Nifty Stock Exchange

http://www.nse-india.com/The Organization

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. It recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.

The following years witnessed rapid development of Indian capital market with introduction of internet trading, Exchange traded funds (ETF), stock derivatives and the first volatility index - IndiaVIX in April 2008, by NSE.

August 2008 saw introduction of Currency derivatives in India with the launch of Currency Futures in USD INR by NSE. Interest Rate Futures was introduced for the first time in India by NSE on 31st August 2009, exactly after one year of the launch of Currency Futures.

With this, now both the retail and institutional investors can participate in equities, equity derivatives, currency and interest rate derivatives, giving them wide range of products to take care of their evolving needs.

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Our Group Associate/Affiliate Companies

 

  

 

 

NSCCL

     

        NCCL NSETECH

IISL

  

DotEx Intl. Ltd.

NSE.IT

 

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NSE Milestones

November 1992 Incorporation

April 1993 Recognition as a stock exchange

May 1993 Formulation of business plan

June 1994 Wholesale Debt Market segment goes live

November 1994 Capital Market (Equities) segment goes live

March 1995 Establishment of Investor Grievance Cell

April 1995 Establishment of NSCCL, the first Clearing Corporation

June 1995 Introduction of centralised insurance cover for all trading members

July 1995 Establishment of Investor Protection Fund

October 1995 Became largest stock exchange in the country

April 1996 Commencement of clearing and settlement by NSCCL

April 1996 Launch of S&P CNX Nifty

June 1996 Establishment of Settlement Guarantee Fund

November 1996Setting up of National Securities Depository Limited, first depository in India, co-promoted by NSE

November 1996 Best IT Usage award by Computer Society of India

December 1996 Commencement of trading/settlement in dematerialised securities

December 1996 Dataquest award for Top IT User

December 1996 Launch of CNX Nifty Junior

February 1997 Regional clearing facility goes live

November 1997 Best IT Usage award by Computer Society of India

May 1998Promotion of joint venture, India Index Services & Products Limited (IISL)

May 1998 Launch of NSE's Web-site: www.nse.co.in

July 1998 Launch of NSE's Certification Programme in Financial Market

August 1998 CYBER CORPORATE OF THE YEAR 1998 award

February 1999 Launch of Automated Lending and Borrowing Mechanism

April 1999 CHIP Web Award by CHIP magazine

October 1999 Setting up of NSE.IT

January 2000 Launch of NSE Research Initiative

February 2000 Commencement of Internet Trading

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June 2000 Commencement of Derivatives Trading (Index Futures)

September 2000 Launch of 'Zero Coupon Yield Curve'

November 2000Launch of Broker Plaza by Dotex International, a joint venture between NSE.IT Ltd. and i-flex Solutions Ltd.

December 2000 Commencement of WAP trading

June 2001 Commencement of trading in Index Options

July 2001 Commencement of trading in Options on Individual Securities

November 2001 Commencement of trading in Futures on Individual Securities

December 2001 Launch of NSE VaR for Government Securities

January 2002 Launch of Exchange Traded Funds (ETFs)

May 2002NSE wins the Wharton-Infosys Business Transformation Award in the Organization-wide Transformation category

October 2002 Launch of NSE Government Securities Index

January 2003 Commencement of trading in Retail Debt Market

June 2003 Launch of Interest Rate Futures

August 2003 Launch of Futures & options in CNXIT Index

June 2004 Launch of  STP Interoperability

August 2004 Launch of  NSE’s electronic interface for listed companies

March 2005 ‘India Innovation Award’ by EMPI Business School, New Delhi

June 2005 Launch of Futures & options in BANK Nifty Index

December 2006 'Derivative Exchange of the Year', by Asia Risk magazine

January 2007 Launch of  NSE – CNBC TV 18 media centre

March 2007 NSE, CRISIL announce launch of IndiaBondWatch.com

June 2007 NSE launches derivatives on Nifty Junior & CNX 100

October 2007 NSE launches derivatives on Nifty Midcap 50

January 2008 Introduction of Mini Nifty derivative contracts on 1st January 2008

March 2008 Introduction of long term option contracts on S&P CNX Nifty Index

April 2008 Launch of India VIX

April 2008 Launch of Securities Lending & Borrowing Scheme

August 2008 Launch of Currency Derivatives

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CAPITAL MARKET (EQUITIES) SEGMENT

1 Settlement Guarantee Fund 31-MAR-2009 Rs.4,843.50 crores

2 Investor Protection Fund 31-DEC-2009 Rs.307.00 crores

3 Number of securities available for trading 31-JAN-2010 1,781

4 Record number of trades 19-MAY-2009 11260392

5 Record daily turnover (quantity) 19-MAY-2009 19225.95 lakhs

6 Record daily turnover (value) 19-MAY-2009 Rs.40151.91 crores

7 Record market capitalisation 07-JAN-2008 Rs.67,45,724 crores

8 Record value of S&P CNX Nifty Index 08-JAN-2008 6357.1

9 Record value of CNX Nifty Junior Index 04-JAN-2008 13209.35

 

CLEARING & SETTLEMENT

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

Funds Pay-in/Pay-out (N2007200) 23-OCT-2007* Rs.4,567.70 crores

Securities Pay-in/Pay-out (Value) (N2009088) 21-MAY-2009* Rs.9,523.33 crores

Securities Pay-in/Pay-out (Quantity) (N2009088) 21-MAY-2009* 4,385.75 lakhs

*Settlement Date

 

DERIVATIVES (F&O) SEGMENT

1 Settlement Guarantee Fund 31-MAR-2009 Rs.23,655.86 crores

2 Investor Protection Fund 31-DEC-2009 Rs.52.91 crores

3 Record daily turnover (value) 28-JAN-2010 Rs.166,193.03 crores

4 Record number of trades 07-JAN-2009 1874697

 

CURRENCY DERIVATIVES SEGMENT

1 Record daily turnover (value) 11-JAN-2010 Rs.19,600.72 crores

2 Record number of trades 11-JAN-2010 78935

3 Record number of contracts 11-JAN-2010 4314969

4 Investor Protection Fund 31-DEC-2009 Rs.0.01 crores

 

WHOLESALE DEBT SEGMENT

1 Number of securities available for trading 31-JAN-2010 4,109

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2 Record daily turnover (value) 25-AUG-2003 Rs. 13,911.57 crores

  Our Technology

Across the globe, developments in information, communication and network technologies have created paradigm shifts in the securities market operations. Technology has enabled organisations to build new sources of competitive advantage, bring about innovations in products and services, and to provide for new business opportunities. Stock exchanges all over the world have realised the potential of IT and have moved over to electronic trading systems, which are cheaper, have wider reach and provide a better mechanism for trade and post trade execution.

NSE believes that technology will continue to provide the necessary impetus for the organisation to retain its competitive edge and ensure timeliness and satisfaction in customer service. In recognition of the fact that technology will continue to redefine the shape of the securities industry, NSE stresses on innovation and sustained investment in technology to remain ahead of competition. NSE's IT set-up is the largest by any company in India. It uses satellite communication technology to energise participation from around 200 cities spread all over the country. In the recent past, capacity enhancement measures were taken up in regard to the trading systems so as to effectively meet the requirements of increased users and associated trading loads. With upgradation of trading hardware, NSE today can handle up to 15 million trades per day in Capital Market segment. In order to capitalise on in-house expertise in technology, NSE set up a separate company, NSE Technology Services Ltd. which is expected to provide a platform for taking up all IT related assignments of NSE.

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. The trading server software runs on a fault tolerant STRATUS main frame computer while the client software runs under Windows on PCs.

The telecommunications network which was using X.25 protocol and is the backbone of the automated trading system is being upgraded to use the more popular and modern IP Protocol. This is a major project involving use of X.25 and IP in parallel and ensuring smooth transition to IP. Each trading member trades on the NSE with other members through a PC located in the trading member's office, anywhere in India. The trading members on the various market segments such as CM / F&O, WDM are linked to the central computer at the NSE through dedicated leased lines and VSAT terminals. The Exchange uses powerful RISC -based UNIX servers, procured from HP for the back office processing. The latest software platforms like ORACLE 10g RDBMS, SQL/ORACLE FORMS Front - Ends, etc. have been used for the Exchange applications. The Exchange currently manages its data centre operations, system and database administration, design and development of in-house systems and design and implementation of telecommunication solutions.

NSE is one of the largest interactive VSAT based stock exchanges in the world. Today it supports more than 2000 VSATs and 3000 leased lines across the country. The NSE- network is the largest private wide area network in the country and the first extended C- Band VSAT network in the world. Currently more than 9000 users are trading on the real time-online NSE application. There are over 15 large computer systems which include non-stop fault-tolerant computers and high end UNIX servers, operational under one roof to support the NSE applications. This coupled with the nation wide VSAT network makes

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NSE the country's largest Information Technology user.

In an ongoing effort to improve NSE's infrastructure, a corporate network has been implemented, connecting all the offices at Mumbai, Delhi, Calcutta and Chennai. This corporate network enables speedy inter-office communications and data and voice connectivity between offices.

In keeping with the current trend, NSE has gone online on the Internet. Apart from having multiple internet links and our own domain for internal browsing and e-mail purposes, we have also set up our own Web site. Currently, NSE is displaying its live stock quotes on the web site (www.nseindia.com) which are updated online.

NSE today allows members to provide internet trading facility to their clients through the use of NOW (NSE on web), a shared web infrastructure.

  Careers with Us

Since its inception in 1992, National Stock Exchange of India has been at the vanguard of change in the Indian securities market. This period has seen remarkable changes in markets, from how capital is raised and traded, to how transactions are cleared and settled. The market has grown in scope and scale in a way that could not have been imagined at the time. Average daily trading volumes have jumped from Rs. 17 crore in 1994-95 when NSE started its Cash Market segment to Rs.11,325 crore in 2008-09. Similarly, market capitalization of listed Indian firms went up from Rs.363,350 crore at the end of March 1995 to Rs.2,896,194 crore at end March 2009.

NSE has many firsts to its name such as creation of the first clearing corporation in the country in the form of the National Securities Clearing Corporation Limited (NSCCL), including the first systematic process of member inspections, building a sophisticated market surveillance system, and a country wide high capacity data network supporting close to 200,000 dealer.

NSE is the largest stock exchange of the country. It has a market share of nearly 70% in equity trading and 98% in futures and options trading in India. Globally, NSE ranks among the top three stock exchanges in terms of number of contracts traded in single stock futures, index futures and stock options. We are among the top four of the stock exchanges around the world in terms of number of transactions and are also ranked among the top ten largest derivatives exchanges of the world. At NSE, we are constantly working towards creating a more transparent, vibrant & innovative securities market. This invariably implies that our need for competent people is continuous.

The NSE Group is comprised of National Securities Clearing Corporation Ltd (NSCCL), NSE Infotech Services Ltd, NSE.IT Limited, India Index Services and Products Limited (IISL), Dotex International Ltd., National Securities Depository Limited (NSDL), National Commodity and Derivatives Exchange Limited (NCDEX), National Commodity Clearing Limited (NCCL) and Power Exchange India Limited (PXI).

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As the leading stock exchange and fiscal entity in the country, we believe in recruiting the finest of talent in the industry. We are looking for talent to be developed into future leaders of our organisation by cross-departmental exposure, continuous self-development opportunities and ongoing reinforcement to develop & enhance customer orientation & leadership potential.

Awaiting you is an excellent compensation package including medical benefits, super-annuation benefits and a reward system designed to promote merit and professionalism.

 

Equities

NSE started trading in the equities segment (Capital Market segment) on November 3, 1994 and within a short span of 1 year became the largest exchange in India in terms of volumes transacted.

Trading volumes in the equity segment have grown rapidly with average daily turnover increasing from Rs.17 crores during 1994-95 to Rs.14,148 crores during FY 2007-08. During the year 2007-08, NSE reported a turnover of Rs.3,551,038 crores in the equities segment.

The Equities section provides you with an insight into the equities segment of NSE and also provides real-time quotes and statistics of the equities market. In-depth information regarding listing of securities, trading systems & processes, clearing and settlement, risk management, trading statistics etc are available here

 

Listing

Listing means admission of securities of an issuer to trading privileges on a stock exchange through a formal agreement. The prime objective of admission to dealings on the Exchange is to provide liquidity and marketability to securities, as also to provide a mechanism for effective management of trading.

Listing on NSE provides qualifying companies with the broadest access to investors, the greatest market depth and liquidity, cost-effective access to capital, the highest visibility, the fairest pricing, and investor benefits. NSE trading terminals are now situated in various cities and towns across the length and breath of India.

Securities listed on the Exchange are required to fulfill the eligibility criteria for listing. Various types of securities of a company are traded under a unique symbol and different series.

  Trading

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NSE introduced for the first time in India, fully automated screen based trading. It uses a modern, fully computerised trading system designed to offer investors across the length and breadth of the country a safe and easy way to invest.

The NSE trading system called 'National Exchange for Automated Trading' (NEAT) is a fully automated screen based trading system, which adopts the principle of an order driven market.

 

Clearing & Settlement (Equities)

NSCCL carries out clearing and settlement functions as per the settlement cycles provided in the settlement schedule.

The clearing function of the clearing corporation is designed to work out a) what members are due to deliver and b) what members are due to receive on the settlement date. Settlement is a two way process which involves transfer of funds and securities on the settlement date.

NSCCL has also devised mechanism to handle various exceptional situations like security shortages, bad delivery, company objections, auction settlement etc.

 

Risk Management (Capital Market)

Categorisation of stocks for imposition of margins

Margins

Margins collection from Client

Margin Shortfall

Liquid assets

Margins for institutional deals

Exemption upon early pay-in of securities

Exemption upon early pay-in of funds

Cross Margin

Formats for Collaterals

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Categorisation of stocks for imposition of margins

Stock are classifed into three categories on the basis of their liquidity and

impact cost.

The Stocks which have traded at least 80% of the days for the previous six months shall 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 calculated on the 15th of each month on a rolling basis considering the order book snapshots of the previous six months. On the basis of the impact cost so calculated, the scrips move from one group to another group from the 1st of the next month.

For securities that have been listed for less than six months, the trading frequency and the impact cost are 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.

  Margins

Daily margins payable by members consists of the following:

1. Value at Risk Margin 2. Extreme Loss Margin 3. Mark to Market Margin

Daily margin, comprising of the sum of VaR margin, Extreme Loss Margin and mark to market margin is payable.

Value at Risk Margin

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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. The scrip wise daily VaR is 3.5 times the volatility so calculated subject to a minimum of 7.5%.

For the securities listed in Group II, the VaR margin is higher of scrip VaR (3.5 sigma) or three times the index VaR, and it is scaled up by root 3.

For the securities listed in Group III the VaR margin is equal to five times the index VaR and scaled up by root 3.

The index VaR, for the purpose, is the higher of the daily Index VaR based on S&P CNX NIFTY or BSE SENSEX, subject to a minimum of 5%.

NSCCL may stipulate security specific margins from time to time.

The VaR margin rate computed as mentioned above is charged on the net outstanding position (buy value-sell value) of the respective clients on the respective securities across all open settlements. There is no netting off of positions across different settlements. The net position at a client level for a member is arrived at and thereafter, it is grossed across all the clients including proprietary position to arrive at the gross open position.

For example, in case of a member, if client A has a buy position of 1000 in a security and client B has a sell position of 1000 in the same security, the net position of the member in the security is taken as 2000. The buy position of client A and sell position of client B in the same security is not netted. It is summed up to arrive at the member’s open position for the purpose of margin calculation.

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 or on individual completion of full obligations of funds and securities by the respective member/custodians after crystallization of the final obligations on T+1 day.

Extreme Loss Margin

The Extreme Loss Margin for any security is higher of:

1. 5%, or

2. 1.5 times the standard deviation of daily logarithmic returns of the security price in the last six months. This computation is done at the end of each month by taking the price data on a rolling basis for the past six months and the resulting value is applicable for the next month.

The Extreme Loss Margin is collected/ adjusted against the total liquid assets of the

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member on a real time basis.

The Extreme Loss Margin is collected on the gross open position of the member. The gross open position for this purpose means the gross of all net positions across all the clients of a member including its proprietary position.

There is no netting off of positions across different settlements. The Extreme Loss Margin collected is released on completion of pay-in of the settlement or on individual completion of full obligations of funds and securities by the respective member/custodians after crystallization of the final obligations on T+1 day.

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 NSE is considered as the closing price. In case the net outstanding position in any security is nil, the difference between the buy and sell values shall be is considered as notional loss for the purpose of calculating the mark to market margin payable.

The mark to market margin (MTM) is collected from the member before the start of the trading of the next day.

The MTM margin is collected/adjusted from/against the cash/cash equivalent component of the liquid net worth deposited with the Exchange.

The MTM margin is collected on the gross open position of the member. The gross open position for this purpose means the gross of all net positions across all the clients of a member including its proprietary position. For this purpose, the position of a client is netted across its various securities and the positions of all the clients of a member are grossed.

There is no netting off of the positions and setoff against MTM profits across two rolling settlements i.e. T day and T+1 day. However, for computation of MTM profits/losses for the day, netting or setoff against MTM profits is permitted.

Trade for Trade segment –Surveillance segment

In case of securities in Trade for Trade –Surveillance segment (TFT-S segment) the upfront margin rates (VaR Margin + Extreme Loss Margin) applicable is 100 % and each trade is marked to market based on the closing price of that security.

Capping of margins

In case of a buy transaction, the VaR margins, Extreme loss margins and mark to market losses together cannot exceed the purchase value of the transaction. In case of a sale transaction, the VaR margins and Extreme loss margins together are capped to the extent of the sale value of the transaction and mark to market losses are also levied.

The details of all margins VAR, extreme loss margin and mark to market as at end of each day are downloaded to members in their respective Extranet directory.

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Release of margins

All margins collected for a settlement for a member/custodian are released on their individual completion of full obligations of funds and securities by the respective member/custodians after crystallization of the final obligations on T+1 day. Further, members are provided a facility to provide confirmation from their clearing banks towards their funds pay-in obligations on settlement day before prescribed pay-in time through the prescribed procedure.

 

Margins collection from Client

Members should have a prudent system of risk management to protect themselves from client default. Margins are likely to be an important element of such a system. The same should be well documented and be made accessible to the clients and the Stock Exchanges. However, the quantum of these margins and the form and mode of collection are left to the discretion of the members.

  Margin Shortfall

In case of any shortfall in margin:

The members shall not be permitted to trade with immediate effect.

There is a penalty for margin violation

Penalty applicable for margin violation is levied on a monthly basis based on slabs as mentioned below:  

Instances of Disablement

Penalty to be levied

1st instance 0.07% per day

2nd to 5th instance of disablement

0.07% per day +Rs.5000/- per instance from 2nd to 5th instance

6th to 10th instance of disablement

0.07% per day+ Rs. 20000 ( for 2nd to 5th instance) +Rs.10000/- per instance from 6th to 10th instance

11th instance onwards

0.07% per day +Rs. 70,000/- (for 2nd to 10th instance) +Rs.10000/- per instance from 11th instance onwards. Additionally, the member

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will be referred to the Disciplinary Action Committee for suitable action

Instances as mentioned above shall refer to all disablements during market hours in a calendar month. The penal charge of 0.07% per day shall is applicable on all disablements due to margin violation anytime during the day.

Liquid assets

Members are required to provide liquid assets which adequately cover various margins and Security Deposit requirements. A member may deposit liquid assets in the form of cash, bank guarantees, fixed deposit receipts, approved securities and any other form of collateral as may be prescribed from time to time. The total liquid assets comprise of the cash component and the non cash component wherein the cash component shall be at least 50% of liquid assets.

1. Cash Component:

a. Cash b. Bank fixed deposits (FDRs) issued by approved banks and deposited with approved

custodians or NSCCL. c. Bank Guarantees (BGs) in favour of NSCCL from approved banks in the specified

format. d. Units of money market mutual fund and Gilt funds where applicable haircut is 10%.

2. Non Cash Component:

a. Liquid (Group I) Equity Shares in demat form, as specified by NSCCL from time to time deposited with approved custodians.

b. Mutual fund units other than those listed under cash component decided by NSCCL from time to time deposited with approved custodians.

 Margins for institutional deals

Institutional businesses i.e., transactions done by all institutional investors are margined from T+1 day subsequent to confirmation of the transactions by the custodians. For this purpose, institutional investors include

Foreign Institutional Investors registered with SEBI. (FII)

Mutual Funds registered with SEBI. (MF)

Public Financial Institutions as defined under Section 4A of the Companies Act, 1956. (DFI)

Banks, i.e., a banking company as defined under Section 5(1)(c) of the Banking Regulations Act, 1949. (BNK)

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Insurance companies registered with IRDA. (INS) 

Pension Funds registered with PFRDA (PNF)

Levy of margins:

Institutional transactions are identified by the use of the participant code at the time of order entry.

In respect of institutional transactions confirmed by the custodians the margins are levied on the custodians.

In respect of institutional transactions rejected/not accepted by the custodians the margins are levied on the members who have executed the transactions.

The margins are computed and levied at a client (Custodial Participant code) level in respect of institutional transactions and collected from the custodians/members.

Retail Professional Clearing Member:

In case of transactions which are to be settled by Retail Professional Clearing Members (PCM), all the trades with PCM code are included in the trading member’s positions till the same are confirmed by the PCM. Margins are collected from respective trading members until confirmation of trades by PCM.

On confirmation of trades by PCM, such trades are reduced from the positions of trading member and included in the positions of PCM. The PCMs are then liable to pay margins on the same.

 

Exemption upon early pay-in of securities

In cases where early pay-in of securities  is made prior to the securities pay-in, such positions for which early pay-in (EPI) of securities is made are exempt from margins. Members are required to provide client level early pay-in file in a specified format. The EPI of securities is allocated to clients having net deliverable position, on a random basis unless specific client details are provided by the member/ custodian. However, member/ custodian shall ensure to pass on appropriate early pay-in benefit of margin to the relevant clients. Additionally, member/custodian can specify the clients to whom the early pay-in may be allocated

 Exemption upon early pay-in of funds

In cases where early pay-in of funds is made prior to the funds pay-in, such positions for which early pay-in (EPI) of funds is made shall be exempt from margins subject to bank confirmation.

Members/Custodians shall make early pay-in funds through a screen-based request in the Collateral Interface for Members (CIM). The facility for making early pay-in of funds will be

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separate from the facility of allocation of the early pay-in of funds which can be done either through Screen based request or file upload.

Members/Custodians may provide early pay-in of funds from any of their settlement accounts.

Early pay in of funds may be allocated at client level or at client-security level. The allocation can be revised through a screen based request or through the file upload facility in the specified format.

Members can make early pay-in of funds along with details of client-security allocation before execution of a trade and shall be able to avail the benefit of early pay-in of funds on execution of the trade.

Where no allocation is made, Early pay in of funds would be allocated against the clients in the descending order of their net buy value of outstanding positions.

 Cross Margin

Salient features of the cross margining available are as under:

1. Cross margining benefit is available across Cash and Derivatives segment

2. Cross margining benefit is available to all categories of market participants

3. For client/entities clearing through same clearing member in Cash and Derivatives segments, the clearing member is required to intimate client details through a file upload through Collateral Interface for Members (CIM) to avail the benefit of Cross margining

4. For client/entities clearing through different clearing member in Cash and Derivatives segments they are required to enter into necessary agreements for availing cross margining benefit.

5. For the client/entities who wish to avail cross margining benefit in respect of positions in Index Futures and Constituent Stock Futures only, the entity’s clearing member in the Derivatives segment has to provide the details of the clients and not the copies of the agreements. The details to be provided by the clearing members in this regard are stipulated in the Format.

1. Positions eligible for cross-margin benefit 2. Entities/clients eligible for cross margining 3. Facility of maintaining two client accounts 4. Computation of cross margining benefit 5. Provisions in respect of default 6. Additional Reports for Cross Margin

 

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1. Positions eligible for cross-margin benefit:

Cross margining is available across Cash and F&O segment and to all categories of market participants. The positions of clients in both the Cash and F&O segments to the extent they offset each other are being considered for the purpose of cross margining as per the following priority

a. Index futures and constituent stock futures in F&O segmentb. Index futures and constituent stock positions in Cash segmentc. Stock futures in F&O segment and stock positions in Cash segment

i. In order to extend the cross margin benefit as per (a) and (b) above, the basket of constituent stock futures/ stock positions should be a complete replica of the index futures. NSCCL specifies the number of units of the constituent stocks/ stock futures required in the basket to be considered as a complete replica of the index on the website of the exchange (www.nseindia.com/NSCCL/Notification) from time to time.

ii. The number of units are changed only in case of change in share capital of the constituent stock due to corporate action or issue of additional share capital or change in the constituents of the index.

iii. The positions in F&O segment for the stock futures and index futures should be in the same expiry month to be eligible for cross margining benefit.

iv. The position in a security is considered only once for providing cross margining benefit. E.g. Positions in Stock Futures of security ‘A’ used to set-off against index futures positions will not be considered again if there is an off-setting positions in the security ‘A’ in Cash segment.

v. Positions in option contracts are not considered for cross margining benefit.

2. Entities/clients eligible for cross margining

The clearing member has to inform NSCCL the details of client to whom cross margining benefit is to be provided. The cross margining benefit is available only if clearing members provide the details of clients in such manner and within such time as specified by NSCCL from time to time.

1. Client/entity settling through same clearing member in both Cash and F&O segment

i. The clearing member has to ensure that the code allotted (code used while executing client trade) to client/entity in both Cash and F&O segment is same

ii. The clearing member must inform the details of clients to whom cross margining benefit is to be provided through a file upload facility provided in Collateral Interface for Members (CIM).

2. Client/entity settling through different clearing member in Cash and F&O segment

i. In case a client settles in the Cash segment through a trading member / custodian

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and clears and settles through a different clearing member in F&O segment, then they are required to enter into necessary agreements.

ii. In case where the client/entity settles through Custodian in Cash segment, then the client/entity, custodian and the clearing member in F&O segment are required to enter into a tri-partite agreement as per the format

iii. In case where the client/entity clears and settles through a member in Cash segment, and a different clearing member in F&O segment, then the member in Cash segment and the clearing member in F&O segment have to enter into an agreement as per the format. Further, the client/entity must enter into an agreement with the member as per the format.

iv. The clearing member in the F&O segment must intimate to NSCCL the details of the client/entity in F&O segment along-with letter from trading member/custodian giving details of client/entity in Cash segment who wish to avail cross margining benefit.

3. Facility of maintaining two client accounts

As specified by SEBI, a client may maintain two accounts with their respective members to avail cross margin benefit only. The two accounts namely arbitrage account and a non-arbitrage account may be used for converting partially replicated portfolio into a fully replicated portfolio by taking opposite positions in two accounts. However, for the purpose of compliance and reporting requirements, the positions across both accounts shall be taken together and client shall continue to have unique client code.

