The Organization

• National Stock Exchange of India Limited (NSE) was

incorporated in 1992 and was given recognition as a
stock exchange in April 1993.
• It 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.
 OBJECTIVES
• Establishing nationwide trading facility for all types of securities

• Ensuring equal access to investors all over the country through

an appropriate telecommunication network.
• Providing fair, efficient & transparent securities market using
electronic trading system.
• Enabling shorter settlement cycles and book entry settlements.

• Meeting International benchmarks and standards.

Working Hours
• NSE's normal trading sessions are from 9:55am to 03:30pm on
all days of the week except Saturdays, Sundays and holidays

declared by the Exchange in advance.

Geographic Distribution
• Over 2600 trading terminals

• Over 1500 VSAT’s across the country with a 24 hour Network

monitoring system in over 160 cities
 Membership
• 1026 trading members on the Capital Market segment, of which around
86% account for corporate and the remaining individuals and firms.
• 113 trading members on the Wholesale Debt Market segment, all of which
account for corporate. (Out of these 113 trading members, 106 are members
of the Capital Market segment also and are included in the 1026 members
indicated above).
• Individuals;
• Partnership Firms registered under the Indian Partnership Act, 1932;
• Corporations, Companies or Institutions or subsidiaries of such
Corporations, Companies or Institutions set up for providing financial
services;
• Such other person as may be permitted under the Securities Contracts
(Regulation) Rules 1957
 TECHNOLOGY
NEAT
• 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
inmemory 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 one second.
VSAT
• VSAT technology is a telecommunication system based
on wireless satellite technology. The term 'VSAT'
stands for 'Very Small Aperture Terminal'. As the
definition itself indicates, VSAT technology is made up
of a small satellite earth station and a typical antenna of
1.8 meter diameter.
 COMPANIES
• On the Capital Market segment, 600 securities are
listed and 762 securities are permitted to trade.
• On the Wholesale Debt Market segment, 470
securities are listed and 369 securities are permitted
to trade.
• Of the 470 securities listed, 267 are Government
Securities, T-Bills and the balance account for other
securities.
Groups Of NSE

National Securities Clearing Corporation Ltd. (NSCCL)

National Commodity Clearing Limited

NSE Infotech Services Limited

India Index Services & Products Ltd. (IISL)

Groups of NSE

NSE.IT Ltd.

DotEx International Limited

National Securities Depository Ltd.

