8

Total
(5+8)

% Share
in SGL
Outright
Transactions

9

10

Nov-05

15,860

725

6,844

23,429

23,429

60.25

Dec-05

12,791

582

5,998

19,371

19,371

56.91

Jan-06

13,902

289

5,808

19,999

19,999

62.08

Feb-06

12,216

232

3,262

15,711

15,711

58.64

Mar-06

10,556

321

4,830

15,707

15,707

54.64

7,393 105,218

450,802

450,802

63.67

2005-06

338,190

Apr-06

15,346

158

6,729

22,233

22,233

55.66

May-06

12,380

466

3,462

16,309

16,309

43.13

Jun-06

5,994

421

4,298

10,713

10,713

39.54

Jul-06

6,715

282

4,536

11,533

11,533

47.87

Aug-06

14,706

294

7,540

22,540

22,540

50.36

Sep-06

17,072

416

4,832

22,320

22,320

52.29

Oct-06

11,355

88

3,683

15,125

15,125

55.64

Nov-06

22,697

267

5,313

28,277

28,277

57.73

Dec-06

10,776

435

2,880

14,091

14,091

56.53

Jan-07

13,159

124

3,346

16,629

16,629

59.48

Feb-07

10,021

161

2,863

13,046

13,046

53.55

Mar-07

9,712

325

2,471

12,508

12,508

46.33

149,933

3,436

51,954

205,324

205,324

51.70

Apr-07

12,058

40

4,308

16,405

16,405

51.97

May-07

11,159

517

4,708

16,384

16,384

57.63

2006-07

Jun-07

9,701

263

6,209

16,173

16,173

51.28

Jul-07

22,357

275

7,259

29,891

29,891

55.76

Aug-07

14,112

82

5,356

19,550

19,550

50.84

Sep-07

12,371

62

3,278

15,710

15,710

53.53

Oct-07

11,670

95

11,229

22,994

22,994

41.06

Nov-07

10,631

283

5,546

16,460

16,460

52.97

Dec-07

26,084

204

5,568

31,856

31,856

64.15

Jan-08

31,917

165

6,354

38,436

38,436

51.35

Feb-08

18,954

60

3,243

22,258

22,258

49.89

Mar-08

11,309

46

2,937

14,292

14,292

45.88

192,322

2,092

65,995

260,409

260,409

52.05

2007-08

118

Outright Transactions

Table 5-3 : Security-wise and Participant-wise Distribution of WDM Trades
(In per cent)
Month &
Year

Security-wise Distribution

Participant-wise Distribution

Government
Securities

T-Bills

PSU
/Inst.
Bonds

Others

Trading
Members

FIs/
PriMFs/
mary
Corpo- Dealers
rates

Indian
Banks

Foreign
Banks

1994-95
(June-March)

44.63

38.84

12.15

4.38

57.82

6.43

0.02

14.16

21.57

1995-96

65.13

19.04

9.69

6.14

23.48

7.60

1.16

30.07

37.69

1996-97

64.70

25.92

6.55

2.84

22.95

3.81

6.10

30.01

37.13

1997-98

76.14

16.96

3.64

3.26

19.75

4.30

12.06

41.24

22.65

1998-99

80.19

10.15

4.78

4.88

15.48

4.93

14.64

42.12

22.83

1999-00

92.99

3.62

1.60

1.79

18.63

4.18

19.42

42.72

15.05

2000-01

91.22

5.40

1.84

1.54

23.24

4.18

22.14

33.54

16.90

Apr-01

91.61

6.24

1.43

0.72

18.82

3.01

25.17

36.81

16.19

May-01

94.84

3.09

1.36

0.71

19.55

3.99

25.28

38.40

12.78

Jun-01

95.77

2.85

0.88

0.50

19.92

3.58

22.88

41.31

12.31

Jul-01

94.86

3.35

1.14

0.65

20.51

4.78

20.60

41.66

12.45

Aug-01

95.99

2.04

1.19

0.78

21.71

3.53

24.49

39.05

11.22

Sep-01

94.63

3.38

1.31

0.68

25.33

4.17

24.19

31.78

14.53

Oct-01

96.21

2.11

1.03

0.65

26.98

4.19

23.74

34.58

10.51

Nov-01

95.76

2.70

0.67

0.87

25.96

3.97

24.49

34.66

10.92

Dec-01

96.02

2.59

0.83

0.56

26.51

4.65

23.11

33.89

11.84

Jan-02

95.11

2.83

0.88

1.18

25.43

4.46

19.19

36.09

14.83

Feb-02

95.58

1.18

1.59

1.65

25.16

4.53

19.78

34.26

16.27

Mar-02

94.68

1.54

2.03

1.75

24.23

4.61

19.43

35.84

15.89

2001-02

95.24

2.70

1.16

0.91

23.52

4.16

22.50

36.60

13.22

Apr-02

94.22

2.10

1.97

1.71

25.45

5.11

22.33

34.45

12.66

May-02

90.38

4.79

1.89

2.94

24.42

2.71

22.08

33.70

17.09

Jun-02

90.81

3.17

1.91

4.11

22.59

3.05

19.17

39.29

15.90

Jul-02

93.55

2.52

1.58

2.35

22.64

2.83

22.19

40.27

12.07

Aug-02

93.65

3.03

2.23

1.09

22.44

3.60

21.83

41.67

10.46

Sep-02

94.70

2.21

1.76

1.33

22.46

4.27

24.02

39.06

10.19

Oct-02

94.49

2.53

1.64

1.34

24.52

4.18

23.92

39.11

8.27

Nov-02

95.78

2.02

1.24

0.96

23.73

3.53

21.01

44.01

7.72

Dec-02

95.26

2.12

1.58

1.04

24.70

3.88

24.78

41.31

5.33

Jan-03

93.59

3.38

2.17

0.86

26.37

3.67

22.96

39.02

7.98

Feb-03

92.17

4.46

2.42

0.95

28.87

4.82

17.75

31.83

16.73

Mar-03

88.97

6.93

2.75

1.35

32.12

3.49

17.67

30.13

16.59

2002-03

93.62

3.02

1.87

1.49

24.81

3.77

22.03

38.77

10.62
Contd...

119

Contd...

Table 5-3 : Security-wise and Participant-wise Distribution of WDM Trades
(In per cent)
Month &
Year

Security-wise Distribution

Participant-wise Distribution

Government
Securities

T-Bills

PSU
/Inst.
Bonds

Others

Trading
Members

FIs/
PriMFs/
mary
Corpo- Dealers
rates

Indian
Banks

Foreign
Banks

Apr-03

91.01

4.95

2.67

1.37

32.55

3.40

18.65

35.91

9.49

May-03

93.36

3.07

2.09

1.48

32.28

3.83

18.74

36.89

8.26

Jun-03

95.80

2.32

1.11

0.77

33.59

3.58

19.03

37.08

6.72

Jul-03

94.48

3.20

1.67

0.65

33.15

5.10

17.77

37.37

6.61

Aug-03

94.53

2.60

2.15

0.72

33.34

4.97

16.34

39.09

6.26

Sep-03

91.32

5.17

2.56

0.95

36.13

5.33

15.32

37.01

6.21

Oct-03

92.74

3.92

2.40

0.94

35.78

5.81

16.38

35.86

6.17

Nov-03

91.62

5.72

1.68

0.98

40.68

5.16

14.61

33.90

5.65

Dec-03

91.31

5.34

2.24

1.11

35.49

4.25

16.00

37.65

6.61

Jan-04

90.71

5.98

1.66

1.65

35.78

4.47

17.38

34.85

7.52

Feb-04

90.89

6.42

1.78

0.91

36.32

3.93

17.28

32.54

9.93

Mar-04

89.29

5.79

2.48

2.44

36.21

3.96

16.30

33.82

9.71

2003-04

92.60

4.23

2.06

1.11

34.80

4.56

17.03

36.36

7.25

Apr-04

92.46

4.01

1.72

1.81

33.75

5.69

18.92

35.71

5.93

May-04

87.67

8.89

1.89

1.55

32.90

5.24

17.88

35.57

8.41

Jun-04

84.82

10.63

2.55

2.00

30.78

6.03

19.60

33.96

9.63

Jul-04

81.72

13.72

2.07

2.49

33.33

7.03

19.15

28.88

11.61

Aug-04

85.79

10.04

2.15

2.02

32.27

6.04

20.60

25.23

15.86

Sep-04

84.90

11.32

1.54

2.24

33.97

4.99

21.49

25.79

13.76

Oct-04

82.74

13.61

1.58

2.07

34.17

4.54

18.64

27.08

15.57

Nov-04

70.14

25.61

1.96

2.29

36.30

4.28

16.73

23.30

19.39

Dec-04

78.42

16.75

1.88

2.95

39.94

3.33

18.10

23.94

14.69

Jan-05

73.80

21.48

2.15

2.57

34.07

4.04

16.80

26.64

18.45

Feb-05

73.99

21.37

2.51

2.13

34.26

4.66

15.27

29.74

16.07

Mar-05

62.46

31.38

2.42

3.74

33.15

4.73

16.91

33.49

11.72

2004-05

81.69

14.07

2.01

2.23

33.96

5.14

18.50

29.89

12.51

Apr-05

56.02

39.82

1.87

2.29

31.34

4.28

17.15

31.77

15.46

May-05

73.20

22.71

1.42

2.67

31.72

4.29

23.11

28.21

12.67

Jun-05

90.06

6.46

1.86

1.62

30.05

3.72

22.71

29.07

14.45

Jul-05

86.73

8.54

2.31

2.42

30.93

2.43

26.42

25.71

14.51

Aug-05

60.06

32.95

3.40

3.59

34.44

3.81

19.56

27.82

14.37

Sep-05

69.49

21.66

4.51

4.34

35.57

5.83

18.74

31.77

8.09

Oct-05

59.85

33.38

4.21

2.56

35.34

2.66

21.77

27.15

13.08
Contd...

120

Contd...

Table 5-3 : Security-wise and Participant-wise Distribution of WDM Trades
(In per cent)
Month &
Year

Security-wise Distribution

Participant-wise Distribution

Government
Securities

T-Bills

PSU
/Inst.
Bonds

Others

Trading
Members

FIs/
PriMFs/
mary
Corpo- Dealers
rates

Indian
Banks

Foreign
Banks

Nov-05

68.08

28.10

2.33

1.49

29.18

4.99

21.29

29.98

14.56

Dec-05

64.38

28.88

3.31

3.43

34.37

4.40

18.84

30.90

11.49

Jan-06

65.68

26.88

3.38

4.06

29.92

3.32

24.79

22.11

19.86

Feb-06

75.51

19.79

1.13

3.57

31.84

3.71

26.57

21.17

16.71

Mar-06

63.65

28.27

5.56

2.52

35.76

4.16

22.10

20.47

17.51

2005-06

72.67

22.13

2.56

2.64

32.01

3.92

21.89

28.07

14.11

Apr-06

66.87

29.03

2.21

1.89

26.13

2.31

23.05

29.11

19.40

May-06

71.43

19.25

2.79

6.53

30.34

2.58

22.11

28.21

16.76

Jun-06

54.41

36.45

4.25

4.89

29.40

3.18

24.39

29.24

13.79

Jul-06

55.05

34.92

2.88

6.00

29.60

1.85

20.56

24.33

23.66

Aug-06

63.67

32.00

0.85

3.48

26.44

2.93

17.69

29.68

23.26

Sep-06

74.75

20.65

1.54

3.06

32.27

2.48

19.48

29.80

15.97

Oct-06

72.37

23.30

1.44

2.89

31.93

1.46

22.08

27.31

17.22

Nov-06

78.27

18.11

1.35

2.27

28.53

2.80

19.04

29.07

20.56

Dec-06

75.40

19.37

1.16

4.07

33.32

3.18

17.59

23.48

22.43

Jan-07

73.69

18.56

2.63

5.12

31.91

2.41

24.81

21.18

19.69

Feb-07

71.48

20.10

2.04

6.38

42.33

3.16

12.44

17.10

24.97

Mar-07

70.72

17.41

3.02

8.85

35.13

4.43

13.70

14.91

31.83

2006-07

70.00

23.71

2.02

4.27

30.88

2.70

19.82

26.03

20.57

Apr-07

70.51

25.10

0.96

3.43

30.34

1.86

16.91

28.04

22.85

May-07

66.38

27.33

1.06

5.23

40.84

0.77

11.22

23.69

23.48

Jun-07

57.48

35.82

1.48

5.22

38.07

1.55

12.96

27.77

19.64

Jul-07

66.93

21.47

6.79

4.81

40.23

3.40

12.27

27.42

16.68

Aug-07

66.23

24.99

4.15

4.63

45.76

2.83

7.62

19.07

24.72

Sep-07

73.56

19.39

2.17

4.89

45.38

2.00

5.25

22.34

25.03

Oct-07

46.15

44.05

5.00

4.80

48.56

1.56

5.54

23.76

20.58

Nov-07

61.65

31.33

2.57

4.45

41.50

1.91

6.99

17.03

32.57

Dec-07

79.99

16.94

0.96

2.11

32.37

2.41

7.19

25.76

32.27

Jan-08

75.09

14.87

3.79

6.25

37.81

2.87

7.03

22.07

30.22

Feb-08

79.08

13.49

4.19

3.24

29.95

3.15

7.75

25.15

34.00

Mar-08

73.92

19.12

2.61

4.35

25.77

1.78

4.85

20.95

46.65

2007-08

68.84

23.40

3.27

4.49

38.15

2.34

8.64

23.78

27.09

121

Table 5-4 : Share of Top ‘N’ Securities/Trading Members/
Participants in Turnover in WDM Segment
Year
Securities
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Trading Members
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Participants
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08

122

In Percent
Top 5

Top 10

Top 25

Top 50

Top 100

42.84
57.59
32.93
30.65
26.81
37.11
42.20
51.61
43.10
37.06
43.70
47.42
40.90
39.65

61.05
69.46
48.02
46.92
41.89
55.57
58.30
68.50
65.15
54.43
57.51
59.78
51.29
53.31

80.46
79.60
65.65
71.25
64.30
82.12
80.73
88.73
86.91
81.58
71.72
72.02
65.82
68.35

89.81
86.58
78.32
85.00
78.24
90.73
89.97
94.32
92.74
90.66
80.59
81.04
77.15
79.64

97.16
93.24
90.17
92.15
86.66
95.28
95.13
97.19
96.13
95.14
89.55
89.36
86.91
89.55

51.99
44.36
30.02
27.17
29.87
32.38
35.17
35.18
31.77
30.72
35.75
39.68
57.75
65.32

73.05
68.58
51.27
47.85
50.45
53.41
54.25
58.68
53.71
53.01
56.84
60.63
78.01
80.24

95.37
96.10
91.57
83.38
86.55
84.46
86.82
88.36
85.49
86.71
86.74
89.38
96.43
97.60

100.00
100.00
99.96
99.82
99.98
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00



100.00
100.00
100.00








18.37
29.66
25.27
23.60
22.47
15.54
17.51
17.49
17.27
16.66
16.82
17.5
25.85
28.36

27.38
47.15
44.92
38.96
37.39
27.87
28.85
29.25
28.29
25.96
28.64
30.53
40.65
40.64

38.40
70.49
67.00
65.59
62.79
52.51
50.64
50.19
49.22
44.25
47.24
53.61
59.99
55.58

42.20
76.32
76.33
77.96
79.27
74.76
69.72
69.16
68.14
59.87
61.71
65.84
68.17
61.77


76.58
77.10
80.22
84.51
81.32
76.78
76.49
75.20
65.17
66.00
67.97
69.09
61.84

123

86,175

125,492

169,830

196,290

260,002

319,865

397,228

424,161

438,203

442,290

461,383

470,148

474,779

490,781

512,702

514,171

529,896

541,401

Mar-95

Mar-96

Mar-97

Mar-98

Mar-99

Mar-00

Mar-01

Apr-01

May-01

Jun-01

Jul-01

Aug-01

Sep-01

Oct-01

Nov-01

Dec-01

Jan-02

Feb-02

41,130

41,566

41,823

43,260

42,343

42,781

42,719

39,442

38,865

36,315

36,199

36,365

39,357

34,994

35,323

36,211

30,074

25,675

20,439

(Rs.cr)

(Rs.cr)

60,719

PSU
bonds

Govt.
securities

Jun-94

Month/
Year

59,675

57,955

54,771

53,829

52,367

50,217

50,711

47,810

47,302

46,940

45,095

44,624

39,477

30,516

23,989

18,891

13,850

5,867

1,833

(Rs.cr)

State
loans

24,366

24,004

24,266

23,586

23,652

23,347

23,041

22,272

21,056

18,538

18,667

17,725

15,345

11,292

17,497

13,460

8,452

17,129

18,476

(Rs.cr)

T-bills

89,520

88,087

87,467

87,856

87,776

87,037

82,835

83,273

84,917

85,374

85,251

84,894

79,989

74,666

70,091

54,380

29,915

23,334

20,052

(Rs.cr)

Others

756,092

741,508

722,497

721,234

696,920

678,161

669,455

654,181

634,430

625,370

609,373

580,836

494,033

411,470

343,191

292,772

207,783

158,181

121,518

(Rs.cr)

155,574

152,574

148,662

148,402

143,399

139,539

137,748

134,605

130,541

128,677

125,385

124,536

113,258

96,976

86,818

81,598

60,490

50,328

38,663

(US $ mn)

Total

71.61

71.46

71.17

71.09

70.42

70.01

70.23

70.53

69.71

70.07

69.61

68.39

64.75

63.19

57.20

58.01

60.40

54.48

49.97

Govt.
securities

Table 5-5 : Market Capitalisation of WDM Securities

5.44

5.61

5.79

6.00

6.08

6.31

6.38

6.03

6.13

5.81

5.94

6.26

7.97

8.50

10.29

12.37

14.47

16.23

16.82

PSU
bonds

7.89

7.82

7.58

7.46

7.51

7.40

7.57

7.31

7.46

7.51

7.40

7.68

7.99

7.42

6.99

6.45

6.67

3.71

1.51

(in percent)

State
loans

3.22

3.24

3.36

3.27

3.39

3.44

3.44

3.40

3.32

2.96

3.06

3.05

3.11

2.74

5.10

4.60

4.07

10.83

15.20

T-bills

Contd...

11.84

11.88

12.11

12.18

12.59

12.83

12.37

12.73

13.38

13.65

13.99

14.62

16.19

18.15

20.42

18.57

14.40

14.75

16.50

Others

124

555,394

554,137

562,242

586,790

601,410

602,201

617,840

636,392

655,148

662,766

659,078

658,002

684,912

710,420

743,561

783,875

798,850

807,001

Apr-02

May-02

Jun-02

Jul-02

Aug-02

Sep-02

Oct-02

Nov-02

Dec-02

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03

Aug-03

Sep-03

44,439

44,945

42,478

42,165

42,015

39,661

38,383

38,404

39,588

39,431

39,902

40,127

40,003

39,872

39,643

39,759

40,333

40,716

39,944

(Rs.cr)

(Rs.cr)

542,601

PSU
bonds

Govt.
securities

Mar-02

Month/
Year

Contd...