4. Computation of cross margining benefit

i. The computation of cross margining benefit is done at client level on an online real time basis and provided to the trading member / clearing member / custodian, as the case may be, who, in turn, shall pass on the benefit to the respective client.

ii. For institutional investors the positions in Cash segment are considered only after confirmation by the custodian on T+1 basis and on confirmation by the clearing member in F&O segment.

iii. The positions in the Cash and F&O segment are considered for cross margining only till time the margins are levied on such positions.

iv. While reckoning the offsetting positions in the Cash segment, positions in respect of which margin benefit has been given on account of early pay-in of securities or funds are not considered.

v. The positions which are eligible for offset, are subject to spread margins. The spread margins are 25% of the applicable upfront margins on the offsetting positions or such other amount as specified by NSCCL from time to time.

vi. The difference in the margins on the total portfolio and on the portfolio excluding off-setting positions considered for cross margining, less the spread margins is considered as cross

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margining benefit. Example

5. Provisions in respect of default

In the event of default by a trading member / clearing member / custodian, as the case may be, whose clients have availed cross margining benefit, NSCCL may:

i. Hold the positions in the cross margin account till expiry in its own name.

ii. Liquidate the positions / collateral in either segment and use the proceeds to meet the default obligation in the other segment.

iii. In addition to the foregoing provisions, take such other risk containment measures or disciplinary action as it may deem fit and appropriate in this regard.

6. Additional reports

Additional reports providing details of cross margin benefit and off-setting positions at client level are provided to members as per the format specified

 

Market Information

Market Today

Historical Data

Market Today Trade Statistics for 11-Mar-2010

Product No. ofcontracts

Turnover(Rs. cr.) *

Put Call

Ratio

Index Futures 461075 11527.33 -

Stock Futures 404476 14175.49 -

Index Options 1496559 38434.54 0.99

Stock Options 56923 2085.75 0.31

F&O Total 2419033 66223.11 0.96* Notional Turnover in case of options

Archives

Get Quote

Bhavcopy (fo.zip)Bhavcopy Download | ArchivesMarket Activity Report | ArchivesSPAN Risk Parameter Files | ArchivesDaily Settlement Prices | ArchivesDaily Volatility | ArchivesClient-wise

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Position Limits | ArchivesBase Prices for Illiquid Contracts | Help File    

Cumulative FII positions as percentage of total gross market position in the derivative segment as on March 10, 2010 is 31.38%

FII derivatives statistics as on 10-Mar-2010

 

Historical Data

Archives

Contract-wise Price Volume Data

Charting with TAME-LITE

Facts & Figures

Business Growth in Derivatives segment

Monthly Derivatives Update | Exercise File | Archives

Nifty close on expiry

Quantity Freeze

Average Quarter Sigma

  Wholesale Debt Market

The Wholesale Debt Market segment deals in fixed income securities and is fast gaining ground in an environment that has largely focussed on equities.

The Wholesale Debt Market (WDM) segment of the Exchange commenced operations on June 30, 1994. This provided the first formal screen-based trading facility for the debt market in the country.

This segment provides trading facilities for a variety of debt instruments including Government Securities, Treasury Bills and Bonds issued by Public Sector Undertakings/ Corporates/ Banks like Floating Rate Bonds, Zero Coupon Bonds, Commercial Papers, Certificate of Deposits, Corporate Debentures, State Government loans, SLR and Non-SLR Bonds issued by Financial Institutions,

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Units of Mutual Funds and Securitized debt by banks, financial institutions, corporate bodies, trusts and others.

Large investors and a high average trade value characterize this segment. Till recently, the market was purely an informal market with most of the trades directly negotiated and struck between various participants. The commencement of this segment by NSE has brought about transparency and efficiency to the debt market, along with effective monitoring and surveillance to the market.

 

Corporate Bonds

Corporate bonds are debt securities issued by private and public corporations. Companies issue corporate bonds to raise money for a variety of purposes, such as building a new plant, purchasing equipment, or growing the business. When one buys a corporate bond, one lends money to the "issuer," the company that issued the bond. In exchange, the company promises to return the money, also known as "principal," on a specified maturity date. Until that date, the company usually pays you a stated rate of interest, generally semiannually. While a corporate bond gives an IOU from the company, it does not have an ownership interest in the issuing company, unlike when one purchases the company's equity stock.

  Retail Debt Market

With a view to encouraging wider participation of all classes of investors across the country (including retail investors) in government securities, the Government, RBI and SEBI have introduced trading in government securities for retail investors.

Trading in this retail debt market segment (RDM) on NSE has been introduced w.e.f. January 16, 2003. Trading shall take place in the existing Capital Market segment of the Exchange.

In the first phase, all outstanding and newly issued central government securities would be traded in the retail segment. Other securities like state government securities, T-Bills etc. would be added in subsequent phases.

Listing

All Government securities and Treasury bills are deemed to be listed automatically as and when they are issued. Other securities, issued publicly or placed privately, could be listed or admitted for trading, if eligible, as per rules of the Exchange by following prescribed procedure.

Certain securities like Treasury Bills and other securities issued by Government of India and certain Corporate and PSU debt securities available in demat form are eligible for Repo. Every security in the trading system is given a symbol representative of the security.

The market capitalisation of the securities on the WDM segment has been increasing steadily.

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The segment has also seen a marked increase in the number of securities available for trading other than the traditional instruments like Govt. securities and T-bills

Market Timings

Trading in the WDM segment is open on all days except Saturdays, Sundays and other holidays, as specified by the Exchange. The market timings are as given below:

Trading Days Same day Settlement Other day Settlement

Monday to Friday 10.00 a.m. to 3.00 p.m. 10.00 a.m. to 5.45 p.m.

Trading on WDM segment is divided into three phases as under:1.  Pre-Open2.  Market Open3.  SURCON

Pre-Open Market PhaseThe pre-open period commences from 9.00 a.m. This period allows the trading member/Participant to:§  set up counter party exposure limits§  set up Market Watch (the security descriptor)§  make inquiries

Market Open PhaseThe system allows for inquiries of the following activities when the market is open for trading:1.  Order Entry2.  Order Modification3.  Order Cancellation4.  Negotiated Entry5.  Trade Cancellation6.  Setting up counter party exposure limits

Post Market Phase (also called SURCON)During the period of SURCON (SURveillance and CONtrol) a trading member gets only inquiry access with a facility to request for trade cancellation. On completion of SURCON the trading system processes data and gets the system ready for the next day.

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Entities

Due to the high trade values and the market practice of settling deals bilaterally, participants generally set a maximum risk exposure vis-a-vis all potential counter parties in the market to ensure that they do not take any undue risk exposure against any particular counter party. Recognising this feature of the market, the WDM trading system provides for two kinds of entities on the segment: Hence this market segment has a two-tier system that recognizes Trading members and Participants and their roles have been clearly explained in Exchange guidelines.

Trading System

The fully computerised, on-line trading system used in the WDM segment of the Exchange has changed the very manner in which trading is perceived in the Indian securities market. Besides the fact that the system helped increase in trading velocities and cut time frames, it has also managed to incorporate the critical aspect of security in its functioning.

The Exchange provides a facility for screen based trading with order matching facility. The members are connected from their respective offices at dispersed locations to the main system at the NSE premises through a high-speed, efficient satellite tele-communication network. The trading system is an order-driven, automated order matching system, which does not reveal the identity of parties to an order or a trade. This helps orders whether large or small to be placed without the members being disadvantaged by disclosure of their identity. The trading system operates on a price time priority. Orders are matched automatically by the computer keeping the system transparent, objective and fair. Where an order does not find a match it remains in the system and is displayed to the whole market, till a fresh order which matches, comes in or the earlier order is cancelled or modified.

The trading system provides tremendous flexibility to the users in terms of the type of orders that can be placed on the system. Several time-related, price-related or volume-related conditions can easily be placed on an order. The trading system also provides complete on-line market information through various inquiry facilities. Detailed information on the total order depth in a security, the best buys and sells available in the market, the quantity traded in that security, the high, the low and last traded prices are available through the various market screens at all points of time.

  Brokerage Rates

The Exchange has specified the maximum rates of brokerage chargeable by trading members in relation to trades done in securities available on the WDM segment of the Exchange.

Govt. Of India Securities and T-Bills

Order Value upto Rs.10 million 25 ps. per Rs.100

More than 10 million upto 50 million 15 ps. per Rs.100

More than 50 million upto 100 million    10 ps per Rs.100

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More than 100 million 5 ps per Rs.100

 

State Govt. Securities & Institutional Bonds

Order Value upto Rs.2.5 million 50 ps. per Rs.100

More than 2.5 million upto 5 million 30 ps. per Rs.100

More than 5 million upto 10 million 25 ps per Rs.100

More than 10 million upto 50 million 15 ps per Rs.100

More than 50 million upto 100 million 10 ps per Rs.100

More than 100 million 5 ps per Rs.100

 

PSU & Floating Rate Bonds

Order Value upto Rs.10 million 50 ps. per Rs.100

More than 10 million upto 50 million 25 ps. per Rs.100

More than 50 million upto 100 million 15 ps per Rs.100

More than 100 million 10 ps per Rs.100

 

Market Holidays

Commercial paper and Debentures 1% of the order value

WHOLESALE DEBT MARKETCircular No. 372Sub: Trading holidays for the calendar year 2010.Dear Trading Members and Participants,In pursuance of the Trading Regulation No 2.3.1, it is hereby notified thatholidays enclosed as Annexure shall be observed as Trading Holidays bythe Wholesale Debt Market Segment of the Exchange for the calendar year2010.For and on behalf ofFor National Stock Exchange of India LtdSd/-Suprabhat LalaAsst. Vice PresidentDate: Dec 31, 2009

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Download No: 13793Heena PendharkarShishir ShekharAnuya Bhave022-26598285022-26598287022-26598290wdm@nse.co.inNo of Pages:2AnnexureSr,No. Date Day Description1. 26-Jan-10 Tuesday Republic Day2. 12-Feb-10 Friday Mahashivratri3. 01-Mar-10 Monday Holi ( 2nd day)4. 16-Mar-10 Tuesday Gudi Padwa5. 24-Mar-10 Wednesday Ram Navmi6. 02-Apr-10 Friday Good Friday7. 14-Apr-10 Wednesday Dr Babasaheb Ambedkar Jayanti8. 27-May-10 Thursday Buddha Pournima9. 19-Aug-10 Thursday Parsi New Year ( Shahenshahi)10. 10-Sep-10 Friday Ramzan Id (Id-ul-Fitar) ( Shawal-1)11. 05-Nov-10 Friday Diwali Amavasya ( Laxmi Pujan)12. 17-Nov-10 Wednesday Bakri Id (Id-uz-Zua)13. 17-Dec-10 Friday MoharumThe holidays falling on Saturday / Sunday are as follows:Sr,No. Date Day Description1. 27-Feb-10 Saturday Id-e-Milad2. 28-Mar-10 Sunday Mahavir Jayanti3. 01-May-10 Saturday Maharashtra Day4. 15-Aug-10 Sunday Independence day5. 11-Sep-10 Saturday Ganesh Chaturthi6. 02-Oct-10 Saturday Mahatma Gandhi Jayanti7. 17-Oct-10 Sunday Dasara8. 07-Nov-10 Sunday Diwali ( Balipratipada)/ Bahubeej)9. 21-Nov-10 Sunday Guru Nanak Jayanti10. 25-Dec-10 Saturday Christmas

SEBI Circular

SEBI/CFD/DIL/BOND/1/2006/12/12December 12, 2006

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The Managing Director / Executive Director / AdministratorOf All Stock ExchangesDear Sirs,Sub: Corporate Bond Market – Launch of Reporting PlatformI. SEBI had issued circular No.SEBI/MRD/SE/AT/36/2003/30/09 dated September30, 2003 stipulating the conditions to be complied in respect of privateplacement of debt securities. These conditions governed three aspects, viz.,issuance, listing and trading of privately placed debt securities. Subsequently,circular No.SEBI/MRD/SE/AT/46/2003 dated December 22, 2003 was issuedwhich included clarifications on the circular issued earlier in the matter.II. In order to implement the Union budget proposal on creation of a unifiedplatform for trading of Corporate Bonds, it has been decided to establish, in thefirst phase, a system to capture all information related to trading in corporatebonds as accurately and as close to execution as possible through anauthorized reporting platform. In the second phase of development, it isproposed to permit recognized stock exchanges having nationwide access toset up a corporate bond trading platform to enable efficient price discovery andreliable clearing and settlement in a gradual manner.III. It has been decided that Bombay Stock Exchange Limited would be setting upand maintaining a corporate bond reporting platform as envisaged in the firstphase. For the purpose, the following shall be implemented with effect fromJanuary 1, 2007:1. The term ‘Corporate Bonds’ for this purpose shall include all listed debtsecurities issued by institutions such as Banks, Public Sector Undertakings,Municipal Corporations, bodies corporate and companies.2. All issuers, intermediaries and contracting parties shall be granted accessto the corporate bond reporting platform for reporting of trades. Wheretransactions are executed through the intermediary, reporting responsibilityshall lie with the intermediary. If executed otherwise, reporting will be madeeither through an authorized intermediary or directly by the contractingparties.¹ãÀãØã ºããÔãì Parag Basu„¹ã ½ãÖã¹ãƺãâ£ã‡ãŠ Deputy General Managerãä¶ãØã½ã ãäÌã§ã ãäÌã¼ããØã / Corporation Finance Departmentãä¶ãØãý㠆Ìãâ ÔãîÞããèºã®¦ãã ¹ãƼããØã / Division of Issues and ListingPhone: +91 22 2644 9360 Email: paragb@sebi.gov.in

Page 2 of 33. All transactions in corporate bonds of the value of Rs.1,00,000 or above arerequired to be reported to the corporate bond platform. The transactionsshall be reported within 30 minutes of closing the deal. The information onsettlement shall be reported by the parties involved in the transaction within1 trading day from completion of the settlement.4. The Bombay Stock Exchange Limited (BSE) shall ensure that theCorporate Bond Reporting platform for the purpose shall be available from10.00 am to 5.30 pm on all trading days.5. The access to the platform for the purpose of reporting will be given to allmarket intermediaries who approach BSE for the purpose. The connectivityto the non-members of the Exchange would be enabled through VirtualPrivate Network (VPN).6. The BSE shall populate the data reported on their platform on their websiteon a real time basis for information of investors/public.7. Since the platform is purely for reporting purposes, the stock exchangeshall have no role or liability for settlement of these trades. Theintermediaries/ contracting parties shall settle the trades bilaterally.8. Issuers are required to disclose/ update regularly all material information

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such as rating obtained on the instruments and the rating migrations as andwhen they take place, record date, reasons for record date, put/call optiondates, units exercised under put/call option etc, failing which action may beinitiated against the issuer and/or its directors/promoters.IV. Applicability1. The reporting shall be made for all trades in listed debt securities issued byall institutions such as Banks, Public Sector Undertakings, MunicipalCorporations, bodies corporate and companies.2. The reporting of trades in Corporate Bonds shall be made by all person(s)dealing in such corporate bonds irrespective of whether they are SEBIregistered intermediaries or otherwise.V. Direction to Stock ExchangesAll Stock Exchanges are directed to:a. Make necessary amendments to the listing agreement, bye- laws, rules andregulations for the implementation of the above decision immediately, asmay be applicable and necessary.Page 3 of 3b. Bring the provisions of this circular to the notice of the entities in both equityand debt segments, member brokers, clearing members of the Exchangeand also to disseminate the same on the website for easy access to theinvestors; andc. Communicate to SEBI, the status of the implementation of the provisions ofthis circular in Section II, item no. 13 of the Monthly Development Reportfrom the month of January, 2007.VI. This circular is issued in exercise of powers conferred by sub-section (1) ofSection 11 of the Securities and Exchange Board of India Act, 1992, to protectthe interests of investors in securities and to promote the development of, andto regulate the securities market. The provisions of the earlier circularsNo.SEBI/MRD/SE/AT/36/2003/30/09 dated September 30, 2003 and CircularNo.SEBI/MRD/SE/AT/46/2003 dated December 22, 2003 in so far as they areinconsistent with the provisions of the instant circular shall stand superceded.VII. This circular is available on SEBI website at www.sebi.gov.in.Yours faithfully,Parag Basu

Settlement

Settlement is on a rolling basis, i.e. there is no account period settlement. Each order has a unique settlement date specified upfront at the time of order entry and used as a matching parameter. It is mandatory for trades to be settled on the predefined settlement date. The Exchange currently allows settlement periods ranging from same day (T+0) settlement to a maximum of (T+2) for non-government securities while settlement of all outright secondary market transactions in government securities was standardized to T+1. In case of repo transactions in government securities, first leg can be settled either on T+0 basis or T+1 basis. The above guidelines came into effect from May 24, 2005.(Refer Circular no: NSE/WDM/6313)

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

27

securities are reported to RBI-SGL through the Negotiated Dealing System (NDS) of RBI, and Clearing Corporation of India Limited (CCIL) provides settlement guarantee for transactions in government securities including repos. The trades are settled on a net basis through the DvP-III system. In the DvP-III, the settlement of Securities and Funds are carried out on a net basis.

For securities other than government securities and T-bills, trades are settled on a gross basis directly between participants on delivery versus payment basis.

On the scheduled settlement date, the Exchange provides data/information to the respective member/participant regarding trades to be settled on that day with details like security, counter party and consideration.

The settlement details for non-government securities, i.e. certificate no., Cheque no., constituent etc. are reported by the member/participant to the Exchange.

The Exchange closely monitors the settlement of transactions through the reporting of settlement details by members and participants. In case of deferment of settlement or cancellation of trade, participants are required to seek prior approval from the Exchange. For any dispute arising in respect of the trades or settlement, the exchange has established arbitration mechanism for resolving the same.

Products & Services

 FIMMDA-NSE MIBID MIBOR

 NSE Zero Coupon Yield Curve (ZCYC)

 NSE VaR for Government Securities

 NSE Government Securities Index

  Reference Rates - 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 watches. It plays a useful role in a variety of situations.

In particular, a call money reference rate can find the following applications:

Traders can make many decisions as offsets compared with the prevailing reference rate.

Derivatives require a clearly defined reference rate as a foundation, off which the pay-off from the derivative is defined.

A variety of contracts can be structured as offsets from the future levels of a reference rate. The simplest example may be a floating rate bond that uses an interest rate

28

which is a given 'n' offsets above a given reference rate.

Apart from its accuracy, such a reference rate needs to have other qualities. The methodology of collation and computation should be scientific, should eliminate noise, and resist manipulation. It should be from an unbiased source, be representative of the market, transparent, reliable and continuously available. Moreover, it should find applicability across a wide range of products. A reference rate, which embodies all these qualities, would be widely acceptable to the market as the benchmark rate.

 

NSE Zero Coupon Yield Curve (ZCYC)

With NSEIL's strong focus on debt market segment and the long felt need to create standardized market practices, NSEIL has embarked upon developing products that will be used by the market participants to address themselves to issues relating to this market segment.

In its continuing effort to innovate, the Exchange has developed a 'Zero Coupon Yield Curve' (ZCYC) that will help in valuation of sovereign securities across all maturities irrespective of its liquidity. It aims to create uniform valuation standards in the market. The product has been developed keeping in mind the requirements of the banking industry, financial institutions, mutual funds, insurance companies, etc. that have substantial investment in sovereign papers. NSE ZCYC aims to help in improving Asset Liability Management of institutions with realistic valuations of portfolio of sovereign papers. It has been developed keeping in mind the emergence of a scientific forward curve for the market that will be useful in developing derivative products and STRIPS in the emerging scenario.

NSE VaR for Government Securities

Value-at-Risk (VaR) has been widely promoted by regulatory authorities as a way of monitoring and managing market risk and as a basis for setting regulatory minimum capital standards. The revised Basle Accord, implemented in January 1998, makes it mandatory for banks to use VaR as a basis for determining the amount of regulatory capital adequate for covering market risk beyond that required for credit risk. Within the realm of the fixed income portfolios of financial sector players, market related risk has become more relevant and important on account of their trading activities and market positions. For players in the Indian financial sector, the need to develop risk measurement models would prove critical as regulation progressively moves from uniform prudential standards to entity-specific risk coverage requirements. Specifically, the guidelines call for linking of each entity’s market risk capital charge to the riskiness of its assets as measured by the chosen VaR model. Accuracy of measurement would prove critical as regulation would not specify ‘a’ single model for measurement of risk; - the choice of model would be left to market participants who would also be required to furnish details of back-testing for the chosen VaR model. While a conservative estimate of risk would lead to very large capital holdings, a liberal estimate would result in inadequate coverage of loss and excessive number of model failures historically, which would in turn attract penalties from the regulator. It would therefore be in the interest of market participants to develop models that

29

accurately measure the riskiness of their portfolios and furnish estimates of capital charge that would provide adequate cover. An important consideration in this context is that setting up of risk measurement systems by each individual participant for estimating portfolio risk under alternative models and scenarios would involve significant costs.

In line with its endeavour to develop market infrastructure, NSE has taken initiative in developing a VaR system for measuring the market risk inherent in Government of India (GoI) securities. The NSE-VaR system builds on the NSE database of daily yield curves - the NSE-ZCYC is now well accepted in terms of its conceptual soundness and empirical performance, and is increasingly being used by market participants as a basis for valuation of fixed income instruments. The NSE-VaR system provides measures of VaR using 5 alternative methods - variance-covariance (normal) and historical simulation methods, together with weighted normal, weighted historical simulation and the recently developed extreme value method [a technical paper explaining these methods is available on the NSE website]. While the first set of methods are easier to implement and therefore more popular, they may not provide accurate assessment of risk in volatile market conditions. To this end, we provide estimates based on the latter set of methods that are specifically suited for this purpose. Together, the 5 methods would provide a range of options for market participants to choose from.

NSE Government Securities 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 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 is available from January 1, 1997 to the present. The index would provide a benchmark for portfolio management by various investment managers and gilt funds. It could also form the basis for designing index funds and for derivative products such as options and futures.

Salient features of the Index:

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.

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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 also 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

More details available in the Technical Paper

NSE G-Sec Index for the day

As on 19-March-2010

Index Total

Returns Index

Principal Returns

index

Avg. Coupon

Avg. Residual Maturity

Portfolio YTM

Portfolio Duration

Portfolio Modified Duration

Portfolio Convexity

ALL 295 122.46 7.935 9.594 8.210 5.772 5.544 60.947

1-3 248.88 89.98 8.953 1.841 7.392 1.697 1.637 3.214

3-8 289.17 108.22 7.791 5.533 8.025 4.459 4.287 23.845

8+ 355.58 136.69 7.692 15.539 8.315 8.550 8.209 108.458

TB 271.24 271.24 0.000 0.280 4.280 0.277 0.271 0.147

GS 298.11 111.54 7.935 10.224 8.222 6.136 5.894 64.945

Time Series: - Composite index  - Sub maturity 1-3 years  - Sub maturity 3-8 years  - Sub maturity 8+ years  - Dated Government securities index  - Treasury Bill index

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Issuer's Offer Document

Recent Issues

Issuer's Offer Documents for instruments issued after Sep 30, 2003

Issuer's Offer Documents for instruments issued prior to Sep 30, 2003

 

Retail Debt Market

With a view to encouraging wider participation of all classes of investors across the country (including retail investors) in government securities, the Government, RBI and SEBI have introduced trading in government securities for retail investors.

Trading in this retail debt market segment (RDM) on NSE has been introduced w.e.f. January 16, 2003. Trading shall take place in the existing Capital Market segment of the Exchange.

In the first phase, all outstanding and newly issued central government securities would be traded in the retail segment. Other securities like state government securities, T-Bills etc. would be added in subsequent phases.

 SLBS

NSCCL as an Approved Intermediary has launched the Securities Lending & Borrowing Scheme from April 21, 2008. Lending & Borrowing will be on an automated screen based platform where the order matching will be on price time priority. The borrowing will be for a fixed tenure of thirty days with the first leg settlement on T+1 day and reverse leg settlement on T+31 day. Securities traded in F&O segment shall be eligible for lending & borrowing under the scheme.

 

Market Information

Market Today

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Historical Data

Order Matching

Order Matching System NSE operates on the 'National Exchange for Automated Trading' (NEAT) system, a fully automated screen based order matching system, which adopts the principle of an order driven market.

Market Timings The platform for borrowing and lending is available on all days of the week (except Saturdays and Sundays and holidays declared by the Exchange in advance). The market timings of the Securities Lending & Borrowing Market are:Market Open: 09:00 hoursMarket Close: 15:30 hours

Note: The NSCCL may however close the market on days other than the above schedule holidays or may open the market on days originally declared as holidays. The NSCCL may also extend, advance or reduce market hours when its deems fit and necessary.

Securities Available for Borrow / Lending

ParametersThe parameters for SLBS are as follows:-

Series "FL"

Permitted Lot Size 1

Tick Size Rs. 0.01

Price Band No Band with operating range of 40%

Mkt. Type Indicator N (Normal Market)

Book Type RL (Regular Lot)

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Trader WorkstationThe trader workstation is the terminal from which the member accesses the borrow and lending system. Each member has a unique identification by way of Participant ID and User ID through which he is able to log on to the system for order entry purposes. A ‘participant’ can have multiple user IDs allotted to him by which he can have more than one employee using the system concurrently. 

Clearing & Settlement (SLBS)

Participant EligibilityAll Clearing members of NSCCL including Banks and Custodians referred to as ‘Participant’ are eligible to participate in SLBS. In order to participate in SLBS, clearing members have to register as Participants in SLBS.

For this purpose, the eligible persons are required to follow the registration procedure as specified by NSCCL which includes entering into an agreement with NSCCL as per the format specified.

Participants desirous of lending or borrowing securities can do so either on their own account or on behalf of their clients. Prior to undertaking lending or borrowing of securities on account of clients, the Participants are required to enter into an agreement with each client as per the format specified by NSCCL.

The Participant need to apply to NSCCL for allotment of a “Unique client ID” for each client with whom they have entered into the agreement for participating in SLBS.

The formats of Agreement between NSCCL & Participant and Participant & Client along with the procedure of UCI allotment to clients is available in SLB Circular NSE/CMPT/10164 dated January 30, 2008.

Eligible Securities

Securities Available for Borrow / Lending

Currently securities available for trading in F&O segment of National Stock Exchange of India Ltd. (NSEIL) are permitted.

Securities lending and borrowing is permitted in dematerialized form only.

Securities in which there are corporate actions are subject to either foreclosure of transactions or adjustment depending on the type of corporate action.

Period of lendingThe tenure of lending / borrowing shall be thirty trading days. Accordingly the return of securities by borrower shall be scheduled on the T+31 day (where T is the SLBS transaction day). This is a fixed tenure lending / borrowing.