(NSDL)
 NSE Groups
IISL:
• India Index Services and Products Limited (IISL), a
joint venture of NSE and Credit Rating Information
Services of India Limited (CRISIL)
• set up in May 1998 to provide indices and index
services.
• It has a consulting and licensing agreement with
Standard and Poor’s (S&P), the world’s leading
provider of investible equity indices, for co-branding
equity indices.
 NSE Groups
NSDL:
• National Securities Depository Limited (NSDL)
commenced operations in November 1996.
• In order to solve problems associated with
trading in physical securities, NSE joined hands
with IDBI and UTI to promote dematerialization
of securities.
• This has eradicated physical paper from trading
and settlement of securities
 NSE Groups
NSE.IT:
• NSE.IT Limited, a 100% technology
subsidiary of NSE, was incorporated in
October 1999.
• It provides the securities industry with
technology that ensures transparency and
efficiency in the trading, clearing and risk
management systems.
 NSE Groups
NCDEX:
• NSE joined hands with other financial institutions in India
viz., ICICI Bank limited, NABARD, LIC, PNB, CRISIL,
Canara Bank and IFFCO to promote the National
Commodity and Derivatives Exchange Limited (NCDEX).
• It is to provide a world class commodity exchange platform
for market participants to trade in a wide spectrum of
commodity derivatives
• Currently facilitates trading of 40 commodities.
 NSE Groups
NSCCL
• National Securities Clearing Corporation
Limited is the clearing corporation of the NSE.
• It is a wholly-owned subsidiary of the NSE.
• It was incorporated in August 1995 and started
clearing operations in April 1996.
• It was formed to build confidence in clearing
and settlement of securities.
 NSE Groups
DotEx International Limited (DotEx)
• Its vision is to provide world-class customer
fulfillment infrastructure for the securities
industry.
• DotEx creates quality platforms for providers
of financial services to dramatically enhance
customer satisfaction by providing both the
technological and the product framework.
 INDEX
• A single figure that sums up the overall
performance of the market on a daily basis
is the Stock Index.
• A good Stock Index captures the
movement of the well diversified and
highly liquid stocks.
• The index is calculated by finding the
weighted average of the prices of the most
actively traded companies in the market.
MAJOR INDICES
• S&P CNX Nifty
• CNX Nifty Junior
• CNX 100
• S&P CNX 500
• CNX Midcap
• Nifty Midcap 50
• S&P CNX Defty
• CNX Midcap 200
S&P CNX Nifty
• S&P CNX Nifty is a well diversified 50 stock
index accounting for 21 sectors of the
economy.
• It is used for a variety of purposes such as
benchmarking fund portfolios, index based
derivatives and index funds
• S&P CNX Nifty is owned and managed by
India Index Services and Products Ltd. (IISL),
which is a joint venture between NSE and
CRISIL.
• IISL is India's first specialized company
focused upon the index as a core product.
FEATURES
• The total traded value for the last six
months of all Nifty stocks is
approximately 65.68% of the traded
value of all stocks on the NSE.
• Impact cost of the S&P CNX Nifty for a
portfolio size of Rs.2 crore is 0.16%
• S&P CNX Nifty is professionally
maintained and is ideal for derivatives
trading
 CNX Nifty Junior
• The next step of liquid securities after S&P
CNX Nifty is the CNX Nifty Junior.
• CNX Nifty Junior represents about 9.89 % of
the total market capitalization as on Mar 31,
2009.
• The traded value for the last six months of all
Junior Nifty stocks is approximately 14.88%
of the traded value of all stocks on the NSE
• Impact cost for CNX Nifty Junior for a
portfolio size of Rs.50 lakhs is 0.26%
CNX 100
• CNX 100 is a diversified 100 stock index
accounting for 35 sector of the economy.
• CNX 100 is owned and managed by
India Index Services & Products Ltd.
(IISL).
• IISL has a licensing & marketing
agreement with Standard & Poor’s
(S&P), who are leader’s in index
services.
FEATURES
• CNX 100 represents about 75.24% of
the total market capitalization as on
Mar 31, 2009
• The average traded value for the last
six months of all CNX100 stocks is
approximately 80.56 % of the traded
value of all stocks on the NSE
• Impact cost for CNX 100 for a portfolio
size of Rs. 3 crore is 0.18%.
 S&P CNX 500

• The S&P CNX 500 is India’s first broad based

benchmark of the Indian capital market.
• The S&P CNX 500 represents about 95.11% of
total market capitalization and about 94.84% of the
total turnover on the NSE as on March 31, 2009.
• The S&P CNX 500 companies are disaggregated
into 72 industry indices viz. S&P CNX Industry
Indices.
• Industry weightages in the index reflect the
industry weightages in the market.
CNX MIDCAP
• The medium capitalized segment of the
stock market is being increasingly
perceived as an attractive investment
segment with high growth potential.
• The primary objective of the NSE CNX
MidCap Index is to capture the
movement and be a benchmark of the
midcap segment of the market.
FEATURES
• NSE CNX Midcap Index represents about 77%
of the total market capitalization of the Mid-Cap
Universe and about 75% of the total traded
value of the Mid-Cap Universe (Mid-Cap
Universe is defined as stocks having average
six months market capitalization between
Rs.75 crores and Rs.750 crores).
 
• Industry weightages in the index dynamically
reflect industry weightages in the market.
 