76,353

74,674

71,950

71,846

70,214

72,295

72,094

71,115

70,932

70,368

69,500

68,589

67,074

66,424

66,718

66,649

64,065

63,106

61,385

(Rs.cr)

State
loans

40,255

36,520

32,515

32,809

32,147

32,880

34,919

36,156

34,934

30,852

28,377

27,797

27,101

26,580

26,065

25,188

24,745

24,218

23,849

(Rs.cr)

T-bills

61,990

65,140

63,859

63,514

62,110

62,163

61,084

63,226

65,210

65,058

65,280

86,276

86,264

86,493

87,604

89,098

89,410

89,079

89,016

(Rs.cr)

Others

1,030,038

1,020,129

994,677

953,895

916,905

891,912

864,481

867,979

873,430

860,857

839,451

840,629

822,643

820,779

806,821

782,936

772,690

772,513

756,794

(Rs.cr)

237,391

235,107

229,241

219,842

211,317

205,557

181,996

182,732

183,880

181,233

176,727

176,975

173,188

172,796

169,857

164,829

162,672

162,634

155,719

(US $ mn)

Total

78.35

78.31

78.81

77.95

77.48

76.79

76.12

75.93

75.88

76.10

75.81

73.50

73.20

73.27

72.73

71.81

71.72

71.89

71.70

Govt.
securities

Table 5-5 : Market Capitalisation of WDM Securities

4.31

4.41

4.27

4.42

4.58

4.45

4.44

4.42

4.53

4.58

4.75

4.77

4.86

4.86

4.91

5.08

5.22

5.27

5.28

PSU
bonds

7.41

7.32

7.23

7.53

7.66

8.11

8.34

8.19

8.12

8.17

8.28

8.16

8.15

8.09

8.27

8.51

8.29

8.17

8.11

(in percent)

State
loans

3.91

3.58

3.27

3.44

3.51

3.69

4.04

4.17

4.00

3.58

3.38

3.31

3.29

3.24

3.23

3.22

3.20

3.13

3.15

T-bills

Contd...

6.02

6.38

6.42

6.66

6.77

6.96

7.06

7.29

7.47

7.57

7.78

10.26

10.50

10.54

10.86

11.38

11.57

11.54

11.76

Others

125

954,259

959,903

967,351

968,155

959,302

972,543

969,036

990,244

985,695

975,712

997,163

987,454

981,238

996,341

1,002,006

1,010,936

1,006,107

1,003,339

Nov-03

Dec-03

Jan-04

Feb-04

Mar-04

Apr-04

May-04

Jun-04

Jul-04

Aug-04

Sep-04

Oct-04

Nov-04

Dec-04

Jan-05

Feb-05

Mar-05

Apr-05

67,934

68,398

67,255

67,813

67,940

67,667

68,546

67,606

67,763

67,400

66,080

61,591

54,001

56,832

49,224

46,121

46,436

44,486

44,544

(Rs.cr)

(Rs.cr)

956,295

PSU
bonds

Govt.
securities

Oct-03

Month/
Year

Contd...

223,513

223,208

223,395

214,898

214,519

183,462

183,771

185,359

185,864

179,858

77,589

77,105

76,391

79,340

79,036

78,305

77,292

77,154

77,037

(Rs.cr)

State
loans

78,624

73,502

69,660

63,679

62,083

60,897

63,755

60,608

59,894

59,462

56,155

48,825

40,556

32,692

32,229

32,232

32,639

36,507

40,703

(Rs.cr)

T-bills

90,983

90,519

89,493

86,240

86,623

83,464

84,207

83,292

81,510

80,684

79,209

71,634

68,703

87,698

71,507

68,060

62,656

60,223

61,092

(Rs.cr)

Others

1,464,393

1,461,734

1,460,739

1,434,635

1,427,506

1,376,727

1,387,733

1,394,027

1,370,744

1,373,099

1,269,276

1,228,191

1,212,194

1,215,864

1,200,151

1,192,070

1,178,926

1,172,629

1,179,671

(Rs.cr)

328,266

334,111

333,883

327,917

326,287

314,680

317,196

318,635

313,313

313,851

290,120

280,729

277,073

280,218

276,596

274,734

271,705

270,253

271,876

(US $ mn)

Total

68.52

68.83

69.21

69.84

69.80

71.27

71.16

71.53

71.18

71.79

78.02

78.90

80.23

78.90

80.67

81.15

81.42

81.38

81.06

Govt.
securities

Table 5-5 : Market Capitalisation of WDM Securities

4.64

4.68

4.60

4.73

4.76

4.92

4.94

4.85

4.94

4.91

5.21

5.01

4.45

4.67

4.10

3.87

3.94

3.79

3.78

PSU
bonds

15.26

15.27

15.29

14.98

15.03

13.33

13.24

13.30

13.56

13.10

6.11

6.28

6.30

6.53

6.59

6.57

6.56

6.58

6.53

(in percent)

State
loans

5.37

5.03

4.77

4.44

4.35

4.42

4.59

4.35

4.37

4.33

4.42

3.98

3.35

2.69

2.69

2.70

2.77

3.11

3.45

T-bills

Contd...

6.21

6.19

6.13

6.01

6.06

6.06

6.07

5.97

5.95

5.87

6.24

5.83

5.67

7.21

5.95

5.71

5.31

5.14

5.18

Others

126

1,014,558

1,025,814

1,036,004

1,020,612

1,020,975

1,044,287

1,051,521

1,058,461

1,058,681

1,059,789

1,059,866

1,060,527

1,066,643

1,058,045

1,066,887

1,080,169

1,092,791

1,131,558

Jun-05

Jul-05

Aug-05

Sep-05

Oct-05

Nov-05

Dec-05

Jan-06

Feb-06

Mar-06

Apr-06

May-06

Jun-06

Jul-06

Aug-06

Sep-06

Oct-06

Nov-06

89,496

87,461

88,499

88,530

88,817

88,590

88,897

88,294

88,716

83,573

84,207

78,721

78,182

78,117

76,190

76,248

75,701

74,699

72,388

(Rs.cr)

(Rs.cr)

1,010,569

PSU
bonds

Govt.
securities

May-05

Month/
Year

Contd...

243,299

241,944

241,723

242,161

241,578

240,690

241,126

242,182

241,927

240,427

236,843

236,282

235,991

233,038

233,134

224,717

224,402

224,475

216,585

(Rs.cr)

State
loans

99,829

93,432

94,348

92,007

83,515

75,670

72,611

66,364

70,186

67,257

72,107

81,843

98,400

103,352

102,280

87,372

84,249

90,679

82,378

(Rs.cr)

T-bills

136,386

132,136

127,896

117,118

113,902

112,658

112,708

108,072

106,956

103,510

103,561

100,981

97,444

94,755

94,862

93,559

93,657

90,814

90,512

(Rs.cr)

Others

1,700,568

1,647,763

1,632,635

1,606,702

1,585,857

1,584,251

1,575,869

1,564,778

1,567,574

1,553,448

1,555,179

1,549,348

1,554,304

1,530,237

1,527,078

1,517,900

1,503,823

1,495,225

1,472,432

(Rs.cr)

390,128

378,014

374,544

368,594

363,812

363,444

361,521

358,976

351,395

348,229

348,617

347,310

348,421

343,026

342,317

340,260

337,104

335,177

330,068

(US $ mn)

Total

66.54

66.32

66.16

66.40

66.72

67.33

67.30

67.73

67.61

68.15

68.06

67.87

67.19

66.72

66.83

68.25

68.21

67.85

68.63

Govt.
securities

Table 5-5 : Market Capitalisation of WDM Securities

5.26

5.31

5.42

5.51

5.60

5.59

5.64

5.64

5.66

5.38

5.41

5.08

5.03

5.10

4.99

5.02

5.03

5.00

4.92

PSU
bonds

14.31

14.68

14.81

15.07

15.23

15.19

15.30

15.48

15.43

15.48

15.23

15.25

15.18

15.23

15.27

14.80

14.92

15.01

14.71

(in percent)

State
loans

5.87

5.67

5.78

5.73

5.27

4.78

4.61

4.24

4.48

4.33

4.64

5.28

6.33

6.75

6.70

5.76

5.60

6.06

5.59

T-bills

Contd...

8.02

8.02

7.83

7.29

7.18

7.11

7.15

6.91

6.82

6.66

6.66

6.52

6.27

6.20

6.21

6.17

6.24

6.08

6.15

Others

127

1,149,001

1,171,593

1,182,278

1,188,185

1,193,749

1,216,175

1,252,307

1,268,344

1,282,109

1,309,579

1,314,985

1,318,419

1,357,485

1,386,566

1,392,219

Jan-07

Feb-07

Mar-07

Apr-07

May-07

Jun-07

Jul-07

Aug-07

Sep-07

Oct-07

Nov-07

Dec-07

Jan-08

Feb-08

Mar-08

96,268

97,433

96,542

94,287

94,626

92,094

91,467

90,283

91,300

88,940

90,293

90,289

89,628

91,947

90,521

91,368

(Rs.cr)

(Rs.cr)

1,145,496

PSU
bonds

Govt.
securities

Dec-06

Month/
Year

Contd...

315,661

307,112

294,341

278,966

268,667

263,329

258,683

255,601

247,614

250,399

247,105

245,888

249,847

247,203

244,323

244,879

(Rs.cr)

State
loans

111,562

120,665

124,393

124,169

143,650

155,473

145,437

154,924

150,513

144,375

125,892

119,433

115,183

99,749

103,402

96,625

(Rs.cr)

T-bills

207,636

201,300

197,104

186,740

184,816

180,585

176,891

167,655

162,866

161,619

155,634

153,134

147,865

142,240

140,270

139,699

(Rs.cr)

Others

2,123,346

2,113,076

2,069,865

2,002,581

2,006,743

2,001,060

1,954,586

1,936,806

1,904,600

1,861,509

1,812,673

1,796,928

1,784,801

1,752,732

1,727,518

1,718,067

(Rs.cr)

531,235

528,666

517,855

501,021

502,062

500,641

489,013

484,565

476,507

465,727

453,508

449,569

409,452

402,095

396,311

394,142

(US $ mn)

Total

65.57

65.62

65.58

65.84

65.53

65.44

65.59

65.49

65.75

65.33

65.86

66.12

66.24

66.84

66.51

66.67

Govt.
securities

Table 5-5 : Market Capitalisation of WDM Securities

4.53

4.61

4.66

4.71

4.72

4.60

4.68

4.66

4.79

4.78

4.98

5.02

5.02

5.25

5.24

5.32

PSU
bonds

14.87

14.53

14.22

13.93

13.39

13.16

13.23

13.20

13.00

13.45

13.63

13.68

14.00

14.10

14.14

14.25

(in percent)

State
loans

5.25

5.71

6.01

6.20

7.16

7.77

7.44

8.00

7.90

7.76

6.95

6.65

6.45

5.69

5.99

5.62

T-bills

9.77

9.53

9.53

9.32

9.21

9.02

9.05

8.66

8.55

8.68

8.58

8.53

8.28

8.12

8.12

8.13

Others

Table 5-6 : FIMMDA NSE MIBID/MIBOR Rates
Month/
Date
29-Jun-98
31-Jul-98
31-Aug-98
30-Sep-98
30-Oct-98
30-Nov-98
31-Dec-98
30-Jan-99
27-Feb-99
31-Mar-99
29-Apr-99
31-May-99
30-Jun-99
31-Jul-99
31-Aug-99
30-Sep-99
30-Oct-99
30-Nov-99
31-Dec-99
31-Jan-00
29-Feb-00
31-Mar-00
29-Apr-00
31-May-00
30-Jun-00
31-Jul-00
31-Aug-00
30-Sep-00
31-Oct-00
30-Nov-00
29-Dec-00
31-Jan-01
28-Feb-01
31-Mar-01
30-Apr-01
31-May-01
29-Jun-01
31-Jul-01
31-Aug-01
28-Sep-01
31-Oct-01
29-Nov-01

OVERNIGHT
AT 9.40 a.m.*

14 DAY AT
11.30 a.m.**

1 MONTH RATE
AT 11.30 a.m.***

3 MONTH RATE
AT 11.30 a.m.***

MIBID

MIBOR

MIBID

MIBOR

MIBID

MIBOR

MIBID

MIBOR

6.81
3.25
8.59
8.18
8.63
8.00

8.33
9.12
10.87
8.25
8.04

8.18
9.93

8.10
7.95
7.07
8.09
8.99
14.10
6.96
6.92

8.20
13.94
10.10
8.10
7.98
8.24
9.66
7.71
10.22
7.25
6.79
7.20
6.91
6.92
7.77
8.47
6.42

7.12
4.18
8.88
8.38
8.81
8.06

8.51
9.27
12.97
8.45
8.19

8.31
10.09

8.26
8.04
7.57
8.19
9.10
16.52
7.06
7.02

8.33
14.31
10.28
8.26
8.06
8.46
9.85
7.84
12.18
7.39
6.95
7.34
7.04
7.03
8.21
8.77
6.59






8.44
8.87
8.80
9.23
9.09
8.25
8.44
8.48
8.36
9.24
9.11
8.82
8.40
8.61
8.33
8.76
9.98
7.35
7.76
9.80
9.14
13.02
10.29
8.77
8.68
9.21
9.41
8.11
9.03
7.55
7.40
7.25
7.29
7.01
7.52
7.15
6.74






9.06
9.45
9.34
9.82
10.06
9.01
8.93
9.11
8.86
9.83
9.64
9.62
9.02
9.27
8.85
9.66
10.93
8.11
8.66
11.25
10.11
14.33
11.23
9.48
9.33
9.96
10.05
8.80
9.89
8.33
8.04
7.85
7.88
7.40
8.14
7.72
7.23







9.45
9.32
9.87
9.44
8.93
9.01
9.11
8.79
9.46
9.57
9.45
9.08
9.12
8.78
8.98
9.90
8.03
8.25
9.71
9.62
12.54
10.55
9.34
9.12
9.49
9.63
8.67
9.08
8.15
7.89
7.69
7.58
7.34
8.07
7.39
7.26







10.24
10.04
10.46
10.35
9.72
9.78
9.84
9.37
10.11
10.20
10.17
9.75
9.89
9.32
9.80
10.82
8.68
9.12
10.92
10.49
13.61
11.49
10.16
9.82
10.20
10.28
9.38
9.86
8.83
8.57
8.41
8.17
7.82
8.70
8.03
7.80







10.43
10.40
10.94
10.30
9.83
9.80
9.89
9.36
9.86
10.06
10.31
10.05
9.76
9.60
9.38
9.96
8.78
8.92
9.78
10.28
11.58
10.75
9.89
9.73
9.85
10.00
9.40
9.26
8.83
8.41
8.16
7.99
7.82
8.33
7.61
7.77







11.28
11.08
11.45
11.20
10.63
10.72
10.68
10.09
10.57
10.70
11.08
10.70
10.53
10.31
10.24
10.96
9.47
9.64
11.13
11.11
12.67
11.76
10.73
10.54
10.64
10.57
10.10
10.25
9.54
9.08
8.87
8.66
8.32
8.98
8.37
8.32
Contd...

128

Contd...

Table 5-6 : FIMMDA NSE MIBID/MIBOR Rates
Month/
Date
31-Dec-01
31-Jan-02
28-Feb-02
30-Mar-02
30-Apr-02
31-May-02
28-Jun-02
31-Jul-02
31-Aug-02
28-Sep-02
31-Oct-02
30-Nov-02
31-Dec-02
31-Jan-03
28-Feb-03
31-Mar-03
30-Apr-03
31-May-03
30-Jun-03
31-Jul-03
31-Aug-03
30-Sep-03
31-Oct-03
30-Nov-03
31-Dec-03
31-Jan-04
29-Feb-04
31-Mar-04
30-Apr-04
31-May-04
29-Jun-04
31-Jul-04
31-Aug-04
29-Sep-04
30-Oct-04
30-Nov-04
31-Dec-04
31-Jan-05
28-Feb-05
31-Mar-05
30-Apr-05

OVERNIGHT
AT 9.40 a.m.*

14 DAY AT
11.30 a.m.**

1 MONTH RATE
AT 11.30 a.m.***

3 MONTH RATE
AT 11.30 a.m.***

MIBID

MIBOR

MIBID

MIBOR

MIBID

MIBOR

MIBID

MIBOR

7.80
6.51
6.94
7.44
6.45
6.01
4.99
5.65
5.67
5.70
5.45
5.21
5.59
6.02
6.29
6.69
4.61
4.78
4.76
4.83
4.37
4.45
4.42
4.25
4.31
4.27
4.29
4.30
4.11
4.27
4.24
4.22
4.25
4.45
4.68
4.74
5.54
4.69
4.66
4.77
4.90

8.11
6.64
7.16
11.09
6.61
6.16
5.35
5.75
5.75
5.77
5.53
5.39
5.71
6.20
6.52
7.13
4.88
4.96
4.99
5.00
4.50
4.59
4.53
4.48
4.50
4.49
4.47
4.51
4.46
4.50
4.49
4.49
4.46
4.59
4.84
4.85
5.78
4.80
4.77
4.92
5.04

7.42
6.89
6.84
7.41
6.58
6.64
6.04
5.80
5.73
5.73
5.50
5.45
5.50
5.60
5.62
5.66
5.00
4.93
4.91
4.97
4.50
4.41
4.69
4.47
4.45
4.47
4.45
4.44
4.37
4.35
4.33
4.37
4.44
4.50
4.78
4.99
5.22
4.87
4.87
5.06
5.13

8.04
7.40
7.33
8.06
7.13
7.29
6.56
6.16
6.02
6.07
5.71
5.65
5.69
5.97
5.92
6.30
5.32
5.26
5.14
5.13
4.66
4.63
4.96
4.62
4.62
4.67
4.63
4.68
4.55
4.55
4.51
4.56
4.65
4.69
5.03
5.30
5.49
5.13
5.25
5.46
5.33

7.63
7.15
7.23
7.39
7.01
7.17
6.35
6.01
5.98
5.91
5.65
5.59
5.60
5.67
5.66
5.83
5.18
5.03
4.96
5.01
4.53
4.49
4.73
4.54
4.50
4.57
4.56
4.57
4.45
4.44
4.41
4.46
4.53
4.58
4.85
5.05
5.20
5.00
5.01
5.23
5.28

8.26
7.73
7.78
8.05
7.63
7.79
6.98
6.42
6.34
6.32
5.87
5.82
5.90
6.04
6.13
6.37
5.51
5.36
5.30
5.23
4.73
4.73
5.02
4.70
4.72
4.77
4.72
4.82
4.65
4.64
4.62
4.67
4.76
4.81
5.11
5.39
5.48
5.30
5.51
5.63
5.55

7.88
7.73
7.79
7.63
7.53
7.48
6.80
6.35
6.37
6.28
5.85
5.77
5.80
5.82
5.73
5.73
5.33
5.19
5.14
5.06
4.69
4.64
4.82
4.66
4.66
4.70
4.72
4.73
4.59
4.56
4.55
4.62
4.67
4.74
5.00
5.16
5.38
5.35
5.44
5.62
5.56

8.57
8.41
8.37
8.29
8.19
8.24
7.50
6.84
6.81
6.81
6.23
6.10
6.21
6.30
6.27
6.36
5.76
5.60
5.52
5.39
4.94
4.94
5.21
4.93
4.91
5.00
5.00
5.05
4.90
4.83
4.83
4.89
4.94
5.03
5.31
5.57
5.68
5.70
6.10
6.11
5.98
Contd...

129

Contd...