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Clearing:All obligations are on a gross basis i.e. there is no netting of transactions. Where the participant have transacted for their client or on their own account the obligation arising out of such transactions shall be on the Participant. However, where participants have transacted for a Custodial Participant (CP) client the transaction shall be subject to confirmation of the respective custodian and the obligation shall be the Custodians. However, non-confirmation of such transactions by the Custodian would revert the transaction to the participants obligation. Obligations for the first leg are downloaded to participants/Custodians on the T day and obligations for the reverse leg are downloaded on T+1 day.

Transactions under SLBS segment are identified based on different settlement types as intimated by NSCCL for the first leg and reverse leg settlements.

Lender’s Obligation : The lenders obligation is the securities lent on T day (Transaction date). The lender is required to deliver the securities by the scheduled time on T+1 day.

Borrower’s Obligation : Borrower’s obligation is the lending fees in cash form and the lending price ( T-1 day closing price in the underlying security) in cash collaterals payable on T+1 day.

Settlement Procedure:The pay-in and pay-out of funds and securities is through the designated bank accounts and securities settlement account respectively.

Transactions are settled on a T+1 day basis for the First LegTransactions are settled on a T+31 day basis for the Reverse leg

Clearing & Settlement cycle for a lending and borrowing transaction

Designated Bank AccountThe bank account currently used by Participant for settlement of funds in the Capital Market segment is the designated bank account for giving effect to funds debits/credits under SLBS.

Securities Settlement AccountParticipants are required to maintain accounts with both depositories i.e NSDL & CDSL. The pool account currently used by Participants in NSDL for effecting securities pay-in and pay-out in the Capital Market segment is used for settlement under SLBS.

In case of CDSL, Participants are required to open a separate settlement account for effecting securities pay-in and pay-out under SLBS.

Client direct payout facilityParticipants / Custodians have been provided the facility of crediting the payout of securities directly to clients account. In order to avail of this facility, participant/custodian are required to provide a file in the specified file format available in SLB Circular (NSE/CMPT/10134) dated January 25, 2008 containing details of the beneficiary accounts to which direct credit is to be given.

35

Process of return of securitiesThe borrowing Participants are required to return the securities borrowed on completion of period of lending i.e on T+31 day. The securities are returned to the lender of the securities by NSCCL on the T+31 day. In the case of borrower failing to return securities, NSCCL conducts an auction for obtaining securities. In the event of failure to procure securities in auction the transactions are financially closed-out on the basis of the close-out computation formula.

Shortages and Close outIn the event of funds shortage by the borrower, the SLBS transactions are cancelled and the securities returned to the lenders along with lending fees.

In the event the lender fails to deliver securities, the transaction is closed out as per the below procedure.

Higher of:

25% of closing price of the security on T+1 day (closing price for the security in the capital market segment of NSEIL), or

(Maximum trade price of the security in the capital market segment of NSEIL from T to T+1 day) - (T+1 day closing price of the security in capital market segment of NSEIL)

In the event the borrower fails to return the securities NSCCL conducts a buy-in auction in the Capital Market segment of NSEIL.

If the security cannot be bought through the buy-in auction, the transaction is closed out as per the below procedure.

Higher of:

The maximum traded price in the Capital Market segment of NSEIL from T+1 day to T+31 day, or

25% above the closing price of the security in the capital market segment on the T+31 day

In all cases of shortages, NSCCL may initiate various actions including withdrawal of access to the order matching platform, withhold of the securities/funds pay-out due to the Participant or any other action as may be intimated by NSCCL.

Adjustment for Corporate ActionsAll transactions in case of corporate actions other than dividend and Stock spilt shall be foreclosed 2 days prior to ex-date.

In case of dividend, the dividend amount shall be collected from the borrower on the reverse leg settlement date and shall be paid to the lender on the reverse leg settlement date.

In case of stock split the position of the borrower would be proportionately adjusted and the lender shall receive the revised quantity on the reverse leg settlement date.

36

Adjustment of lending fees in case of foreclosureIn case of foreclosure where the corporate action is announced by NSCCL after the transaction has been executed, lending fees shall be adjusted on a pro-rata basis by NSCCL. The lending fee shall be bought by the lender on the foreclosure settlement date and shall be passed on to the borrower.

However in case of foreclosure where the corporate action is announced upfront by NSCCL before the transaction has been executed there shall be no adjustment of lending fee. Market participants shall accordingly quote lending fee for the shorter transaction cycle.

Risk Management (SLBS)

Position LimitsThe applicable position limits for SLBS are as under:

(a) the market–wide position limits for SLB transactions is 10% of the free-float capital of the company in terms of number of shares(b) No Participant should have open position of more than 10% of the market-wide position limits or Rs. 50 crore (base value), whichever is lower(c) For a FII/MF, the position limits are the same as of the Participant(d) The client level position limits should not be not more than 1% of the market-wide position limits. All the applicable position limits applicable are computed on the last trading day of every month which will be applicable for the next month.

Collateral DepositsParticipants may deposit collaterals in the form of cash equivalents i.e. cash, fixed deposit receipts and bank guarantee. The collateral deposited by the participant are utilized towards margin requirement of the participant.

In case of failure of the participant to meet its obligation, the collaterals provided by the participants may be liquidated by NSCCL to meet the obligation of the participant.

Minimum CollateralEvery participant is required to continuously maintain minimum collateral of Rs.10 lacs in the form of cash as prescribed by NSCCL. This deposit should be provided by the participant at the time of registration in Securities Lending and Borrowing Scheme (SLBS).

MarginsAll transactions under SLBS are subject to margins. Following margins are applicable for transactions under SLBS.

First Leg transactionsBoth lender and borrower are levied margins in respect of first leg of transactions under SLBS.

Borrow transactionThe borrower is levied only the Lending fee on T day.

Lend transaction

The following margins are levied on the Participants for lend transactions:

37

1. Mark to Market Margins2. 25% of the Lending price

Lenders may bring in early pay-in of securities on the day of the transaction execution itself. In such cases no margins are levied on the lender.

Reverse Leg transactions

Borrow transaction- Reverse leg

The borrower is levied margins in respect of reverse leg of transactions under SLBS. The following margins are levied on the Participants for a borrow transaction from T+1 to T+31 day.

1. Value at Risk Margins2. Extreme Loss Margins3. Mark to Market Margins4. Lending price

Lending price is collected in the form of cash or cash equivalents as prescribed by NSCCL.

Borrower’s may bring in early pay-in of securities any time during the tenure of the borrowal period for availing of margin benefits.

Lend transaction- Reverse leg

The Lender would not be charged any margins for the reverse leg.

Value at Risk Margin (VaR Margin)

VaR  margin rate as applicable to the security in the capital market segment are applicable in the SLBS.

The VaR margin is collected on an upfront basis by adjusting against the collateral of the Participant at the time of transaction.

The VaR margin is collected on the gross open position of the Participant. The gross open position for this purpose would mean the gross of all positions across all the clients of a Participant including its proprietary position.

VaR margin rate for each security is disseminated to the Participants through the Extranet and on the website of the Exchange.

The VaR margin so collected is released on completion of pay-in of the respective settlement. 

Extreme Loss Margin

Extreme Loss margin (ELM) rate as applicable to the security in the capital market segment is applicable in the SLBS.

38

The Extreme Loss margin is collected on an upfront basis by adjusting against the collateral of the Participant at the time of transaction.

The Extreme Loss margin is collected on the gross open position of the Participant. The gross open position for this purpose would mean the gross of all positions across all the clients of a Participant including its proprietary position.

The Extreme Loss margin so collected is released on completion of pay-in of the respective settlement.

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 day in the capital market segment. In case the security has not been transacted on a particular day in the capital market segment, the latest available closing price at the NSE is considered as the closing price.

The mark to market margin (MTM) iscollected from the Participant before the start of the SLBS session of the next day.

The MTM margin is collected /adjusted from/against the collateral deposited by the Participant.

The MTM margin is collected on the gross open position of the Participant. The gross open position for this purpose would mean the gross of all positions across all the clients of a Participant including its proprietary position. For this purpose, the position of a client would be netted across its various securities and the positions of all the clients of a Participant would be grossed.

There would be no netting off of the positions and setoff against MTM profits across two settlements However, for computation of MTM profits/losses for the day, netting or setoff against MTM profits would be permitted.

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

Exemption from margins in case of Early Pay-inIn cases where early pay-in of securities is made prior to the securities pay-in, such positions for which early pay-in (EPI) of securities is made are exempt from margins. The EPI would be allocated to clients having net deliverable position, on a random basis.

Custodial transactionsIn respect of transactions entered by a Participant which is to be settled by a custodian, the margins from the time of transactions till confirmation by the custodian are levied on the Participant. On confirmation of the said transactions by the custodian, the custodian is levied the margins applicable on such transactions.

39

In case of rejection by the custodian, the margins on the transaction rejected continue to be levied on the Participant.

Short fall of marginsIn case of any shortfall in margin the Participant is not be permitted to transact in SLBS with immediate effect. The same is considered as violation and would attract penal charges as may be specified by NSCCL from time to time

Margins from the ClientParticipants should have a prudent system of risk management to protect themselves from client default. Margins are likely to be an important element of such a system. The same should be well documented and be made accessible to the clients and NSCCL. However, the quantum of these margins and the form and mode of collection are left to the discretion of the Participants.

Lending price

Lending price refers to the previous day closing price of the security in the capital market segment i.e. T-1 day closing price in the capital market segment. 

25% of the lending price is levied as margin on the Participants for lend transactions on T day. This is released on completion of pay-in of T+1 settlement. 

100% of the Lending price is levied as margin on the Participants for borrow transactions starting from T+1 day till the shares are returned by the borrower.  

This is collected on an upfront basis by adjusting against the collateral of the Participant at the time of transaction. 

This is collected on the gross open position of the Participant. The gross open position for this purpose would mean the gross of all positions across all the clients of a Participant including its proprietary position. 

The margin so collected is released on completion of pay-in of the respective settlement.

Lending fee

Lending fee refers to the actual price of the transaction at which the transaction is executed. Lending fee per share is quoted by the participants while entering in to SLB Transactions. Lending fee obligation is the lending fee per share*quantity of shares borrowed/lent.For e.g. If a transaction is executed at Rs 5 per share for 100 shares of Security “X” then the total lending fee obligation for the borrower for security “X” will be Rs. 500. 

Lending fee is levied as margin on the Participants for borrow transactions on T day on an upfront basis.  

This is collected on an upfront basis by adjusting against the collateral of the borrower at the time of transaction.

40

  The margin so collected is released on completion of pay-in on T+1 settlement date.

 

Initial Public Offerings (IPO)

A corporate may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. It is the largest source of funds with long or indefinite maturity for the company.

What is Book Building?SEBI guidelines defines Book Building as "a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built-up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memoranda or offer document".

Book Building is basically a process used in Initial Public Offer (IPO) for efficient price discovery. It is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The offer price is determined after the bid closing date.

As per SEBI guidelines, an issuer company can issue securities to the public though prospectus in the following manner:

1. 100% of the net offer to the public through book building process 2. 75% of the net offer to the public through book building process and 25% at the price

determined through book building. The Fixed Price portion is conducted like a normal public issue after the Book Built portion, during which the issue price is determined.

The concept of Book Building is relatively new in India. However it is a common practice in most developed countries.

Difference between Book Building Issue and Fixed Price IssueIn Book Building securities are offered at prices above or equal to the floor prices, whereas securities are offered at a fixed price in case of a public issue. In case of Book Building, the demand can be known everyday as the book is built. But in case of the public issue the demand is known at the close of the issue.

  Issuers

An Issuer Company can issue capital through book building in following two ways:

75% Book Building processThe option of 75% Book Building is available to all body corporates that are otherwise

41

eligible to make an issue of capital to the public. The securities issued through the book building process are indicated as 'placement portion category' and securities available to public are identified as 'net offer to public'. In this option, underwriting is mandatory to the extent of the net offer to the public. The issue price for the placement portion and offers to public are required to be same.

100% of the net offer to the public through Book Building processIn the 100% of the net offer to the public, entire issue is made through Book Building process. However, there can be a reservation or firm allotment to a maximum of 5% of the issue size for the permanent employees, shareholders of the company or group companies, persons who, on the date of filing of the draft offer document with the Board, have business association, as depositors, bondholders and subscribers to services, with the issuer making an initial public offering.

The number of bidding centres, in case of 75% book building process should not be less than the number of mandatory collection centres specified by SEBI. In case of 100% book building process, the bidding centres should be at all the places where the recognised stock exchanges are situated.

For additional details, issuers are requested to refer to SEBI guidelines.

Book Building at NSE

The NSE has set up nation-wide network for trading whereby members can trade remotely from their offices located all over the country. The NSE trading network spans various cities and towns across India.

NSE decided to offer this infrastructure for conducting online IPOs through the Book Building process. NSE operates a fully automated screen based bidding system called NEAT IPO that enables trading members to enter bids directly from their offices through a sophisticated telecommunication network.

Book Building through the NSE system offers several advantages:

The NSE system offers a nation wide bidding facility in securities

It provides a fair, efficient & transparent method for collecting bids using latest electronic trading systems

Costs involved in the issue are far less than those in a normal IPO

The IPO market timings are from 10.00 a.m. to 5.00 p.m. On the last day of the IPO, the

42

session timings can be further extended on specific request by the Book Running Lead Manager.

Reverse Book Building

Procedures

IssuersIssuers desirous of using NSE's online IPO system are required to comply with the following procedures:

1. Submit a written request as per prescribed format (Letter1, Letter2, BRLM) for usage of electronic facilities and software of NSE

2. Give details regarding Book Running Lead Manager, Co Book Running Lead Managers and Syndicate Members.

3. Pay the requisite charges to NSE.

Trading MembersThe Book Running Lead Manager will give the list of trading members who are eligible to participate in the Book Building process to the Exchange. Members have to submit a one time undertaking to the Exchange. Eligible trading members have to give in the prescribed format details of the user IDs that they would like to use.

SubscribersSubscribers can approach any of the approved trading members for submitting bids in the NEAT IPO system. On line transaction registration slip are generated automatically after entering the bids in to the system which acts as proof of the registration of each Bid option.

User Hierarchy | Order Book | Bidding Workstation | Current Issue

Current Issues at NSE

IL&FS Transportation Networks Limited

PRADIP OVERSEAS LIMITED

43

PERSISTENT SYSTEMS LIMITED

SHREE GANESH JEWELLERY HOUSE LIMITED

IL&FS Transportation Networks Limited

Symbol - Series ITNL EQ

Issue Period March 11, 2010 to March 15, 2010

Issue Size Public Issue of [?] Equity Shares of Rs. 10/- each for cash aggregating to Rs. 7,000 million (including Anchor investor portion upto 48,33,720 equity shares

Issue Type 100% Book Building

Face Value Rs. 10/-

Price Range Rs.242 to Rs.258

Tick Size Re. 1/-

Market Lot 25 Equity Shares

Minimum Order Quantity 25 Equity Shares

Maximum Subscription Amount for Retail Investor

Rs.100000

IPO Market Timings 10.00 a.m. to 5.00 p.m.

IPO Grading CARE IPO Grade 4 and 4 (ind)

Rating Agency CARE and Fitch Ratings India Private Limited

Book Running Lead ManagerEnam Securities Private Limited, Nomura Financial Advisory And Securities (India) Private Limited And JM Financial Consultants Private Limited

Co- Book Running Lead Manager Avendus Capital Private Limited, SBI Capital Markets Limited

Syndicate Member SBICap Securities Limited,JM Financial Services Private Limited, Reliance

44

Securities Limited

CategoriesFI, IC, VC, MF, FII, FVCI, SIDC, PF, PEF, MLA, BDFI,NIF, FIISA, CO,IND, HUF, NRI and OTH

No. of Cities with Bidding Centers 47

Name of the registrar Link Intime India Private Limited

Address of the registrarC-13, Pannalal Silk Mills Compound,L.B.S Marg,Bhandup (West),Mumbai 400 078, India.

Contact person name number and Email id

Mr. M. Sachin Achar, Tel: + 91 22 2596 0320 Fax: + 91 22 2596 0329 E-mail: itnl.ipo@linkintime.co.in

ProspectusClick Here

Application FormsClick Here

Trading Member ListClick Here

IPO GradingClick Here

IL&FS Transportation Networks Limited - Bid details

Sr.No.

CategoryNo.of shares

offered/reserved

No. of shares bid

for

No. of times of total meant for the category

1 Qualified Institutional Buyers (QIBs) 12148761 639117875 52.6077

1(a)

Foreign Institutional Investors (FIIs) 385566675

1(b)

Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)

118504775

1(c)

Mutual Funds 135046425

45

1(d)

Others 0

2 Non Institutional Investors 2892562 113950575 39.3943

2(a)

Corporates 68824125

2(b)

Individuals (Other than RIIs) 32642800

2(c)

Others 12483650

3 Retail Individual Investors (RIIs) 8677686 39601825 4.5636

3(a)

Cut Off 35803425

3(b)

Price Bids 3798400

Updated as on 15 Mar 2010 at 1915

Past Issues Through NSE

Select the Year

Sr. No.

Name of the issue

LTP

Book Running

Lead Manager

Date of Issue

No. of members

No. of

Bidding

centers

Issue Size (lakh

shares)

Price Range

Issue

Price (Rs.)

Date of

Listing

Introduced in F&O

alongwith IPO $

Rating agencyGrade

assigned

1UNITED BANK OF INDIA

69.05

SBI Capital Markets Limited Edelweiss Capital Limited and Enam Securities Private Limited

23/02/2010 to 25/02/2

010

116 73 500Rs. 60 to Rs. 66

66.00

18-Mar-2010

* CARE & ICRAIPO

Grade 3 & 4

2 RURAL ELECTRIFICATION CORPORATION

- Kotak Mahindra Capital Compan

19/02/2010 to 23/02/2

010

107 55 1717.32

For Retail,NIB & Reser

@ * * CARE NA

46

2010

LIMITED

y Limited DSP Merrill Lynch Limited ICICI Securities Limited JM Financial Consultants Private Limited and RBS Equities (India) Limited

ve category Floor price 203/- For QIB category, any price above floor price

3

MAN INFRACONSTRUCTION LIMITED

367.95

IDFC-SSKI Limited and Edelweiss Capital Limited

18/02/2010 to 22/02/2

010

94 63 56.25

Rs.243 to Rs.252

252.00

11-Mar-2010

* Crisil LimitedIPO

Grade 3

4TEXMO PIPES & PRODUCTS LTD

-

Almondz Global Securities Ltd

16/02/2010 to 19/02/2

010

96 48 50Rs.85 to Rs.90

90 * * CAREIPO

Grade 2

5

HATHWAY CABLE & DATACOM LIMITED

210.95

Morgan Stanley India Company Private Limited,UBS Securities India Private Limitedand kotak Mahindra Capital Company Limited

09/02/2010 to 11/02/2

010

112 58 277.5

Rs.240 to Rs.265

240 * * CRISILIPO

Grade 3/5

6 ARSS INFRASTRUCTURE PROJECTS LIMITED

919.00

IDBI Capital Market Services Limited and SBI Capital Markets

08/02/2010 to 11/02/2

010

110 31 [.] equity shares aggregating upto Rs.10300 lacs

Rs.410 to Rs.450.

450.00

03-Mar-2010

* CARE IPO Grade 2

47

Limited

7 NTPC Limited -

ICICI Securities Limited, Citigroup Global Markets India Private Limited, J.P. Morgan India Private Limited and Kotak Mahindra Capital Company Limited

03/02/2010 to 05/02/2

010

111 614122.7322

For Retail,NIB & Reserve category, Floor price 201/- .For QIB category, any price above floor price.

@ * * NA NA

8EMMBI POLYARNS LIMITED

23.15

Keynote Corporate Service Limited

01/02/2010 to 03/02/2

010

84 51 95.74Rs.40 to Rs.45.

45.00

24-Feb-2010

* CAREIPO

Grade 2

9D B REALTY LIMITED

452.00

Enam Securities Private Limited,Kotak Mahindra Capital Company Limited

29/01/2010 to 02/02/2

010

102 47

[.] Equity Shares aggregating to Rs. 15,000 Million

Rs.468 to Rs. 486

468.00

24-Feb-2010

* CRISILIPO

Grade 2

10

AQUA LOGISTICS LTD

-

Saffron Capital Advisors Pvt Ltd ,Centrum Capital Ltd

25/01/2010 to 02/02/2

010

91 57

[?] equity shares for cash aggregating upto Rs. 15,000 lacs

Rs.200 to Rs. 225

220 * *Brickwork

Ratings India Pvt Ltd

IPO Grade 3

11

SYNCOM HEALTHCARE LIMITED

110.30

Chartered Capital And Investm

27/01/2010 to 29/01/2

74 34 75 Rs. 65 to Rs. 75

75.00

15-Feb-2010

* Credit Analysis and Research Ltd

IPO Grade 2

48

ent Ltd 010 (CARE)

12

VASCON ENGINEERS LIMITED

140.20

Kotak Mahindra Capital Company Limited,Enam Securities Private Limited

27/01/2010 to 29/01/2

010

119 54 108

Rs.165 to Rs. 185

165.00

15-Feb-2010

* CRISILIPO

Grade 3

13

THANGAMAYIL JEWELLERY LIMITED

77.40

Keynote Corporate Services Limited

27/01/2010 to 29/01/2

010

85 51 14.075Rs. 70 To Rs.75.

75.00

19-Feb-2010

*Brickwork

Ratings India Pvt. Ltd

BWR IPO

Grade III

14

JUBILANT FOODWORKS LIMITED

345.05

Kotak Mahindra Capital Company Limited

18/01/2010 to 20/01/2

010

111 62226.70447

Rs.135 to Rs. 145

145.00

08-Feb-2010

*Fitch Ratings India Pvt Ltd

IPO Grade 3(ind)

15

BIRLA SHLOKA EDUTECH LIMITED

-Ashika Capital Limited

11/01/2010 to 13/01/2

010

47 43 59.55Rs. 45 To Rs.50.

50 * * NA NA

16

INFINITE COMPUTER SOLUTIONS (INDIA) LIMITED

209.00

India Infoline Limited and Spa Merchant Bankers Limited

11/01/2010 to 13/01/2

010

121 45 115.03

Rs. 155 To Rs.165.

16503-FEB-2010

- CRISILIPO

GRADE 2/5

Select the Year

@ Issue was under alternate book building mechanism thereby Issue price was on discriminatory basis.# No. of shares to be decided after book building process.* Equity shares of this company are not listed and traded on NSE.** Considering lower price band.$ Eligible securities can be introduced in F&O subject to SEBI permission. The above status is as at the time of listing of IPO; subsequently, a securities eligibility/ineligibility for F&O may change based on various criteria laid down by SEBI.

  Application Supported by Blocked Amount -  Procedure

49

2010

Main Features of ASBA process

ASBA provides an alternative mode of payment in issues whereby the application money remains in the investor’s account till finalization of basis of allotment in the issue.

ASBA process facilitates retail individual investors bidding at cut-off, with single option, to apply through Self Certified Syndicate Banks (SCSBs), in which the investors have bank accounts. SCSBs are those banks which satisfy the conditions laid by SEBI. SCSBs would accept the applications, verify the application, block the fund to the extent of bid payment amount, upload the details in the web based bidding system of NSE, unblock once basis of allotment is finalized and transfer the amount for allotted shares, to the issuer.

This would co-exist with the current procedure of investors applying through sub syndicate/ syndicate members, with cheque as a payment instrument.

Reverse Book Building at NSE

Delisting of shares under SEBI (delisting of Securities) guidelines 2003

Securities and Exchange Board of India has issued the SEBI (Delisting of Securities) Guidelines 2003’ for delisting of shares from stock exchanges. The guidelines inter alia provide the overall framework for voluntary delisting by a promoter. In accordance with the guidelines for the first time in India by any Exchange, National Stock Exchange now provides online reverse book building for promoter/acquirer through its trading network which spans various cities and towns across India. NSE operates a fully automated screen based bidding system that enables trading members to enter offers directly from their offices through a sophisticated telecommunication network.

What is Reverse Book Building (Delisting of shares)?

The Reverse Book Building is a mechanism provided for capturing the sell orders on online basis from the share holders through respective Book Running Lead Managers (BRLMs) which can be used by companies intending to delist its shares through buy back process. In the Reverse Book Building scenario, the Acquirer/Company offers to buy back shares from the share holders. The Reverse Book Building is basically a process used for efficient price discovery. It is a mechanism where, during the period for which the Reverse Book Building is open, offers are collected from the share holders at various prices, which are above or equal to the floor price. The buy back price is determined after the offer closing date

Business process for delisting through book building is as follows:

The acquirer shall appoint designated Book Running Lead Manager (BRLM) for accepting offers from the share holders.

The company/acquirer intending to delist its shares through Book Building process is identified by way of a symbol assigned to it by BRLM.

Orders for the offer shall be placed by the share holders only through the designated trading members, duly approved by the Exchange.

The designated trading members shall ensure that the security / share holders deposit the securities offered with the trading members prior to placement of an order.

50

The offer shall be open for 'n' number of days.

The BRLM shall intimate the final acceptance price and provide the valid accepted order file to the National Securities Clearing Corporation Limited (A wholly owned subsidiary of NSE carrying out clearing and responsible for settlement operations.)

SEBI guidelines shall be applicable to delisting of securities of companies and specifically apply to:

Voluntary delisting being sought by the promoters of a company.

Any acquisition of shares of the company (either by a promoter or by any other person) or scheme or arrangement, by whatever name referred to, consequent to which the public shareholding falls below the minimum limit specified in the listing conditions or listing agreement that may result in delisting of securities.

Promoters of the companies who voluntarily seek to delist their securities from all or some of the stock exchanges.

Cases where a person in control of the management is seeking to consolidate his holding in a company, in a manner which would result in the public shareholding or in the listing agreement that may have the effect of company being delisted.

Companies which may be compulsorily delisted by the stock exchanges.

NSE Reverse Book Building System

NSE uses the reverse book building system; a fully automated screen based bidding system that allows offers to run in several issues concurrently. The system has the facility of defining a hierarchy amongst the users of the system. The Book Running Lead Manager can define who will be the Syndicate member and who will be the other members participating in the issue. The Syndicate Member and other Members also have a facility of defining a hierarchy among the users of the system as Corporate Manager, Branch Manager and Dealer.

Trading Members

The Book Running Lead Manager will give the list of trading members who are eligible to participate in the Book Building process to the Exchange. Members have to submit a one-time undertaking to the Exchange. Eligible trading members have to give in the prescribed format details of the user IDs that they would like to use.

List of Approved Trading Members:

ICICI Brokerage Services Limited.

Karvy Stock Broking Limited.