• Provide investors a broad based benchmark for
comparing portfolio returns vis-à-vis market
returns in the midcap segment.
 CNX Midcap 200
• The primary objective of the CNX Midcap 200
Index is to capture the movement and be a
benchmark of the midcap segment of the
market.
• Industry weightages in the index dynamically
reflect industry weightages in the market
• Provide investors a broad based benchmark
for comparing portfolio returns vis-à-vis market
returns in the midcap segment.
Nifty Midcap 50
• The medium capitalized segment of the
stock market is being increasingly
perceived as an attractive investment
segment with high growth potential.
• The primary objective of the Nifty
Midcap 50 Index is to capture the
movement of the midcap segment of
the market.
• It can also be used for index-based
derivatives trading.
S&P CNX Defty
• Almost every institutional investor and off-shore
fund enterprise with an equity exposure in India
would like to have an instrument for measuring
returns on their equity investment in dollar terms.

• To facilitate this, a new index the S&P CNX Defty-

Dollar Denominated S&P CNX Nifty has been
developed.

• S&P CNX Defty is S&P CNX Nifty, measured in

dollars.
Salient Features

• Performance indicator to foreign

institutional investors, off-shore funds,
etc.
• Provides an effective tool for hedging
Indian equity exposure.
• Impact cost of the S&P CNX Nifty for a
portfolio size of Rs.2 crore is 0.16%
• Provides fund managers an instrument
for measuring returns on their equity
investment in dollar terms.
COMPUTATION OF INDECES
 S&P CNX NIFTY
Method of Computation
 Weighted Market capitalization
the level of the index reflects the total market value of all the
stocks in the index relative to a particular base period

Base Date and Value

 Base period – Nov 3, 1995
 Base value – 1000
 Base capital – Rs 2.05 tln

Criteria for Selection of Constituent Stocks

 Liquidity (Impact costs)
 Floating costs
 others
 Historical Data for S&P CNX NIFTY

For the period 07-08-2009 to 10-08-2009

Date Open High Low Close Shares Turnover

Traded (Rs. Cr)
07-Aug- 26687198
4591.90 4591.90 4463.95 4481.40 9772.77
2009 2
10-Aug- 28407908
4486.50 4562.50 4399.85 4437.65 10028.43
2009 2
CNX Nifty Junior
Method of Computation
 Market capitalization weighted method
 the level of the index reflects the total market value of all the
stocks in the index relative to a particular base period

Base Date and Value

Base period – Nov 3, 1996
 Base value – 1000
 Base capital – Rs 0.43 tln

Criteria for Selection of Constituent Stocks

 Liquidity (Impact costs)
 Floating costs
 others
 Historical Data for CNX NIFTY JUNIOR

For the period 07-08-2009 to 10-08-2009

Date Open High Low Close Shares Turnover

trades (Rs. Cr)
07-Aug-2009 8309.00 8426.25 8199.80 8222.95 137974660 2581.31

10-Aug-2009 8317.45 8378.45 8078.40 8123.75 133899923 2322.95

CNX 100
Method of Computation
 market capitalization weighted method
 The method also takes into account constituent changes in the
index and importantly corporate actions such as stock splits,
rights, etc without affecting the index value

Base Date and Value

 Base date - Jan 1, 2003
 Base value – 1000
Criteria for Selection of Constituent Stocks
 this index is a combination of the S&P CNX Nifty and CNX Nifty
Junior
 Any changes i.e. inclusion and exclusion of securities in S&P
CNX Nifty and CNX Nifty Junior would be automatically
mirrored in this new index.
 Historical Data for CNX 100

For the period 07-08-2009 to 10-08-2009

Date Open High Low Close Share Turnover

Trades (Rs. Cr)
07-Aug-2009 4412.85 4451.45 4338.30 4353.35 404846642 12354.08

10-Aug-2009 4402.25 4422.95 4275.45 4309.35 417979005 12351.39

S&P CNX 500
Method of Computation
 market capitalization weighted method
 the level of the index reflects the total market value of all the
stocks in the index relative to a particular base period
 The method also takes into account constituent changes in
the index and importantly corporate actions such as stock
splits, rights, etc without affecting the index value