Table 5-6 : FIMMDA NSE MIBID/MIBOR Rates
Month/
Date
31-May-05
30-Jun-05
30-Jul-05
31-Aug-05
30-Sep-05
31-Oct-05
30-Nov-05
31-Dec-05
31-Jan-06
28-Feb-06
31-Mar-06
29-Apr-06
31-May-06
30-Jun-06
31-Jul-06
31-Aug-06
29-Sep-06
31-Oct-06
30-Nov-06
30-Dec-06
31-Jan-07
28-Feb-07
30-Mar-07
30-Apr-07
31-May-07
29-Jun-07
30-Jun-07
31-Jul-07
31-Aug-07
28-Sep-07
31-Oct-07
30-Nov-07
31-Dec-07
31-Jan-08
29-Feb-08
31-Mar-08

OVERNIGHT
AT 9.40 a.m.*

14 DAY AT
11.30 a.m.**

3 MONTH RATE
AT 11.30 a.m.***

MIBID

MIBOR

MIBID

MIBOR

MIBID

MIBOR

MIBID

MIBOR

4.97
5.51
4.80
4.97
5.03
5.26
5.32
6.83
7.35
6.61
6.60
5.57
5.50
5.78
6.01
6.02
6.95
6.76
6.12
14.47
7.71
6.01
58.15
9.03
0.89
8.66
2.23
0.13
6.05
8.74
6.08
7.66
6.87
6.82
7.12
8.96

5.06
5.69
5.02
5.05
5.14
5.33
5.43
7.03
7.56
6.73
6.81
5.68
5.60
5.85
6.10
6.10
7.17
6.89
6.20
15.79
7.84
6.11
68.27
9.34
1.16
8.96
3.18
0.19
6.15
9.08
6.15
7.75
7.02
6.93
7.26
9.16

5.14
5.32
5.05
5.20
5.32
5.35
5.56
6.25
6.92
6.80
7.30
5.64
5.78
5.79
6.01
6.05
6.30
6.68
6.68
7.82
7.26
7.74
9.03
8.55
5.74
7.33
6.80
3.36
6.15
6.22
5.83
6.57
7.27
6.30
7.08
7.49

5.33
5.46
5.27
5.36
5.53
5.47
5.82
6.76
7.42
7.15
7.91
6.16
6.11
6.19
6.33
6.36
6.64
7.04
7.00
10.47
8.21
8.51
12.62
9.62
6.69
8.13
7.78
4.56
6.85
6.83
6.72
7.56
7.86
7.34
8.25
9.17

5.27
5.39
5.22
5.32
5.46
5.48
5.68
6.20
7.08
6.92
7.63
5.91
6.00
6.14
6.27
6.30
6.46
6.85
6.94
8.00
7.64
8.53
9.43
9.22
7.34
7.44
6.97
5.45
6.70
7.07
6.29
6.83
7.58
6.65
7.61
8.00

5.51
5.63
5.50
5.51
5.73
5.65
5.98
6.78
7.53
7.31
8.24
6.45
6.39
6.61
6.62
6.68
6.86
7.29
7.32
10.30
8.55
9.47
11.66
10.42
8.27
8.49
8.15
6.22
7.51
7.85
7.13
7.88
8.07
7.78
8.75
9.46

5.49
5.60
5.54
5.66
5.71
5.85
5.98
6.27
7.08
7.20
7.86
6.37
6.39
6.59
6.66
6.72
6.74
7.21
7.34
8.24
8.57
9.53
9.71
10.05
8.86
8.69
8.39
6.45
7.61
7.78
7.24
7.52
8.01
7.51
8.59
8.74

5.93
5.94
6.02
5.96
6.06
6.10
6.30
6.88
7.62
7.65
8.48
6.97
6.82
7.09
7.20
7.21
7.21
7.63
7.70
9.56
9.19
10.22
11.65
11.12
9.72
9.59
9.31
7.54
8.47
8.45
7.90
8.50
8.56
8.54
9.61
9.82

Note:

130

1 MONTH RATE
AT 11.30 a.m.***

* Overnight

:

Disseminated since June 15, 1998.

** 14 Day

:

Disseminated since November 10, 1998.

*** 1 month

:

Disseminated since December 1, 1998.

*** 3 month

:

Disseminated Since December 1, 1998.

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

Issue
Name

Normal Weighted Historical
Normal Simulation

Weighted EVT
Historical
Simulation

Clean
Price
(off
NSEZCYC)

Accrued_
Interest

GS

CG2009

6.65%

0.627

1.289

0.788

1.08

0.731

99.015

3.25

GS

CG2010

5.87%

0.77

1.621

0.985

1.51

0.866

97.01

1.45

GS

CG2013

7.27%

1.037

1.475

1.144

1.435

0.925

97.252

0.57

GS

CG2017

7.99%

1.456

1.888

1.364

1.597

1.145

99.431

1.82

GS

CG2027

8.26%

2.868

3.439

3.331

3.388

2.562

98.46

1.35

GS

CG2036

8.33%

4.161

4.365

5.261

3.943

3.955

97.215

2.64

TB

182D

80808

0.326

0.72

0.412

0.815

0.385

97.362

0.00

TB

182D

130608

0.208

0.472

0.272

0.48

0.246

98.492

0.00

TB

182D

180408

0.058

0.134

0.076

0.128

0.068

99.631

0.00

131

132

Futures & Options
Segment

6

134

6

Futures & Options Segment

The Futures and Options segment of NSE witnessed commendable achievements during
2007-08. In addition to the launch of new products, it also witnessed huge volumes.
NSE being the most vibrant exchange in the country created a niche for itself on the
international front. In the year 2007, NSE ranked as the ninth largest derivatives exchange
in the world, the second largest exchange in terms of number of contracts traded in single
stock futures and the third largest in terms number of contracts traded in the index
futures category.
The derivatives trading at NSE commenced on June 12, 2000 with futures trading on
S&P CNX Nifty Index. Subsequently, the product base has been increased to include
trading in options on S&P CNX Nifty Index, futures and options on CNX IT Index,
Bank Nifty Index, CNX Nifty Junior, CNX 100, Nifty Midcap 50 Indices and single
stocks. The various products on the derivative segment of NSE and their date of launch
is shown in the table below.

Products available for trading on Derivatives Segment
Products on Derivative Segment

Date of Launch

S&P CNX Nifty Futures

June 12, 2000

S&P CNX Nifty Options

June 4, 2001

Single Stock Options

July 2, 2001

Single Stock Futures

November 9, 2001

Interest Rate Futures

June 24, 2003

CNX IT Futures & Options

August 29, 2003

Bank Nifty Futures & Options

June 13, 2005

CNX Nifty Junior Futures & Options

June 1, 2007

CNX 100 Futures & Options

June 1, 2007

Nifty Midcap 50 Futures & Options

October 5, 2007

Mini Nifty Futures & Options on S&P CNX Nifty

January 1, 2008

Long term Options on S&P CNX Nifty

March 3, 2008

Number of Securities on which F&O Contracts were
available for Trading (2007-08)
Month/Year

Number of securities*

Apr-07

155

May-07

186

Jun-07

187

Jul-07

191

Aug-07

195
Contd...

135

Contd...

Number of Securities on which F&O Contracts were
available for Trading (2007-08)
Month/Year

Number of securities*

Sep-07

207

Oct-07

208

Nov-07

224

Dec-07

225

Jan-08

224

Feb-08

228

Mar-08

228

2007-08

228

* at the end of the month

Trading on single stock options commenced on July 2, 2001 while trading on single stock
futures were launched on November 9, 2001. The list of securities on which single stock
futures and options are available at NSE along with their launch date and market lot is
shown in Table 6-1.
Since inception, NSE established itself as the sole market leader in the Futures & Options
segment in the country and during 2007-08, it accounted for 98.18 % of the market
share.

Trading Mechanism
The derivatives trading system at NSE is called NEAT-F&O trading system. It provides
a fully automated screen-based trading for all kind of derivative products available on
NSE on a nationwide basis. It supports an anonymous order driven market, which
operates on a strict price/time priority. It provides tremendous flexibility to users in
terms of kinds of orders that can be placed on the system. Various time and price related
conditions like Immediate or Cancel, Limit/Market Price, Stop Loss, etc. can be built
into an order. Trading in derivatives is essentially similar to that of trading of securities
in the CM segment.
The NEAT-F&O trading system distinctly identifies two groups of users. The trading user
more popularly known as trading member has access to functions such as, order entry,
order matching and order & trade management. The clearing user (clearing member)
uses the trader workstation for the purpose of monitoring the trading member(s) for
whom he clears the trades. Additionally, he can enter and set limits on positions, which
a trading member can take.

136

Contract Specification
The contract specification for derivative products traded on NSE are summarised in
Table 6-2 & Table 6-3.
The index futures and index options contracts traded on NSE are based on S&P CNX
Nifty Index, CNX IT Index, Bank Nifty, CNX Nifty Junior, CNX 100 and Nifty Midcap
50 while stock futures and options are based on individual securities. Stock futures and
options were available on 228 securities as of June 20, 2008. During January 2008, Mini
futures and options contracts on S&P CNX Nifty were introduced for trading while long
term options contracts on S&P CNX Nifty were introduced in March 2008.
At any point of time there are only three contract months available for trading, with
1 month, 2 months and 3 months to expiry. These contracts expire on last Thursday of
the expiry month and have a maximum of 3-month expiration cycle. If the last Thursday
is a trading holiday, the contracts expire on the previous trading day. A new contract is
introduced on the next trading day following the expiry of the near month contract. All
the derivatives contracts are presently cash settled.
The long term option contracts are available for 3 serial month contracts, 3 quarterly
months of the cycle March / June / September / December and 5 following semi-annual
months of the cycle June / December. Thus, at any point in time there are atleast 3 year
tenure option available.
Introduction of strike prices for option contracts
Stock Options
NSE introduces option strikes on a daily basis based on the price of the underlying. With
regard to options on stocks the Exchange provides a minimum of seven strike prices
for every option type (i.e Call & Put) during the trading month. At any time, there are
atleast three strikes in-the-money (ITM), three strikes out-of-the-money (OTM) and one
strike at-the-money (ATM). The table below gives details of generation of strike price
interval for stock options.

Generation of strikes for Stock Options
Price of underlying

Strike Price Interval

Schemes of Strikes

2.5

3-1-3

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

Less than or equal to Rs.50
> Rs.50 - Rs.250

137

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

Generation of strikes for Index Options
Index Level

Strike Interval

Scheme of strikes (ITM-ATM-OTM)

Upto 2000

25

4-1-4

2001 to 4000

50

4-1-4

>4000 to 6000

50

5-1-5

>6000

50

6-1-6

Selection Criteria for Stocks and Index eligibility for trading
Eligibility Criteria of Stocks

The stocks are chosen from amongst the top 500 stocks in terms of average daily
market capitalisation and average daily traded value in the previous six months on
a rolling basis.

The stock’s median quarter-sigma order size over the last six months is not less than
Rs.1 lakh. For this purpose, a stock’s quarter-sigma order size means the order size
(in value terms) required to cause a change in the stock price equal to one-quarter
of a standard deviation.

The market wide position limit in the stock is not less than Rs. 50 crore. The market
wide position limit (number of shares) are valued taking the closing prices of stocks
in the underlying cash market on the date of expiry of contract in the month. The
market wide position limit of open position (in terms of the number of underlying
stock) on futures and option contracts on a particular underlying stock is 20% of
the number of shares held by non-promoters in the relevant underlying security
i.e. free-float holding.

If an existing security fails to meet the eligibility criteria for three months
consecutively, then no fresh month contract are issued on that security.

However, the existing unexpired contracts may be permitted to trade till expiry and
new strikes may also be introduced in the existing contract months.

Eligibility Criteria of Indices

138

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.

Selection criteria for unlisted companies
For unlisted companies coming out with initial public offering, if the net public offer is
Rs. 500 crore or more, then the Exchange may consider introducing stock options and
stock futures on such stocks at the time of its’ listing in the cash market.
Re-introduction of dropped stocks
A stock which is dropped from derivatives trading may become eligible once again. In
such instances, the stock is required to fulfill the eligibility criteria for three consecutive
months to be re-introduced for derivatives trading.
Eligibility criteria of stocks for derivatives trading especially on account of corporate
restructuring
The eligibility criteria for stocks for derivatives trading on account of corporate
restructuring is as under. All the following conditions should be met in the case of shares
of a company undergoing restructuring through any means for eligibility to reintroduce
derivative contracts on that company from the first day of listing of the post restructured
company/(s) (as the case may be) stock (herein referred to as post restructured company)
in the underlying market,
a)

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

b)

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

c)

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

d)

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

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

139

a)

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

b)

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

Trading Value & Contracts Traded
The total turnover on the F&O Segment surged by an impressive 77.95 % to
Rs. 13,090,478 crore (US $ 3,275,076 million ) during 2007-08 as compared with
Rs. 7,356,271 crore (US $ 1,687,605 million) during 2006-07. The average daily turnover
during 2007-08 was Rs.52,153 crore (US $ 13,048 million), a year on year growth of
76.53 %. The business growth of F&O segment and the number of contracts traded during
the year is presented in Table 6-4 and Chart 6-1.

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

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

140

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

Product wise turnover on F&O Segment:
During 2007-08, the traded value of index futures saw a year-on-year growth of 50.45 %
and amounted to Rs.3,820,667 crore (US $ 955,884 million) in 2007-08 as against
Rs.2,539,575 crore (US $ 582,605 million) during 2006-07.
The traded value in stock futures saw growth of 97.04 % to Rs.7,548,563 crore
(US $ 1,888,557 million) during 2007-08 over the turnover of Rs.3,830,972 crore
(US $ 878,865 million) in 2006-07. The stock futures category saw the highest year on
year growth in terms of turnover.
Index options recorded turnover of Rs.1,362,111 crore (US $ 340,783 million) during
2007-08 , an increase of 72 % over the turnover of Rs.791,913 crore (US $ 181,673 million)
during 2006-07.
Stock options recorded turnover of Rs. 3,59,137 crore (US $ 89,852 million) during
2007-08 , an increase of 85 % over the turnover of Rs. 193,811 crore (US $ 4,4,462 million)
during 2006-07.
Stock futures accounted for 58.83 % of the total turnover during the 2007-08 fiscal
followed by the trading in index futures at 28.21 % (Chart 6-3). At the end of March 2008,
there were 228 stock futures available for trading.

141

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

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

Benchmark Indices Contracts & Trading Volume in F&O
Segment of NSE (2007-08)
Products

Underlying

No. of
Contracts

Turnover
(Rs.cr)

(US $ mn)

208,198,647

5,112,864

1,279,175

2,075,132

37,514

9,386

NIFTY

S&P CNX Nifty

BANKNIFTY

BANK Nifty

MINIFTY

S&P CNX Nifty

229,889

21,304

5,330

JUNIOR

CNX Nifty Junior

211,418

5,354

1,340

CNXIT

CNX IT

20,158

5,045

1,262

CNX100

CNX 100

1,217,577

425

106

Nifty Midcap 50

Nifty Midcap 50

11,796

273

68

211,964,617

5,182,778

1,296,667

TOTAL

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

142

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

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

Total Turnover
(Rs. cr)

( US $ mn)

Manufacturing

2,032,057.67

508,118.76

Petrochemicals

1,278,682.43

319,910.54

Infrastructure

1,521,507.32

380,662.33

Banks

784,305.99

196,223.67

Finance

706,161.38

176,672.85

Telecommunication

548,008.89

137,382.00

Information Technology

385,714.09

96,500.90

Engineering

185,067.53

46,301.61

Pharmaceuticals

169,654.04

42,445.34

Fast Moving Consuming Goods (FMCG)

113,100.15

28,296.26

Services

79,157.65

19,804.27

Media & Entertainment

65,231.89

16,320.21

Miscellaneous

39,050.60

9,769.98

7,907,699.63

1,978,408.71

TOTAL

The stock futures and option turnover of top 5 companies in each sector for the period
2007-08 is presented in Table 6-5.
Participant wise turnover on F&O Segment:
During 2007-08, the retail investors accounted for 62.97 % of the turnover on the F&O
segment of the Exchange. The gross turnover of the retail participants in the F&O Segment
amounted to Rs.16,485,724 crore (US $ 4,124,524 million) during 2007-08 followed by the
Proprietory segment with gross turnover of Rs.6,439,196 crore (US $ 1,611,007million) and
the Institutional players with gross turnover of Rs. 3,256,034 crore (US $ 814,619million).
The share of retail participants and institutional participants in the gross turnover was
24.59 % and 12.44 % respectively.
The month wise details of the turnover for the participants in the F&O segment is
presented in Table 6-6 and Chart 6-4.

143

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

FII Turnover on NSE:
Out of the total institutional turnover of Rs.3,256,034 crore (US $ 814,619 million),
FIIs accounted for a share of 76.89 % . The gross turnover of FIIs amounted to
Rs.2,503,511 crore (US $ 626,348 million) as compared with Rs.1,286,211 crore
(US $ 295,070 million) during 2006-07. The FII share in derivatives turnover rose to
9.56 % during 2007-08 from 8.74 % in the corresponding period last year (Table 6-7).
Memberwise turnover on the Exchange:
During 2007-08, there were 691 members which accounted for turnover of
Rs.1,000 crore and more while 54 members registered turnover between Rs.500 crore
and Rs.1,000 crore collectively in the futures and options category. In the month of
October 2007, 400 trading members accounted for a turnover of Rs.1,000 crore and
more, which was the highest number of members during the fiscal year 2007-08.
The number of members in different turnover brackets in Futures and Options segment
is presented 6-8a & b. Around 79 % of the trading members generated turnover of
Rs.1,000 crore and more in futures trading. In the options segment, only 35 % of the
trading members had a turnover of Rs.1,000 crore and more while 65 % trading members
had turnover of less than Rs.1,000 crore.
High Volume Members
The turnover of the top ‘5’ and ‘10’ members accounted to Rs.1,591,692.26 crore
(US $ 39,822.17 million) and Rs.2,614,923 crore (US $ 65,422.14 million) respectively in
2007-08 in the Futures segment. However, the turnover of the top ‘5’ and ‘10’ members

144

in the options segment accounted to Rs.395,886.91 crore (US $ 9,904.60 million)
and Rs. 585,224.12 crore (US $ 14,641.58 million) respectively in the same period
(Table 6-8 c).
In the Futures segment, the share of top 5 and top ‘10’ members in turnover was 14% and
23% respectively , while in the options segment the share of top 5 and top 10 trading
members in in turnover was 23% and 34 % respectively.
Internet Trading
At the end of March 2008, a total number of 305 members were permitted to allow
investor’s web based access to NSE’s trading system. The members of the exchange in
turn had registered 3,432,771 clients for web based access as on March 31, 2008. In the
Futures and Options Segment the trading volume of Rs.2,417,165 crore (US $ 604,745
million) during the year 2007-08, constituting 18.47 % of total trading volume was routed
and executed through the internet. The following table shows the growth of internet
trading during the during 2006-07 and 2007-08.

Internet Trading in the F&O Segment of the Exchange
Year

Enabled
members *

Registered
clients *

Internet
Internet
Trading Value Trading Value

2006-07

242

1,616,218

1,214,961

278,725

16.52

2007-08

305

3,432,771

2,417,165

604,745

18.47

(Rs.cr.)

% of Total
Trading
Volume

(US $ mn)

* At the end of financial year.

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

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

Traded Value (Rs. crores)

Date

Index Futures

34,583

18-Oct-07

Stock Futures

71,195

1-Nov-07

Index Options

11,804

18-Oct-07

Stock Options

3,746

18-Oct-07

1,10,564

18-Oct-07

Total F&O Traded Value

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

145

The top 20 Futures contracts accounted for 45.67 % of the total no. of contracts traded
in the Futures segment while top 20 Option contracts accounted for 17.05 % of the total
option contracts traded during 2007-08.
Among the top 20 future contracts, Nifty August 2007 futures accounted for 11.04 %
of the total no. of contracts while Nifty January 2008 futures and Nifty October 2007
contributed 9.48 % and 9.44 % respectively.
Top 3 option contracts on the basis of turnover during 2007-08 were Nifty August 2007
PE 4300, Nifty August 2007 PE 4200 and Nifty May 2007 CE 4100. Together these three
option contracts formed 17.41 % of the total turnover of top 20 option contracts.

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

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

Number of Trades (%)

Stock Futures

75.75

Index Futures

15.28

Index Options

5.13

Stock Options

3.84

TOTAL

100

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

Charges
Brokerage Charges
The maximum brokerage chargeable by a trading member in relation to trades effected
in the contracts admitted to dealing on the F&O segment of NSE is fixed at 2.5% of the
contract value in case of index futures and stock futures. In case of index options and
stock options it is 2.5% of notional value of the contract [(Strike Price + Premium) ×
Quantity)], exclusive of statutory levies.
Transaction Charges
The transaction charges payable to the exchange by the trading member for the trades
executed by him on the F&O segment are fixed at the rate of Rs. 2 per lakh of turnover
(0.002%) subject to a minimum of Rs. 1,00,000 per year. However, for the transactions
in the options sub-segment the transaction charges will be levied on the premium value
at the rate of 0.05% (each side) instead of on the strike price as levied earlier.