Master Capital Services Limited.

Subscribers

Subscribers can approach any of the approved trading members for submitting offers in the NEAT IPO system. On line transaction registration slip are generated automatically after entering the offers in to

51

the system, which acts as proof of the registration of each offer.

Reverse Book Building through the NSE system offers several advantages:

The NSE system offers a nation wide bidding facility in securities.

It provides a fair, efficient & transparent method for collecting offers using latest electronic trading systems.

 

Reverse Book Building at NSE

Procedure

Acquirers/Companies desirous of using NSE's system for reverse book building &

settlement mechanism are required to comply with the following procedures: :

Letter from Lead Manager providing details of the issue.

Tri-partite Agreement between NSEIL, the Acquirer (including Issuer Company) and the Lead Manager along with the requisite charges.

Past Issues Through NSE Reverse Book Building System

Sr. No.

Name of the issue Book Running Lead Manager Date of IssueNo. of

membersNo. of Bidding

centers

1 KAUSAR INDIA LIMITEDReligare Capital Markets Limited

Mar 23, 2009 to Mar 25, 2009

1

2Jacqart Chemical Industries Ltd.

J M Morgan Stanley Pvt. Ltd.Jun 07, 2006 to Jun 12,

20061

3Beekay Engineering & Castings Ltd.

Enam Financial Consultants Pvt Ltd.

May 17, 2006 to May 19, 2006

1

4 Fortune Infotech Ltd.Enam Financial Consultants Pvt. Ltd.

Nov 28, 2005 to Dec 02, 2005

1

5 Federal Technologies Ltd. Karvy Investor Services Ltd.Nov 23, 2005 to Nov

25, 20051

6 Wimco Ltd.Ind global Corporate Finance Pvt. Ltd.

Oct 17, 2005 to Oct 21, 2005

1

7 Kadri Mills (Cbe) Ltd Karvy Investor Services Ltd. Aug 24, 2005 to Aug 1

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26, 2005

8 Rockwool (India) Ltd. Karvy Investor Services Ltd.Jul 04, 2005 to Jul 06,

20051

9Madras Aluminium Company Ltd.

ICICI Securities Ltd.Mar. 14, 2005 to Mar.

18, 20051

10 Amalgamations Repco Ltd. SBI Capital Markets Ltd.Dec 08, 2004 to Dec

10, 20041

11 SRP Tools Ltd Karvy Investor Services LtdNov 25, 2004 to Nov

30, 20041

12Vickers System International Ltd

SBI Capital Markets Ltd.Aug 30, 2004 to Sep

03, 20041

13 India Gypsum Ltd. ICICI Securities Ltd.Aug 30, 2004 to Sep

03, 20042

14 Rochees Breweries Ltd.Stratcap Securities (India) Pvt. Ltd

Aug 25, 2004 to Aug 27, 2004

1

15 e-Serve International LtdKotak Mahindra Capital Company Ltd.

Aug 13, 2004 to Aug 19, 2004

2

16 Ideaspace Solutions Ltd Karvy Investor Services Ltd.Apr 28, 2004 to Apr 30,

20041

17Astra Zeneca Pharma India Ltd.

DSP Merrill Lynch Ltd.Jul 19, 2004 to Jul 23,

20041

18CTR Manufacturing Industries Ltd.

Fedex Securities Ltd.April 12, 2004 to April

19, 20041

19 Spencer & Company Ltd.M/s. Karvy Investor Services Ltd.

Feb 09, 2004 to Feb 11, 2004

2

20 Sharadha Terry Products Ltd. Karvy Investor Services Ltd.Feb 09, 2004 to Feb 11,

20042

21 Digital Globalsoft Ltd. ICICI Securities Ltd.Jan 19, 2004 to Jan 23,

20043

Indices

An Index is used to give information

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about the price movements of products in the financial, commodities or any other markets. Financial indexes are constructed to measure price movements of stocks, bonds, T-bills and other forms of investments. Stock market indexes are meant to capture the overall behaviour of equity markets. A stock market index is created by selecting a group of stocks that are representative of the whole market or a specified sector or segment of the market. An Index is calculated with reference to a base period and a base index

54

value.

Stock market indexes are useful for a variety of reasons. Some of them are :

They provide a historical comparison of returns on money invested in the stock market against other forms of investments such as gold or debt.

They can be used as a

55

standard against which to compare the performance of an equity fund.

It is a lead indicator of the performance of the overall economy or a sector of the economy

Stock indexes reflect highly up to date information

Mod

56

ern financial applications such as Index Funds, Index Futures, Index Options play an important role in financial investments and risk management

  India Index Services & Products Ltd. (IISL)

India Index Services & Products Ltd. (IISL) is a joint venture between the National Stock Exchange of India Ltd. (NSE) and CRISIL Ltd. (formerly the Credit Rating Information Services of India Limited). IISL has been formed with the objective of providing a variety of indices and index related services and products for the capital markets.

IISL has a licensing and marketing agreement with Standard and Poor's (S&P), the

57

world's leading provider of investible equity indices, for co-branding IISL's equity indices.

Products & Services

IISL offers a wide range of products and services which are key support tools for the equity markets. We provide reliable, accurate and valuable data on indices and index related services to cater to the needs of various segments of users. Our speciality is indices based on Indian equity markets, which may be used for benchmarking, trading or research. Use of IISL data or name or indices requires a license or subscription.

Financial products on IISL Indices

IISL maintains, develops, compiles and disseminates entire gamut of equity indices. Licensing is mandatory for tracking the performance of an IISL Index. Licensing is also required for use of the name of IISL or S&P CNX or CNX or any IISL Index. Fees for licensing would vary according to the type of the product and the period.

CNX ensures common branding of indices, to reflect the identities of both the promoters, i.e. NSE and CRISIL. Thus, 'C' stands for CRISIL, 'N' stands for NSE . The S&P prefix belongs to the US-based Standard & Poor's Financial Information Services.

CNX indices are useful for fund managers, corporates, brokers and all such enterprises connected with investments in the equity markets. These indices can be used for tracking the markets, understanding the performance of a company vis-a-vis the market, determining how an investors portfolio is performing as compared to the market, trading derivative products and most importantly for development of index based funds by mutual funds.

Data subscription

IISL provides index data on a daily, weekly or ad-hoc basis through preferred method. Data includes Index values, index constituents, historical growth trends etc. This is a paid service and the subscription charges vary depending upon the type of data sought and the period.

Customized Indices

IISL undertakes development & maintenance of customized indices for clients for tracking the performance of the client portfolio of stocks vis-à-vis objectively defined benchmarks, or for benchmarking NAV performance to customized indices. The customized indices can be sub-sets of existing indices or a completely new index viz. Sector Indices, Individual Business Group Indices, Industry Indices etc. Charges for this service vary depending on the activity performed by IISL.

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Consulting

IISL provides consulting services in areas of Index Funds, Exchange-traded-fund, derivatives, Index options, alerting for rebalancing for index funds etc. This is a paid service.

Market Updates

IISL provides to specialized clients facts and figures, reports and equity market updates on regular intervals. This is a paid service.

Research

IISL undertakes research activities for its clients on matters concerning equity and derivative markets.

Please contact us for more information on any of the products and services listed above.

IISL Indices

Major Indices Other Indices

S&P CNX Nifty CNX IT Index

CNX Nifty Junior CNX Bank Index

CNX 100 CNX FMCG Index

S&P CNX 500 CNX PSE Index

CNX Midcap * CNX MNC Index

Nifty Midcap 50 CNX Service Sector Index

S&P CNX Defty S&P CNX Industry Indices

Customised Indices

  CNX Energy Index

  CNX Pharma Index

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  CNX Infrastructure Index

  CNX PSU BANK Index

  CNX Realty Index

  S&P CNX Nifty Shariah / S&P CNX 500 Shariah

  S&P ESG India Index

*   CNX Midcap - Introduced from July 18, 2005** CNX Midcap 200 - Discontinued from July 18, 2005

Index Concepts

Impact Cost

Beta

Total Returns Index

Impact Cost

Introduction

Liquidity in the context of stock markets means a market where large orders can be executed without incurring a high transaction cost. The transaction cost referred here is not the fixed costs typically incurred like brokerage, transaction charges, depository charges etc. but is the cost attributable to lack of market liquidity as explained subsequently. Liquidity comes from the buyers and sellers in the market, who are constantly on the look out for buying and selling opportunities. Lack of liquidity translates into a high cost for buyers and sellers.

The electronic limit order book (ELOB) as available on NSE is an ideal provider of market liquidity. This style of market dispenses with market makers, and allows anyone in the market to execute orders against the best available counter orders. The market may thus be thought of as possessing liquidity in terms of outstanding orders lying on the buy and sell side of the order book, which represent the intention to buy or sell.

When a buyer or seller approaches the market with an intention to buy a particular stock, he can execute his buy order in the stock against such sell orders, which are already lying in the order book, and vice versa.

An example of an order book for a stock at a point in time is detailed below:

Buy Sell

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Sr.No. Quantity Price Quantity Price Sr. No.

1 1000 3.50 2000 4.00 5

2 1000 3.40 1000 4.05 6

3 2000 3.40 500 4.20 7

4 1000 3.30 100 4.25 8

There are four buy and four sell orders lying in the order book. The difference between the best buy and the best sell orders (in this case, Rs.0.50) is the bid-ask spread. If a person places an order to buy 100 shares, it would be matched against the best available sell order at Rs. 4 i.e. he would buy 100 shares for Rs. 4. If he places a sell order for 100 shares, it would be matched against the best available buy order at Rs. 3.50 i.e. the shares would be sold at Rs.3.5.

Hence if a person buys 100 shares and sells them immediately, he is poorer by the bid-ask spread. This spread may be regarded as the transaction cost which the market charges for the privilege of trading (for a transaction size of 100 shares).

Progressing further, it may be observed that the bid-ask spread as specified above is valid for an order size of 100 shares upto 1000 shares. However for a larger order size the transaction cost would be quite different from the bid-ask spread.

Suppose a person wants to buy and then sell 3000 shares. The sell order will hit the following buy orders:

Sr. Quantity Price

1 1000 3.50

2 1000 3.40

3 1000 3.40

while the buy order will hit the following sell orders :

Quantity Price Sr.

2000 4.00 5

1000 4.05 6

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This implies an increased transaction cost for an order size of 3000 shares in comparison to the impact cost for order for 100 shares. The "bid-ask spread" therefore conveys transaction cost for a small trade.

This brings us to the concept of impact cost. We start by defining the ideal price as the average of the best bid and offer price, in the above example it is (3.5+4)/2, i.e. 3.75. In an infinitely liquid market, it would be possible to execute large transactions on both buy and sell at prices which are very close to the ideal price of Rs.3.75. In reality, more than Rs.3.75 per share may be paid while buying and less than Rs.3.75 per share may be received while selling. Such percentage degradation that is experienced vis-à-vis the ideal price, when shares are bought or sold, is called impact cost. Impact cost varies with transaction size.

For example, in the above order book, a sell order for 4000 shares will be executed as follows:

Sr. Quantity Price Value

1 1000 3.50 3500

2 1000 3.40 3400

3 2000 3.40 6800

Total value 13700

Wt. average price 3.43

The sale price for 4000 shares is Rs.3.43, which is 8.53% worse than the ideal price of Rs.3.75. Hence we say "The impact cost faced in buying 4000 shares is 8.53%".

Definition

Impact cost represents the cost of executing a transaction in a given stock, for a specific predefined order size, at any given point of time.

Impact cost is a practical and realistic measure of market liquidity; it is closer to the true cost of execution faced by a trader in comparison to the bid-ask spread.

It should however be emphasised that :

(a) impact cost is separately computed for buy and sell(b) impact cost may vary for different transaction sizes (c) impact cost is dynamic and depends on the outstanding orders(d) where a stock is not sufficiently liquid, a penal impact cost is applied

In mathematical terms it is the percentage mark up observed while buying / selling the desired quantity of a stock with reference to its ideal price (best buy + best sell) / 2.

Example A :

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ORDER BOOK SNAPSHOT

Buy Quantity Buy Price Sell Quantity Sell Price

1000 98 1000 99

2000 97 1500 100

1000 96 1000 101

TO BUY 1500 SHARES

Nifty Securities - Impact Cost Archives

Beta

Risk is an important consideration in holding any portfolio. The risk in holding securities is generally associated with the possibility that realised returns will be less than the returns expected.

Risks can be classified as Systematic risks and Unsystematic risks.

Unsystematic risks:These are risks that are unique to a firm or industry. Factors such as management capability, consumer preferences, labour, etc. contribute to unsystematic risks. Unsystematic risks are controllable by nature and can be considerably reduced by sufficiently diversifying one's portfolio.

Systematic risks:These are risks associated with the economic, political, sociological and other macro-level changes. They affect the entire market as a whole and cannot be controlled or eliminated merely by diversifying one's portfolio.

What is Beta?

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The degree to which different portfolios are affected by these systematic risks as compared to the effect on the market as a whole, is different and is measured by Beta. To put it differently, the systematic risks of various securities differ due to their relationships with the market. The Beta factor describes the movement in a stock's or a portfolio's returns in relation to that of the market returns. For all practical purposes, the market returns are measured by the returns on the index (Nifty, Mid-cap etc.), since the index is a good reflector of the market.

Methodology / Formula

Beta is calculated as :

where,Y is the returns on your portfolio or stock - DEPENDENT VARIABLEX is the market returns or index - INDEPENDENT VARIABLEVariance is the square of standard deviation.Covariance is a statistic that measures how two variables co-vary, and is given by:

Where, N denotes the total number of observations, and and respectively represent the arithmetic averages of x and y.

In order to calculate the beta of a portfolio, multiply the weightage of each stock in the portfolio with its beta value to arrive at the weighted average beta of the portfolio

Standard Deviation

Standard Deviation is a statistical tool, which measures the variability of returns from the expected value, or volatility. It is denoted by sigma(s) . It is calculated using the formula mentioned below:

Where, is the sample mean, xi’s are the observations (returns), and N is the total number of observations or the sample size.

  Total Returns Index

Introduction

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Nifty is a price index and hence reflects the returns one would earn if investment is made in the index portfolio. However, a price index does not consider the returns arising from dividend receipts. Only capital gains arising due to price movements of constituent stocks are indicated in a price index. Therefore, to get a true picture of returns, the dividends received from the constituent stocks also need to be factored in the index values. Such an index, which includes the dividends received, is called the Total Returns Index.

Total Returns Index reflects the returns on the index arising from (a) constituent stock price movements and (b) dividend receipts from constituent index stocks.

Methodology for Total Returns Index (TR) is as follows:

The following information is a prerequisite for calculation of TR Index:

1. Price Index close 2. Price Index returns 3. Dividend payouts in Rupees 4. Index Base capitalisation on ex-dividend date

Dividend payouts as they occur are indexed on ex-date.

Indexed dividends are then reinvested in the index to give TR Index.

Total Return Index = [Prev. TR Index + (Prev. TR Index * Index returns)] +                                  [Indexed dividends + (Indexed dividends * Index returns)]

Base for both the Price index close and TR index close will be the same.

An investor in index stocks should benchmark his investments against the Total Returns index instead of the price index to determine the actual returns vis-à-vis the index.

Statistics

Daily o Index Watch (Live) o Comparison of Indices o Online Indices Charts o Daily Outstanding Shares and Weightages  | Archives

o Nifty - Top 10 Holdings

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Monthly o IISL Monthly Update | Archiveso Industry-wise market capitalisation and weightage:

Bank Nifty | CNX IT | CNX 100 | Nifty Midcap 50o Market Capitalisation, Weightage, Beta etc.: Nifty | Nifty Junior | Archiveso Monthly Index Returns o Nifty securities - impact cost | Archives

Historical o P/E, P/B & Div. Yield values o S&P CNX NIFTY Total Returns Index o Indices Data: Values | Chartso Details of past changes to Constituents: Nifty | Nifty Junior

Index Funds

Index Funds today are a source of investment for investors looking at a long term, less risky form of investment. The success of index funds depend on their low volatility and therefore the choice of the index.

S&P CNX Nifty is used by a number of well know mutual funds in India for promoting Index Funds. These funds are:

A. Index Funds :

1. Principal Index Fund, an index fund scheme on S&P CNX Nifty launched by Principal PNB AMC Pvt. Ltd in July 1999.

2. UTI Nifty Index Fund launched by UTI AMC Pvt. Ltd in March 2000.

3. Franklin India Index Fund launched by Franklin Templeton AMC (India) Pvt.Ltd. in June 2000.

4. Franklin India Tax Fund launched by Franklin Templeton AMC (India) Pvt.Ltd. in February 2001.

5. SBI Magnum Index Fund launched by SBI Funds Management Ltd in December 2001.

6. ICICI Prudential Index Fund launched ICICI Prudential AMC Ltd in February 2002.

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7. HDFC Index Fund – Nifty Plan launched by HDFC AMC Ltd. in July 2002.

8. Birla Index Fund launched by Birla Sun Life AMC Ltd in September 2002.

9. LICMF Index Fund – Nifty Plan launched by LIC Mutual Fund AMC Ltd in November 2002.

10. Tata Index Fund-Nifty Plan launched by Tata AMC Pvt. Ltd in February 2003.

11. ING Vysya Nifty Plus Fund launched by ING Investment Management (I) Ltd in January 2004.

12. Canara Robeco Nifty Index Fund launched by Canara Robeco AMC Ltd. in September 2004.

13. Principal Junior Cap fund launched by Principal PNB AMC Pvt. Ltd in May 2005.

14. Reliance Equity Advantage Index Fund launched by Reliance Capital AMC Ltd. in June 2007.

15. Religare Banking Fund launched by Religare AMC Pvt. Ltd. in May 2008.

16. Reliance Quant Plus Fund launched by Reliance Capital AMC Ltd in June 2008.

17. Taurus Ethical Fund launched by Taurus AMC Ltd in February 2009.

18. Edelweiss Nifty Enhancer Fund launched by Edelweiss AMC Ltd in May 2009.

19. JM Nifty Plus Fund launched by JM Financial AMC Pvt. Ltd. in June 2009.B. Exchange Traded Fund :

1. NIFTY BeES an Exchange Traded Fund launched by Benchmark AMC Pvt. Ltd in January 2002.

2. Junior BeES an Exchange Traded Fund on CNX Nifty Junior, launched by Benchmark AMC Pvt. Ltd in February 2003.

3. SUNDER an Exchange Traded Fund launched by UTI in July 2003.

4. Bank BeES an Exchange Traded Fund (ETF) launched by Benchmark AMC Pvt. Ltd. in May 2004.

5. Benchmark Split Capital launched by Benchmark AMC Pvt. Ltd. in August 2005.

6. Lyxor ETF India launched by Lyxor International Asset Management in September 2007.

7. db X-trackers S&P CNX Nifty ETF launched by Deutsche Bank AG in July 2007.

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8. PSU Bank Exchange Traded Scheme launched by Benchmark AMC Pvt. Ltd. in October 2007.

9. KOTAK PSU BANK Exchange Traded Scheme launched by Kotak Mahindra AMC Ltd in October 2007.

10. Reliance Banking ETF launched by Reliance Capital AMC Ltd in August 2008.

11. Quantum Index Fund-Exchange Traded Fund launched by Quantum AMC Pvt Ltd. in May 2008

12. Benchmark S&P CNX 500 Fund launched by Benchmark AMC Pvt. Ltd. in November 2008

13. Shariah Benchmark Exchange Traded Scheme (Shariah BeES) launched by Benchmark AMC Pvt. Ltd. in January 2009

C. Issue of Debentures by following clients:

1. Morgan Stanley India Capital Pvt. Ltd2. JP Morgan Securities India Pvt Ltd 3. ABN AMRO Securities (India) Pvt Ltd4. Deutsche Investment India Pvt Ltd5. Citi Financial Consumer Finance India Ltd6. Rank Investments & Credit (India) Ltd7. Kotak Mahindra Investments Ltd8. DSP Merrill Lynch Capital Ltd.9. Citicorp Finance (I) Ltd.10. Edelweiss Capital Ltd.

D. Issue of Insurance Products by following clients:

1. Bajaj Allianz Life Insurance Company Ltd. 2. Aviva Life Insurance Company India Ltd. 3. IDBI Fortis Life Insurance Company Ltd

IISL Press Releases Mar - 2010 Archives

Mar 10, 2010 SGX to offer Nifty options, related products

Mar 04, 2010 Index Changes w.e.f March 09, 2010.

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Page 1 of 2 JOINT NEWS RELEASE SGX to offer Nifty options, related products 10 March 2010 – Singapore Exchange (SGX) today said it expects to offer

options on the S&P CNX Nifty Index (Nifty) and related products in the coming year. This follows SGX’s obtaining of licensing rights from India Index Services &

Products Limited (IISL) for the product range including derivative contracts on the CNX

Nifty Junior, CNX 100 and CNX Midcap indices. The addition of these products is

subject to relevant regulatory approvals. The development comes amid a sharp

increase in the trading of India-related products on SGX and elsewhere as the country’s

economy continues to be one of the fastest-growing in the world. Building on the success of SGX’s current offerings, these new India-based

products will provide market participants with increased trading opportunities and

enhanced means for risk management. Since its launch in 2000, the SGX S&P CNX Nifty Futures

has grown to be one of SGX’s key Asian equity derivatives products. Total trading

volume in 2009 was 7.1 million contracts, representing a daily average of 29,524 contracts. A

new daily record of 297,280 contracts was achieved on 27 January 2010 on the back of

an active onshore market and rollover activity. SGX also lists four exchange-traded funds (ETFs) linked to Indian equity

indices on the securities market, namely the db x-trackers S&P CNX Nifty ETF, iShares

MSCI India ETF, Lyxor India S&P CNX Nifty ETF and Lyxor MSCI India ETF with

combined assets under management of US$782 million as at end-2009. In 2009, total trading

value of Indian-based ETFs on SGX surged 48% to S$2.6 billion, underscoring strong

investor appetite for Indian assets. Mr Magnus Bocker, CEO of SGX, said, “We would like to express our

appreciation to our customers for their support of our current suite of India-linked products. As we

continue to find ways to meet customers’ growing interest in the Indian market through

our different

69

partnerships, we are very excited to deepen our relationship with IISL with this planned

expansion of our suite of Indian equity derivatives. This will complement our current

offerings and bolster SGX’s position as a one-stop gateway for international market

participants to manage their Indian investment, trading and hedging needs.” Mr Ravi Narain, Chairman of the Board of Directors of IISL and Managing

Director & CEO of the National Stock Exchange of India Limited, said, “SGX has

achieved a solid track record with Nifty futures contract. We are pleased to see SGX’s interest

in expanding the range of products based on the Nifty family of indices. This is

testament to the international brand recognition of the Nifty index. Today, the Nifty is used

extensively by investors in India and around the world to take exposure to the Indian

equities market. Page 2 of 2 The total trading volume of Nifty-linked Futures on NSE in 2009 was 167

million contracts, representing a daily average of 687,000 contracts and the trading volume of

Nifty-linked Options on NSE in 2009 was 321 million contracts representing a daily

average of 1,321,000 contracts Index derivatives based on Nifty have been very

successful both in India and in Singapore over the last few years. Further, ETFs and structured

products on Nifty have been successfully introduced in US, European and Asian markets

by leading ETF providers and investment banks. Nifty has become the true benchmark

of the Indian capital market.” - End - For further information, kindly contact: SGX Carolyn Lim Corporate Communications Tel : (65) 6236 8139 Email : carolyn.lim@sgx.com NSE K. Hari Corporate Communications Tel (91) 22 2659 8148 Email: cc_nse@nse.co.in

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IISL INDIA INDEX SERVICES & PRODUCTS LIMITED (A joint venture of NSE & CRISIL)

PRESS RELEASE Securities of Kirloskar Brothers Limited will be suspended from trading on the

National Stock Exchange with effect from March 9, 2010 on account of a “Scheme of Arrangement”.

The Index Maintenance Sub-Committee has decided to make the following changes in this regard which will become effective from March 9, 2010:

1) S&P CNX 500 Index The following company is being excluded:

Sr. No. Company Name1 Kirloskar Brothers Limited The following company is being i ncluded :

Sr. No. Company Name1 Brigade Enterprises Ltd. 2) CNX Midcap Index The following company is being excluded:

Sr. No. Company Name1 Kirloskar Brothers Limited. The following company is being included:

Sr. No. Company Name1 LIC Housing Finance Ltd. Place: Mumbai

Date: March 4, 2010.

FAQs

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What should a stock market index be?

What do the ups and downs of an index mean?

What is the basic idea in an index?

What kind of averaging is done?

What is the portfolio interpretation of index movements?

Why are indices important?

What kinds of indices exist?

Index construction

Isn't averaging like diversification; cancelling out vulnerability to one stock?

Then a larger number of stocks in an index will give more diversification -- isn't that a good thing? Why don't we put all the stocks of the country into the index?

Component illiquidity contaminates index

What is wrong with the price information for illiquid stocks?

A stock may be liquid on one exchange and illiquid on another -- what price do you take when calculating the index?

What is `stale prices'?

What is `bid-ask bounce'?

What about market manipulation - how would manipulation of an index take place, and how would an index be made less vulnerable to manipulation?

So diversification yields diminishing returns, and illiquid stocks are best kept out of an index.... what is the ideal middle road?

The S&P CNX Nifty

How does the S&P CNX Nifty work?

What is `impact cost'?

What do you mean by `an S&P CNX Nifty trade'?

72

What's the impact cost on Rs.5 million of the full S&P CNX Nifty?

Index revision

Why does the index keep changing from time to time?

When a stock goes out and a new stock comes in, doesn't that make index levels non-comparable?

Index revision sounds dangerous in terms of political pressures. Won't speculators try to push a stock they have purchased into the index? Or remove a stock from the index when they are shorting it?

High quality information

How is the S&P CNX Nifty closing price calculated?

What is special about the NSE closing price?

What about dividends?

You say that buying a S&P CNX Nifty portfolio yields the same returns as percentage changes on the S&P CNX Nifty index. But the weights will have to keep on changing from day to day when market caps change?

So when do weights in an index change?

What historical data for the S&P CNX Nifty is available?

Where do I get data for the S&P CNX Nifty?

Index funds

What index should be used for index funds?

What index funds are available on the S&P CNX Nifty?

Index Futures

What about index futures?

What is hedging effectiveness?

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Why not form a small portfolio of the ten most liquid stocks, and work to ensure that the small portfolio is maximally correlated with the S&P CNX Nifty?

Alternatives to the S&P CNX Nifty

How does the S&P CNX Nifty compare with other indices?

Parents

How did the S&P CNX Nifty come about?

Where does IISL come in?

Who is Standard & Poors, and why does their name appear with the S&P CNX Nifty's?

What does CNX in "S&P CNX Nifty" stand for?