Base Date and Value

 Base year – calendar year 1994
 Base value is set as 1000
Criteria for Selection of Constituent Stocks
 Market capitalization
 Industry representation
 Trading Interest
 Financial Performance

Historical Data for S&P CNX 500

For the period 07-08-2009 to 10-08-2009

Date Open High Low Close Shares Turnover

Trades (Rs. Cr)
07-Aug-2009 3709.25 3744.15 3652.20 3663.60 677250004 16141.34

10-Aug-2009 3685.25 3714.05 3602.50 3625.00 629912634 15695.77

CNX MIDCAP
Method of Computation
 Primary Objective --- is to capture the movement and be a
benchmark of the midcap segment of the market

Method of Computation
 market capitalization weighted method

Criteria for Selection of Constituent Stocks

 All the stocks, which constitute more than 5% market
capitalization of the universe (after sorting the securities in
descending order of market capitalization), shall be excluded in
order to reduce the skewness in the weightages of the stocks in
the universe
 Step1 : the weightages of the remaining stocks in the universe
is determined again
 Step 2 : the cumulative weightage is calculate
 Step 3 : companies which form part of the cumulative
percentage in ascending order unto first 75 percent (i.e. upto to
74.99 percent) of the revised universe shall be ignored
 Step 4 : all the constituents of S&P CNX Nifty shall be ignored.
 After these steps the following criteria have to be fullfill
• Trading Interests
• Financial Performance
• Others
 Historical Data for CNX MIDCAP

For the period 07-08-2009 to 10-08-2009

Date Open High Low Close Shares Turnover

Trades (Rs. Cr)
07-Aug-2009 5869.10 5942.65 5790.10 5803.00 108612196 1904.52

10-Aug-2009 5818.80 5901.80 5683.80 5706.70 106121073 1731.21

Nifty Midcap 50
Method of computation
 Market capitalization method

Base data and value

 Base year - Jan 1, 2004
 Base value – 1000

Criteria for Selection of Constituent Stocks

 Stocks with average market capitalization ranging from
Rs.1000 Crore to Rs.5000 Crore at the time of selection
 Stocks which are not part of the derivatives segment are
excluded.
 Stocks which are forming part of the S&P CNX NIFTY index
are excluded

Other statistics:
 Nifty Midcap 50 stocks represent about 3.78 % of the total
market capitalization as on March 31, 2009
 The traded volume for the last six months of all Nifty Midcap 50
stocks is approximately 5.41% of the traded volume of all
stocks on the NSE
 Historical Data for NIFTY MIDCAP 50

For the period 07-08-2009 to 10-08-2009

Date Open High Low Close Shares Turnover

Traded (RS. Cr)
07-Aug-2009 2175.85 2205.80 2141.60 2147.60 100413175 1742.82

10-Aug-2009 2168.25 2186.10 2094.75 2105.75 101424769 1908.04

S&P CNX Defty
Calculation of S&P CNX Defty
 Computations are done using the S&P CNX Nifty index
calculated on the NEAT trading system of NSE and INR-USD
exchange rate that is based on the real time polled data feed

S&P CNX Defty = S&P CNX Nifty at time t * Exchange rate as on

base
date
__________________________________
Exchange rate at time t
 MARKET CLOSED    Aug 10, 2009 16:00:23 hours IST

Index Current Prev . %CHANGE

S&P CNX
4437.65 4481.40 -0.98%
NIFTY
CNX NIFTY
8123.75 8222.95 -1.21%
JUNIOR
CNX 100 4309.35 4353.35 -1.01%
S&P CNX
3213.90 3244.20 -0.93%
DEFTY
S&P CNX 500 3625.00 3663.60 -1.05%

CNX MIDCAP 5706.70 5803.00 -1.66%

NIFTY MIDCAP
2105.75 2147.60 -1.95%
50