146

No transaction charges will be payable in respect of trades done in Interest Rate Futures in
the Futures and Options Segment of the Exchange with effect from 1st April 2007 till 31st
March 2008. Every Trading Member participating in trading in such Interest Rate Futures
at any time during the year 2007-08 shall be required to make a lump sum contribution
of Rs.500/- for the whole year as a contribution to Investor Protection Fund.
There would be no transaction charges levied on turnover above Rs.10 crores per
trading member per day for trades done in NIFTY Junior and CNX 100 in the
Futures sub-segment till September 30, 2007. Further, no transactions charge will be
levied on trades done in NIFTY Junior and CNX 100 in the Options sub-segment till
September 30, 2007.
Securities Transaction Tax
The trading members are also required to pay securities transaction tax (STT) on
non-delivery transactions at the rate of 0.017 (payable by the seller) for derivatives
w. e. f June 1, 2008.
Taxable securities transaction

Rate (%)

Taxable Value

Payable by

Sale of an option in securities

0.017

Option premium

Seller

Sale of an option in securities, where option is
exercised

0.125

Settlement Price

Purchaser

Sale of a futures in securities

0.017

Sale Price

Seller

Value of taxable securities transaction relating to an “option in securities” will be the
option premium, in case of sale of an option in securities.
Value of taxable securities transaction relating to an “option in securities” will be the
settlement price, in case of sale of an option in securities, where option is exercised.
Contribution to Investor Protection Fund (F&O Segment)
The trading members contribute to Investor Protection Fund of F&O segment at the
rate of Re.1/- per Rs. 100 crore of the traded value (each side) in case of Futures segment
and Rs.1/- per Rs. 100 crore of the premium amount (each side) in case of Options
segment.

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

147

Clearing and Settlement
NSCCL undertakes clearing and settlement of all trades executed on the F&O segment of
the Exchange. It also acts as legal counterparty to all trades on this segment and guarantees
their financial settlement. The Clearing and Settlement process comprises of three main
activities, viz., Clearing, Settlement and Risk Management.
Clearing Mechanism
The first step in clearing process is working out open positions and obligations of
clearing (self-clearing/trading-cum-clearing/professional clearing) members (CMs).
The open positions of a CM is arrived at by aggregating the open positions of all the
trading members (TMs) and all custodial participants (CPs) clearing though him, in the
contracts which they have traded. The open position of a TM is arrived at by summing
up his proprietary open position and clients’ open positions, in the contracts which they
have traded. While entering orders on the trading system, TMs identify orders as either
proprietary or client. Proprietary positions are calculated on net basis for each contract
and that of clients are arrived at by summing together net positions of each individual
client. A TM’s open position is the sum of proprietary open position, client open long
position and client open short position.
Settlement Mechanism
All futures and options contracts are cash settled i.e. through exchange of cash. The
underlying for index futures/options of the Nifty index cannot be delivered. The
settlement amount for a CM is netted across all their TMs/clients, across various
settlements. For the purpose of settlement, all CMs are required to open a separate bank
account with NSCCL designated clearing banks for F&O segment.
Settlement of Futures Contracts on Index or Individual Securities
Futures contracts have two types of settlements, the MTM settlement which happens on
a continuous basis at the end of each day, and the final settlement which happens on the
last trading day of the futures contract.

148

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.

Settlement Prices for Futures : Daily settlement price on a trading day is the
closing price of the respective futures contracts on such day. The closing price for a
futures contract is currently calculated as the last half an hour weighted average price
of the contract in the F&O Segment of NSE. Final settlement price is the closing
price of the relevant underlying index/security in the Capital Market segment of
NSE, on the last trading day of the Contract. The closing price of the underlying
Index/security is currently its last half an hour weighted average value in the Capital
Market Segment of NSE.

Settlement of Options Contracts on Index or Individual Securities
Options contracts have three types of settlements, daily premium settlement, interim
exercise settlement in the case of option contracts on securities and final settlement.

Daily Premium Settlement for Options : Buyer of an option is obligated to pay the
premium towards the options purchased by him. Similarly, the seller of an option is
entitled to receive the premium for the option sold by him. The premium payable
position and the premium receivable position are netted to compute the net premium
payable or receivable amount for each client for each option contract. The CMs
who have a premium payable position are required to pay the premium amount to
NSCCL which in turn passed on to the members who have a premium receivable
position. This is known as daily premium settlement. CMs are also responsible to
collect and settle for the premium amounts from the TMs and their clients clearing
and settling through them. The pay-in and pay-out of the premium settlement is on
T+1 day (T=Trade day). The premium payable amount and premium receivable
amount are directly credited/debited to the CMs clearing bank account.

Interim Exercise Settlement : Interim exercise settlement takes place only for
option contracts on individual securities. An investor can exercise his in-the-money
options at any time during trading hours, through his trading member. Interim
exercise settlement is effected for such options at the close of the trading hours, on
the day of exercise. Valid exercised option contracts are assigned to short positions
in the option contract with the same series (i.e. having the same underlying, same
expiry date and same strike price), on a random basis, at the client level. The CM
who has exercised the option receives the actual profit or loss per unit of the option
from the CM who has been assigned the option contract.

149

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

Final Exercise Settlement : Final Exercise settlement is effected for option positions
at in-the-money strike prices existing at the close of trading hours, on the expiration
day of an option contract. All long positions at in-the-money strike prices are
automatically assigned to short positions in option contracts with the same series,
on a random basis.
For index options contracts, exercise style is European style, while for options
contracts on individual securities, exercise style is American style. Final Exercise is
Automatic on expiry of the option contracts.
Final settlement loss/profit amount for option contracts on Index is debited/
credited to the relevant CMs clearing bank account on T+1 day (T=expiry
day). Final settlement loss/profit amount for option contracts on Individual
Securities is debited/credited to the relevant CMs clearing bank account on
T+1 day. Open positions, in option contracts, cease to exist after their expiration
day.
The pay-in / pay-out of funds for a CM on a day is the net amount across settlements
and all TMs/clients, in F&O Segment.

Settlement of Custodial Participant (CP) Deals
NSCCL provides a facility to entities like institutions to execute trades through
any TM, which may be cleared and settled by their own CM. Such entities are
called Custodial Participants (CP). To avail of this facility, a CP is required to
register with NSCCL through this CM, which allots them a unique CP code. The
CP and the CM are required to enter into an agreement as per specified format.
Thereafter, all trades executed by such CP through any TM are required to have
the CP code in the relevant field on the F&O trading system at the time of order
entry. Such trades executed on behalf of a CP are required to be confirmed by their
CM (and not the CM of the TM through whom the trade was executed), within the
time specified by NSE, using the confirmation facility provided by NSCCL to the
CMs in the F&O segment. Till such time the trade is confirmed by the CM of the
CP, the same is considered as a trade of the TM and the responsibility of settlement
of such trade vests with the CM of the TM. Once the trades have been confirmed by
the CM of the CP, they form part of the obligations of the CM of the CP and they
shall be responsible for all obligations arising out of such trades including the payment
of margins and settlement of obligations.

Risk Management System
NSCCL has developed a comprehensive risk containment mechanism for the F&O
segment. The salient features of risk containment measures on the F&O segment are:

150

The financial soundness of the members is the key to risk management. Therefore,
the requirements for membership in terms of capital adequacy (net worth, security
deposits) are quite stringent. These requirements have already been explained in
Table 2-1 in Section 2 of this publication.

NSCCL charges an upfront initial margin for all the open positions of a Clearing
Member (CM). It specifies the initial margin requirements for each futures/options
contract on a daily basis. It follows VaR-based margining computed through SPAN.
The CM in turn collects the initial margin from the trading members (TMs) and
their respective clients.

The open positions of the members are marked to market based on contract
settlement price for each contract at the end of the day. The difference is settled in
cash on a T+1 basis.

NSCCL’s on-line position monitoring system monitors a CM’s open position on
a real-time basis. Limits are set for each CM based on his effective deposits. The
on-line position monitoring system generates alert messages whenever a CM reaches
70 %, 80 %, 90 % and a disablement message at 100 % of the limit. NSCCL monitors
the CMs for Initial Margin violation, Exposure margin violation, while TMs are
monitored for Initial Margin violation and position limit violation.

CMs are provided a trading terminal for the purpose of monitoring the open positions
of all the TMs clearing and settling through him. A CM may set limits for a TM
clearing and settling through him. NSCCL assists the CM to monitor the intra-day
limits set up by a CM and whenever a TM exceed the limits, it stops that particular
TM from further trading.

A member is alerted of his position to enable him to adjust his exposure or bring
in additional capital. Margin violations result in disablement of trading facility for
all TMs of a CM in case of a violation by the CM.

A separate Settlement Guarantee Fund for this segment has been created out of
deposits of members.

The most critical component of risk containment mechanism for F&O segment is the
margining system and on-line position monitoring. The actual position monitoring and
margining is carried out on-line through Parallel Risk Management System (PRISM) using
SPAN(R)* (Standard Portfolio Analysis of Risk) system for the purpose of computation
of on-line margins, based on the parameters defined by SEBI.
NSE - SPAN
The objective of NSE-SPAN is to identify overall risk in a portfolio of all futures and
options contracts for each member. The system treats futures and options contracts
uniformly, while at the same time recognising the unique exposures associated with options
portfolios, like extremely deep out-of-the-money short positions and inter-month risk.
* SPAN ® is a registered trademark of the Chicago Mercantile Exchange (CME) used here under license.

151

Its over-riding objective is to determine the largest loss that a portfolio might
reasonably be expected to suffer from one day to the next day based on 99% VaR
methodology.
SPAN considers uniqueness of option portfolios. The following factors affect the value
of an option:
i.

Underlying market price.

ii.

Volatility (variability) of underlying instrument, and

iii.

Time to expiration.

iv.

Interest rate

v.

Strike price

As these factors change, the value of options maintained within a portfolio also changes.
Thus, SPAN constructs scenarios of probable changes in underlying prices and volatilities
in order to identify the largest loss a portfolio might suffer from one day to the next. It
then sets the margin requirement to cover this one-day loss.
The complex calculations (e.g. the pricing of options) in SPAN are executed by NSCCL.
The results of these calculations are called risk arrays. Risk arrays, and other necessary
data inputs for margin calculation are provided to members daily in a file called the SPAN
Risk Parameter file. Members can apply the data contained in the Risk Parameter files,
to their specific portfolios of futures and options contracts, to determine their SPAN
margin requirements.
Hence, members need not execute a complex option pricing calculations, which is
performed by NSCCL. SPAN has the ability to estimate risk for combined futures and
options portfolios, and also re-value the same under various scenarios of changing market
conditions.
NSCCL generates six risk parameters file for a day taking into account price and volatilities
at various time intervals and are provided on the website of the Exchange.
Margins
The margining system for F&O segment is as below:

152

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.

Assignment Margin for Options on Securities : Assignment margin is levied in
addition to initial margin and premium margin. It is required to be paid on assigned
positions of CMs towards interim and final exercise settlement obligations for option
contracts on individual securities, till such obligations are fulfilled. The margin is
charged on the net exercise settlement value payable by a CM towards interim and
final exercise settlement.

Exposure Margins : Clearing members are subject to exposure margins in addition
to initial margins.

Client Margins : NSCCL intimates all members of the margin liability of each of
their client. Additionally members are also required to report details of margins
collected from clients to NSCCL, which holds in trust client margin monies to
the extent reported by the member as having been collected form their respective
clients.

Position Limits
The market wide limit of open position (in terms of the number of underlying stock)
on futures and option contracts on a particular underlying stock should be 20% of the
number of shares held by non-promoters in the relevant underlying security i.e. free–float
holding. This limit is applicable on all open positions in all futures and option contracts
on a particular underlying stock. The enforcement of the market wide limits is done in
the following manner:

At end of the day the exchange tests whether the market wide open interest for any
scrip exceeds 95% of the market wide position limit for that scrip. In case it does so,
the exchange takes note of open position of all client/TMs as at end of that day for
that scrip and from next day onwards they can trade only to decrease their positions
through offsetting positions.

At the end of each day during which the ban on fresh positions is in force for any
scrip, the exchange tests whether any member or client has increased his existing
positions or has created a new position in that scrip. If so, that client is subject to a
penalty equal to a specified percentage (or basis points) of the increase in the position
(in terms of notional value). The penalty is recovered before trading begins next
day.

The normal trading in the scrip is resumed after the open outstanding position comes
down to 80% or below of the market wide position limit. Further, the exchange
also checks on a monthly basis, whether a stock has remained subject to the ban on
new position for a significant part of the month consistently for three months. If
so, then the exchange phases out derivative contracts on that underlying

153

Trading Member wise Position Limits
Index Futures Contract:
The trading member position limits in equity index futures contracts is higher of
Rs.500 Crore or 15% of the total open interest in the market in equity index futures
contracts. This limit would be applicable on open positions in all futures contracts on a
particular underlying index.
Index Options Contract:
The trading member position limits in equity index option contracts is higher of
Rs.500 Crore or 15% of the total open interest in the market in equity index option
contracts. This limit would be applicable on open positions in all option contracts on a
particular underlying index.
Futures and Option contracts on individual securities :
i.

For stocks having applicable market-wise position limit (MWPL) of Rs. 500 crores or
more, the combined futures and options position limit is 20% of applicable MWPL
or Rs. 300 crores, whichever is lower and within which stock futures position cannot
exceed 10% of applicable MWPL or Rs. 150 crores, whichever is lower.

ii.

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

Client level position limits
The gross open position for each client, across all the derivative contracts on an underlying,
should not exceed 1% of the free float market capitalization (in terms of number of
shares) or 5% of the open interest in all derivative contracts in the same underlying stock
(in terms of number of shares) whichever is higher.
Disclosure for Client Positions in Index based contracts
Any person or persons acting in concert who together own 15% or more of the open
interest on a particular underlying index is required to report this fact to the Exchange/
Clearing Corporation. Failure to do so shall be treated as a violation and shall attract
appropriate penal and disciplinary action in accordance with the Rules, Byelaws and
Regulations of Clearing Corporation.
Position limits for FII, Mutual Funds:
FII & MF Position limits in Index options contracts : FII & MF position limit in all
index options contracts on a particular underlying index is Rs.500 Crores or 15 % of

154

the total open interest of the market in index options, whichever is higher. This limit
would be applicable on open positions in all options contracts on a particular underlying
index.
FII & MF Position limits in Index futures contracts : FII & MF position limit in all
index futures contracts on a particular underlying index is Rs. 500 crores or 15 % of the
total open interest of the market in index futures, whichever is higher. This limit would be
applicable on open positions in all futures contracts on a particular underlying index.
In addition to the above, FIIs & MF’s shall take exposure in equity index derivatives
subject to the following limits:
a)

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

b)

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

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

155

Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)
Sr.
No

Security

Symbol

Launch
Date

Market
Lot

1

Ambuja Cements Ltd.

AMBUJACEM

02-Jul-01

2062

2

Associated Cement Co. Ltd.

ACC

02-Jul-01

188

3

Bharat Heavy Electricals Ltd.

BHEL

02-Jul-01

75

4

Bharat Petroleum Corporation Ltd.

BPCL

02-Jul-01

550

5

Cipla Ltd.

CIPLA

02-Jul-01

1250

6

Dr. Reddy’S Laboratories Ltd.

DRREDDY

02-Jul-01

400

7

Grasim Industries Ltd.

GRASIM

02-Jul-01

88

8

Hindalco Industries Ltd.

HINDALCO

02-Jul-01

1595

9

Hindustan Petroleum Corporation Ltd.

HINDPETRO

02-Jul-01

1300

10

Hindustan Unilever Ltd

HINDUNILVR

2-Jul-01

1000

11

Housing Development Finance Corporation Ltd.

HDFC

02-Jul-01

75

12

Infosys Technologies Ltd.

INFOSYSTCH

02-Jul-01

200

13

ITC Ltd.

ITC

02-Jul-01

1125

14

Mahanagar Telephone Nigam Ltd.

MTNL

02-Jul-01

1600

15

Mahindra & Mahindra Ltd.

M&M

02-Jul-01

312

16

Ranbaxy Laboratories Ltd.

RANBAXY

02-Jul-01

800

17

Reliance Industries Ltd.

RELIANCE

02-Jul-01

75

18

Satyam Computer Services Ltd.

SATYAMCOMP

02-Jul-01

600

19

State Bank Of India

SBIN

02-Jul-01

132

20

Tata Power Co. Ltd.

TATAPOWER

02-Jul-01

200

21

Tata Steel Ltd.

TATASTEEL

2-Jul-01

382

22

Tata Tea Ltd.

TATATEA

02-Jul-01

275

23

Bharat Electronics Ltd.

BEL

31-Jan-03

138

24

HCL Technologies Ltd.

HCLTECH

31-Jan-03

650

25

Hero Honda Motors Ltd.

HEROHONDA

31-Jan-03

400

26

National Aluminium Co. Ltd.

NATIONALUM

31-Jan-03

575

27

Oil & Natural Gas Corp. Ltd.

ONGC

31-Jan-03

225

28

Polaris Software Lab Ltd.

POLARIS

31-Jan-03

2800

29

Shipping Corporation Of India Ltd.

SCI

31-Jan-03

800

30

Wipro Ltd.

WIPRO

31-Jan-03

600

31

I-Flex Solutions Ltd.

I-FLEX

30-May-03

150

32

Maruti Udyog Ltd.

MARUTI

09-Jul-03

200

33

Andhra Bank

ANDHRABANK

29-Aug-03

2300

34

Bank Of Baroda

BANKBARODA

29-Aug-03

700

35

Bank Of India

BANKINDIA

29-Aug-03

950

36

Canara Bank

CANBK

29-Aug-03

800

37

HDFC Bank Ltd.

HDFCBANK

29-Aug-03

200
Contd...

156

Contd...

Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)
Sr.
No

Security

Symbol

Launch
Date

Market
Lot

38

Oriental Bank Of Commerce

ORIENTBANK

29-Aug-03

1200

39

Punjab National Bank

PNB

29-Aug-03

600

40

Union Bank Of India

UNIONBANK

29-Aug-03

2100

41

Arvind Mills Ltd.

ARVINDMILL

26-Sep-03

4300

42

GAIL (India) Ltd.

GAIL

26-Sep-03

750

43

Indian Oil Corporation Ltd.

IOC

26-Sep-03

600

44

Syndicate Bank

SYNDIBANK

26-Sep-03

1900

45

Tata Motors Ltd.

TATAMOTORS

26-Dec-03

412

46

Tata Consultancy Services Ltd

TCS

25-Aug-04

250

47

National Thermal Power Corporation Ltd.

NTPC

05-Nov-04

1625

48

Jet Airways (India) Ltd.

JETAIRWAYS

14-Mar-05

400

49

Jaiprakash Hydro-Power Ltd.

JPHYDRO

18-Apr-05

3125

50

ABB Ltd.

ABB

20-Apr-05

250

51

Allahabad Bank

ALBK

20-Apr-05

2450

52

Ashok Leyland Ltd

ASHOKLEY

20-Apr-05

4775

53

Axis Bank Ltd.

AXISBANK

20-Apr-05

225

54

Bharat Forge Co Ltd

BHARATFORG

20-Apr-05

1000

55

Bharti Airtel Ltd

BHARTIARTL

20-Apr-05

250

56

Century Textiles Ltd

CENTURYTEX

20-Apr-05

212

57

Chennai Petroleum Corporation Ltd.

CHENNPETRO

20-Apr-05

900

58

Cummins India Ltd

CUMMINSIND

20-Apr-05

475

59

Dabur India Ltd.