We sometimes hear the term `nifty fifty' used in the US to denote a certain set of growth stocks. Is there any connection?

Siblings

What's S&P CNX Defty?

What's S&P CNX 500?

What's CNX Nifty Junior?

What's CNX MidCap?

What's CNX Segment Indices?

What's CNX IT Index?

IISL - Publications

IISL - Corporate Brochure

Fact Sheets of Indices

74

S&P CNX 500

S&P CNX Nifty

CNX Nifty Junior

CNX Midcap

CNX IT sector Index

CNX 100 Index

CNX Bank Index

The S&P CNX 500 is India’s fi rst broad-basedbenchmark of the Indian capital market for comparingportfolio returns vis-à-vis market returns.• Market RepresentationThe S&P CNX 500 represents about 91.93% of totalmarket capitalization and about 79.48% of the totalturnover on the NSE.• Criteria for Selection of Constituent StocksThe constituents and the criteria for the selection judgethe effectiveness of the index. Selection of the indexset is based on the following criteria :• Market Capitalisation• Industry Representation• Trading Interest• Financial Performance• Market CapitalisationA company’s rank on market capitalisation is animportant consideration for its inclusion in the Index.• Industry Representation:S&P CNX 500 Equity Index refl ects the market asclosely as possible. In order to ensure that this isaccomplished, industry weightages in the index mirrorthe industry weightages in the universe. Consequently,companies to be included in the index are selectedfrom the industries which are under represented in theindex. S&P CNX 500 Equity Index currently contains72 industries. The number of industries in the Indexand the number of companies with in each industryhave been kept fl exible, in order to ensure that theIndex retains its objective of being a dynamic marketindicator• Trading InterestS&P CNX 500 Equity Index includes those companies,which have a minimum listing record of 6 months onthe Exchange. In addition these companies must havedemonstrated high turnover and trading frequency.

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• Financial PerformanceS&P CNX 500 Equity Index includes companies thathave minimum record of three years with a positivenet worth.• OthersA company which comes out with an IPO will be eligiblefor inclusion in the index, if it fulfi lls the normal eligibilitycriteria for the index for a 3 month period instead of a6 month period.• Method of ComputationS&P CNX 500 is computed using market capitalisationweighted method, wherein the level of the index refl ectsthe total market value of all the stocks in the indexrelative to a particular base period. The method alsotakes into account constituent changes in the indexand importantly corporate actions such as stock splits,rights, etc without affecting the index value.• Base Date and ValueThe calendar year 1994 has been selected as the baseyear for S&PCNX 500. The base value of the index isset at 1000.• S&P CNX Industry IndicesS&P CNX 500 Equity Index is desegregated into 72Industry sectors, which are separately maintained byIISL. These industry indices are derived out of the S&PCNX 500 and care is taken to see that the industryrepresentation in the entire universe of securities isrefl ected in the S&P CNX 500. e.g., if in the entireuniverse of securities, Banking sector has a 5%weightage then the Banking sector (as determined bythe Banking stocks in S&P CNX 500) would have a 5%weightage in the S&P CNX 50(j. The Banking sectorindex would be derived out of the Banking stocks inthe S&P CNX 500. The changes to the weightage ofvarious sectors in the S&P CNX 500 would dynamicallyrefl ect the changes in the entire universe of securities

Licensing

Index Licensing

Index Data Subscription

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Index Licensing

Index Licensing

IISL Indices are used as an underlying for a wide range of financial instruments offered by financial institutions, asset management companies, etc., to their investors worldwide. These include structured financial products as well as index funds and exchange traded funds. A license from IISL is required for creating a product based on or linked to an IISL index. IISL also offers annual global licenses covering all index-linked financial instruments by an institution, as well as licenses for single transactions.

Benchmarking

Investors, asset managers and financial institutions may use IISL indices to track the performance of funds, or as benchmarks for their actively managed portfolios, in particular. If an institution is benchmarking the performance of its product to any of the IISL Indices, prior approval is required from IISL along with payment of fees, where applicable. If the AMC or the financial institution uses the IISL trademarks and the indices as an underlying for their Products, then it is mandatory for these financial institutions to seek IISL’s prior approval and executing a license agreement with IISL.

Licensed Uses and Applications

Structured Products & Derivatives

The market for structured products and derivatives ranges from un-leveraged indexed notes to payouts for sophisticated, risk tolerant holders. IISL index-linked derivatives allow investors to create, control or maximize market exposure. Options, warrants, notes, bonds and trusts linked to IISL indices can be issued by prospective clients.

Index Funds

Indexing continues to gain popularity among individual and institutional investors. Most major mutual fund families have responded to client demands and added funds indexed to the IISL Indices. Index Funds today are a source of investment for investors looking at a long term, less risky form of investment. The success of index funds depends on their low volatility and therefore the choice of the index.

Exchange Traded Funds

The expansion of the exchange-traded funds market to the Indian exchange is a testament to the growing popularity of this product. The ETFs offers the ability to establish long-term investments based on the market performance of the top companies in India, with the ease of a single transaction and will provide the tools needed to capture the investment opportunities created by economic shift. For the mechanism to work, potential arbitragers need to have full, timely knowledge of a fund's holdings. The success of ETFs on indices depends on their low volatility and tracking error therefore the choice of the index.

Annuities and Other Insurance Products

Variable life, variable and fixed annuities and universal life products are structured to provide a return based on an IISL index's growth. Like a traditional annuity, purchasers receive a guaranteed return of principal along with a minimum interest rate. However, annuities linked

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to the IISL indices provide greater return potential by enabling purchasers to benefit from growth in the Indian stock market.

Guaranteed Funds and Structured Products

While passive index investing continues to grow, guaranteed products have long been a hallmark of these markets. In response to client demand, major asset management companies and banks issue index products such as tracker funds, warrants and individual certificates linked to IISL indices.

For information on licensing opportunities, contact

India Index Services & Products Ltd. (IISL)Exchange PlazaPlot no. C/1, G BlockBandra-Kurla ComplexBandra (E)Mumbai - 400 051Tel: (022) 26598385/86Fax: (022) 26598120Email: iisl@nse.co.in

Or, if you so wish, you can send us your queries / suggestions online

IISL HAS AND RETAINS ALL PROPRIETARY RIGHTS INCLUDING BUT NOT LIMITED TO THE INDEX NAME, TRADEMARKS AND COPYRIGHTS OF ITS INDICES AND ITS COMPILATION, COMPOSITION AND CHANGES THEREIN ARE AT THE COMPLETE DISCRETION AND CONTROL OF IISL.

Index Data Subscription

Index Data Subscription

IISL offers a range of Index products that provide ongoing and historical data and information on individual securities in the India. These data products are designed for clients who require consistent measures of capital market performances as well as the underlying data on component securities.

Investors, asset managers and financial institutions use data related to IISL indices for their benchmarking and indexing purposes. IISL Index Data Products are the original and official source of data that formulates the proprietary calculation and maintenance of IISL indices.

IISL Index Data Products are tools to measure equity market movements at all levels of detail and sophistication. Index constituent data includes company names, identifiers, market capitalization, weights and prices.

Data Uses and Applications

Asset Allocation

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Index data are tools to determine which and how much of each market segment for each investment strategy. Additionally, data could be used for research for allocation strategy overtime.

Quantitative Research

Index back history allow investors to define and test investment strategies, stock selection models, and fundamental ratio analysis such as price-to-earnings, yield, etc.

Portfolio Construction

Passive managers use index data for replication to create an exact index portfolio. Active managers use index data to construct the list of equity securities for potential investment. With the underlying data, they can overweight or underweight selected securities in their efforts to outperform the index while managing tracking errors.

Risk Monitoring

Used as an analytics tool, index data measures aggregate statistics on portfolio positions. Managers, in turn, monitor and control exposure to specific market and systemic risk factors such as companies, credit quality, and sectors.

Performance Attribution Analysis

Looking at single exposure factors, managers can analyze the specific effects contributed or detracted most from ex-post performance. With the underlying index data, they can compare their portfolios against indices.

For information on licensing opportunities, contact

India Index Services & Products Ltd. (IISL)Exchange PlazaPlot no. C/1, G BlockBandra-Kurla ComplexBandra (E)Mumbai - 400 051Tel: (022) 26598385/86Fax: (022) 26598120Email: iisl@nse.co.in

Or, if you so wish, you can send us your queries / suggestions online

IISL HAS AND RETAINS ALL PROPRIETARY RIGHTS INCLUDING BUT NOT LIMITED TO THE INDEX NAME, TRADEMARKS AND COPYRIGHTS OF ITS INDICES AND ITS COMPILATION, COMPOSITION AND CHANGES THEREIN ARE AT THE COMPLETE DISCRETION AND CONTROL OF IISL.

Exchange Traded Funds ETF Brochure

ETFs are just what their name implies: baskets of securities that are traded, like individual stocks, on an exchange. Unlike regular open-end mutual funds, ETFs can be bought and sold

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throughout the trading day like any stock.

Most ETFs charge lower annual expenses than index mutual funds. However, as with stocks, one must pay a brokerage to buy and sell ETF units, which can be a significant drawback for those who trade frequently or invest regular sums of money.

They first came into existence in the USA in 1993. It took several years for them to attract public interest. But once they did, the volumes took off with a vengeance. Over the last few years more than $120 billion (as on June 2002) is invested in about 230 ETFs. About 60% of trading volumes on the American Stock Exchange are from ETFs. The most popular ETFs are QQQs (Cubes) based on the Nasdaq-100 Index, SPDRs (Spiders) based on the S&P 500 Index, iSHARES based on MSCI Indices and TRAHK (Tracks) based on the Hang Seng Index. The average daily trading volume in QQQ is around 89 million shares.

Their passive nature is a necessity: the funds rely on an arbitrage mechanism to keep the prices at which they trade roughly in line with the net asset values of their underlying portfolios. For the mechanism to work, potential arbitragers need to have full, timely knowledge of a fund's holdings.

Exchange Traded Funds ETF Brochure

ETFs are just what their name implies: baskets of securities that are traded, like individual stocks, on an exchange. Unlike regular open-end mutual funds, ETFs can be bought and sold throughout the trading day like any stock.

Most ETFs charge lower annual expenses than index mutual funds. However, as with stocks, one must pay a brokerage to buy and sell ETF units, which can be a significant drawback for those who trade frequently or invest regular sums of money.

They first came into existence in the USA in 1993. It took several years for them to attract public interest. But once they did, the volumes took off with a vengeance. Over the last few years more than $120 billion (as on June 2002) is invested in about 230 ETFs. About 60% of trading volumes on the American Stock Exchange are from ETFs. The most popular ETFs are QQQs (Cubes) based on the Nasdaq-100 Index, SPDRs (Spiders) based on the S&P 500 Index, iSHARES based on MSCI Indices and TRAHK (Tracks) based on the Hang Seng Index. The average daily trading volume in QQQ is around 89 million shares.

Their passive nature is a necessity: the funds rely on an arbitrage mechanism to keep the prices at which they trade roughly in line with the net asset values of their underlying portfolios. For the mechanism to work, potential arbitragers need to have full, timely knowledge of a fund's holdings.

  Creations & Redemptions

ETFs are different from Mutual funds in the sense that ETF units are not sold to the public for cash. Instead, the Asset Management Company that sponsors the ETF (Fund) takes the shares of companies comprising the index from various categories of investors like authorized

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participants, large investors and institutions. In turn, it issues them a large block of ETF units. Since dividend may have accumulated for the stocks at any point in time, a cash component to that extent is also taken from such investors. In other words, a large block of ETF units called a "Creation Unit" is exchanged for a "Portfolio Deposit" of stocks and "Cash Component".

The number of outstanding ETF units is not limited, as with traditional mutual funds. It may increase if investors deposit shares to create ETF units; or it may reduce on a day if some ETF holders redeem their ETF units for the underlying shares. These transactions are conducted by sending creation / redemption instructions to the Fund. The Portfolio Deposit closely approximates the proportion of the stocks in the index together with a specified amount of Cash Component. This “in-kind” creation / redemption facility ensures that ETFs trade close to their fair value at any given time.

Some investors may prefer to hold the creation units in their portfolios. While others may break-up the creation units and sell on the exchanges, where individual investors may purchase them just like any other shares.

ETF units are continuously created and redeemed based on investor demand. Investors may use ETFs for investment, trading or arbitrage. The price of the ETF tracks the value of the underlying index. This provides an opportunity to investors to compare the value of underlying index against the price of the ETF units prevailing on the Exchange. If the value of the underlying index is higher than the price of the ETF, the investors may redeem the units to the Sponsor in exchange for the higher priced securities. Conversely, if the price of the underlying securities is lower than the ETF, the investors may create ETF units by depositing the lower-priced securities. This arbitrage mechanism eliminates the problem associated with closed-end mutual funds viz. the premium or discount to the NAV.

  Creations & Redemptions

ETFs are different from Mutual funds in the sense that ETF units are not sold to the public for cash. Instead, the Asset Management Company that sponsors the ETF (Fund) takes the shares of companies comprising the index from various categories of investors like authorized participants, large investors and institutions. In turn, it issues them a large block of ETF units. Since dividend may have accumulated for the stocks at any point in time, a cash component to that extent is also taken from such investors. In other words, a large block of ETF units called a "Creation Unit" is exchanged for a "Portfolio Deposit" of stocks and "Cash Component".

The number of outstanding ETF units is not limited, as with traditional mutual funds. It may increase if investors deposit shares to create ETF units; or it may reduce on a day if some ETF holders redeem their ETF units for the underlying shares. These transactions are conducted by sending creation / redemption instructions to the Fund. The Portfolio Deposit closely approximates the proportion of the stocks in the index together with a specified amount of Cash Component. This “in-kind” creation / redemption facility ensures that ETFs trade close to their fair value at any given time.

Some investors may prefer to hold the creation units in their portfolios. While others may break-up the creation units and sell on the exchanges, where individual investors may purchase them just like any other shares.

ETF units are continuously created and redeemed based on investor demand. Investors may use ETFs for investment, trading or arbitrage. The price of the ETF tracks the value of the underlying

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index. This provides an opportunity to investors to compare the value of underlying index against the price of the ETF units prevailing on the Exchange. If the value of the underlying index is higher than the price of the ETF, the investors may redeem the units to the Sponsor in exchange for the higher priced securities. Conversely, if the price of the underlying securities is lower than the ETF, the investors may create ETF units by depositing the lower-priced securities. This arbitrage mechanism eliminates the problem associated with closed-end mutual funds viz. the premium or discount to the NAV.

Advantages of ETFs

While many investors have similar outlooks, no two are exactly alike. Due to the unique structure of ETFs, all types of investors, whether retail or institutional, long-term or short-term, can use it to their advantage without being at a disadvantage to others. They allow long-term investors to diversify their portfolio at one shot at low cost and insulate them from short-term trading activity due to the unique “in-kind” creation / redemption process. They provide liquidity for investors with a shorter-term horizon as they can trade intra-day and can have quotes near NAV during the course of trading day. As initial investment is low, retail investors find it simple and convenient to buy / sell. They facilitate FIIs, Institutions and Mutual Funds to have easy asset allocation, hedging, equitising cash at a low cost. They enable arbitrageurs to carry out arbitrage between the Cash and the Futures markets at low impact cost.

ETFs provide exposure to an index or a basket of securities that trade on the exchange like a single stock. They offer a number of advantages over traditional open-ended index funds as follows :

While redemptions of Index fund units takes place at a fixed NAV price (usually end of day), ETFs offer the convenience of intra-day purchase and sale on the Exchange, to take advantage of the prevailing price, which is close to the actual NAV of the scheme at any point in time.

They provide investors a fund that closely tracks the performance of an index throughout the day with the ability to buy/sell at any time, whereby trading opportunities that arise during a day may be better utilized.

They are low cost.

Unlike listed closed-ended funds, which trade at substantial premia or more frequently at discounts to NAV, ETFs are structured in a manner which allows Authorized Participants and Large Institutions to create new units and redeem outstanding units directly with the fund, thereby ensuring that ETFs trade close to their actual NAVs.

ETFs are like any other index fund, wherein, subscription / redemption of units work on the concept of exchange with underlying securities instead of cash (for large deals).

Since an ETF is listed on an Exchange, costs of distribution are much lower and the reach is wider. These savings in cost are passed on to the investors in the form of lower costs. Further, the structure helps reduce collection, disbursement and other processing charges.

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ETFs protect long-term investors from inflows and outflows of short-term investors. This is because the fund does not incur extra transaction cost for buying/selling the index shares due to frequent subscriptions and redemptions.

Tracking error, which is divergence between the NAV of the ETF and the underlying Index, is generally observed to be low as compared to a normal index fund due to lower expenses and the unique in-kind creation / redemption process.

ETFs are highly flexible and can be used as a tool for gaining instant exposure to the equity markets, equitising cash or for arbitraging between the cash and futures market.

The first ETF in India, “Nifty BeEs (Nifty Benchmark Exchange Traded Scheme) based on S&P CNX Nifty, was launched in January 2002 by Benchmark Mutual Fund. It may be bought and sold like any other stock on NSE. Its symbol on NSE is “NIFTYBEES”.

Top

ETFs Launched on NSE ETF and Indexing | Sparklines

World Indices o Hang Seng BeES ™

Equity o Nifty BeES o Junior Nifty BeES o Bank BeES o PSUBNKBEES o SHARIABEES o S&P CNX Nifty UTI Notional Depository Reciepts Scheme (SUNDER) o KOTAKPSUBK o RELBANK o QNIFTY

Liquid o Liquid Benchmark Exchange Traded Scheme (Liquid BeES)

Gold o GOLDBEES o GOLDSHARE o KOTAKGOLD o RELGOLD o QUANTUMGOLD o SBIGETS o RELIGARE

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Applications of ETFs

Efficient Trading : ETFs provide investors a convenient way to gain market exposure viz. an index that trades like a stock. In comparison to a stock, an investment in an ETF index product provides a diversified exposure to the market. Depending on the index, investors may obtain exposure to countries/ markets or sectors.

Equitising Cash : Investors with idle cash in their portfolios may want to invest in a product tied to a market benchmark like an index as a temporary investment before deciding which stocks to buy or waiting for the right price.

Managing Cash Flows : Investment managers who see regular inflows and outflows may use ETFs because of their liquidity and their ability to represent the market.

Diversifying Exposure : If an investor is not sure about which particular stock to buy but likes the overall sector, investing in shares tied to an index or basket of stocks provides diversified exposure and reduces stock specific risk.

Filling Gaps : ETFs tied to a sector or industry may be used to gain exposure to new and important sectors. Such strategies may also be used to reduce an overweight or increase an underweight sector.

Shorting or Hedging : Investors who have a negative view on a market segment or specific sector may want to establish a short position to capitalize on that view. ETFs may be sold short against long stock holdings as a hedge against a decline in the market or specific sector.

  Comparison of ETFs with other mutual funds

In essence, ETFs trade like stocks and therefore offer a degree of flexibility unavailable with traditional mutual funds. Specifically, investors can trade ETFs throughout the trading day as in stocks. In comparison, in a traditional mutual fund, investors can purchase units only at the fund’s NAV, which is published at the end of each trading day. In fact, investors cannot purchase ETFs at the closing NAV. This difference gives rise to an important advantage of ETFs over traditional funds: ETFs are immediately tradable and consequently, the risk of price differential between the time of investment and time of trade is substantially less in the case of ETFs.

ETFs are cheaper than traditional mutual funds and index funds in terms of fees. However, while investing in an ETF, an investor pays a commission to the broker. The tracking error of ETFs is generally lower than traditional index funds due to the “in-kind” creation / redemption facility and the low expense ratio. This “in-kind” creation / redemption facility ensures that long-term investors do not suffer at the cost of short-term investor activity.

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ETFs can be bought / sold through trading terminals anywhere across the country. Table No. 1 presents a comparative view ETFs vis-à-vis other funds.

ETFs Vs. Open Ended Funds Vs. Close Ended Funds

ParameterOpen Ended

FundClosed Ended Fund Exchange Traded Fund

Fund Size Flexible Fixed Flexible

NAV Daily Daily Real Time

Liquidity Provider

Fund itself Stock Market Stock Market / Fund itself

Sale PriceAt NAV plus load, if any

Significant Premium / Discount to NAV

Very close to actual NAV of Scheme

Availability

Fund itself Through Exchange where listed

Through Exchange where listed / Fund itself.

Portfolio Disclosur

eMonthly Monthly Daily/Real-time

UsesEquitising cash - Equitising Cash,

Hedging, Arbitrage

Intra-Day Trading

Not possible Expensive Possible at low cost

  Mutual Funds

Now the buying and selling of mutual fund have become easier for investors.

An investor who wishes to subscribe or redeem units of a mutual fund scheme can now use Mutual Fund Service System (MFSS) provided by NSE.

This service has been launched on November 30, 2009 at the hands of Mr C B Bhave, Chairman, Securities Exchange Board of India (SEBI), on November 30, 2009.

Mutual Fund Service System

Mutual Fund Service System (MFSS) is an online order collection system provided by NSE to its eligible members for placing subscription or redemption orders on the MFSS based on orders received from the investors.

Orders Placing

The MFSS will be available for Participants between 9 a.m. to 3

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p.m.

The NSE MFSS shall facilitate entry of both buy and sell orders. In order to subscribe units, member will be required to place buy orders. A member who wishes to redeem units of mutual fund scheme will be required to place sell orders in the system. Participants can choose between Physical mode and depository mode while putting their subscription / redemption requests on the MFSS. All orders shall be settled on order to order basis, on T+1 (working days).

Individuals, HUF and Body Corporate can participate in MFSS subject to completing the KYC procedure. In case of a minor the guardian would have to be KYC compliant.

Confirmation of order

The system will generate an order confirmation slip for each order which includes time stamp of the order being put on the system, on behalf of the investor. The order confirmation slip which is generated by the system shall be given to the investor by the member and is the conclusive evidence of the transaction.

Eligibility criteria for Members

Trading Members of NSE who have obtained AMFI Registration Number (ARN) from Association of Mutual Funds of India (AMFI) are eligible to participate in MFSS. Further, eligible members would have to register as distributor with the Mutual Fund Company. Hence, eligible members would be able to place orders only in respect of Mutual Fund Companies where they have registered as distributor.

Daily Statistics

HIGHLIGHTS:19-03-2010

Subscription Redemption

No of orders Total subscription amount No of orders Total redemption amount

58 1960000 4

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  AMC Schemes Contact Details

  List of Eligible scheme for MFSS (Refer latest NSE Circular for updated list)

Franklin Templeton Asset Management India Pvt Ltd.

Benchmark Asset Management Company Pvt. Ltd.

Kotak Mahindra Asset Management Company Ltd.

UTI Asset Management Company Ltd.

Birla Sun Life Asset Management Company Ltd.

Reliance Capital Asset Management Ltd.

HDFC Asset Management Company Ltd.

ICICI Prudential Asset Management Company

SBI Funds Management Pvt. Ltd.

Tata Asset Management Ltd.

Religare Asset Management Company Ltd.

IDFC Asset Management Company Ltd.

Quantum Asset Management Company Pvt. Ltd.

FIL Fund Management Pvt. Ltd.

DSP Blackrock Investment Managers Pvt. Ltd.

NEAT-MFSS Features

The NEAT MFSS features and user navigation for MFSS are described below. For further details Participants are requested to refer to the on-line help facility.

Parameters for Mutual Fund Service System.

Market time 9.00 AM - 3.00 PM MFSS Segment

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Series

DP Dividend Payout option

DR Dividend reinvestment option

GR Growth option

Setting up schemes in market watchThe facility is available to the user to set up the schemes on the market watch screen. The user can set up the scheme individually by first pressing the [F4] key and then enters the schemes details like category, symbol and series. Alternatively the user can set up the schemes on the market watch screen through ‘Security List’. The schemes set up on market watch allow the user to:

1. View the indicative NAV (i.e. NAV of previous day) for the scheme.

2. Default the scheme descriptor while entering subscription/ redemption request thereby reducing data entry.

3. View scheme details like ISIN, limits etc. by double click on the scheme.

Security ListThe facility is available to the user to list the schemes available for trading on NEAT-MF The user can search for the schemes by filtering on scheme category, symbol, series, ISIN code, scheme name, AMC code.

Setting up of Client Registration:The facility is available to the user to set the client details. The user shall not be allowed to place an order for the client if registration details of the client are not maintained.

The user can modify/ delete client registration already maintained subject to certain restrictions. A bulk upload facility is also available to set up client registration.

DP MasterA client is registered as an individual client in client registration process described above. However, depository accounts can be maintained in joint accounts.

Firstly the user is required to register all joint holders for the depository account if subscription/ redemption request is to be entered with depository settlement. Then the user is required to maintain DP master for such clients.

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The facility is available to the user to maintain DP Master of the client. The user is required to provide depository ID and client beneficiary ID along with client codes. The sequence in which client codes are entered shall be the same as available for depository ID and client beneficiary ID combination.

This one time set up of DP master is must if the user wishes to enter subscription/ redemption request for the client with depository settlement.

Order EntryThis facility is available to the user to enter the subscription and redemption order by pressing the [F1] and [F2] key respectively.

The user can request following types of subscription/ redemption requests:

o Physical Subscription – Fresh (first time) o Physical Subscription – Additional o Depository Subscription – Fresh (first time) o Depository Subscription – Additional o Physical Redemption o Depository Redemption

DP SettlementThe user can declare upfront whether the subscription/ redemption request would be settled in physical mode (‘N’) or depository mode (‘Y’).

Purchase TypeThe user can request for fresh or additional subscription. For additional subscription in physical mode folio number would be mandatory.This field is not applicable for redemption requests.

Application NumberThis is optional field.

DP ID – Beneficiary IDIf the DP Settlement is ‘Y’, it is mandatory for the user to enter depository details. The user must enter depository ID and client beneficiary ID available in DP master. The client codes linked to the combination are picked up from DP master and relevant details for such clients are picked up from the client registration.

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FOLIO NumberIf the DP Settlement is ‘N’, it is mandatory to enter the folio number for additional subscriptions and redemption requests.

Order AmountThe user is allowed to place order amount in multiples of rupees. Minimum amounts are specified at the scheme level for fresh and additional subscription. The subscription order would be rejected if the order amount is not greater than or equal to the amount specified.

Similarly, maximum amount is specified at the scheme level for physical redemption. Physical redemption order would be rejected if the order amount is equal to or greater than the amount specified.

No subscription/ redemption order should be entered with amount equal to or greater than Rs. 1 crore. For depository redemption order amount is not applicable.

Order QuantityThe user is allowed place order quantity only for redemption requests. Maximum quantity is specified at the scheme level for physical redemption. Physical redemption order would be rejected if the order quantity is equal to or greater than the amount specified.