DABUR

20-Apr-05

2700

60

Glaxosmithkline Pharma Ltd.

GLAXO

20-Apr-05

300

61

Indian Hotels Co. Ltd.

INDHOTEL

20-Apr-05

1899

62

Indian Overseas Bank

IOB

20-Apr-05

1475

63

Industrial Development Bank Of India Ltd.

IDBI

20-Apr-05

1200

64

Jindal Steel & Power Ltd

JINDALSTEL

20-Apr-05

160

65

LIC Housing Finance Ltd

LICHSGFIN

20-Apr-05

850

66

Mangalore Refinery And Petrochemicals Ltd.

MRPL

20-Apr-05

2225

67

Matrix Laboratories Ltd.

MATRIXLABS

20-Apr-05

1250

68

Neyveli Lignite Corporation Ltd.

NEYVELILIG

20-Apr-05

1475

69

Patni Computer Syst Ltd

PATNI

20-Apr-05

650

70

Reliance Capital Ltd

RELCAPITAL

20-Apr-05

138

71

Siemens Ltd

SIEMENS

20-Apr-05

376

72

Sterlite Industries (I) Ltd

STER

20-Apr-05

219

73

Sun Pharmaceuticals India Ltd.

SUNPHARMA

20-Apr-05

225
Contd...

157

Contd...

Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)
Sr.
No

Security

Symbol

Launch
Date

Market
Lot

74

Tata Chemicals Ltd

TATACHEM

20-Apr-05

675

75

Vijaya Bank

VIJAYABANK

20-Apr-05

3450

76

Wockhardt Ltd.

WOCKPHARMA

20-Apr-05

600

77

Aurobindo Pharma Ltd.

AUROPHARMA

12-May-05

700

78

Bongaigaon Refinery Ltd.

BONGAIREFN

12-May-05

2250

79

CESC Ltd.

CESC

12-May-05

550

80

Chambal Fertilizers Ltd.

CHAMBLFERT

12-May-05

3450

81

Corporation Bank

CORPBANK

12-May-05

600

82

Divi’S Laboratories Ltd.

DIVISLAB

12-May-05

155

83

Essar Oil Ltd.

ESSAROIL

12-May-05

1412

84

Federal Bank Ltd.

FEDERALBNK

12-May-05

851

85

Gujarat Narmada Fertilizer Co. Ltd.

GNFC

12-May-05

1475

86

Indusind Bank Ltd.

INDUSINDBK

12-May-05

1925

87

J & K Bank Ltd.

J&KBANK

12-May-05

300

88

Jindal Stainless Ltd.

JSTAINLESS

12-May-05

1000

89

Maharashtra Seamless Ltd.

MAHSEAMLES

12-May-05

600

90

Mphasis Ltd.

MPHASIS

12-May-05

800

91

NDTV Ltd.

NDTV

12-May-05

550

92

Orchid Chemicals Ltd.

ORCHIDCHEM

12-May-05

1050

93

Titan Industries Ltd.

TITAN

12-May-05

206

94

TVS Motor Company Ltd.

TVSMOTOR

12-May-05

2950

95

Alok Industries Ltd.

ALOKTEXT

27-May-05

3350

96

Escorts India Ltd.

ESCORTS

27-May-05

2400

97

IFCI Ltd.

IFCI

27-May-05

1970

98

India Cements Ltd.

INDIACEM

27-May-05

725

99

IVRCL Infrastructure & Projects Ltd.

IVRCLINFRA

27-May-05

500

100

Nagarjuna Fertiliser & Chemicals Ltd.

NAGARFERT

27-May-05

3500

101

SRF Ltd.

SRF

27-May-05

1500

102

Strides Arcolab Ltd.

STAR

27-May-05

850

103

The Karnataka Bank Ltd.

KTKBANK

27-May-05

1250

104

Infrastructure Development Finance Company Ltd.

IDFC

12-Aug-05

1475

105

Suzlon Energy Ltd.

SUZLON

19-Oct-05

1000

106

Punj Lloyd Ltd.

PUNJLLOYD

06-Jan-06

750

107

Sun Tv Network Ltd.

SUNTV

24-Apr-06

1000

108

Reliance Petroleum Ltd.

RPL

11-May-06

1675

109

Gmr Infrastructure Ltd.

GMRINFRA

21-Aug-06

1250
Contd...

158

Contd...

Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)
Sr.
No

Security

Symbol

Launch
Date

Market
Lot

110

Reliance Communications Ltd.

RCOM

15-Sep-06

350

111

Steel Authority Of India Ltd.

SAIL

15-Sep-06

1350

112

Lanco Infratech Ltd.

LITL

27-Nov-06

425

113

Parsvnath Developers Ltd.

PARSVNATH

30-Nov-06

700

114

Sobha Developers Ltd.

SOBHA

20-Dec-06

350

115

Aban Offshore Ltd.

ABAN

29-Dec-06

50

116

Amtek Auto Ltd.

AMTEKAUTO

29-Dec-06

600

117

Bajaj Hindustan Ltd.

BAJAJHIND

29-Dec-06

950

118

Balrampur Chini Mills Ltd.

BALRAMCHIN

29-Dec-06

2400

119

Bata India Ltd.

BATAINDIA

29-Dec-06

1050

120

Bharat Earth Movers Ltd.

BEML

29-Dec-06

125

121

Bombay Dyeing & Mfg. Co Ltd.

BOMDYEING

29-Dec-06

300

122

Crompton Greaves Ltd.

CROMPGREAV

29-Dec-06

500

123

Gateway Distriparks Ltd.

GDL

29-Dec-06

2500

124

GTL Ltd.

GTL

29-Dec-06

750

125

Gujarat Alkalies & Chem

GUJALKALI

29-Dec-06

1400

126

Hindustan Construction Co

HCC

29-Dec-06

1400

127

Jaiprakash Associates Ltd.

JPASSOCIAT

29-Dec-06

750

128

Jsw Steel Ltd.

JSWSTEEL

29-Dec-06

275

129

Kotak Mahindra Bank Ltd.

KOTAKBANK

29-Dec-06

275

130

Lupin Ltd.

LUPIN

29-Dec-06

700

131

Nagarjuna Constrn. Co. Ltd.

NAGARCONST

29-Dec-06

1000

132

Praj Industries Ltd.

PRAJIND

29-Dec-06

1100

133

Sesa Goa Ltd.

SESAGOA

29-Dec-06

75

134

Shree Renuka Sugars Ltd.

RENUKA

29-Dec-06

5000

135

Tata Teleserv(Maharastra) India Ltd

TTML

29-Dec-06

5225

136

Triveni Engg. & Inds. Ltd.

TRIVENI

29-Dec-06

1925

137

Ultratech Cement Ltd.

ULTRACEMCO

29-Dec-06

400

138

United Spirits Ltd.

MCDOWELL-N

29-Dec-06

125

139

Voltas Ltd.

VOLTAS

29-Dec-06

900

140

Cairn India Limited

CAIRN

09-Jan-07

1250

141

Power Finance Corporation Ltd.

PFC

23-Feb-07

1200

142

Indian Bank

INDIANB

01-Mar-07

1100

143

Idea Cellular Ltd.

IDEA

09-Mar-07

2700

144

Aditya Birla Nuvo Limited

ABIRLANUVO

14-May-07

200

145

Adlabs Films Ltd

ADLABSFILM

14-May-07

225
Contd...

159

Contd...

Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)
Sr.
No

Security

Symbol

Launch
Date

Market
Lot

146

Aia Engineering Limited

AIAENG

14-May-07

200

147

Alstom Projects India Ltd

APIL

14-May-07

200

148

Ansal Prop & Infra Ltd

ANSALINFRA

14-May-07

1300

149

Birla Corporation Ltd

BIRLAJUTE

14-May-07

850

150

Bombay Rayon Fashions Ltd

BRFL

14-May-07

1150

151

Deccan Aviation Limited

AIRDECCAN

14-May-07

850

152

Dena Bank

DENABANK

14-May-07

2625

153

Educomp Solutions Ltd

EDUCOMP

14-May-07

75

154

Everest Kanto Cylinder Ltd

EKC

14-May-07

1000

155

Financial Technologies (I) Ltd

FINANTECH

14-May-07

150

156

Hotel Leela Ventures Ltd

HOTELEELA

14-May-07

3750

157

India Infoline Limited

INDIAINFO

14-May-07

250

158

Kesoram Industries Ltd

KESORAMIND

14-May-07

500

159

Mahindra Lifespace Developers Ltd

MAHLIFE

14-May-07

350

160

Moser-Baer (I) Ltd

MOSERBAER

14-May-07

825

161

Oswal Chem. & Fert. Ltd.

BINDALAGRO

14-May-07

4950

162

Pantaloon Retail (I) Ltd

PANTALOONR

14-May-07

500

163

Patel Engineering Ltd.

PATELENG

14-May-07

250

164

Peninsula Land Limited

PENINLAND

14-May-07

2750

165

Petronet Lng Limited

PETRONET

14-May-07

2200

166

Rajesh Exports Ltd

RAJESHEXPO

14-May-07

1650

167

Reliance Natural Resources Ltd.

RNRL

14-May-07

1788

168

Rolta India Ltd

ROLTA

14-May-07

900

169

Shree Cements Ltd

SHREECEM

14-May-07

200

170

Sterling Biotech Ltd

STERLINBIO

14-May-07

2500

171

Sterlite Technologies Ltd

STRTECH

14-May-07

1050

172

Unitech Ltd

UNITECH

14-May-07

900

173

United Phosphorous Ltd

UNIPHOS

14-May-07

700

174

HTMT Global Solutions Ltd.

HTMTGLOBAL

19-Jun-07

500

175

DLF Limited

DLF

05-Jul-07

400

176

Housing Development And Infrastructure Ltd.

HDIL

24-Jul-07

400

177

Omaxe Ltd.

OMAXE

09-Aug-07

650

178

IVR Prime Urban Developers Ltd.

IVRPRIME

16-Aug-07

800

179

Central Bank Of India

CENTRALBK

21-Aug-07

2000

180

Puravankara Projects Ltd.

PURVA

30-Aug-07

500

181

3I Infotech Ltd.

3IINFOTECH

06-Sep-07

2700
Contd...

160

Contd...

Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)
Sr.
No

Security

Symbol

Launch
Date

Market
Lot

182

Aptech Limited

APTECHT

06-Sep-07

650

183

Bhushan Steel & Strips Lt

BHUSANSTL

06-Sep-07

250

184

Biocon Limited.

BIOCON

06-Sep-07

450

185

CMC Ltd.

CMC

06-Sep-07

200

186

Havells India Limited

HAVELLS

06-Sep-07

400

187

Lakshmi Machines Ltd

LAXMIMACH

06-Sep-07

100

188

NIIT Technologies Ltd.

NIITTECH

06-Sep-07

1200

189

Nucleus Software Exports

NUCLEUS

06-Sep-07

550

190

Sasken Commu Techno Ltd

SASKEN

06-Sep-07

1100

191

Tech Mahindra Limited

TECHM

06-Sep-07

200

192

Tulip It Services Ltd

TULIP

06-Sep-07

250

193

Welspun Guj St. Ro. Ltd.

WELGUJ

06-Sep-07

800

194

Yes Bank Limited

YESBANK

06-Sep-07

1100

195

Power Grid Corporation Of India Ltd.

POWERGRID

05-Oct-07

1925

196

Develop Credit Bank Ltd

DCB

30-Nov-07

1400

197

Gitanjali Gems Limited

GITANJALI

30-Nov-07

500

198

Great Offshore Ltd

GTOFFSHORE

30-Nov-07

250

199

Hindustan Oil Exploration

HINDOILEXP

30-Nov-07

1600

200

Hindustan Zinc Limited

HINDZINC

30-Nov-07

250

201

IBN 18 Broadcast Limited

IBN18

30-Nov-07

1250

202

Info Edge (I) Ltd

NAUKRI

30-Nov-07

150

203

Ispat Industries Limited

ISPATIND

30-Nov-07

4150

204

Jindal Saw Limited

JINDALSAW

30-Nov-07

250

205

Kpit Cummins Infosystems

KPIT

30-Nov-07

1650

206

Motor Industries Co Ltd

BOSCHLTD

30-Nov-07

50

207

Network 18 Fincap Ltd.

NETWORK18

30-Nov-07

500

208

NIIT Limited

NIITLTD

30-Nov-07

1450

209

Redington (India) Ltd.

REDINGTON

30-Nov-07

500

210

Wire & Wireless (I) Ltd.

WWIL

30-Nov-07

3150

211

Edelweiss Capital Ltd

EDELWEISS

13-Dec-07

250

212

Brigade Enterprises Ltd.

BRIGADE

31-Dec-07

550

213

Reliance Power Ltd.

RPOWER

11-Feb-08

500

214

IRB Infrastructure Developers Ltd

IRB

25-Feb-08

1100

215

Rural Electrification Corporation Ltd.

RECLTD

12-Mar-08

1950

216

Ballarpur Industries Limited

BALLARPUR

31-Mar-08

7300

217

Bajaj Auto Limited

BAJAJ-AUTO

26-May-08

200

161

Table 6-1 : List of Securities on which Futures & Options available at NSE
along with their market lot (as on 20th June 2008)
Sr.
No

Security

Symbol

Launch
Date

Market
Lot

Remarks

218

ICICI Bank Ltd.

ICICIBANK

31-Jan-03

175

ICICI introduced on 02-07-01 underwent
restructuring & got reintroduced as
ICICIBANK on 31-01-03

219

Reliance
Infrastructure Ltd.

RELINFRA

12-Mar-04

138

BSES introduced on 02.07.01 underwent
restructuring & was reintroduced as REL
on 12-Mar-04 (Symbol now RELINFRA)

220

Tata
Communications
Ltd

TATACOMM

20-Apr-05

525

VSNL introduced on 02.07.01 underwent
restructuring and got reintroduced as VSNL
on 20.04.05 (symbol now TATACOMM)

221

Larsen & Toubro
Ltd.

LT

15-Sep-06

50

L&T introduced on 02.07.01 underwent
restructuring & got reintroduced as LT
on 15-09-06

222

The Great Eastern
Shipping Co. Ltd.

GESHIP

27-Nov-06

600

GESHIPPING introduced on 20.04.05
underwent restructuring & got reintroduced
as GESHIP on 27-11-06

223

Zee Entertainment
Enterprises Ltd.

ZEEL

12-Feb-07

700

ZEETELE introduced on 15-Sep-06
underwent restructuring twice in 19-12-06
and 12-02-07 (Symbol now ZEEL)

224

Hinduja Ventures
Ltd.

HINDUJAVEN

24-Apr-07

500

HTMT introduced on 29.12.06 underwent
restructing & got reintroduced as
HINDUJATMT on 24-04-07. (Symbol
now HINDUJAVEN)

225

S Kumars
Nationwide Ltd

SKUMARSYNF

14-May-07

1900

SKUMARSYNF introduced on
14.05.07 underwent restructuring & was
reintroduced on 24.04.08

226

Colgate Palmolive
Ltd

COLPAL

17-Dec-07

550

COLGATE introduced on 20.04.05
underwent restructuring & got reintroduced
as COLPAL on 17-12-07

227

Piramal Healthcare
Ltd

PIRHEALTH

15-Feb-08

750

NICOLASPIR introduced on 20.04.05
underwent restructuring & was
reintroduced on 15.02.08 (Symbol now
PIRHEALTH)

228

Bajaj Holdings &
Investment Ltd.

BAJAJHLDNG

14-Mar-08

250

BAJAJAUTO introduced on 02.07.01
underwent restructuring & got reintroduced
as BAJAJAHLDNG on 14.03.08

Table 6-1 (b) List of Indices on which Futures & Options
are available along with their market lot
Sr. No

162

Security

Symbol

Market Lot

1

S&P CNX Nifty

NIFTY

50

2

S&P CNX Nifty

MINIFTY

20

3

CNX Nifty Junior

JUNIOR

25

4

BANK Nifty

BANKNIFTY

25

5

CNX 100

CNX100

50

6

CNX IT

CNXIT

50

7

Nifty Midcap 50

NFTYMCAP50

75

163

Trading Cycle

Expiration Period

Last Trading/Expiration
Day

Price Step

Contract Size

Style of Option

Underlying Index

Security Description

Particulars
OPTIDX

Index Options

European

Long Term Index
Options

------------------------------------OPTIDX--------------------------------------

Mini Index Options

NA

---------------------------------------European----------------------------------

------------------------------------------------S&P CNX Nifty-------------------------------------------------------

FUTIDX

Mini Index Futures

A maximum of three month trading cycle • Near month (One)
• Next month (Two) and
• Far month (Three).
New contract is introduced on the next trading day following the expiry of near month contract

3 months

Atleast 3 years

Contd...

• 3 near month expiries
• Three following
quarterly expiries of
the cycle (March, June,
Sept & Dec)
• After these 5 following
half yearly expiries of
cycle June / Dec )”

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

Rs. 0.05

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

NA

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

FUTIDX

Index Futures

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

164

Particulars

NA

Strike Price Interval
(in Rs.)

Long Term Index
Options

Closing value of the index C l o s i n g v a l u e o f t h e Closing value of underlying
on expiry day
underlying index on expiry Index on the last trading day
day
of the futures contract.

Closing price of futures
contract on the trading
day

N.A

Closing value of underlying Index on the last trading
day of the options contract.

N.A

Depending on Index level Depending on Index level
as per table 6-2(b)(1)
and expiry month as per
table 6-2(b)(2)

Depending on Index level Depending on Index level
as per table 6-2(a)(1)
and expiry month as per
table 6-2(a)(2)

Up-front initial margin on daily basis

In cash on T+1 basis

NA

NA

Final Settlement Price

N.A

Mini Index Options

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

Mini Index Futures

Closing price of futures
contract on the trading
day

Last trading day

Depending on Index level
as per table 6-2(b)(1)

Depending on Index level
as per table 6-2(a)(1)

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

Index Options

Daily Settlement Price

Margins

Settlement Day

Settlement

NA

No price band however
Operating range has been
kept which is 10 % of the
base price

Index Futures

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

No. of Strike Prices

Price Bands

Contd...

Table 6-2 (a) : Number of strikes for Indices
Index Level

First, second and
third month expiries
(1)

3 quarterly expiries
(2)*

5 half yearly expiries
(2)*

Upto 2000

4-1-4

6-1-6

4-1-4

>2000 upto 4000

4-1-4

6-1-6

4-1-4

>4000 upto 6000

5-1-5

8-1-8

5-1-5

>6000

6-1-6

8-1-8

6-1-6

* At present only for S & P CNX Nifty.

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

First, second and third
month expiries (1)

3 quarterly expiries (2)

5 half yearly expiries
(2)

upto 2000

25

25

50

>2000 upto 4000

50

50

100

>4000 upto 6000

50

50

100

>6000

50

50

100

165

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

Stock Futures

Security Description

Stock Options

FUTSTK

Underlying

OPTSTK
Individual Securities

Style of Option

NA

Contract Size

American

As specified by SEBI; Currently minimum Rs.2 lakhs at the time of
introduction

Price Steps

Rs. 0.05

Expiration Period

3 months

Trading Cycle

A maximum of three month trading cycle - the near month (one),
the next month (two) and the far month (three). New contract is
introduced on the next trading day following the expiry of near month
contract

Last Trading/Expiration Day

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

Price Bands

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

No. of strike Prices

NA

7 strikes (3 ITM, 1 ATM and 3
OTM) for every option type (i.e
call and put)

Strike Price Interval (in Rs.)

NA

Depending on underlying price
level as per table 6-3 (1)

Settlement

In cash on T+1 basis

Settlement Day

Last trading day

Margins

Up-front initial margin on daily basis

Daily Settlement Price

Closing price of the futures Closing price of underlying on the
contract on the trading day
day of exercise

Final Settlement Price

Closing value of security on Closing price of security on
expiry day
exercise day or expiry day

Table 6-3 (1) : Strike interval
Underlying price
0 - 50

2.5

50 - 250

5

250 - 500

10

500 - 1000

20

1000 - 2500

30

> 2500

50

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

166

Strike price interval

167

99,514

122,663

152,375

Jun-02

Jul-02

Aug-02

94,312

May-02

120,662

Feb-02

73,635

122,182

Jan-02

Apr-02

109,303

Dec-01

94,229

121,697

Nov-01

1,025,588

131,467

Oct-01

2001-02

154,298

Sep-01

Mar-02

60,644

26,805

Jun-01

60,979

10,048

May-01

Aug-01

13,274

Apr-01

Jul-01

90,580

Contracts
Traded

2,978

2,513

2,123

2,022

1,656

21,482

2,185

2,747

2,660

2,339

2,484

2,485

2,857

1,305

1,309

590

230

292

2,365

(Rs. cr.)

Trading
Volume

Index Futures

Jun-00 to
Mar-01

Month/
Year

726,310

789,290

616,461

605,284

552,727

1,957,856

503,415

528,947

489,793

309,755

125,946

No. of
Contracts
Traded

17,881

21,205

16,178

15,981

15,065

51,516

13,989

13,939

13,261

7,515

2,811

(Rs. cr)

Trading
Value

Stock Futures

15,967

16,637

10,272

13,070

11,183

113,974

10,446

13,941

11,285

12,890

14,994

16,787

12,188

7,598

8,613

5,232

No. of
Contracts
Traded

Call

318

350

223

294

260

2,466

249

323

253

287

310

326

243

165

191

119

(Rs. cr)

Notional
Trading
Volume

Put

10,124

7,688

7,805

7,719

5,389

61,926

4,773

4,749

3,933

5,513

7,189

12,324

8,262

5,533

6,221

3,429

No. of
Contracts
Traded

Index Options

200

162

166

169

122

1,300

111

107

85

118

145

233

169

119

135

77

(Rs. cr)

Notional
Trading
Volume

147,646

154,089

123,493

126,867

121,225

768,159

101,708

133,630

133,947

84,134

112,499

85,844

64,344

38,971

13,082

No. of
Contracts
Traded

Call

3,837

4,341

3,325

3,490

3,400

18,780

2,863

3,635

3,836

1,986

2,372

1,632

1,322

844

290

(Rs. cr)

Notional
Trading
Volume

Put

65,630

65,530

48,919

57,984

40,443

269,370

37,387

33,055

44,498

28,425

31,484

43,787

33,480

12,508

4,746

No. of
Contracts
Traded

Stock Options

1,725

1,837

1,317

1,643

1,170

6,383

1,094

864

1,253

674

638

801

690

263

106

(Rs.cr)

Notional
Trading
Volume

1,118,052

1,155,897

906,464

905,236

804,602

4,196,873

751,958

834,984

805,638

550,020

413,809

290,209

272,572

125,589

93,306

35,466

10,048

13,274

90,580

No. of
Contracts
Traded

Table 6-4 : Business Growth of Futures & Options Market Segment

26,938

30,407

23,332

23,600

21,674

101,927

20,491

21,616

21,348

12,919

8,760

5,477

5,281

2,696

2,031

785

230

292

2,365

(Rs.cr)

Average Daily
Trading Volume

5,671

6,401

4,912

4,968

4,563

20,887

4,199

4,429

4,375

2,647

1,795

1,122

1,082

553

416

161

47

60

555

1,283

1,322

1,167

1,073

985

413

1,078

1,081

928

680

438

261

264

128

92

37

10

15

12

Contd...

270.06

278.32

245.60

225.84

207.40

8.46

22.09

22.15

19.02

13.93

8.98

5.34

5.41

2.63

1.89

0.77

0.21

0.31

2.49

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

Trading Volume

Total

168

990,731

1,676,358

1,866,407

1,557,909

1,875,468

2,611,649

2,339,950

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

Jan-04

Feb-04

439,151

641,002

Jul-03

325,784

Jun-03

362,157

May-03

237803

Feb-03

Apr-03

258,955

Jan-03

325,299

277,403

Dec-02

2,126,763

175,567

Nov-02

2002-03

164,934

Oct-02

Mar-03

144,303

Contracts
Traded

86,359

99,878

65,378

49,486

56,435

45,861

24,989

14,743

9,348

6,283

6,994

43,951

6,624

504,032

5,557

5,958

3,500

3,145

2,836

(Rs. cr.)

Trading
Volume

Index Futures

Sep-02

Month/
Year

Contd...

2,868,432

3,791,114

3,334,468

2,761,725

3,469,563

3,122,432

2,620,897

2,282,426

1,694,505

1,354,581

1,291,493

10,676,843

1,138,980

1,198,564

1,304,122

1,217,873

970,251

856,930

700,051

No. of
Contracts
Traded

161,464

195,788

150,933

122,463

146,377

113,874

91,288

70,515

46,505

32,752

29,749

286,532

29,770

32,445

38,299

35,532

25,463

21,213

17,501

(Rs. cr)

Trading
Value

Stock Futures

98,938

105,431

87,683

71,696

89,794

110,014

96,875

87,149

55,874

53,198

54,890

269,674

53,788

26,501

26,376

30,261

25,413

23,628

16,578

No. of
Contracts
Traded

Call

3,754

4,120

3,100

2,313

2,761

3,088

2,477

2,040

1,206

1,039

1,091

5,670

1,116

571

577

660

509

459

332

(Rs. cr)

Notional
Trading
Volume

Put

74,933

72,869

68,394

48,281

60,330

69,920

54,649

50,669

34,895

30,109

31,107

172,567

35,739

17,681

16,805

19,973

17,191

13,910

12,543

No. of
Contracts
Traded

Index Options

2,791

2,793

2,355

1,534

1,813

1,925

1,362

1,163

735

578

616

3,577

740

375

363

427

336

267

251

(Rs. cr)

Notional
Trading
Volume

238,517

327,135

294,596

269,032

405,706

401,660

434,526

495,853

383,603

332,529

297,270

2,456,501

255,658

268,156

322,876

309,573

261,600

214,027

151,291

No. of
Contracts
Traded

Call

13,873

17,804

14,095

13,314

18,558

16,378

16,028

16,180

11,303

8,861

7,471

69,644

7,163

7,644

10,174

9,552

7,106

5,595

4,016

(Rs. cr)

Notional
Trading
Volume

Put

75,771

67,825

63,426

61,295

97,405

101,555

116,370

162,501

132,498

155,849

168,553

1,066,561

140,540

114,512

132,021

111,756

104,529

104,659

80,038

No. of
Contracts
Traded

Stock Options

4,598

3,680

3,046

3,061

4,420

4,025

4,219

5,189

3,739

3,911

4,098

30,489

3,919

3,319

4,179

3,491

2,922

2,761

2,205

(Rs.cr)

Notional
Trading
Volume

5,696,541

6,976,023

5,724,035

4,769,938

5,989,205

5,481,939

4,314,098

3,720,563

2,750,294

2,252,050

2,205,470

16,768,909

1,950,004

1,863,217

2,061,155

1,966,839

1,554,551

1,378,088

1,104,804

No. of
Contracts
Traded

Table 6-4 : Business Growth of Futures & Options Market Segment

272,839

324,063

238,907

192,171

230,365

185,151

140,363

109,849

73,017

53,423

50,020

439,864

49,332

49,395

59,149

55,620

39,836

33,441

27,140

(Rs.cr)

Average Daily
Trading Volume

62,881

74,686

55,060

44,289

53,092

42,671

32,349

25,317

16,828

12,312

11,528

92,603

10,386

10,399

12,452

11,709

8,387

7,040

5,714

14,360

15,432

10,859

9,609

10,016

8,416

7,018

4,776

3,477

2,544

2,501

1,752

2,467

2,600

2,572

2,649

2,097

1,592

1,357

Contd...

3,309.51

3,556.48

2,502.74

2,214.47

2,308.33

1,939.61

1,617.45

1,100.73

801.34

586.30

576.40

368.94

519.28

547.31

541.41

557.60

441.40

335.25

285.69

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

Trading Volume

Total

169

21,635,449

3,332,361

3,545,971

3,626,288

3,451,684

2004-05

Apr-05

May-05

Jun-05

Jul-05

1,931,290

Jan-05

1,729,103

1,447,464

Dec-04

2,076,975

1,023,111

Nov-04

Mar-05

1,320,173

Oct-04

Feb-05

1,803,263

1,463,682

Sep-04

Jul-04

Aug-04

2,152,644

1,971,231

Jun-04

2,164,528

2,551,985

May-04

17,191,668

2003-04

Apr-04

2,505,102

Contracts
Traded

77,399

77,218

70,465

65,598

772,174

86,398

71,546

76,151

58,333

38,277

47,191

49,500

57,926

61,125

64,017

82,149

79,560

554,462

88,710

(Rs. cr.)

Trading
Volume

Index Futures

Mar-04

Month/
Year

Contd...

6,537,794

5,783,428

4,466,404

4,225,623

47,043,066

4,708,687

4,167,787

4,551,564

5,238,498

3,600,135

3,660,047

3,768,178

3,577,911

3,492,774

3,125,283

3,322,799

3,829,403

32,368,842

3,777,206

No. of
Contracts
Traded

199,638

163,096

112,882

106,129

1,484,067

175,363

151,743

159,564

179,387

113,525

111,695

107,123

99,591

94,009

78,392

92,628

121,048

1,305,949

144,243

(Rs. cr)

Trading
Value

Stock Futures

358,867

421,480

382,530

361,544

1,870,647

213,632

168,594

176,682

130,557

131,218

138,099

124,547

127,779

189,179

158,784

196,198

115,378

1,043,894

132,352

No. of
Contracts
Traded

Call

8,130

9,092

7,726

7,295

69,373

9,074

7,128

7,188

5,355

4,979

5,030

4,282

4,192

6,059

4,914

6,824

4,347

31,801

4,811

(Rs. cr)

Notional
Trading
Volume

Put

389,154

331,753

353,975

295,020

1,422,911

211,385

144,627

143,416

108,650

102,223

97,628

93,808

98,618

124,352

117,041

100,430

80,733

688,520

92,364

No. of
Contracts
Traded

Index Options

8,642

7,041

7,056

5,981

52,581

8,918

5,998

5,786

4,356

3,814

3,500

3,164

3,193

3,856

3,559

3,469

2,968

21,022

3,357

(Rs. cr)

Notional
Trading
Volume

376,129

385,640

288,137

307,994

3,946,979

369,895

367,707

362,345

481,349

363,158

357,625

365,187

284,013

262,755

193,687

246,630

292,628

4,248,149

367,722

No. of
Contracts
Traded

Call

11,735

11,677

7,642

8,203

132,066

14,496

13,890

13,502

16,952

11,971

11,684

10,763

8,499

7,614

5,339

7,717

9,640

168,174

14,309

(Rs. cr)

Notional
Trading
Volume

Put

84,989

104,478

100,602

105,955

1,098,133

113,590

83,843

81,618

108,951

94,810

93,342

116,304

86,919

94,222

75,380

63,156

85,998

1,334,922

131,874

No. of
Contracts
Traded

Stock Options

2,623

3,122

2,609

2,764

36,792

4,608

3,247

3,100

3,845

3,239

3,124

3,547

2,604

2,682

2,084

1,976

2,736

49,038

5,051

(Rs.cr)

Notional
Trading
Volume

11,198,617

10,653,067

9,137,619

8,628,497

77,017,185

7,694,164

6,661,661

7,246,915

7,515,469

5,314,655

5,666,914

5,931,706

5,978,503

6,134,513

5,822,819

6,481,198

6,568,668

56,886,776

7,006,620

No. of
Contracts
Traded

Table 6-4 : Business Growth of Futures & Options Market Segment

308,166

271,246

208,380

195,969

2,547,053

298,857

253,551

265,290

268,227

175,805

182,224

178,380

176,006

175,345

158,306

194,763

220,299

2,130,649

260,481

(Rs.cr)

Average Daily
Trading Volume

69,080

60,804

46,712

43,929

582,183

68,310

57,955

60,638

61,309

40,184

41,651

40,772

40,230

40,079

36,184

44,517

50,354

491,046

60,033

15,408

11,793

9,472

9,798

10,067

13,584

12,678

13,963

11,662

8,790

9,111

8,108

8,000

7,970

7,196

9,274

11,015

8,388

11,840

Contd...

3,454.00

2,643.65

2,123.25

2,196.47

2,301.12

3,105.01

2,897.73

3,191.46

2,665.61

2,009.19

2,082.56

1,853.30

1,828.63

1,821.77

1,644.73

2,119.87

2,517.71

1,933.25

2,728.75

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

Trading Volume

Total

170

173,334

177,518

6,103,483

5,250,973

5,081,055

4,556,984

4,644,632

5,798,118

4,716,781

Jul-06

Aug-06

Sep-06

Oct-06

Nov-06

Dec-06

Jan-07

257,328

190,592

225,288

180,781

166,974

186,758

243,571

7,666,525

204,238

1,513,791

8,437,382

5,847,035

Apr-06

Jun-06

58,537,886

2005-06

192,035

156,359

166,127

183,293

135,478

170,100

118,905

100,813

(Rs. cr.)

Trading
Volume

May-06

5,186,835

5,952,206

5,760,999

Jan-06

Mar-06

6,613,032

Dec-05

Feb-06

6,849,732

5,238,175

Nov-05

4,701,774

Sep-05

Oct-05

4,278,829

Contracts
Traded

Index Futures

Aug-05

Month/
Year

Contd...

9,364,321

9,261,984

10,539,507

7,929,018

8,644,137

7,530,310

5,614,044

6,241,247

9,082,184

10,021,529

79,586,852

10,844,400

7,443,178

7,134,199

6,252,736

6,252,736

6,526,919

6,995,169

7,124,266

No. of
Contracts
Traded

350,817

347,747

388,800

272,516

275,430

229,182

222,538

243,954

409,403

460,554

2,791,721

473,251

288,715

265,042

280,283

216,526

214,398

236,945

234,817

(Rs. cr)

Trading
Value

Stock Futures

738,931

961,242

701,372

622,933

762,499

807,014

898,796

1,118,170

929,908

773,632

6,413,467

683,979

506,714

663,684

775,216

595,900

695,311

523,948

444,294

No. of
Contracts
Traded

Call

30,400

38,303

27,568

23,195

27,130

27,276

28,378

34,158

33,096

27,524

168,632

22,407

15,526

19,392

21,862

15,582

17,632

13,370

10,620

(Rs. cr)

Notional
Trading
Volume

Put

902,654

1,060,753

845,270

729,855

762,222

789,241

851,659

793,228

725,769

715,472

6,521,649

772,372

559,682

666,782

764,964

604,657

715,208

583,081

485,001

No. of
Contracts
Traded

Index Options

36,245

41,416

32,450

26,549

26,517

25,830

26,334

23,814

25,694

24,897

169,837

24,690

16,805

19,129

21,125

15,491

17,954

14,550

11,372

(Rs. cr)

Notional
Trading
Volume

438,297

369,743

463,369

400,618

428,237

358,753

247,562

206,960

317,774

393,306

4,165,996

444,604

326,233

365,493

361,268

287,136

309,120

363,872

350,370

No. of
Contracts
Traded

Call

16,705

13,989

16,886

13,873

13,791

11,273

10,279

8,767

14,910

17,627

143,752

18,576

12,350

14,265

13,630

10,069

10,753

12,917

11,935

(Rs. cr)

Notional
Trading
Volume

Put

71,462

64,886

90,369

74,318

79,316

87,767

69,314

57,527

41,904

67,179

1,074,780

92,657

75,740

90,562

95,261

77,052

80,134

85,897

81,453

No. of
Contracts
Traded

Stock Options

2,697

2,419

3,343

2,553

2,560

2,772

2,968

2,541

1,971

2,998

36,518

3,890

2,918

3,629

3,614

2,708

2,822

3,069

2,750

(Rs.cr)

Notional
Trading
Volume

16,232,446

17,516,726

17,284,519

14,313,726

15,757,466

14,824,058

13,784,858

16,854,514

18,764,064

17,818,153

156,300,630

18,790,218

14,098,382

14,681,719

14,862,477

13,055,656

15,176,424

13,253,741

12,764,213

No. of
Contracts
Traded

Table 6-4 : Business Growth of Futures & Options Market Segment

627,456

669,162

649,829

505,658

522,946

469,666

477,255

556,804

742,401

737,839

4,824,250

734,849

492,672

487,584

523,807

395,853

433,660

399,756

372,307

(Rs.cr)

Average Daily
Trading Volume

143,945

153,513

149,077

116,003

119,969

107,746

109,487

127,737

170,315

169,268

1,081,428

164,727

110,440

109,299

117,419

88,736

97,211

89,611

83,458

31,373

33,458

29,538

25,283

24,902

21,348

22,726

24,209

33,746

40,991

19,220

33,402

25,930

24,379

23,809

19,793

21,683

19,036

16,923

Contd...

7,197.25

7,675.64

6,776.25

5,800.16

5,712.83

4,897.55

5,213.68

5,553.77

7,741.57

9,403.77

4,308.48

7,487.61

5,812.63

5,464.96

5,337.24

4,436.82

4,860.57

4,267.21

3,793.56

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

Trading Volume

Total

171

12,668,280

9,609,209

16,148,838

14,064,211

15,692,532

156,598,579

Dec-07

Jan-08

Feb-08

Mar-08

2007-08

17,052,495

Aug-07

Nov-07

256,470

10,605,483

Jul-07

10,904,564

11,407,865

Jun-07

17,842,671

10,219,149

May-07

Sep-07

10,383,282

Apr-07

Oct-07

363,988

81,487,424

2006-07

3,820,667

359,970

352,226

450,657

287,357

365,564

485,079

238,577

240,797

214,523

205,458

2,539,575

290,957

15,648,805

Mar-07

242,237

(Rs. cr.)

Trading
Volume

7,735,651

Contracts
Traded

Index Futures

Feb-07

Month/
Year

Contd...

203,587,952

16,126,212

14,491,601

23,736,610

16,565,236

18,033,294

24,008,470

17,653,654

15,798,351

18,888,008

14,287,983

13,350,667

10,647,866

104,955,401

10,873,236

9,853,884

No. of
Contracts
Traded

7,548,563

330,390

421,838

851,213

849,997

989,113

1,120,263

670,968

519,385

647,356

451,314

400,096

296,629

3,830,972

277,378

352,653

(Rs. cr)

Trading
Value

Stock Futures

26,667,882

2,639,845

2,185,165

2,018,823

1,624,354

2,014,533

2,808,150

2,020,510

3,158,758

1,684,458

2,116,761

1,993,761

2,402,764

12,632,349

2,985,472

1,332,380

No. of
Contracts
Traded

Call

668,816

66,131

59,931

60,753

49,964

60,097

78,731

48,370

69,705

38,415

45,568

42,577

48,574

398,219

57,683

43,508

(Rs. cr)

Notional
Trading
Volume

Put

28,698,156

2,231,404

1,934,412

1,957,642

1,805,071

1,994,175

3,599,639

2,599,916

3,280,921

2,537,127

2,224,230

2,061,921

2,471,698

12,525,089

2,908,374

1,440,592

No. of
Contracts
Traded

Index Options

693,295

54,186

50,320

58,074

53,202

56,855

95,262

59,594

71,256

56,146

46,936

42,888

48,576

393,693

55,639

48,309

(Rs. cr)

Notional
Trading
Volume

8,002,713

404,472

427,483

764,989

578,100

710,304

984,150

797,264

774,381

850,153

579,074

625,846

506,497

4,394,292

384,679

384,994

No. of
Contracts
Traded

Call

308,443

8,674

12,733

29,383

30,279

40,297

47,981

31,958

26,769

28,895

18,359

19,380

13,735

161,902

9,530

14,273

(Rs. cr)

Notional
Trading
Volume

Put

1,457,918

93,207

82,832

103,561

71,334

101,327

142,394

143,404

171,019

172,005

115,515

132,460

128,860

889,018

111,333

73,643

No. of
Contracts
Traded

Stock Options

50,693

1,862

2,168

3,800

3,432

5,379

6,347

5,527

5,629

5,687

3,569

3,977

3,315

31,909

2,576

2,513

(Rs.cr)

Notional
Trading
Volume

425,013,200

37,187,672

33,185,704

44,730,463

30,253,304

35,521,913

49,385,474

34,119,312

40,235,925

34,737,234

30,731,428

28,383,804

26,540,967

216,883,573

32,911,899

20,821,144

No. of
Contracts
Traded

Table 6-4 : Business Growth of Futures & Options Market Segment

13,090,478

821,215

899,217

1,453,881

1,274,230

1,517,304

1,833,663

1,072,889

1,056,731

1,015,077

806,542

723,443

616,287

7,356,271

693,763

703,492

(Rs.cr)

Average Daily
Trading Volume

3,275,076

205,458

224,973

363,743

318,797

379,611

458,760

268,424

264,381

253,960

201,787

180,996

154,187

1,687,605

159,156

161,388

52,153

45,623

42,820

63,212

67,065

68,968

83,348

53,644

48,033

46,140

38,407

34,450

30,814

29,543

33,036

37,026

13,048

11,414

10,713

15,815

16,779

17,255

20,853

13,421

12,017

11,544

9,609

8,619

7,709

6,777.53

7,578.88

8,494.13

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

Trading Volume

Total

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

FMCG
Turnover
(Rs.cr)

Company Name

Turnover
(Rs.cr)

State Bank of India Ltd.