Client Code and mode of holdingFor physical subscription and redemption orders the user would enter the client code and mode of holding. The mode of holding can be ‘Single’ (SI) / ‘Joint’ (JO) / ‘Anyone or Survivor’ (AS) For depository subscription and redemption orders the client codes would be defaulted from the depository master for the given DP ID – Beneficiary ID combination. The user would not be allowed to change the default client codes.

For the client code entered client name, PAN and KYC information shall be displayed from Client Registration. The user would not be allowed to change this information. For subscription request above Rs. 50,000/- KYC must be completed (‘Y’) for all the clients entered for the order.

Following additional facilities are provided along with order entry:

1. The facility to submit the bulk orders using offline order

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entry facility. 2. The facility to take online backups of orders entered by

the user for the day. 3. The facility to print the confirmation slips either online

or offline.

Outstanding OrdersThis facility is available to the users to view the outstanding orders in particular scheme. This information is available only for the current day. Subscription and redemption orders would be presented separately. A facility is available to modify or cancel particular order displayed in the list.

Order Modification/ CancellationThis facility is available for the user to modify or cancel specific outstanding orders. This is available only during the market hours. The user would not be allowed to modify symbol, series, scheme name and depository settlement.

Activity logThis facility is available for the user to track order entry/ modification/ cancellation activities performed for specific scheme.

Full Message DisplayThis facility is available to the user to view interactive messages (i.e. sign on/ sign off, transaction messages like order confirmation, order modifications etc.) and market messages sent by the exchange.

Risk ManagementFollowing trading member firm level risk management features are provided along with order entry:

1. The facility is available to the corporate manager to set the limit on the total value of orders that can be entered by the specific branch within the trading member’s firm by specifying the branch order value limit.

2. The facility is available to the corporate manager or branch manager to set the day limit on the total value of the orders that can be entered by the specific user within the trading member’s firm by specifying the user order value limit.

3. The facility is available to the dealer to the set quantity

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/ amount limits for individual orders entered by self by specifying the order limit.

Operating Guidelines

Operating Guidelines for Mutual Fund Service System

Subscription of units

Participants have to open a separate clearing bank account for the purpose of settlement of funds for subscription.

Funds pay-in confirmation files are downloaded to participants on the T day for units subscribed.

Participants have to provide funds in their settlement accounts by 8.30 a.m. on the T+1 day.

Participants have to upload payment confirmation files on the T+1 day by 9.30 a.m. identifying transactions for which payments have been received and transactions for which payments have not been received. Wherever the funds collected from the bank account fall short of the amount indicated in the details provided by the participant, the details are considered defective and are not further processed. In such cases, the funds collected, if any, are returned to the designated bank account of the participant.

Daily funds report is downloaded to participants after completion of funds settlement.

Redemption of units

Investors are required to transfer units for their transacted orders to the NSCCL pool account on the T day by 4.30 p.m. for the purpose of redemption. The details of such instructions are given in the circular NSE/CMPT/13534 dated November 24, 2009.

Demat Final Delivery Statement (DFDS) is downloaded to participants after units are received by NSCCL.

Designated clearing banks

Clearing & settlement circular

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Frequently Asked Question –

Mutual Fund Service System (MFSS) for Investors1. What is MFSS?Mutual Fund Service System (MFSS) is an online order collection system provided by NSEto its eligible members for placing subscription or redemption orders on the MFSS basedon orders received from the investors.2. How is MFSS different from existing process for subscription to and redemptionof mutual funds?Hitherto, an investor interested in subscribing to a mutual fund had to identify a distributorof the mutual fund and submit all documents along with payment instrument whereapplicable to the distributor or directly to Mutual Fund/AMC/RTA. Thesubscription/redemption request would thereafter get processed and investor would knowabout status of the request only in the form of direct communication from MutualFund/AMC/RTA.In the MFSS, investor will have an opportunity to deal with SEBI registered NSE memberwho is eligible to participate in MFSS for subscription/redemption of units. Memberswould enter the order into MFSS. Investor would be able to know the order details andmodify his order details till the order acceptance time ends i.e. up to 3.00 pm. By end ofthe day investor would also get to know about the validity of his order and the value atwhich the units would get credited/redeemed to his account.

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3. What are the benefits of using MFSS for participation in mutual funds?Investor would able to get a single view of his portfolio across multiple assets likesecurities, mutual fund units etc.,Investor would be able to get services from same intermediary for different asset classInvestor would be able to optimize his investment decisions due to reduced time lag inmovement of fundsInvestor would have a voice in agreeing on charges to be paid for services rendered.Reduction of paperworkTransparency in knowing status of order till completion thereby reducing disputesRecourse to grievance resolution in case of deficiency in service provided by member4. Who all can are eligible to participate in MFSS?Individuals, HUF and Body Corporate can participate in MFSS subject to completing the KYCprocedure. In case of a minor the guardian would have to be KYC compliant.5. Can Units of all Mutual Funds and all Schemes be subscribed or redeemed usingMFSS?Asset Management Companies (AMC) desirous of offering MFSS to their existing andprospective customers enter into an arrangement with Exchange and only schemes of suchAMCs would be available on MFSS. All schemes which are available on MFSS would beinformed to the Participants and investors through issue of circulars from time to time. Thecurrently available schemes on MFSS are available on NSE website(http://www.nseindia.com/content/mfss/mf_schemes.htm)6. Can I approach any member for placing order on MFSS?Only Trading Members who have obtained AMFI Registration Number (ARN) fromAssociation of Mutual Funds of India (AMFI) are eligible to participate in MFSS. Further,eligible members also have to register as distributor with the Mutual Fund Company. Hence,eligible members would be able to place orders only in respect of Mutual Fund Companieswhere they have registered as distributor.

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7. Are there specific timings when MFSS orders could be placed?MFSS would be available for placing of orders between 9.00 am and 3.00 pm on all theworking days of the Exchange. Any order placed beyond these timings could be for placing iton the MFSS the next day.8. If I already have an existing relationship with a MFSS eligible member, what isthe additional documentary requirement for MFSS?If you are already using the services of NSE member for your other investment needs and youalready hold units of one or more mutual fund, member would require you to sign up a letterconsenting to participate on MFSS. Thereafter, you could place subscription/redemption orderby meeting the requirements applicable for placing such order.9. In Equity/F&O I have myself as client. However, I use the demat account in which Iam the first holder and one of my family member is second holder. Is this sufficient forMFSS?For dealing in MFSS, client details entered in MFSS should exactly match the account holdersname in the demat account. In other words, if, A and B are joint account holders of a demataccount, for placing orders on MFSS, client particulars to be given to member would be that ofboth A and B.10. I have so far not invested in mutual funds. What are the KYC requirements for aMutual Fund Investor?Every investor investing more than Rs.50,000 in mutual fund has to necessarily complete KYCprocess.The Association of Mutual Funds of India (AMFI) has facilitated a centralized platform tocarry out one time KYC procedure on behalf of all Mutual Funds. Once the KYC is dulycompleted in all regards, the investor needs to produce a copy of the acknowledgement wheninvesting for the first time with Mutual Fund. There is no need to repeat the KYC processindividually for each mutual fund.For more details on KYC visit AMFI site:

95

http://www.amfiindia.com/showhtml.aspx?page=kyc11. Should mutual fund units be held in physical form or demat form?Investors have a choice of holding units either in physical form or in demat. However, forconvenience of operations and ease of entry and exit it would be advisable to hold the units indemat form.12. For the purpose of holding units in demat account, is there a requirement of openinga separate demat account?If you already have an existing demat account say for holding of your securities, same accountcan be used for holding units in demat form also.13. After I provide the member with all particulars along with required documents forregistering me as a client would I get any ID or code allotted?After receiving complete particulars from you, member would allot a Unique Client Code(UCC) to you and report all the details to Exchange by way of UCC Upload. This UCC wouldform an important reference point for you. Member may allot same UCC as in Equity/F&O orallot a different UCC for MFSS.14. When I wish to subscribe for a mutual fund through MFSS, what are the details Ineed to give to the Member for placing of order?For placing a subscription order, you would need to give the name of the Mutual Fund, Nameof the Scheme, the value (i.e. money) that you intend investing, whether you would like unitsin physical form or demat form, whether your subscription is fresh (first time investor for aMutual Fund company) or additional. In case you choose physical option for an additionalpurchase you need to provide the existing folio number also.15. At the time of placing order if I make a mistake in giving details would I be in aposition to correct or modify the order?Orders can be placed between 9.00 am to 3.00 pm. Within this time period, you would able torequest your member for correction of mistake if any including cancellation of order or placinga fresh order altogether.

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16. What will be the number of units that I would get for the value that I decided toinvest?For all orders received up to 3.00 p.m Net Asset Value (NAV) of the business day will be therate at which units would be allotted to you. Illustratively if you invested Rs. 1 Lakh, NAV ofthe scheme is say Rs.10/- you would get 10000 units allotted to you.17. For subscription, how should I make payment?For subscribing to Mutual funds through MFSS, you need to make payment in favour of theMember necessarily through cheque/Demand Draft. Member is obliged to place order onlywhen clear balance from your end is available in Member’s account.18. When and how I would get credit of units to my demat account ?After closure of order acceptance time, Exchange would provide details to MutualFund/AMC/RTA and to Depository for validation. On receipt of valid order information fromboth of these entities, on T+1 day as per the settlement calendar(currently at around 10.00am),Exchange would debit the Settlement account of the Member towards all valid orders and thentransfer the money to the concerned AMC/Mutual Fund Company. Thereafter theAMC/Mutual Fund/RTA would process the subscription request and credit units to your demataccount by T+1 end of the day.19. What would be the process if in case I have opted for subscription of units in physicalform?In case you have subscribed for units in physical form, the subscription form along withdocuments like copy of PAN of all holders, KYC acknowledgement of all holders needs to besent by member to RTA/Mutual Fund essentially before 4.00pm. Based on order data sent byExchange RTA/Mutual Fund would validate the order information along with physical papersreceived and return the validated order information to Exchange. Exchange would debit thefunds from settlement account of the member only in respect of valid orders. In case the papers

97

have not reached RTA/Mutual Fund order would get invalidated. Information on invalid orderswould be given to Trading members who would in turn inform the investor.20. Once my subscription order is placed on the MFSS, what confirmation would I getfrom my Member?Immediately on placing of order on MFSS, Member would be in a position to confirm thedetails of order to the investor. By end of the day member would be able to issue transactionconfirmation memo containing particulars like Mutual Fund, Scheme, value of subscription,Physical/demat mode, brokerage and service tax applicable. In cases of rejection of the order,reason for rejection would also be communicated by the member.21. What are the particulars that I need to provide the member while placing redemptionorder?At the time of placing order for redemption in respect of demat units, you need to mentionname of the Mutual Fund, Scheme, and Number of Units to be redeemed.22. Once my redemption order is placed on MFSS, what confirmation would I get fromthe member?Immediately on placing of order on MFSS, Member would be in a position to confirm thedetails of order to the investor. By end of the day member would be able to issue transactionconfirmation memo containing particulars like Mutual Fund, Scheme, value of subscription,Physical/demat mode, brokerage and service tax applicable. In cases of rejection of the order,reason for rejection would also be communicated by the member.23. In case of redemption of units in demat form, to whom and how should I transferunits?In respect of redemption of units in demat form, you should transfer units to the pool accountof “National Securities Clearing Corporation (NSCCL)”. You should ensure that you havegiven appropriate delivery instruction to your Depository participant and that you also ensurethat units have been transferred to NSCCL account before 4.30 pm.

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24. When and how would I get redemption proceeds after transferring the units toNSCCL?NSCCL on T+1 day at the specified time would transfer units in its pool account to theconcerned AMC/RTA’s pool account. Thereafter AMC/RTA would process the redemptionrequest at Transaction day’s NAV and directly credit the proceeds to investors’ bank account.25. How would I deal with redemption of physical units?In respect of redemption of physical units, order would be placed by member on receipt ofnecessary redemption request form along with documents including statement of accountissued by mutual fund reflecting your units. Member needs to send the papers to RTA/MutualFund. Thereafter, the RTA/MF would process redemption request and send the paymentdirectly to investor. If the physical papers do not reach the RTA/MF within the time stipulatedfor the purpose, orders may get invalidated.26. What are the charges that I need to pay for utilizing the services of a Member forplacing orders on MFSS?There are no regulatory restrictions on the fees to be charged by the member for servicesrendered on MFSS. However, investor and the member may mutually agree on thecommission/brokerage for services rendered on MFSS and it would be advisable to agree toterms of charges in writing. Service tax would be applicable on charges so levied by theMember.27. If I need to intimate changes to my personal information, should I intimate throughmy member?Changes to personal information would have to be directly informed to the concerned MutualFund as well as to AMFI’s centralized KYC platform. MFSS as a system can be used only forsubscription or redemption.28.(a) If I have paid my money for subscription but not received units to my credit , or(b) if there is significant delay in placing of my orders despite availability of clear

99

balance which has impact on units allotment price whom should I approach forresolution of my grievance ?Investor can approach investor services cell of the Exchange for resolution of dispute relatingto service rendered by the broker.29. Are there any restrictions on maximum value or quantity for a single order onMFSS?In case of demat transactions the maximum value of subscription or redemption for a singleorder is pegged at Rs. 1 Crore and there is no restriction on number of orders that can beplaced. However, with reference to redemption of physical units a maximum limit ofRs.1,00,000/- per order has been kept.

CorporateAnnouncements

Pfizer Ltd. - Outcome of Board Meeting (Mar 19, 20:11 hours)

State Bank of India - Updates (Mar 19, 20:06 hours)

Religare Enterprises Limited - Updates (Mar 19, 20:00 hours)

Amit Spinning Industries Limited - Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 19:52 hours)

Bharti Airtel Limited - Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 19:52 hours)

Dewan Housing Finance Corporation Ltd - Disc under Reg Subs Acq &Takeover & SEBI Insider Trading Reg (Mar 19, 19:52 hours)

HCL Technologies Ltd - Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 19:52 hours)

Visesh Infotecnics Limited - Corrigendum (Mar 19, 19:44 hours)

Listing

NSE plays an important role in helping an Indian companies access equity capital, by providing a liquid and well-regulated market. NSE has about 1319 companies listed representing the length, breadth and diversity of the Indian economy which includes from hi-tech to heavy industry, software, refinery, public sector units, infrastructure, and financial services. Listing on NSE raises a company’s profile among investors in India and abroad. Trade data is distributed worldwide through various news-vending agencies. More importantly, each and every NSE

100

listed company is required to satisfy stringent financial, public distribution and management requirements. High listing standards foster investor confidence and also bring credibility into the markets.

NSE lists securities in its Capital Market (Equities) segment and its Wholesale Debt Market segment

  What's New

Securities listed and admitted to dealings

Sr.No. Symbol Series Company Name ISIN CodeDate of Listing

1 IP511YAD MF ICICI Prudential Mut Fund -ICICI Prudential FMP-S51-1 Yr Pl A Divd. INF109K01DC9 19-Mar-

2010

2 IP511YAG MF ICICI Prudential Mut Fund -ICICI Prudential FMP-S51-1 Yr Pl A Cum. INF109K01DD7 19-Mar-

2010

3 HNGSNGBEES EQ Benchmark Mutual Fund - Hang Seng Benchmark Exchange Traded Scheme INF732E01227 18-Mar-

2010

4 UNITEDBNK EQ United Bank of India INE695A01019 18-Mar-2010

5 IP5115MBG MF ICICI Prudential Mut Fund-ICICI Prudential FMP-S51-15 Month Pl E-Cum INF109K01DB1 16-Mar-

2010

6 IP5115MED MF ICICI Prudential Mut Fund-ICICI Prudential FMP-S51-15 Month Pl E-Div INF109K01DA3 16-Mar-

2010

7 L&TFINANCE N5 L&T Finance Limited INE523E07475 16-Mar-2010

8 L&TFINANCE N6 L&T Finance Limited INE523E07483 16-Mar-2010

9 MANINFRA EQ Man Infraconstruction Limited INE949H01015 11-Mar-2010

10 TEXMOPIPES EQ Texmo Pipes and Products Limited INE141K01013 10-Mar-2010

11 TMF15MS1IG MF Taurus Mutual Fund - TMF FMP - 15M -S1- Institutional- Growth Option INF044D01104 10-Mar-

2010

12 TMF15MS1RD MF Taurus Mutual Fund - TMF FMP - 15M -S1 - Retail- Dividend Option INF044D01096 10-Mar-

2010

13 TMF15MS1RG MF Taurus Mutual Fund - TMF FMP - 15M -S1 - Retail- Growth Option INF044D01088 10-Mar-

2010

14 UFTIFDVII1 MF UTI Mutual Fund - UTIMF FTIFS - VII-I - Dividend Payout Option INF789F01AX0 10-Mar-

2010

15 UFTIFGVII1 MF UTI Mutual Fund - UTIMF FTIFS - VII-I - Growth Option INF789F01AW2 10-Mar-

2010

16 UFTIFRVII1 MF UTI Mutual Fund - UTIMF FTIFS - VII-I -Dividend INF789F01AY8 10-Mar-

101

Reinvestment Option 2010

17 DEEPIND EQ Deep Industries Limited INE677H01012 09-Mar-2010

18 KECL EQ Kirloskar Electric Company Limited INE134B01017 09-Mar-2010

19 SMPL EQ Sujana Metal Products Limited INE215G01021 09-Mar-2010

20 SPECTACLE EQ Spectacle Industries Limited INE409H01028 09-Mar-2010

Latest Corporate Announcements

Also see: Financial Results | Board Meetings| Daily NAV/Buy Back

Company Name Short Description Date

PFIZER LTD. Outcome of Board Meeting (Mar 19, 20:11)

STATE BANK OF INDIA Updates (Mar 19, 20:06)

RELIGARE ENTERPRISES LIMITED

Updates (Mar 19, 20:00)

BHARTI AIRTEL LIMITED

Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 19:52)

HCL TECHNOLOGIES LTD

Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 19:52)

AMIT SPINNING INDUSTRIES LIMITED

Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 19:52)

DEWAN HOUSING FINANCE CORPORATION LTD

Disc under Reg Subs Acq &Takeover & SEBI Insider Trading Reg (Mar 19, 19:52)

VISESH INFOTECNICS LIMITED

Corrigendum (Mar 19, 19:44)

SUZLON ENERGY LIMITED

Appointment/Others (Mar 19, 19:33)

UTV SOFTWARE COMMUNICATIONS LIMITED

Regulation 8A of SEBI (SAST) Regulations (Mar 19, 19:25)

HOUSING DEVELOPMENT

Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 19:25)

102

FINANCE CORPORATION LTD.

HCL TECHNOLOGIES LTD

Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 19:25)

GREAVES COTTON LIMITED

Reg 7 of SEBI (Susbs Acq of shares & Takeovers) (Mar 19, 19:25)

DIGJAM LIMITED Disc under Reg Subs Acq &Takeover & SEBI Insider Trading Reg (Mar 19, 19:25)

AMBUJA CEMENTS LTD Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 19:25)

ITC LTD. Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 19:25)

LUPIN LIMITED Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 19:25)

LARSEN & TOUBRO LIMITED

Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 19:25)

SURANA CORPORATION LIMITED

Disclosure of shareholding (Mar 19, 19:24)

AGEE GOLD REFINERS LTD.

Outcome of Court Convened Meeting (Mar 19, 19:18)

PVR LIMITED Merger/Others (Mar 19, 19:18)

THE ANDHRA PRADESH PAPER MILLS LIMITED

Closure of Rights Issue (Mar 19, 19:18)

AKSH OPTIFIBRE LIMITED

Appointment of Company Secretary and Compliance Officer (Mar 19, 19:18)

PVP VENTURES LIMITED

Results of Postal Ballot (Mar 19, 19:18)

HOUSING DEVELOPMENT FINANCE CORPORATION LTD.

Allotment of shares (Mar 19, 19:18)

MUKAND LIMITED Reg.7(3) of SEBI (Substantial Acq of shares &Takeovers),1997 (Mar 19, 19:12)

JM FINANCIAL LIMITED Press Release/Others (Mar 19, 19:11)

LOKESH MACHINES LIMITED

Regulation 8A of SEBI (SAST) Regulations (Mar 19, 19:09)

103

SUJANA METAL PRODUCTS LIMITED

Regulation 8A of SEBI (SAST) Regulations (Mar 19, 19:01)

AEGIS LOGISTICS LIMITED

Results of Postal Ballot (Mar 19, 18:50)

SHIPPING CORPORATION OF INDIA LTD.

Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 18:41)

HOUSING DEVELOPMENT FINANCE CORPORATION LTD.

Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 18:41)

ZENITH INFOTECH LTD. Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 18:41)

HOUSING DEVELOPMENT FINANCE CORPORATION LTD.

Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 18:41)

INDIA FOILS LIMITED Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 18:41)

MADHUCON PROJECTS LIMITED

Reg.7(3) of SEBI (Substantial Acq of shares &Takeovers),1997 (Mar 19, 18:41)

MSK PROJECTS (INDIA) LIMITED

Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 18:41)

ORACLE FINANCIAL SERVICES SOFTWARE LIMITED

Reg.13-SEBI(Prohibition of Insider Trading Regulations)1992 (Mar 19, 18:41)

PROVOGUE (INDIA) LIMITED

Resignation (Mar 19, 18:41)

BLUE BIRD (INDIA) LIMITED

Outcome of Board Meeting (Mar 19, 18:35)

TEXMO PIPES AND PRODUCTS LIMITED

Reg7(3)&Reg13(6)of SEBI Subs. Acq &Takeovers&Insider Trading (Mar 19, 18:31)

SASKEN COMMUNICATION TECHNOLOGIES LIMITED

Resolution passed by the shareholders (Mar 19, 18:31)

CARBORUNDUM UNIVERSAL LTD

Outcome of Board Meeting (Mar 19, 18:21)

104

ZENITH BIRLA (INDIA) LIMITED

Updates on Scheme of Arrangement (Mar 19, 18:18)

STORE ONE RETAIL INDIA LIMITED

Outcome of Postal Ballot (Mar 19, 18:14)

SUJANA TOWER LIMITED

Regulation 8A of SEBI (SAST) Regulations (Mar 19, 17:24)

EDUCOMP SOLUTIONS LIMITED

Allotment of Equity Shares (Mar 19, 17:23)

ZEE ENTERTAINMENT ENTERPRISES LTD

Press Release/Others (Mar 19, 17:21)

IL&FS INVESTMENT MANAGERS LIMITED

Updates (Mar 19, 17:14)

ZEE NEWS LIMITED Updates on Scheme of Arrangement (Mar 19, 17:11)

Corporate Action Details

Ex-Date Record Date Bc Start Date From Date (dd-mm-yyyy) To Date (dd-mm-yyyy)

     

Corporate Information

This section gives you detailed information for companies traded on the Exchange:

  (Enter whole or part of Company Name / NSE Symbol) 

Office Addresses, Transfer Agents & Company Website 

Corporate Actions | Corporate Action Search

Corporate Announcements  | Latest Announcements

Board Meeting Information  | Board Meetings

Financial Results

105

Get Results Reset

0

Shareholding Pattern

Get Quote

Result - Current v/s Previous

Corporate Information - WDM

Announcement

Financial Results

Corporate Actions 

Announcements

Archives

Date Company Name

11-MAR-2010

CitiFinancial Consumer Finance India Limited

08-MAR-2010

RBS FINANCIAL SERVICES (INDIA) PRIVATE LIMITED

03-MAR-2010

Punjab Infrastructure Development Board

03-MAR-2010

Global Trade Finance Limited

03-MAR-2010

Schwing Stetter (India) Private Limited

25-FEB-2010

J.P. Morgan Securities India Private Limited

18-FEB-2010

Citifinancial Consumer Finance India Limited

106

Search

18-FEB-2010

Citicorp Finance (India) Limited

18-FEB-2010

Deutsche Investments India Private Limited

18-FEB-2010

Barclays Investments & Loans (India) Limited

18-FEB-2010

Barclays Investments & Loans (India) Limited

18-FEB-2010

J.P. Morgan Securities India Private Limited

18-FEB-2010

State Bank of Patiala

16-FEB-2010

HCL Infosystems Limited

12-FEB-2010

National Capital Region Planning Board

10-FEB-2010

J.P. Morgan Securities India Private Limited

09-FEB-2010

Sundaram BNP Paribas Home Finance Limited

08-FEB-2010

Sundaram BNP Paribas Home Finance Limited

04-FEB-2010

Sundaram BNP Paribas Home Finance Limited

03-FEB-2010

NHPC Limited

02-FEB-2010

HCL Technologies Limited

28-JAN-2010

CItiFinancial Consumer Finance India Limited

28-JAN-2010

CItiFinancial Consumer Finance India Limited

107

27-JAN-2010

HCL Technologies Limited

21-JAN-2010

State Bank of Patiala

08-JAN-2010

Tata Teleservices Limited

08-JAN-2010

Escorts Limited

04-JAN-2010

Konkan Railway Corporation Limited

04-JAN-2010

Konkan Railway Corporation Limited

01-JAN-2010

Deutsche Investments India Private Limited

01-JAN-2010

Barclays Investments & Loans (India) Limited

01-JAN-2010

Reliance Industries Limited

01-JAN-2010

Citicorp Finance (India) Limited

01-JAN-2010

Citifinancial Consumer Finance India Limited

18-DEC-2009

RBS Financial Services (India) Private Limited

18-DEC-2009

State Bank of Patiala

15-DEC-2009

RBS Financial Services (India) Private Limited

14-DEC-2009

Citicorp Finance (India) Limited

14-DEC-2009

CitiFinancial Consumer Finance (India) Limited

108

14-DEC-2009

Fullerton India Credit Company Limited

Results

Archives

Date Company Name

21-JAN-2010

State Bank of Patiala

20-NOV-2009

ICICI Home Finance Company Limited

20-NOV-2009

ICICI Home Finance Company Limited

18-NOV-2009

Morgan Stanley India Capital Private Limited

13-NOV-2009

Housing & Urban Development Corporation Limited

13-NOV-2009

DSP Merrill Lynch Capital Limited

11-NOV-2009

Citifinancial Consumer Finance India Limited

09-NOV-2009

Nuclear Power Corporation of India Limited

09-NOV-2009

Citicorp Maruti Finance Limited

04-NOV-2009

Konkan Railway Corporation Limited

03-NOV-2009

The Great Eastern Shipping Company Limited

03-NOV-2009

Indian Renewable Energy Development Agency Limited

03-NOV-2009

Bharat Aluminium Company Limited

03-NOV-2009

Karnataka State Financial Corporation

109

31-OCT-2009

Deutsche Investments India Private Limited

31-OCT-2009

RELIANCE GAS TRANSPORTATION INFRASTRUCTURE LIMITED

31-OCT-2009

Indian Railway Finance Corporation Limited

30-OCT-2009

RBS Financial Services (India) Pvt. Ltd.