253,267.56

ITC LTD.

ICICI Bank Ltd.

148,047.74

Hindustan Unilever Ltd.

Industrial Development Bank of
India Ltd.

110,298.87

United Spirits Limited

20,523.94
12,036.18

Kotak Mahindra Bank Ltd.

37,638.77

Tata Tea Ltd.

Bank of India Ltd.

35,193.99

Dabur India Ltd.

INFRASTRUCTURE
Company Name

46,050.47
23,515.2

5,843.93

MEDIA & ENTERTAINMENT
Turnover
(Rs.cr)

Company Name

Turnover
(Rs.cr)

Reliance Energy Limited

412,919.75

Adlabs Films Ltd.

20,917.05

GMR Infrastructure Ltd

204,062.79

New Delhi Television Ltd.

19,787.91

NTPC Ltd.

134,525.69

Zee Entertainment Enterprises Ltd.

13,588.33

DLF Ltd.

108,059.61

Wire and Wireless (India) Ltd.

5,473.84

Sun TV Network Limited

4,072.26

Power Grid Corporation of India
Ltd.

88,941.04

PHARMACEUTICALS
Company Name

TELECOMMUNICATION
Turnover
(Rs.cr)

Company Name

Turnover
(Rs.cr)

Divi’s Laboratories Ltd.

43,600.07

Reliance Communications Ltd.

279,751.81

Ranbaxy Laboratories Ltd.

30,481.86

Bharti Airtel Ltd.

98,213.67

CIPLA Ltd.

19,300.92

Idea Cellular Limited

55,630.72

Orchid Chemicals & Pharmaceuticals Ltd.

14,455.73

Tata Teleservices (Maharashtra) Ltd.

45,946.44

Dr. Reddy’s Laboratories Ltd.

12,229.96

Mahanagar Telephone Nigam Ltd.

43,609.17
Contd...

172

Contd...

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

INFORMATION TECHNOLOGY
Turnover
(Rs.cr)

Company Name

Turnover
(Rs.cr)

Reliance Capital Ltd.

372,167.48

Infosys Technologies Ltd.

97,816.91

IFCI Ltd.

113,226.23

Satyam Computer Services Ltd.

49,106.07

Infrastructure Development
Finance Company Ltd.

84,181.08

Tata Consultancy Services Ltd.

46,323.12

Power Finance Corporation Ltd.

45,799.95

WIPRO Ltd.

25,824.99

India Infoline Ltd.

38,446.71

Educomp Solutions Ltd.

24,998.91

PETROCHEMICALS
Company Name

MANUFACTURING
Turnover
(Rs.cr)

Reliance Industries Ltd.

516,549.8

Reliance Petroleum Ltd.

297,798.23

Essar Oil Ltd.

78,884.15

Oil & Natural Gas Corpn. Ltd.
Mangalore Refinery &
Petrochemicals Ltd.

71,942.7
47,866.37

Company Name
Reliance Natural Resources Ltd.

386,341.73

Tata Steel Ltd.

209,307.84

Steel Authority of India Ltd.

144,168.33

Jindal Steel & Power Ltd.

92,883.11

Bharat Heavy Electricals Ltd.

76,546.00

SERVICES
Company Name

ENGINEERING
Turnover
(Rs.cr)

Company Name

Deccan Aviation Ltd.

16,689.86

BEML Ltd.

Indian Hotels Co. Ltd.

13,588.77

Larsen & Toubro Ltd.

The Great Eastern Shipping
Co. Ltd.

11,773.87

Praj Industries Ltd.

Jet Airways (India) Ltd.

10,464.91

Hotel Leela Venture Ltd.

Turnover
(Rs.cr)

Turnover
(Rs.cr)
5,838.5
128,447.52
50,781.51

9,574.72

173

174

155,557

147,921

193,973

253,275

303,332

258,570

390,744

258,570

310,552

399,283

311,195

273,062

3,256,034

May-07

Jun-07

Jul-07

Aug-07

Sep-07

Oct-07

Nov-07

Dec-07

Jan-08

Feb-08

Mar-08

2007-08

(Rs. cr.)

814,619

68,317

77,857

99,896

77,696

64,691

97,759

64,691

75,890

63,366

48,530

37,008

38,918

US $ mn

12.44

16.63

17.30

13.73

12.19

8.52

10.66

12.05

14.35

12.48

12.03

10.22

12.62

% to Gross
Turnover

Institutional investors

Gross Traded Value

Apr-07

Month/Year

16,485,724

1,009,899

1,063,876

1,817,156

1,659,533

2,039,421

2,349,707

1,350,709

1,263,505

1,258,173

1,005,414

919,717

748,614

(Rs. cr.)

4,124,524

252,664

266,169

454,630

415,195

510,238

587,868

337,931

316,113

314,779

251,542

230,102

187,294

US $ mn

Gross Traded Value

Retail Investors

62.97

61.48

59.16

62.49

65.11

67.21

64.07

62.95

59.79

61.97

62.33

63.57

60.74

% to Gross
Turnover

6,439,196

359,468

423,363

691,323

578,375

736,618

926,875

536,498

546,625

518,705

413,697

379,247

328,402

(Rs. cr.)

1,611,007

89,934

105,920

172,960

144,702

184,293

231,893

134,225

136,759

129,774

103,502

94,883

82,162

US $ mn

Gross Traded Value

Proprietary Investors

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

24.59

21.89

23.54

23.78

22.70

24.27

25.27

25.00

25.86

25.55

25.64

26.21

26.64

% to Gross
Turnover

Table 6-7 : FII Gross turnover in Derivative Market Segment of NSE
Month/Year

FII Gross Turnover

(Rs. cr.)

(US $ mn)

Market Gross Turnover

(Rs.cr.)

(US $ mn)

Contribution of
FII turnover to
total turnover
(%)

Apr-06

108,391

24,866

1,475,664

338,533

7.35

May-06

129069.27

29,610

1484780

340,624

8.69

Jun-06

102690.44

23,558

1113594

255,470

9.22

Jul-06

82938.41

19,027

954510

218,975

8.69

Aug-06

75315.9

17,278

939324

215,491

8.02

Sep-06

89432.38

20,517

1045892

239,939

8.55

Oct-06

96119.06

22,051

1011316

232,006

9.50

Nov-06

98746.67

22,654

1299658

298,155

7.60

Dec-06

115079.5

26,400

1338324

307,025

8.60

Jan-07

120,634.83

27,675

1254912

287,890

9.61

Feb-07

129,646.2

29,742

1,406,984

322,777

9.21

Mar-07

138,148.21

31,693

1,387,526

318,313

9.96

2006-07

1,286,211

295,070

14,712,484

3,375,197

8.74

Apr-07

133,931

33,508

1,232,573

308,375

10.87

May-07

125,543

31,409

1,446,886

361,993

8.68

Jun-07

152,501

38,154

1,613,084

403,574

9.45

Jul-07

185,285

46,356

2,030,153

507,919

9.13

Aug-07

237,212

59,348

2,113,463

528,762

11.22

Sep-07

194,381

48,632

2,145,778

536,847

9.06

Oct-07

285,042

71,314

3,667,326

917,520

7.77

Nov-07

238,884

59,766

3,034,609

759,222

7.87

Dec-07

228,110

57,070

2,548,460

637,593

8.95

Jan-08

300,490

75,179

2,907,762

727,486

10.33

Feb-08

229,392

57,391

1,798,434

449,946

12.76

Mar-08

192,741

48,221

1,642,429

410,915

11.74

2,503,511

626,348

26,180,956

6,550,151

9.56

2007-08

175

Table 6-8a : Number of Members in different turnover
brackets (F & O Segments) during 2007-08
Turnover
Month/
Year
Apr-07

Upto
Rs. 10
crores
50

Rs. 10
crores upto
Rs. 50
crores
100

Rs. 50
crores upto
Rs. 250
crores

Rs. 250
crores upto
Rs.500
crores

192

Rs. 500
crores upto
Rs. 1000
crores

116

101

Rs. 1000
crores and
more
220

May-07

38

93

181

116

107

253

Jun-07

37

81

188

103

131

254

Jul-07

36

64

172

106

125

296

Aug-07

35

58

185

108

130

286

Sep-07

27

68

167

113

123

308

Oct-07

18

45

140

97

114

400

Nov-07

20

60

144

106

104

385

Dec-07

25

71

158

100

111

356

Jan-08

25

63

154

104

116

359

Feb-08

51

93

197

117

95

270

Mar-08

55

103

189

105

111

258

2007-08

12

13

45

37

54

691

Table 6-8c : Segment wise Contribution of Top ‘N’ Members to turnover on
Futures and Options segment
(in percent)
Month

176

Futures Segment

Options Segment

Top 5
Members

Top 10
Members

Top 15
Members

Top 25
Members

Top 5
Members

Top 10
Members

Top 15
Members

Top 25
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

177

58

43

42

38

38

31

19

22

27

30

57

63

13

May-07

Jun-07

Jul-07

Aug-07

Sep-07

Oct-07

Nov-07

Dec-07

Jan-08

Feb-08

Mar-08

2007-08

Upto
Rs. 10
crores

Apr-07

Month

14

111

102

64

72

73

55

80

67

76

89

103

109

Rs. 10
crores
upto
Rs. 50
crores

50

211

205

170

170

145

149

172

198

176

198

188

203

42

99

113

95

104

107

104

113

116

113

110

116

110

Rs. 250
crores
upto
Rs.500
crores

57

97

96

116

114

114

110

122

117

119

117

105

105

Rs. 500
crores
upto
Rs.1000
crores

676

240

250

346

334

358

377

288

266

277

238

233

194

Rs. 1000
crores and
more

98

335

346

289

302

255

219

269

253

291

298

294

297

Upto
Rs. 10
crores

96

185

189

198

196

210

186

202

190

182

185

189

182

Rs. 10
crores
upto
Rs. 50
crores

176

167

160

188

172

186

204

181

187

187

187

187

180

Rs. 50
crores
upto
Rs.250
crores

96

47

40

50

60

64

78

58

66

55

54

42

44

Rs. 250
crores
upto
Rs.500
crores

Number of Members

Number of Members
Rs. 50
crores
upto
Rs.250
crores

Options Segment

Futures Segment

91

39

40

43

38

44

45

39

40

36

26

36

33

Rs. 500
crores
upto
Rs.1000
crores

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

295

48

48

53

53

60

82

57

66

48

44

40

43

Rs. 1000
crores and
more

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

S.
No.

Name of the Contract

Number of
Contracts

Turnover
(Rs.cr.)

1

NIFTY AUGUST 2007

18,159,676

390,091.73

97,596.13

11.04

2

NIFTY JANUARY 2008

15,600,290

450,887.27

112,806.42

9.48

3

NIFTY OCTOBER 2007

15,524,414

410,969.77

102,819.56

9.44

4

NIFTY NOVEMBER 2007

14,709,803

420,742.20

105,264.50

8.94

5

NIFTY MARCH 2008

13,639,589

328,917.19

82,291.02

8.29

6

NIFTY FEBRUARY 2008

12,780,443

331,628.11

82,969.26

7.77

7

NIFTY SEPTEMBER 2007

11,381,757

259,314.14

64,877.19

6.92

8

NIFTY MAY 2007

11,075,776

230,073.20

57,561.47

6.73

9

NIFTY JUNE 2007

10,779,814

226,492.01

56,665.50

6.55

10

NIFTY DECEMBER 2007

9,508,803

280,628.69

70,209.83

5.78

11

NIFTY JULY 2007

8,348,198

184,610.83

46,187.35

5.08

12

NIFTY APRIL 2007

7,979,010

155,816.49

38,983.36

4.85

13

NIFTY APRIL 2008

3,243,808

78,108.49

19,541.78

1.97

14

RELIANCE JANUARY 2008

2,583,400

55,968.98

14,002.75

1.57

15

RELIANCE OCTOBER 2007

1,774,938

67,334.74

16,846.32

1.08

16

RELIANCE MARCH 2008

1,710,744

29,562.02

7,396.05

1.04

17

RELIANCE NOVEMBER 2007

1,577,411

65,453.51

16,375.66

0.96

18

RELIANCE FEBRUARY 2008

1,497,880

28,230.25

7,062.86

0.91

19

RELIANCE AUGUST 2007

1,489,324

40,993.81

10,256.15

0.91

20

REL OCTOBER 2007

1,124,548

93,076.45

23,286.58

0.68

164,489,626 4,128,899.90

1,032,999.73

100.00

TOTAL

178

(US $ mn)

Percentage of
contracts to
Top 20
contracts

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

Name of the Contract

Number of
Contracts

Turnover
(Rs.cr)

(US $ mn)

14,511.08

3,630.49

Percentage
of contracts
to Top 20
contracts

1

NIFTY AUGUST 2007 PE 4300

658,870

5.96

2

NIFTY AUGUST 2007 PE 4200

640,609

13,716.20

3,431.62

5.79

3

NIFTY MAY 2007 CE 4100

625,571

13,167.81

3,294.42

5.66

4

NIFTY JUNE 2007 PE 4200

620,883

13,281.88

3,322.96

5.62

5

NIFTY AUGUST 2007 CE 4400

616,997

13,795.13

3,451.37

5.58

6

NIFTY AUGUST 2007 PE 4100

600,467

12,520.36

3,132.44

5.43

7

NIFTY MAY 2007 CE 4200

587,317

12,539.35

3,137.19

5.31

8

NIFTY AUGUST 2007 CE 4300

569,243

12,492.06

3,125.36

5.15

9

NIFTY JUNE 2007 CE 4300

561,473

12,204.11

3,053.32

5.08

10

NIFTY JUNE 2007 CE 4200

561,271

12,008.63

3,004.41

5.08

11

NIFTY OCTOBER 2007 PE 5000

532,650

13,541.03

3,387.80

4.82

12

NIFTY AUGUST 2007 PE 4400

529,870

12,010.52

3,004.88

4.79

13

NIFTY SEPTEMBER 2007 PE 4400

526,111

11,782.58

2,947.86

4.76

14

NIFTY SEPTEMBER 2007 PE 4500

507,215

11,630.83

2,909.89

4.59

15

NIFTY MAY 2007 PE 4100

503,723

10,512.35

2,630.06

4.56

16

NIFTY AUGUST 2007 CE 4200

495,909

10,646.95

2,663.74

4.49

17

NIFTY SEPTEMBER 2007 CE 4500

495,375

11,421.57

2,857.54

4.48

18

NIFTY JUNE 2007 PE 4100

474,952

9,877.80

2,471.30

4.30

19

NIFTY AUGUST 2007 CE 4500

474,933

10,849.70

2,714.46

4.30

20

NIFTY NOVEMBER 2007 CE 5900

472,726

14,289.11

3,574.96

4.28

11,056,165

246,799.05

61,746.07

100.00

TOTAL

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

Index Futures

Stock Futures

769,882

Stock Options
517,312

Total

Apr-07

2,038,185

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

30,897,058

153,187,768

10,370,483

7,767,865

202,223,174

2007-08

8,170,413

Index Options

11,495,792

179

Table 6-12 : Settlement Statistics in F&O Segment
Month/
Year

Index/Stock Futures

Index/Stock Options

Total

MTM
Settlement

Final
Settlement

Premium
Settlement

Exercise
Settlement

(Rs.cr)

(Rs.cr)

(Rs.cr)

(Rs.cr)

(Rs.cr)

(US $ mn)

Jun-00

0.22

0.01

0.23

0.05

Jul-00

1.46

0.04

1.50

0.32

Aug-00

0.76

0.03

0.79

0.17

Sep-00

2.11

0.13

2.25

0.48

Oct-00

3.42

0.27

3.69

0.79

Nov-00

4.65

0.07

4.73

1.01

Dec-00

9.82

0.69

10.50

2.25

Jan-01

11.94

0.11

12.05

2.58

Feb-01

16.14

0.51

16.65

3.57

Mar-01

33.56

0.06

33.62

7.21

2000-01

84.08

1.93

86.01

18.44

Apr-01

8.04

0.09

8.13

1.67

May-01

3.78

0.11

3.89

0.80

Jun-01

4.85

0.01

1.47

0.28

6.61

1.35

Jul-01

6.70

0.14

5.88

1.43

14.13

2.90

Aug-01

4.59

0.14

9.83

5.06

19.62

4.02

Sep-01

33.69

0.50

15.62

13.91

63.72

13.06

Oct-01

11.27

0.10

17.96

11.42

40.75

8.35

Nov-01

28.38

0.71

24.55

20.21

73.85

15.13

Dec-01

78.94

3.76

17.47

8.21

108.38

22.21

Jan-02

112.53

2.17

30.57

17.75

163.02

33.41

Feb-02

108.87

12.21

24.40

8.86

154.34

31.63

Mar-02

103.62

1.99

17.01

6.81

129.42

26.52

2001-02

505.25

21.93

164.76

93.95

785.88

161.04

Apr-02

106.56

4.15

17.3

8.65

136.66

28.77

May-02

166.54

1.84

21.53

14.35

204.26

43.00

Jun-02

124.05

3.44

19.70

10.35

157.54

33.17

Jul-02

160.88

1.70

23.60

10.67

196.85

41.44

Aug-02

102.1

2.88

20.46

13.89

139.33

29.33

Sep-02

119.83

1.44

23.31

13.46

158.04

33.27

Oct-02

128.24

7.79

25.80

16.64

178.47

37.57

Nov-02

110.93

8.68

33.71

35.34

188.66

39.72

Dec-02

164.04

5.33

44.64

16.82

230.83

48.60

Jan-03

218.42

2.99

38.39

22.94

282.74

59.52
Contd...

180

Contd...

Table 6-12 : Settlement Statistics in F&O Segment
Month/
Year

Index/Stock Futures

Index/Stock Options

Total

MTM
Settlement

Final
Settlement

Premium
Settlement

Exercise
Settlement

(Rs.cr)

(Rs.cr)

(Rs.cr)

(Rs.cr)

(Rs.cr)

(US $ mn)

Feb-03

148.42

1.68

28.93

13.14

192.17

40.46

Mar-03

187.89

3.84

33.84

19.64

245.21

51.62

1,737.90

45.76

331.21

195.88

2,310.76

486.47

Apr-03

205.81

4.79

46.00

30.01

286.60

66.05

May-03

163.59

5.74

38.04

30.43

237.80

54.81

Jun-03

220.23

3.86

48.78

46.50

319.37

73.60

Jul-03

389.79

8.02

69.43

44.77

512.01

118.00

Aug-03

569.60

8.58

77.32

58.81

714.31

164.63

Sep-03

1,031.87

9.24

78.12

30.41

1,149.64

264.96

Oct-03

1,188.05

14.11

99.15

60.31

1,361.61

313.81

Nov-03

939.35

23.86

63.40

22.11

1,048.72

241.70

Dec-03

905.46

17.90

69.99

41.10

1,034.44

238.41

Jan-04

2,668.21

12.82

107.46

42.67

2,831.16

652.49

Feb-04

1,329.70

16.40

68.26

24.42

1,438.77

331.59

Mar-04

1,210.32

13.62

93.00

44.58

1,361.53

313.79

10,821.98

138.95

858.94

476.12

12,295.98

2833.83

Apr-04

837.28

15.67

64.70

25.29

942.95

215.53

May-04

2,556.13

13.47

91.29

35.82

2,696.71

616.39

Jun-04

535.25

20.05

46.81

9.85

611.96

139.88

Jul-04

451.15

15.14

72.13

42.77

581.19

132.84

Aug-04

548.01

8.66

50.90

14.65

622.22

142.22

Sep-04

480.12

12.63

56.21

39.74

588.70

134.56

Oct-04

837.82

23.18

68.50

31.00

960.50

219.54

Nov-04

691.17

10.21

76.82

41.95

820.15

187.46

Dec-04

1,238.58

22.31

104.09

56.54

1,421.52

324.92

Jan-05

2,317.69

31.74

96.36

42.37

2,488.16

568.72

Feb-05

991.63

10.62

96.35

39.30

1,137.90

260.09

Mar-05

1,539

44

117

77

1,777

406.09

13,024.18

227.50

941.06

455.87

14,648.62

3348.25

Apr-05

1,736.91

31.15

82.83

30.32

1,881.22

421.70

May-05

943.69

41.74

72.54

44.95

1,102.92

247.24

Jun-05

1,095.79

35.18

93.16

71.32

1,295.45

290.39

Jul-05

1,567.52

38.49

92.86

58.85

1,757.72

394.02

Aug-05

2,544.80

36.56

118.94

26.78

2,727.08

611.32

2002-03

2003-04

2004-05

Contd...

181

Contd...

Table 6-12 : Settlement Statistics in F&O Segment
Month/
Year

Index/Stock Options

MTM
Settlement

Final
Settlement

Premium
Settlement

Exercise
Settlement

(Rs.cr)

(Rs.cr)

(Rs.cr)

(Rs.cr)

Total

(Rs.cr)

(US $ mn)

Sep-05

2,366.70

17.31

135.91

95.85

2,615.77

586.36

Oct-05

3,479.10

120.46

143.92

79.20

3,822.67

856.91

Nov-05

1,831.40

32.17

122.63

75.71

2,061.90

462.21

Dec-05

2,487.80

22.74

139.72

67.05

2,717.30

609.12

Jan-06

2,034.60

107.17

139.52

52.06

2,333.35

523.06

Feb-06

1,886.60

44.47

146.68

56.86

2,134.61

478.50

Mar-06

3,610.60

70.45

231.87

158.89

4,071.81

912.76

25,585.51

597.89

1,520.58

817.84

28,521.80

6393.59

Apr-06

7,413.50

97.47

237.13

104.32

7,852.42

1801.43

May-06

13,594.00

135.07

326.05

124.18

14,179.30

3252.88

Jun-06

6,854.10

50.29

265.36

97.01

7,266.76

1667.07

Jul-06

2,810.00

56.05

197.32

73.60

3,136.97

719.65

Aug-06

1,558.00

38.89

192.71

114.79

1,904.39

436.89

Sep-06

2,826.50

27.10

192.37

72.74

3,118.71

715.46

Oct-06

2,218.20

27.95

222.54

64.15

2,532.84

581.06

Nov-06

2,412.00

57.38

212.33

133.02

2,814.73

645.73

Dec-06

5,968.80

34.62

294.30

88.25

6,385.97

1465.01

Jan-07

3,664.00

99.04

276.52

121.33

4,160.90

954.55

Feb-07

5,981.70

115.28

321.41

59.28

6,477.67

1486.04

Mar-07

6,012.90

58.40

456.34

136.17

6,663.81

1528.75

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

144,654.70

1,312.12

6,760.17

3,792.26

156,519.23

39,227.88

2005-06

2006-07

2007-08

182

Index/Stock Futures

Investor Grievances,
Arbitration

7

184

Investor Grievances, Arbitration

7

Investors are the backbone of the securities market. Protection of their interests is
paramount for NSE. In furtherance of their interests, NSE has put in place systems to
ensure availability of adequate, up-to-date and correct information to investors to enable
them to take informed decisions. It ensures that critical and price-sensitive information
reaching the exchange is made available to all classes of investor at the same point of time.
Such price-sensitive information as bonus announcements, mergers, new line of business,
etc. received from the companies is disseminated to all the market participants through
the network of NSE terminals all over India. Action is initiated by the Exchange where
any kind of price-sensitive information is not provided to the Exchange at the prescribed
time. It ascertains the veracity of rumours and disseminates facts in the interest of investors.
In an attempt to ease the existing system of information dissemination by the listed
companies, NSE launched the electronic interface for listed companies in August 2004.
Under the new system, all corporate announcements including that of Board meetings
which needs to be disclosed to the market is handled electronically in a straight through
and hands free manner. It also conducts various seminars and programs for the investors
all over the country with a view to educate them on their rights and obligations. They
are also made aware of the precautions they need to take while dealing in the securities
market. It makes an audit trail available on request for all transactions executed on NSE
to enable investors to counter-check trade details for the trades executed on his behalf
by the member. It has also prescribed and makes effort to ensure the implementation of
various safeguards like time schedules for issuing contract notes, for receiving funds and
securities purchased by investors, segregation of client funds and securities from those
of members, etc. The Exchange has also launched a facility to verify trades on the NSE
website. Using this facility, an investor who had received a contract note from the trading
member of the Exchange can check whether the trade has been executed.

Investor Grievances
NSE has put in place a system for redressal of investor grievances for matters/issues
related to/against trading members/companies. The Investor Grievance Cell of NSE is
manned by a team of professionals possessing relevant experience in the areas of securities
markets, company and legal affairs, and specially trained to identify problems faced by
the investor and to find and effect a solution quickly. It takes up complaints in respect
of trades executed on the NSE through its NEAT terminal and routed through the
NSE trading member or SEBI registered sub-broker of NSE trading member and trades
pertaining to companies traded on NSE. The status of receipt and disposal of investor
grievances by the Exchange is presented in Table 7-1.

185

Investor Protection Fund
Some cushion to the interests of investors is provided by the Investor Protection Fund
(IPF) set up by the stock exchange. The exchanges maintains an IPF to take care of
investor claims, which may arise out of non settlement of obligations by the trading
member, who has been declared a defaulter, in respect of trades executed on the Exchange.
The maximum amount of claim payable from the Fund to the investor is reviewed by
Exchange periodically maximum amount payable out of IPF was Rs. 10 lakhs upto
December 31, 2007 and same has been enhanced to Rs. 11 Lakhs in respect of claims
against members declared defaulter after January 1, 2008.

Arbitration
Arbitration is a speedy and alternative dispute resolution mechanism provided by the
Exchange for resolving disputes between the trading members and between a trading
member and his client, in respect of trades done on the Exchange. The arbitration
mechanism is provided by the Exchange in all its Regional offices to facilitate the speedy
dispute resolution mechanism. The parties to dispute appoint an arbitrator from the
panel of arbitrators maintained by the Exchange and approved by SEBI. The arbitrator(s)
pronounces an award after going through various documents submitted by the parties
and hearing them. The status of arbitration matters with the Exchange as at end
March 2008 is presented in Table 7-2.

186

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

Against Members
Pending
at the
beginning

Received Disposed

Against Companies
Pending
at the
end

Pending
at the
beginning

Received Disposed

Pending
at the
end

1994-95

2

2

1995-96

56

13

43

2

39

17

24

1996-97

43

320

72

291

24

415

102

337

1997-98

291

259

439

111

337

576

716

197

1998-99

111

383

347

147

197

592

380

409

1999-00

147

197

298

46

409

808

842

375

2000-01

46

263

201

108

375

1,095

1,111

359

2001-02

108

789

710

187

359

607

667

299

2002-03

187

345

418

114

299

587

626

260

2003-04

114

282

253

143

260

527

558

229

2004-05

143

435

409

169

229

1,304

1,128

405

2005-06

169

1,128

1,051

246

405

1,023

1,200

228

2006-07

246

1,367

1,460

153

228

774

769

233

2007-08

153

1,915

1,101

967

233

964

888

309

Table 7-2 : Status Report of Arbitration Matters
Year

No. of Cases
Received

Withdrawn

Awards

Pending

1998

164

2

162

0

1999 CM

153

5

147

1

2

1

1

0

149

6

143

0

1

0

1

0

342

19

323

0

2001 WDM

0

0

0

0

2001 F&O

1

0

1

0

1999 WDM
2000 CM
2000 WDM
2001 CM

Contd...

187

Contd...

Table 7-2 : Status Report of Arbitration Matters
Year
2002 CM

Withdrawn

Awards

Pending

275

7

268

0

2002 WDM

0

0

0

0

2002 F&O

5

0

5

0

136

4

132

0

2003 WDM

0

0

0

0

2003 F&O

17

0

17

0

119

6

113

0

2004 WDM

0

0

0

0

2004 F&O

42

3

39

0

138

3

135

0

2005 WDM

0

0

0

0

2005 F&O

66

0

66

0

224

5

219

0

0

0

0

0

191

8

183

0

2006 CO

1

0

1

0

2007 CM

275

9

249

17

2007 F&O

221

3

192

26

61

0

6

55

116

1

2

113

2,699

82

2,405

212

2003 CM

2004 CM

2005 CM

2006 CM
2006 WDM
2006 F&O

2008 CM upto
March 2008
2008 F&O upto
March 2008
Total

188

No. of Cases
Received

Knowledge Initiative

8

190

Knowledge Initiative

8

Several initiatives have been taken over the last few years to promote the skills of market
participants, to educate and protect the investors and to promote high quality research
about the working of the securities market. In line with this NSE has launched several
initiatives to strengthen the knowledge base of the Indian securities market and to protect
investor interest. Major initiatives in this area are discussed below:

NSE’s Certification in Financial Markets
Taking into account international experience and the needs of the Indian financial markets
NSE introduced in 1998 a unique testing and certification programme called National
Stock Exchange’s Certification in Financial Markets (NCFM). This was introduced with
a view for protecting interests of investors in financial markets and more importantly,
for minimizing risks of losses arising out of deficient understanding of markets and
instruments. NCFM is an on-line testing system which tests the practical knowledge
and skills required to operate in the financial markets in a secure and unbiased manner
and awards certificates based on relative merits thus ensuring that the caliber of persons
entering this field is kept high in the best interests of a mature and vibrant market.
The entire process from generation of question paper, testing, assessing, scores reporting
and certifying is fully automated. It allows tremendous flexibility in terms of testing
centres, test dates and test timing and provides easy accessibility and convenience to
candidates.
NCFM offers a comprehensive range of modules covering many different areas in finance
(Table 8-1) In order to strengthen the Corporate Governance Standards, the Corporate
Governance Module was introduced in October 2005. Financial Market: A Beginners
Module was introduced in Feb 2006. This module has been prepared for those who are
keen to acquire some basic but key information about the stock markets as an initial
step towards becoming a more informed investor. This module will act as a means of
satisfying some of the initial queries on the stock markets and has been prepared with
the objective of introducing the functioning and role of the financial markets in India
to all those interested in this topic. The Compliance Officers Module was introduced in
February 2006 with an objective of providing comprehensive knowledge and a proper
understanding of the Acts governing the Securities Markets, Rules and Regulations of the
Exchange, Listing Procedures, etc. This would enable an organization to adhere to the
required compliance standards and not fall short of meeting any existing guidelines.
A Security Auditor for any financial organization is essential and will be well equipped
to handle matters relating to Information Security which includes Confidentiality,
integrity and timely availability of information for implementing efficient business
processes Information security is not just technology related security but much more than
that, covering physical and environmental security, access controls, business continuity

191

planning etc. In view of this, the Information Security Auditors Module was introduced
in October 2006 and consist of two parts Information Security Auditors Module
(Part I) and (Part II). On successfully clearing both the parts, a candidate is provided with a
‘Certified Information Security Auditor for Financial Markets’ certification. The number
of centers from where the NCFM tests are conducted has increased in the recent past.
Currently the NCFM tests are conducted from 66 centers across the country.

NCFM Online Payment System
NCFM online payment was launched from January 16, 2006 in order to facilitate
candidates to pay their test fees on-line. Online payment can be made by modes of credit
card, debit card, cash or net banking. Candidates can log on to www.nseindia.com and
click on the link ‘NCFM On-line’.

NCFM Tests conducted at international locations
NSE’s Certification in Financial Market (NCFM) is gradually gaining international
prominence. During the current fiscal NSE conducted the NCFM tests in Financial
Markets- A Beginners’ Module and Derivatives Module in Mauritis on July 07, 2007 and
September 19, 2007. Exams were also conducted in the Derivatives Module in Dhaka
on 26th November 2007 and 09th June 2008.

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

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

192

NSE Research Initiative
In order to improve market efficiency further and to set international benchmarks in
securities industry, NSE administers a scheme called the NSE Research Initiative. The
initiative fosters research which can support and facilitate stock exchanges to design market
microstructure, participants to frame their strategies in the market place, help regulators
to frame regulations, policy makers to formulate policy and broaden the horizon of
knowledge about the securities market. The initiative has received a tremendous response
from the academics as well as the market participants from within and outside the country.
The studies completed/under progress under the initiative is presented in Table 8-2.

193

Table 8-1: NCFM Modules
Sr.
No

Name of Module

Test
Duration

No. of
Questions

Maximum
Marks

Pass
Marks

Certificate
Validity

(%)

(in years)

1

Financial Markets: A Beginners’
Module

60

50

100

50

5

2

Securities Market (Basic) Module

105

60

100

60

5

3

Capital Market (Dealers) Module

105

60

100

50

5

4

Derivatives Market (Dealers)
Module*

120

60

100

60

3

5

FIMMDA-NSE Debt Market
(Basic) Module

120

60

100

60

5

6

NSDL–Depository Operations
Module

75

60

100

60#

5

7

Commodities Market Module

120

60

100

50

3

8

AMFI-Mutual Fund (Basic)
Module

90

62

100

50

No limit

9

AMFI-Mutual Fund (Advisors)
Module

120

72

100

50

5

10

Surveillance in Stock Exchanges
Module

120

50

100

60

5

11

Corporate Governance Module

90

100

100

60

5

12

Compliance Officers (Brokers)
Module

120

60

100

60

5

13

Compliance Officers (Corporates) Module

120

60

100

60

5

Information Security Auditors
Module (Part-1

120

90

100

60

Information Security Auditors
Module (Part-2)

120

90

100

60

FPSB India Exam 1 to 5

120

75

140

60

Investment Banking Analyst
Module (Paper 1)

120

100

100

Investment Banking Analyst
Module (Paper 2)

120

100

100

14

15

2

16

*
#

194

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

Table 8-2 : Studies under the NSE Research Initiative
SL. No.

Title of Study

Completed Papers
1

Econometric Estimation of Systematic Risk of S&P CNX Nifty Constituents

2

Stock Market Development and its Impact on the Financing Pattern of the Indian Corporate
Sector

3

Efficiency of the Market for Small Stocks

4

Determinants of Financial Performance of Indian Corporate Sector in the Post-Liberalization
Era: An Exploratory Study

5

Should pension funds invest in equities? An analysis of risk-return tradeoff and asset allocation
decisions

6

Changes in liquidity following exposure to foreign shareholders: The effect of foreign listings,
inclusion in country funds and issues of American Depositary Receipts

7

Is the Spread Between E/P Ratio and Interest Rate Informative for Future Movement of Indian
Stock Market?

8

Merger Announcements and Insider Trading Activity in India: An Empirical Investigation

9

Achieving an Individual Investor Friendly System using the power of the Internet

10

Improved Techniques for using Monte Carlo in VaR estimation

11

Short selling and its Regulation in India in International Perspective

12

Empirical investigation of multi-factor asset pricing models using Artificial Neural Network

13

Idiosyncratic Factors in Pricing Sovereign Bonds: An Analysis of the Government of India
Bond Market

14

The Extreme Value Volatility Estimators and Their Empirical Performance in Indian Capital
Markets

15

Equity Market Interlinkages: Transmission of Volatility - A Case Of US and India

16

Institutional Investors and Corporate Governance in India

17

Dividend policy of Indian Corporate Firms : An Analysis of Trends & Determinants

18

Market Microstructure Effects of Transparency of Indian Banks

19

Futures Trading, Information and Spot Price Volatility of NSE-50 Index Futures Contract

20

Measuring productive efficiency of stock exchanges using price adjustment coefficients

21

Do Futures and Options trading increase stock market volatility?

22

Section switching stock market price effect in the Indian capital market and the policy
implications thereof

23

Study of Common Stochastic Trend and Co-integration in the Emerging Markets - A case
study India, Singapore and Taiwan

24

Market Discipline in the Indian Banking Sector: An Empirical Exploration

25

Conditional CAPM and Cross sectional returns - A study on Indian Securities Market

26

Evaluating index fund implementation in India

27

Measuring Volumes in the Indian Financial Markets Some Terminological and Conceptual
Issues
Contd...

195

Contd...

Table 8-2 : Studies under the NSE Research Initiative
SL. No.

Title of Study

28

Corporate Social Responsibility Initiatives by NSE NIFTY Companies - Content,
Implementation Strategies & Impact.

29

Measures for Improving Common Investor Confidence in Indian Primary Market : A Survey

30

Informational Content of Trading Volume And Open Interest – An Empirical Study of Stock
Options Market In India

31

An analysis of the Dynamic Relationships Between South Asian and Developed Equity
Markets

32

Corporate Governance and Market reactions

33

Insider Ownership and Corporate Governance

34

Improving Index Fund Implementation in India

35

Seasoned Capital Offerings: Earnings Management and Long-Run Operating Performance of
Indian Firms

36

Volatility Spillovers Across Stock, Call Money And Foreign Exchange Markets

37

Understanding the Microstructure in Indian Markets

38

Price and Volume Effects of S&P CNX Nifty Index Reorganization

39

Lead-Lag relationship between Equities and Stock Index Futures Market and its variation
around Information Release: Empirical Evidence from India

40

On The New Transformation-Based Approach To Measuring Value-At-Risk: An Application
To Forex Market In India

41

Optimal Hedge Ratio and Hedging Effectiveness of Stock Index Futures : Evidence from
India

42

Evaluating Corporate Governance Risk: A Fuzzy logic approach

43

Do the S&P CNX Nifty Index and Nifty Futures Really Lead/Lag?Error Correction Model:
A Cointegration Approach

44

Under-Pricing and long run performance of Initial Public Offerings in Indian Stock Market

45

Price & liquidity effects of stock split: An Empirical evidence from Indian stock market

46

Risk Return Dynamics of Derivative Based Investment Strategies.

Papers under Progress

196

1

Price Limits - Are they worth the price?

2

Correlation Dynamics and Equity Market Integration: Evidence from India

3

Price Discovery and arbitrage efficiency of Indian Equity futures & Cash market

4

Dynamic Interaction Among Mutual Fund Flows, Stock Market Return and Volatility

5

Pricing of Options on Defty

6

Volatility Persistence and the Feedback trading Hypothesis : Evidence from Indian Markets

7

Do Heterogeneous beliefs affects trading volume and asset prices

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