30-OCT-2009

Neyveli Lignite Corporation Limited

30-OCT-2009

The Catholic Syrian Bank Limited

30-OCT-2009

J. P. Morgan Securities India Private Limited

30-OCT-2009

Global Trade Finance Limited

30-OCT-2009

Citicorp Finance (India) Limited

30-OCT-2009

Pidilite Industries Limited

28-OCT-2009

Tata Teleservices Limited

28-OCT-2009

Neelachal Ispat Nigam Limited

27-OCT-2009

Morgan Stanley India Capital Private Limited

27-OCT-2009

Small Industries Development Bank of India

26-OCT-2009

SREI Equipment Finance Private Limited

Corporate Action

Archives

110

Company Name

Sec Type

Security

TATA MOTORS LIMITED DB TML16

TATA MOTORS LIMITED DB TML13

TATA MOTORS LIMITED DB TML14

TATA MOTORS LIMITED DB TML11

ANDHRA PRADESH POWER FINANCE CORPORATION LIMITED

PT APPFC13

ORIENTAL BANK OF COMMERCE

BB OBC17

SARDAR SAROVAR NARMADA NIGAM LIMITED

PT SSNL11

SARDAR SAROVAR NARMADA NIGAM LIMITED

PT SSNL11A

SARDAR SAROVAR NARMADA NIGAM LIMITED

PT SSNL11B

TATA CHEMICALS LIMITED

DB TCHE11

SUNDARAM HOME FINANCE LIMITED

DB SHF10

ESSAR SHIPPING PORTS & LOGISTICS LIMITED

DB ESPL19

TATA CAPITAL LIMITED DB TACA19

TATA CAPITAL LIMITED DB TACA19B

111

TATA CAPITAL LIMITED DB TACA19A

TATA CAPITAL LIMITED DB TACA19A

TATA CAPITAL LIMITED DB TACA19

TATA CAPITAL LIMITED DB TACA19

SREI EQUIPMENT FINANCE PRIVATE LIMITED

DB SEQP14

SREI EQUIPMENT FINANCE PRIVATE LIMITED

DB SEQP14

KRISHNA BHAGYA JALA NIGAM LIMITED

PT KBJL19

Securities Information

Equity shares

Preference Shares

Debt Instruments

Warrants

Close Ended MF Schemes (Listed)

Securities available for trading in IL series

Securities available for trading in ETF

Changes in Company Names

Changes in Symbols

Listed companies suspended from trading for non-compliance

List of companies delisted

112

Companies not submitted Corporate Governance Report

List of Companies - Clause 40A

List of top 100 common companies for Common Filing

Data on Shareholding Pattern

Legend for series of different securities

Public Issue Offer Document

IPO Final Prospectus

IPO Draft Offer Documents

Others

Public Issue of Debt Securities

Past Public Issues

Name of the Company Issue Open Date Issue Close Date

Rural Electrification Corporation Limited 19-Feb-2010 23-Feb-2010

Man Infraconstruction Limited 18-Feb-2010 22-Feb-2010

Texmo Pipes and Products Limited 16-Feb-2010 19-Feb-2010

Hathway Cable & Datacom Limited 09-Feb-2010 11-Feb-2010

ARSS Infrastructure Projects Limited 08-Feb-2010 11-Feb-2010

NTPC Limited 03-Feb-2010 05-Feb-2010

Emmbi Polyarns Limited 01-Feb-2010 03-Feb-2010

D B Realty Limited 29-Jan-2010 02-Feb-2010

113

Syncom Healthcare Limited 27-Jan-2010 29-Jan-2010

Vascon Engineers Limited 27-Jan-2010 29-Jan-2010

Aqua Logistics Limited 25-Jan-2010 02-Feb-2010

Jubilant Foodworks Limited 18-Jan-2010 20-Jan-2010

Infinite Computer Solutions (India) Limited 11-Jan-2010 13-Jan-201

IPO Draft Offer Documents

Name of the Company

Ambience Limited

Aqua Logistics Limited

Ashoka Buildcon Limited

Asian Business Exhibition & Conferences Limited

Aster Silicates Limited

BPTP Limited

Bajaj Corp Limited

Cantabil Retail India Limited

Career Point Infosystems Limited

D B Realty Limited

DQ Entertainment (International) Limited

Emaar MGF Land Limited

114

Emmbi Polyarns Limited

Eros International Media Limited

Everest Infra Energy Limited

Fatpipe Networks India Limited

Gallantt Ispat Limited

Glenmark Generics Limited

Godrej Properties Limited

Goenka Diamond & Jewels Limited

Gravita India Limited

Gujarat Pipavav Port Limited

Gyscoal Alloys Limited

Hathway Cable & Datacom Limited

Hindustan Media Ventures Limited

IL&FS Transportation Networks Limited

Indosolar Limited

Intrasoft Technologies Limited

Inventure Growth and securities Limited

Jaypee Infratech Limited

Jindal Power Limited

Jubilant Foodworks Limited

Kumar Urban Development Limited

Lodha Developers Limited

115

Man Infraconstruction Limited

Mandhana Industries Limited

Mittal Corp Limited

Others

Name of the Company

McDowell Holdings Ltd.

Netflier Finco Limited

Sun Pharma Advanced Research Company Limited

Sun Pharma Advanced Research Company Limited

D-Link (India) Ltd

Nath Bio-Genes (India) Ltd.

Agri-Tech (India) Ltd.

Man Aluminium Limited

ETC Networks Limited

Indiabulls Securities Limited

Bajaj Finserv

116

Limited

Bajaj Auto Limited

Public Issue of Debt Securities

Draft Prospectus

Name of the Company

L&T Finance Ltd.

 

 

 

 

Final Prospectus

 

Name of the Company

L&T Finance Ltd.

Shriram Transport Finance Co. Ltd.

Tata Capital Ltd.

QIP Offer Documents

Disclaimer of placement documents for QIP

The placement is meant only for QIBs on a private placement basis and is not an offer to the public or to any other class of investors.

The public cannot subscribe to the issue since it is a private placement document.

Type of Offer Documents:

Draft Placement Documents

117

Final Placement Documents

Recent Issues

Issues prior to Mar 2010

Draft Placement Documents

Name of the Company Merchant Banker Name

3i INFOTECH LIMITED UBS Securities India Private Limited

Aban Offshore Ltd. Citigroup Global Markets India Private Limited

Ackruti City LimitedANAND RATHI ADVISORS LIMITED, PIONEER INVESTCORP LIMITED

Adhunik Metaliks LimitedIDFC-SSKI Limited, Edelweiss Capital Limited, ICICI Securities Limited

AIA Engineering Ltd. Enam Financial Consultants Private Ltd.

Allied Digital Services Limited

Anand Rathi Advisors Limited and Edelweiss Capital Limited

Ansal Properties and Infrastructure Ltd.

DSP Merrill Lynch Ltd.Anand Rathi Securities Ltd.

Apollo Tyres Ltd. JM Morgan Stanley Pvt. Ltd.

Ashapura Minechem Ltd. SSKI Corporate Finance Private Ltd.

Home> Corporate > QIP Offer Documents > Final Placement Documents

Final Placement Documents

Name of the Company Merchant Banker NameOffer

Document Date

Shareholding

Pattern-Pre and Post

QIP Allottee Details(>5%)

Radico Khaitan Limited IDFC Capital Limited and UBS Securities India 17-Mar-

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Private Limited 2010

The India Cements LimitedDeutsche Equities India Private Limited & RBS Equities (India) Limited

11-Mar-2010

Exide Industries LimitedDSP Merrill Lynch Ltd., Enam Securities Pvt. Ltd., Morgan Stanley India Company Pvt. Ltd. and UBS Securities India Private Limited

10-Mar-2010

Final Placement Documents

Name of the Company Merchant Banker NameOffer

Document Date

United Spirits LimitedCLSA India Limited, Citigroup Global Markets India Private Limited, UBS Securities India Private Limited & Morgan Stanley India Company Private Limited

-

Radico Khaitan Limited IDFC Capital Limited and UBS Securities India Private Limited17-Mar-2010

The India Cements Limited

Deutsche Equities India Private Limited & RBS Equities (India) Limited

11-Mar-2010

Exide Industries Limited

DSP Merrill Lynch Ltd., Enam Securities Pvt. Ltd., Morgan Stanley India Company Pvt. Ltd. and UBS Securities India Private Limited

10-Mar-2010

Mahindra Forgings Limited

Kotak Mahindra Capital Company Limited, Anand Rathi Advisors Limited

24-Feb-2010

Electrosteel Castings Ltd.

EDELWEISS CAPITAL LIMITED04-Feb-2010

Shriram Transport Finance Company Limited

Citigroup Global Markets India Private Limited, DSP Merrill Lynch Limited and IDFC-SSKI LIMITED

25-Jan-2010

The Karnataka Bank Limited

EDELWEISS CAPITAL LIMITED and ANTIQUE CAPITAL MARKETS PRIVATE LIMITED

22-Jan-2010

Yes Bank LimitedMorgan Stanley India Company, CLSA India Limited and Goldman Sachs (India) Securities Private Limited

22-Jan-2010

Usha Martin Limited Equirus Capital Private Limited18-Jan-2010

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Unity Infraprojects Limited

Collins Stewart Inga Private Limited and Antique Capital Markets Private Limited

21-Dec-2009

J.Kumar Infraprojects Limited

ANAND RATHI ADVISORS LIMITED15-Dec-2009

Gammon India Ltd. IDFC-SSKI Limited, India Infoline Limited10-Dec-2009

Bajaj Electricals Limited

Edelweiss Capital Limited09-Dec-2009

Hindalco Industries Limited

Citigroup Global Markets India Private Limited, Deutsche Equities India Private Limited, DSP Merrill Lynch Limited, HSBC Securities and Capital Markets (India) Private Limited, RBS Equities (India) Limited, SBI Capital Markets Limited and UBS Securities India Private Limited

26-Nov-2009

Sunteck Realty LimitedCitigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited and UBS Securities India Private Limited

26-Nov-2009

Welspun Gujarat Stahl Rohren Limited

J.P. Morgan India Private Limited24-Nov-2009

Pantaloon Retail (India) Limited

Enam Securities Private Limited and DSP Merrill Lynch Limited23-Nov-2009

Adhunik Metaliks Limited

IDFC-SSKI Limited, Edelweiss Capital Limited and ICICI Securities Limited

20-Nov-2009

Aban Offshore Ltd. Citigroup Global Markets India Private Limited17-Nov-2009

Development Credit Bank Limited

Edelweiss Capital Limited13-Nov-2009

KSK Energy Ventures Limited

India Infoline Limited and Axis Bank Limited13-Nov-2009

JAI BALAJI INDUSTRIES LIMITED

MACQUARIE CAPITAL ADVISERS (INDIA) PRIVATE LIMITED, MOTILAL OSWAL INVESTMENT ADVISORS (P) LIMITED & CENTRUM CAPITAL LIMITED

26-Oct-2009

Allied Digital Services Limited

ANAND RATHI ADVISORS LIMITED & EDELWEISS CAPITAL LIMITED21-Oct-2009

Patel Engineering Limited

Daiwa Securities SMBC India Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory & Securities (India) Private Limited, Antique Capital Markets Private Limited

21-Oct-2009

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and Axis Bank Limited

HCL Infosystems Ltd CLSA India Limited & JM Financial Consultants Private Limited16-Oct-2009

Larsen & Toubro Limited

Citigroup Global Markets India Private Limited09-Oct-2009

Parsvnath Developers Limited

Citigroup Global Markets India Private Limited, Edelweiss Capital Limited, JM Financial Consultants Private Limited

01-Oct-2009

CIPLA LIMITEDCLSA India Limietd, J.P.Morgan India Private Limited & Kotak Mahindra Capital Company Limited

24-Sep-2009

3i INFOTECH LIMITED UBS Securities India Private Limited22-Sep-2009

Axis Bank LimitedJ.P. Morgan India Private Limited, Deutsche Equities India Private Limited, Goldman Sachs (India) Securities Private Limited

22-Sep-2009

LIC HOUSING FINANCE LIMITED

Citigroup Global Markets India Private Limited, ENAM Securities Private Limited, Kotak Mahindra Capital Company Limited & Nomura Financial Advisory and Securities (India) Private Limited

18-Sep-2009

Glenmark Pharmaceuticals Limited

Enam Securities Private Limited and Citigroup Global Markets India Private Limited

14-Sep-2009

Ackruti City Limited ANAND RATHI ADVISORS LIMITED, PIONEER INVESTCORP LIMITED10-Sep-2009

OPTO CIRCUITS (INDIA) LIMITED

Antique Capital Markets Private Limited & HSBC Securities and Capital Markets (India) Private Limited

10-Sep-2009

ING Vysya Bank Limited

Enam Securities Private Limited08-Sep-2009

Delta Corp Limited YES BANK LIMITED03-Sep-2009

NAGARJUNA CONSTRUCTION COMPANY LIMITED

IDFC - SSKI Limited, Kotak Mahindra Capital Company Limited & RBS Equities (India) Limited

01-Sep-2009

PSL Ltd. Edelweiss Capital Ltd24-Aug-2009

Housing Development Finance Corporation

Axis Bank Limited, Citigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited, The Hongkong

21-Aug-

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Limited

and Shanghai Banking Corporation Limited, JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited and Nomura Financial Advisory and Securities (India) Private Limited

2009

Orbit Corporation Limited

Kotak Mahindra Capital Company Limited, Macquarie Capital Advisers (India) Private Limited & Edelweiss Capital Limited

14-Aug-2009

IndusInd Bank LimitedMorgan Stanley India Company Private Limited & IDFC ? SSKI Limited

13-Aug-2009

Punj Lloyd LimitedCitigroup Global Markets India Private Limited and Kotak Mahindra Capital Company Limited

05-Aug-2009

Lanco Infratech Limited

Goldman Sachs (India) Securities Private Limited, Credit Suisse Securities (India) Private Limited, ICICI Securities Limited, IDFC - SSKI Limited, J.P. Morgan India Private Limited and UBS Securities India Private Limited

04-Aug-2009

Rei Agro Limited DSP Merrill Lynch Limited, RBS Equities (India) Limited 23-Jul-2009

Indiabulls Financial Services Limited

Morgan Stanley India Company Private Limited 21-Jul-2009

Educomp Solutions Limited

CLSA India Limited 09-Jul-2009

Dewan Housing Finance Corporation Ltd

Motilal Oswal Investment Advisors Private Limited 06-Jul-2009

Emami LimitedAnand Rathi Financial Services Limited, India Infoline Limited & Avendus Capital Private Limited

06-Jul-2009

Housing Development and Infrastructure Limited

Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, Macquarie Capital Advisers (India) Private Limited

02-Jul-2009

Bajaj Hindusthan Limited

CLSA India Limited, Deutsche Equities India Private Limited 01-Jul-2009

Hindustan Construction Co. Limited

Morgan Stanley India Company Private Limited30-Jun-2009

Shree Renuka Sugars Limited

DSP Merrill Lynch Limited30-Jun-2009

Sobha Developers Enam Securities Private Limited, Morgan Stanley India Company 30-Jun-

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Limited Private Limited 2009

Unitech LimitedIDFC-SSKI Limited, UBS Securities India Private Limited, Morgan Stanley India Company Private Limited, Credit Suisse Securities (India) Private Limited

30-Jun-2009

Network 18 Fincap Limited

ICICI Securities Limited, Kotak Mahindra Capital Company Limited, Antique Capital Markets Private Limited

11-Jun-2009

PTC India LimitedDSP Merrill Lynch Limited, Kotak Mahindra Capital Company Limited

25-May-2009

Indiabulls Real Estate Limited

Morgan Stanley India Company Private Limited19-May-2009

Unitech LimitedIDFC-SSKI Limited, UBS Securities India Private Limited & Morgan Stanley India Company Private Limited

17-Apr-2009

ibn18 Broadcast Limited

JM Financial Consultants Private Limited, Antique Capital Markets Private Limited, HSBC Securities and Capital Markets (India) Private Limited

24-Nov-2008

Ashapura Minechem Ltd.

SSKI Corporate Finance Pvt. Ltd.28-Aug-2008

Dynamatic Technologies Limited

Spark Capital Advisors (India) Private Limited07-Aug-2008

Bank of India

SBI Capital Market Limited, A.K.Capital Services Limited, Edelweiss Capital Limited, HSBC Securities and Capital Market (India) Private Limited, JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited & Motilal Oswal Investment Advisors Private Limited

07-Feb-2008

Simplex Infrastructure Limited

J M Financial Consultants Private Limited & SSKI Corporate Finance Private Limited

06-Feb-2008

Sintex Industries Limited

CLSA India Limited, IDFC-SSKI Private Limited, J.P.Morgan India Private Limited, Motilal Oswal Investment Advisors Private Limited

06-Feb-2008

Sunil Hitech Engineers Limited

Avendus Capital Private Limited16-Jan-2008

Peninsula Land LimitedUBS Securities India Private Limited & Enam Securities Private Limited

20-Dec-2007

The India Cements Limited

ABN AMRO Securities (India) Limited & Deutsche Equities India Private Limited

20-Dec-2007

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Pratibha Industries Limited

Centrum Capital Limited18-Dec-2007

Suzlon Energy LimitedCitigroup Global Markets India Private Limited, DSP Merrill Lynch Limited, JM Financial Consultants Private Limited & Yes Bank Limited

18-Dec-2007

GMR Infrastructure Limited

Citigroup Global Markets India Private Limited, JM Financial Consultants Private Limited, J.P.Morgan India Private Limited, Kotak Mahindra Capital Company Limited, Lehman Brothers Securities Private Limited and UBS Securities India Private Limited

10-Dec-2007

Parekh Aluminex Limited

Saffron Capital Advisors Private Limited & PL Capital Markets Private Limited

03-Dec-2007

The West Coast Paper Mills Limited

Axis Bank Limited30-Nov-2007

Nitco Tiles LimitedAvendus Advisors Private Limited & Motilal Oswal Investment Advisors Private Limited

21-Nov-2007

Godrej Industries Limited

Kotak Mahindra Capital Company Limited15-Nov-2007

ING Vysya Bank Limited

ENAM SECURITIES PRIVATE LIMITED & EDELWEISS CAPITAL LIMITED

08-Nov-2007

Shree Renuka Sugars Limited

Motilal Oswal Investment Advisors Private Limited31-Oct-2007

United Phosphorus Limited

SSKI Corporate Finance Private Limited, Deutsche Equities India Private Limited and UBS Securities India Private Limited

16-Oct-2007

Kotak Mahindra Bank Limited

Citigroup Global Markets India Private Limited and Kotak Mahindra Capital Company Limited

10-Oct-2007

Logix Microsystems Limited

Prime Securities Limited28-Sep-2007

The South Indian Bank Limited

Edelweiss Capital Limited27-Sep-2007

Centurion Bank of Punjab Limited

Kotak Mahindra Capital Company Limited, Deutsche Equities India Pvt. Limited and SSKI Corporate Finance Private Limited

24-Sep-2007

Punj Lloyd Limited Citigroup Global Markets India Private Limited & IDFC SSKI Limited17-Aug-2007

The Phoenix Mills JM Financial Consultants Private Limited, IL & FS Investsmart 31-Jul-2007

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LimitedSecurities Limited, Collins Stewart Inga Private Limited and Edelweiss Capital Limited

UTI Bank LimitedCitigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited

26-Jul-2007

Sadbhav Engineering Limited

Collins Stewart Inga Private Limited and IL&FS Investsmart Limited

06-Jul-2007

Infrastructure Development Finance Company Limited

Kotak Mahindra Capital Co. Ltd.,Citigroup Global Markets I. Pvt. Ltd, JM Financial Consultants Private Limited and UBS Securities India Private Limited

05-Jul-2007

Escorts Ltd. Centrum Capital Limited29-Jun-2007

Max India Limited CLSA India Limited11-Jun-2007

GVK Power & Infrastructure Ltd.

SSKI Corporate Finance Private Ltd, CITI Group Global Markets India Private Limited, Kotak Mahindra Capital Company Limited.

09-May-2007

Pritish Nandy Communications Ltd.

Prime Securities Ltd.23-Mar-2007

PSL LIMITED Edelweiss Capital Limited09-Mar-2007

Bartronics India Ltd. Karvy Investor Services Ltd.02-Mar-2007

Television Eighteen India Ltd.

HSBC Securities and Capital Markets (India) Private Ltd. , Ambit Corporate Finance Private Limited

07-Feb-2007

Visaka Industries Ltd. Systematix Corporate Services Ltd.29-Jan-2007

Bombay Rayon Fashions Ltd.

ICICI Securities Ltd.19-Jan-2007

Peninsula Land Ltd. Citigroup and A.K.Capital Services Ltd.19-Dec-2006

IVRCL Infrastructures & Projects Ltd.

ABN Amro Securities (India) Pvt. Ltd., Citigroup Global Markets India Pvt. Ltd.

18-Dec-2006

Pantaloon Retails (India) Ltd.

Enam Financial Consultants Private Ltd.15-Dec-2006

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AIA Engineering Ltd. Enam Financial Consultants Ltd.14-Dec-2006

Ansal Properties & Infrastructure Ltd.

DSP Merrill Lynch Ltd.06-Dec-2006

Marico Ltd.Kotak Mahindra Capital Co. Ltd., Citigroup Global Markets I Pvt. Ltd.

02-Dec-2006

S. Kumars Nationwide Ltd.

Prime Securities Ltd.29-Nov-2006

Deccan Chronicle Holdings Ltd.

CLSA India Ltd.20-Nov-2006

Mcleod Russel India Ltd.

ICICI Securities Ltd.08-Nov-2006

EMCO Ltd. SSKI Corporate Finance Priavte Ltd.23-Oct-2006

Apollo Tyres Ltd. JM Morgan Stanley Private Ltd.20-Oct-2006

Asian Electronic Limited

Prime Securities Limited17-Oct-2006

Mahindra Gesco Developers Ltd.

Kotak Mahindra Capital Company Ltd.05-Oct-2006

Kalpataru Power Transmission Ltd.

Kotak Mahindra Capital Co. Ltd.01-Sep-2006

Draft Placement Documents

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  Members We appreciate your interest in membership of National Stock Exchange. This section of our website provides you with all information required to obtain membership of our Exchange as well as other information required by members

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on a continuous basis.

In case of any queries or clarifications, please feel free to contact Ms. Ketki Khedkar / Ms. Jinal Shal / Ms. Kalyani PLS on 022-26598249.

Currency Derivatives

Segment

SEBI has issued a circular on August 6 2008 on Exchange Traded Currency Derivatives.

NSE invites applications for membership to the Currency Derivatives Segment.

If you are already a member of NSE If you are a member of NCDEX If you are a Bank Others

The deposit requirements for currency derivatives segment is given below -

( Rs. In lakhs)

  NSE Members NCDEX Members New Applicants

DepositsTrading

Membership

Trading

cum

Clearing

Membership

Trading

Membership

Trading

cum

Clearing

Membership

Trading

Membership

Trading

cum

Clearing

Membership

Professional

Membership

Networth 100 1000 100 1000 100 1000

Security Deposit - NSEIL

Cash 2 2 2 2 2 2

Non-

Cash 8 8 10.5 13 13 18

Security Deposit - NSCCL

Cash - 25 - 25 - 25

Non-

Cash - 25 - 25 - 25

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Processing fee for NCDEX members & new applicants  - Rs. 10,000.

Interest Rate Futures Segment

NSE is the first stock Exchange in India to launch Interest Rate Futures (IRF) on the Currency Derivative Segment of the Exchange.

Applications are invited from the members for enablement.

Eligibility Criteria:

Who are eligible to trade in IRF :

1. Existing members who are registered either in Currency Derivatives Segment or Futures & Options (F&O) Segment shall be eligible to trade in IRF, subject to meeting the Balance Sheet net worth requirement of Rs. 100 lakhs for Trading Membership and Rs. 1000 lakhs in Trading cum Clearing Membership.

2. New members interested in participating in IRF would be required to get registered in Currency Derivatives Segment of the Exchange in order to trade in IRF.

Documents required for enablement in IRF:

Existing CDS enabled members: No additional documents are required for enablement in IRF.

Existing F&O members :

a. If enabled as TM in F&O: Such members will have to identify a CDS registered Clearing Member for clearing their trades for IRF and submit the documents for the enablement as per the Annexure I.

b. If enabled as TMCM in F&O:  

o For enablement as TM in IRF: Such members will have to identify a CDS registered Clearing Member for clearing their trades for IRF and submit the documents for the enablement as per the Annexure I.

o For enablement as TMCM in IRF: Such members will have to submit the documents for the enablement as per the Annexure II.

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Incase of any query or clarification, kindly get in touch with membership department on 022-26598249 or write to us on minward@nse.co.inNew Membership

NSE offers multi-asset class products and services and operates trading platforms and the Clearing and Settlement platform is operated by NSCCL, a wholly owned subsidiary of NSE. Participation on the Exchange in each of the products is through the Member of the Exchange who is registered for the product.

Membership of the Exchange/NSCCL is open to corporate entities, individuals and partnership firms who fulfill the eligibility criteria laid down by SEBI and NSE. 

o Categories of membership o Eligibility Criteria o Fees, Deposits & Networth Requirements o Admission Process o Set of documents

Categories of Membership

Members are admitted in the following categories:

Only Capital Market – This category of membership entitles a member to execute trades and to clear and settle the trades executed on his own account as well as on account of his clients in the Capital Market Segment.

Capital Market and Futures & Options Trading – A membership in this category entitles a member to

o execute trades and to clear and settle the trades executed on his own account as well as on account of his clients in the Capital Market Segment and

o Execute trades on his own account as well as on account of his clients in the Futures & Options segment, but, clearing and settlement of trades executed through the Trading Member would have to be done through a Trading-cum Clearing Member or Professional Clearing Member of the Exchange.

Capital Market and Futures & Options Trading & Self Clearing – A membership in this category entitles a member to

o execute trades and to clear and settle the trades executed on his own account as well as on account of his clients in the Capital Market Segment and

o execute trades on his own account as well as on account of his clients and to clear and settle trades executed only on his own account as well as on account of his clients in Futures & Options segment.

Capital Market and Futures & Options Trading and Clearing – A membership in this category entitles a member to

129

o execute trades and to clear and settle the trades executed on his own account as well as on account of his clients in the Capital Market Segment and

o execute trades on his own account as well as on account of his clients and to clear and settle trades executed by themselves as well as by other trading members who choose to use clearing services of the member in Futures & Options segment.

 

Only WDM – A membership in this category acquires a right to execute trades and to clear and settle the trades executed by the members in the WDM Segment. This membership can be also taken in combination with any of the 4 categories as stated above.

Professional Clearing Members – A membership in this category entitles a member to clear and settle trades of such members of the Exchange who choose to clear and settle their trades through this member.

Further to Circular No: 648 with Download No: NSE/MEMB/11148 dated August 19, 2008, the different categories of membership in the Currency Derivatives segment is as follows:

Only trading membership in Currency Derivatives – A membership in this category entitles a member to execute trades on his own account as well as on account of his clients in the Currency Derivatives segment, but, clearing and settlement of trades executed through the Trading Member would have to be done through a Trading-cum Clearing Member or Professional Clearing Member of the Exchange.

Trading and Clearing membership in Currency Derivatives - A membership in this category entitles a member to execute trades on his own account as well as on account of his clients and to clear and settle trades executed by themselves as well as by other trading members who choose to use clearing services of the member in Currency Derivatives Segment.

Professional Clearing Members – A membership in this category entitles a member to clear and settle trades of such members of the Exchange who choose to clear and settle their trades through this member.

Eligibility Criteria

The following are eligible to apply for membership subject to the regulatory norms and provisions of SEBI and as provided in the Rules, Regulations, Byelaws and Circulars of the Exchange -

 

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1. Individuals ; 

2. Partnership Firms registered under the Indian Partnership Act, 1932; 

3. Corporations, Companies or Institutions or subsidiaries of such Corporations, Companies or Institutions set up for providing financial services; 

4. Banks for Currency Derivative Segments  

5. Such other person as may be permitted under the Securities Contracts (Regulation) Rules 1957.

Other Eligibility Criteria  

Who cannot become a member  

1. Individuals (Sole Proprietor)

CRITERIA

Age 21 Years

Status Indian Citizen

Education At least a graduate or equivalent qualification

Experience

Should have a minimum of 2 years experience in an activity related to dealing in

securities or as portfolio manager or as investment consultant or as a merchant banker

or in financial services or treasury, broker, sub broker, authorised agent or authorised

clerk or authorised representative or remisier or apprentice to a member of a

recognised stock exchange, dealer, jobber, market maker, or in any other manner in

dealing in securities or clearing and settlement thereof.

2.

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3. Partnership Firms

Where the applicant is a partnership firm, the applicant shall identify a Dominant Promoter Group as per the norms of the Exchange at the time of making the

131

application. Any change in the shareholding of the partnership firm including that of the said Dominant Promoter Group or their sharing interest shall be effected only with the prior permission of NSEIL/SEBI. 

CRITERIA

Age Minimum age of partner(s) : 21 years

Status Registered Partnership firm under Indian Partnership Act, 1932

Education Partners should be at least a graduate or equivalent qualification

Designated

Partners

Identify at least two partners as designated partners who would be taking care of the

day to day management of the partnership firm

Designated

Partners

Experience

Should have a minimum of 2 years experience in an activity related to dealing in

securities or as portfolio manager or as investment consultant or as a merchant banker

or in financial services or treasury, broker, sub broker, authorised agent or authorised

clerk or authorised representative or remisier or apprentice to a member of a

recognised stock exchange, dealer, jobber, market maker, or in any other manner in

dealing in securities or clearing and settlement thereof.

Dominant

Promoter Norms

 Identify partner’s sharing interest as per Exchange Dominant Promoter Group norms.

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4. Corporations, Companies or Institutions

A Company as defined in the Companies Act, 1956 (1 of 1956), shall be eligible to be admitted as a member of a Stock Exchange provided:

i. such company is formed in compliance with the provisions of Section 12 of the said Act;

ii. it undertakes to comply with such other financial requirements and norms as may be specified by the Securities and Exchange Board of India for the registration of such company under sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);

iii. the directors of such company are not disqualified for being members of a stock exchange under clause (1) of rule 8 [except sub-clauses (b) and (f) thereof] or clause (3) of rule 8 [except sub-clauses (a) and (f) thereof] of the Securities Contracts (Regulation) Rules, 1957 and the directors of the company had not held the offices of the directors in any company which had been a

132

member of the stock exchange and had been declared defaulter or expelled by the stock exchange

CRITERIA

Age Minimum age of director(s) : 21 years

Status Corporate registered under The Companies Act, 1956 (Indian)

Minimum Paid up

Equity Capital

Rs.30 lakhs

Education Each of the Designated Directors should be at least graduate or equivalent qualification

Designated

Directors

Identification of at least two directors as designated directors who would be managing

the day to day trading operations

Designated

Directors

Experience

Should have a minimum of 2 years experience in an activity related to dealing in

securities or as portfolio manager or as investment consultant or as a merchant banker

or in financial services or treasury, broker, sub broker, authorised agent or authorised

clerk or authorised representative or remisier or apprentice to a member of a

recognised stock exchange, dealer, jobber, market maker, or in any other manner in

dealing in securities or clearing and settlement thereof.

Dominant

Promoter Norms

 Identify dominant group as per Exchange Dominant Promoter Group norms.

5. Professional Clearing Member (PCM)

The following persons are eligible to become PCMs of NSCCL for Futures & Options and/or Capital Market Segment provided they fulfill the prescribed criteria:

1. SEBI Registered Custodians; or2. Banks recognised by NSEIL/NSCCL for issuance of bank guarantees

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6. Banks

Further to Circular No: 648 with Download No: NSE/MEMB/11148 dated August 19, 2008, the eligibility membership criteria for banks in the Currency Derivatives segment is as follows:

133

Banks authorized by the Reserve Bank of India under section 10 of the Foreign Exchange Management Act, 1999 as ‘AD Category - I bank’ are permitted to become trading and clearing members of the currency futures market of the recognized stock exchanges, on their own account and on behalf of their clients, subject to fulfilling the following minimum prudential requirements:

Minimum net worth of Rs. 500 crores.

Minimum CRAR of 10 per cent.

Net NPA should not exceed 3 per cent.

Made net profit for last 3 years.

The AD Category - I banks which fulfill the prudential requirements are required to lay down detailed guidelines with the approval of their Boards for trading and clearing of currency futures contracts and management of risks.

AD Category - I banks which do not meet the above minimum prudential requirements and AD Category - I banks which are Urban Co-operative banks or State Co-operative banks can participate in the currency futures market only as clients, subject to approval therefore from the respective regulatory Departments of the Reserve Bank.

The requirement of approved users of being certified as per the certification as applicable in the F&O segment is waived off for banks for a period of one year from the date of the issuance of SEBI circular SEBI/DNPD/Cir- 38 /2008 dated August 06, 2008. 

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7. Other applicable eligibility criteria

1. At any point of time the applicant has to ensure that at least the sole proprietor/one of the designated partner/one of the designated director/compliance officer would have a valid certificate for at least one of the following NCFM Modules :

Securities Market (Basic) Module Compliance Officer (Broker) Module Capital Market (Dealers) Module Derivatives Market (Dealers) Module

The above norm would be a continued admittance norm for membership of the Exchange.

2. An applicant must be in a position to pay the membership and other fees, deposits etc, as applicable at the time of admission within three months of intimation to him of admission as a Trading Member or as per the time schedule specified by the Exchange.

134

3. The Exchange may specify such standards for investor service and infrastructure with regard to any category of applicants as it may deem necessary, from time to time.

8. Who cannot become a member ?

Further to the capital and network requirements, No entity shall be admitted as a member/partner or director of the member if

a. It has been adjudged bankrupt or a receiver order in bankruptcy has been made against him or he has been proved to be insolvent even though he has obtained his final discharge;

b. it has compounded with his creditors for less than full discharge of debts;c. it has been convicted of an offence involving a fraud or dishonesty; d. it is engaged as a principal or employee in any business other than that of

Securities, except as a broker or agent not involving any personal financial liability or for providing merchant banking, underwriting or corporate or investment advisory services, unless he undertakes to severe its connections with such business on admission, if admitted;

e. it has been at any time expelled or declared a defaulter by any other Stock Exchange or he has been debarred from trading in securities by an Regulatory Authorities like SEBI, RBI etc;

f. it incurs such disqualification under the provisions of the Securities Contract (Regulations) Act, 1956 or Rules made there-under so as to disentitle such persons from seeking membership of a stock exchange;

g. it incurs such disqualification consequent to which NSE determines it to be not in public interest to admit him as a member on the Exchange, provided that in case of registered firms, body corporates and companies, the condition from (will apply to, all partners in case of partnership firms, all directors in case of companies; NSE may from time to time modify / expand the scope of activities that could be considered as relevant experience for the abo

 New Membership

Deposit & Networth Requirements (Corporates)

DEPOSIT STRUCTURE (Rs. IN LAKHS)

Segment Type of MembershipCash-

NSEIL

Non-Cash

NSEIL

Cash

NSCCL

Non-Cash

NSCCLTotal

Net

Worth

Capital Market TM & SCM 85 - 15 25 125 100

Wholesale Debt Market TM & SCM 150 - - - 150 200

               

Futures & Options TM 25 - - - 25 100

TM & SCM 25 - 25 25 75 100

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TM & CM 25 - 25 25 75 300

PCM - - 25 25 50 300

               

Currency

Derivatives

Segment

Existing

Members

TM 2 8 - - 10 100

TM & CM 2 8 25 25 60 1000

NCDEX

Members

TM 2 10.5 - - 12.5 100

TM & CM 2 13 25 25 65 1000

Other

Members

TM 2 13 - - 15 100

TM & CM 2 18 25 25 70 1000

PCM - - 25 25 50 1000

* TM = Trading Membership.* TM & SCM = Trading and Self Clearing Membership.* TM & CM = Trading and Clearing Membership.* PCM = Professional Clearing Membership.

  Deposit & Networth Requirements(Individual / Partnership Firms)

DEPOSIT STRUCTURE (Rs. IN LAKHS)

Segment Type of MembershipCash-NSEIL

Non-Cash NSEIL

Cash NSCCL

Non-Cash NSCCL

TotalNet

Worth

Capital Market TM & SCM 26.5 - 6 17.5 50 75

Wholesale Debt

MarketTM & SCM 150 - - - 150 200

Futures & Options

TM 25 - - - 25 75

TM & SCM 25 - 25 25 75 100

TM & CM 25 - 25 25 75 300

               

Currency

Derivatives

Segment

Existing

Members

TM 2 8 - - 10 100

TM & CM 2 8 25 25 60 1000

NCDEX

Members

TM 2 10.5 - - 12.5 100

TM & CM 2 13 25 25 65 1000

Other

Members

TM 2 13 - - 15 100

TM & CM 2 18 25 25 70 1000

* TM = Trading Membership.* TM & SCM = Trading and Self Clearing Membership.* TM & CM = Trading and Clearing Membership.* PCM = Professional Clearing Membership.

Fees and Charges :

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Application Processing Fees : Rs. 10,000/- Plus applicable Service Tax.

Admission Fees : Rs. 5,00,000/- Plus applicable Service Tax

Annual subscription charges (Captial Market Segment):o For Corporates - Rs. 1,00,000 P.A.o For Individuals/Partnership Firms - Rs. 50,000 P.A.

Annual subscription charges (Wholesale Debt Market): Rs. 1,00,000 P.A.

Advance minimum transaction charges (Futures & Options segment): Rs. 1,00,000 P.A.

Set of Documents

For Corporate

For Partnership Firms

For Individuals

137

For Banks (only for Currency Derivatives Segment )

ENABLEMENT FOR NEW MEMBERSHIP

Deposit Structure.

Set of documents required for Enablement.

New Membership

Deposit & Networth Requirements (Corporates)

DEPOSIT STRUCTURE (Rs. IN LAKHS)

Segment Type of MembershipCash-

NSEIL

Non-Cash

NSEIL

Cash

NSCCL

Non-Cash

NSCCLTotal

Net

Worth

Capital Market TM & SCM 85 - 15 25 125 100

Wholesale Debt Market TM & SCM 150 - - - 150 200

               

Futures & Options

TM 25 - - - 25 100

TM & SCM 25 - 25 25 75 100

TM & CM 25 - 25 25 75 300

PCM - - 25 25 50 300

               

Currency

Derivatives

Segment

Existing

Members

TM 2 8 - - 10 100

TM & CM 2 8 25 25 60 1000

NCDEX

Members

TM 2 10.5 - - 12.5 100

TM & CM 2 13 25 25 65 1000

Other

Members

TM 2 13 - - 15 100

TM & CM 2 18 25 25 70 1000

PCM - - 25 25 50 1000

* TM = Trading Membership.* TM & SCM = Trading and Self Clearing Membership.* TM & CM = Trading and Clearing Membership.* PCM = Professional Clearing Membership.

  Deposit & Networth Requirements(Individual / Partnership Firms)

DEPOSIT STRUCTURE (Rs. IN LAKHS)

Segment Type of Membership Cash- Non-Cash Cash Non-Cash Total Net

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NSEIL NSEIL NSCCL NSCCL Worth

Capital Market TM & SCM 26.5 - 6 17.5 50 75

Wholesale Debt

MarketTM & SCM 150 - - - 150 200

Futures & Options

TM 25 - - - 25 75

TM & SCM 25 - 25 25 75 100

TM & CM 25 - 25 25 75 300

               

Currency

Derivatives

Segment

Existing

Members

TM 2 8 - - 10 100

TM & CM 2 8 25 25 60 1000

NCDEX

Members

TM 2 10.5 - - 12.5 100

TM & CM 2 13 25 25 65 1000

Other

Members

TM 2 13 - - 15 100

TM & CM 2 18 25 25 70 1000

* TM = Trading Membership.* TM & SCM = Trading and Self Clearing Membership.* TM & CM = Trading and Clearing Membership.* PCM = Professional Clearing Membership.

Fees and Charges :

Application Processing Fees : Rs. 10,000/- Plus applicable Service Tax.

Admission Fees : Rs. 5,00,000/- Plus applicable Service Tax

Annual subscription charges (Captial Market Segment):o For Corporates - Rs. 1,00,000 P.A.o For Individuals/Partnership Firms - Rs. 50,000 P.A.

Annual subscription charges (Wholesale Debt Market): Rs. 1,00,000 P.A.

Advance minimum transaction charges (Futures & Options segment): Rs. 1,00,000 P.A.

Set of documents required for Enablement

I. Enablement on Capital Market

Members are requested to furnish the documents for enablement:-

139

1. Board Resolution/Letter of authorisation - mentioning the authorised signatories, along with the specimen signature of the signatories.

2. Audited Net worth certificate in format. If CA certification is more than six month old.

3. Annexure C-3, C-6 and C-7 only if there are any changes.

4. Latest Audited Annual accounts. If any changes.

5. VSAT connectivity has to be established before the enablement can be done.

6. Confirmation / Proof of taking up an insurance with either Oriental Insurance Company Ltd. (OICL) or New India Assurance Company Ltd. (NIACL) under the Broker Indemnity Policy.

7. Submit a proof of application for registration with Central Excise. (Submit an acknowledgement copy from the Central Excise to us.)

8. Open Settlement account and Exchange Dues account (Mumbai Branch) with the designated Bank and submit the account number and a documentary reference thereof. Open two more bank accounts for (a) Client Money and (b) other business purposes and submit the account numbers and documentary reference thereof.The trading member has to give the proof of opening of accounts on the letterhead of the bank specifically stating the date of the opening of the account with the bank.

9. Further a five point confirmation letter as per the format enclosed as below is required. Please note that the letter should be on the letter head of the trading member duly acknowledged by the Bank. Format enclosed.

10. Copy of the Memorandum of Association.

11. Open Depository accounts (Pool and beneficiary accounts) with any of the Depository Participants of NSDL and CDSL and submit the account number and documentary there of.

140

12. Copy of the CDSL letter duly acknowledged by the CDSL Authority. Format as enclosed.

13. Letter availing the facility of Automatic Delivery Out in NSDL. Please note that member has to exercise the option of the settlement type for which it needs the dematerialization facility. Format as enclosed.

14. Letter requesting activation of account in Collateral Interface for Member (CIM). Format as enclosed.

15. Letter requesting activation of account in NSCCLs Clearing Interface System (NCIS). Format as enclosed.

16. Trading member has to give undertaking on their letterhead that they do/do not want to be enabled on the Mutual Funds. (Strike off which is not required). The undertaking should be signed & duly stamped.

17. Trading Member needs to submit collateral deposits in the form of a Bank Guarantee / FDR/ Deposit (cheque/DD) of Rs.25/17.50 lakhs as pe the demand advice. Proof of the same is required.

18. Member should ensure that payment as per demand advice has been made to NSEIL/NSCCL. Proof of the same is required

19. Undertaking that member/director(s) does not appear in the list of companies/directors debarred by SEBI and if any disciplinary action such as suspension or cancellation taken by the Board.

II. Enablement on F & O segment

1. Board Resolution/ Letter of authorization mentioning the authorised signatories, along with the specimen signature of the signatories.

2. Trading member is required to make the payment as per the demand advice and submit a proof of the same

3. Audited Net worth certificate in format C-1.

141

4. In case the trading member wants to be enabled as clearing/ self clearing member they need to open the settlement account, and proof of the same on the letterhead of the banker with the date of opening of the accounts needs to be submitted.

5. Further a five point confirmation letter as per the format enclosed is required. Please note that the said letter should be on the letter head of the clearing/self clearing member duly acknowledged by the Bank. As per the format enclosed (Kindly note that the above document is required only in case where trading member wants to be enabled as Clearing Member or Self Clearing member)

III. Enablement on WDM

Members are requested to furnish the documents for enablement:-

1. Board Resolution/ Letter of authorization mentioning the authorised signatories, along with the specimen signature of the signatories

2. Trading member is required to make the payment as per the demand advice and submit a proof of the same

3. Audited Net worth certificate in format C-1.

IV. Enablement on Currency segment

Members are requested to furnish the documents for enablement:-

1. Board Resolution/Letter of authorisation - mentioning the authorised signatories, along with the specimen signature of the signatories.

142

2. Audited Net worth certificate in format. If CA certification is more than six month old. As per LC Gupta Method

3. VSAT connectivity has to be established before the enablement can be done.

4. Confirmation / Proof of taking up an insurance with either Oriental Insurance Company Ltd. (OICL) or New India Assurance Company Ltd. (NIACL) under the Broker Indemnity Policy. (If taken membership only in Currency Derivatives)

5. Submit a proof of application for registration with Central Excise. (Submit an acknowledgement copy from the Central Excise to us.) (If taken membership only in Currency Derivatives)

6. Open Settlement account and Exchange Dues account with the designated Bank and submit the account number and a documentary reference thereof. Open two more bank accounts for (a) Client Money and (b) other business purposes and submit the account numbers and documentary reference thereof. Needs to open the settlement account separately for Currency derivatives if getting enabled as a clearing member. The trading member has to give the proof of opening of accounts on the letterhead of the bank specifically stating the date of the opening of the account with the bank.

7. Further a five point confirmation letter as per the format enclosed as below is required. Please note that the letter should be on the letter head of the trading member duly acknowledged by the Bank. Format enclosed.

8. Copy of the Memorandum of Association.

9. Trading Member needs to submit collateral deposits as per the demand advice. Proof of the same is required.

10. Member should ensure that payment as per demand advice has been made to NSEIL/NSCCL. Proof of the same is required

143

Format of Five Point Confirmation Letter for Settlement account in Capital Market (F&O/CDS if member has applied for Clearing /Self Clearing Membership)

Date:

From

(Clearing Member name and address)

To:

(Clearing Bank name and address)

Dear Sirs,

Sub: Operation of Clearing Bank for National Securities Corporation Limited (NSCCL)

Ref: Our Clearing Bank Account No: ____________________ with (Clearing Bank name and address)With reference to the above, we note that:

1 National Stock Exchange of India Ltd. has formed National Securities Clearing Corporation Limited. (NSCCL), as a wholly owned subsidiary to undertake clearing and settlement activity for its Members. NSCCL has established a clearing and settlement system, whereby its members will be able to undertake the clearing and settlement of deals admitted.

2 The bank has been nominated/ appointed as a Clearing Bank for the purpose of Clearing and Settlement by NSCCL.

3 As per the Byelaws, Rules and Regulations of NSCCL, the member shall authorise the Clearing Bank to access their clearing account for debiting & crediting their accounts as per the instructions received from NSCCL from time to time.

144

4 Having due regard to the above, we hereby irrevocably authorise the Clearing bank to debit and credit our above mentioned account number from time to time. Further, we authorise the Clearing Bank to report balances and other information relating to this account to NSCCL as may be required by NSCCL from time to time. This irrevocable undertaking will be effective from the date of commencement of operation by NSCCL.

5 We further hereby undertake to abide by such other or further guidelines/ instructions as may be communicated / decided by NSCCL.

Yours Faithfully,

Format for CDSL Letter to acknowledged by CDSL

(On Company Letterhead):

To:

Central Depository Services Ltd (CDSL)

P.J. Towers, Dalal Street,

Fort, Mumbai – 400023

Dear Sir,

Sub: Operation Of Depository for National securities Clearing Corporation Limited

Ref: Our Depository account No: …………………& Client ID: …………. With CDSL address……………., address …………………….

145

With reference to the above, we note that:

1. NSCCL has established a clearing and settlement system, whereby its members will be able to undertake the clearing and settlement of deals admitted.

2. Central Depository Services (I) Ltd (CDSL) has been appointed by NSCCL as a settling Depository for the purpose of settlement of securities in dematerialized form.

3. Now I/We do hereby irrevocably authorize CDSL to block/earmark the balances in my /our Depository account and to debit/credit my/our above account as the case may be as per the instructions received from NSCCL. Additionally I/We authorize CDSL to report balances and give any other information as and when required to NSCCL relating to my/our above mentioned account. This irrevocable undertaking will be effective from the date of commencement of operation by NSCCL.

4. I/We further hereby undertake to abide by such other or further guidelines/instructions as may be communicated /devised by the NSCCL.

Yours Faithfully,

For…………………Ltd.

(Director)

CC to NSCCL

Cc to DP

146

Annexure – B

Account Opening Confirmation

T. M. code:

T.M. Name:

Account No.:

(By CDSL)

DP ID:

Signature:

Stamp:

Date:

147

Format for facility of Automatic Delivery out in NSDL.

148

To be given in the members letterhead / signed by the Member/any one Partner of Partnership firm or Director of a Corporate Member and stamped)

Date:

From: [Clearing Member Name and address]

To: [NSCCL Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051]

Dear Sirs,

Sub: Availing the facility of Automatic Delivery Out in NSDL

With reference to the above, we note that:

1. NSCCL is commencing a new facility for automating the delivery out instructions.

2. We wish to avail of this facility for the following settlement types. (Please mark 'Y' against the settlement type for which this facility is desired and 'N' against the settlement for which this facility is not required)

Settlement Type 'N', Market Type 13 Y/N

Settlement Type 'A', Market Type 14 Y/N

Settlement Type ‘W’, Market Type 22 Y/N

149

3. We do hereby irrevocably authorize NSCCL to provide NSDL with the details of the delivery obligations, including the security details and the quantities to deliver for all the above settlement types and any other details which may have to be given to NSDL with respect to the above subject. This irrevocable undertaking will be effective from the date of this letter.

4. We understand that in the case of pari-passu shares and multiple ISINs, Auto DO instructions will be generated for only the primary ISIN. We also understand that in case an IDO is given, the Auto DO instructions for the same will be monitored by us and any changes desired to be made in the Auto DO instructions will be done by us accordingly.

5. In case of shifting of our CM pool account in NSDL, we undertake to monitor the delivery instructions including the Auto DO instructions generated by NSCCL. We understand that NSCCL will be generating Auto DO instructions for a single depository account only, even if two CM pool accounts are operating at the same time.

6. NSCCL will not be responsible for any short or excess shares being transferred from our depository account with NSDL on account of Auto DO.

7. In case we fail to comply with the specified requirements of NSDL, resulting into short deliveries and consequential close out, NSCCL will in no way be responsible.

8. We further hereby undertake to abide by such other or further guidelines / instructions as may be communicated / devised by NSCCL from time to time.

Yours faithfully

Signature of

(Member/Partner of Partnership firm/Director of a Corporate Member)

150

151

Format of Letter requesting activation of account in Collateral Interface for Member (CIM) Application

Date:

The Manager

NSCCL - Collaterals Department

NSE Exchange Plaza

Mumbai - 400051

Dear Sir/ Madam,

Sub: Activation of account in Collateral Interface for Member (CIM) Application

We are interested in availing the facilities provided through the Collateral Interface for Member (CIM) Application. We therefore request you to activate our account and provide us necessary access in the said interface.

Please find below the necessary details as required:

S Particulars To be filled by the Member

152

No

1. Trading Member Code

2. Member Name

3. Segment for which application is being made (Cash/F&O/CDS/All segments)

4. Contact Person (The account details will be sent to this person)

5. Address for Communication with Pin Code

6. Phone Number with STD Code

7. Mobile number of contact person

8. Fax Number with STD Code

9. No of User Ids required

We hereby authorize NSCCL to act upon the instructions sent through the interface and we shall be solely responsible for any errors pertaining to data entry from our end.

We would request you to advise us the account details allotted to us for this purpose at the above mentioned address.

Yours sincerely,

Authorized Signatory

Name:

Designation

153

Format of Letter requesting activation of administrator user in NSCCLs Clearing Interface System (NCIS)

Date:

The Manager

NSCCL - Securities Department

NSE Exchange Plaza

Mumbai - 400051

Dear Sir/ Madam,

Sub: Activation of account in NSCCLs Clearing Interface System (NCIS)

We are interested in availing the facilities provided through the NSCCL’s Clearing Interface System (NCIS). We therefore request you to activate our account and provide us necessary access in the said interface.

Please find below the necessary details as required:

S No

Particulars To be filled by the Member

1. Trading Member Code

2. Member Name

3. Contact Person (The account details will be sent to this person)

4. Address for Communication with Pin Code

5. Phone Number with STD Code

154

6. Mobile number of contact person

7. Fax Number with STD Code

We hereby authorize NSCCL to act upon the instructions sent through the interface and we shall be solely responsible for any errors pertaining to data entry from our end.

We would request you to advise us the account details allotted to us for this purpose at the above mentioned address.

Yours sincerely,

Authorized Signatory

Name:

Designation:

155

Additional Segment

For existing trading members in Capital Market segment who are desirous of seeking registration in F & O segment of the Exchange needs to follow the requirements as in Circular No:NSE/MEM/2001/234, download reference no. NSE/MEMB/3090 dated December 31, 2001

o Existing member seeking additional WDM membership – formats o Existing member seeking additional F&O trading membership – formats o Existing member seeking additional F&O self clearing membership – formats o Existing member seeking additional F&O clearing membership – formats

Further to Circular No: 648 with Download No: NSE/MEMB/11148 dated August 19, 2008, the existing members can apply for additional membership in any of the categories of the Currency Derivatives segment as follows:

o Existing member seeking additional trading membership in Currency Derivatives – formats

o Existing member seeking additional trading and clearing membership in Currency Derivatives – formats

Change in Clearing Member affiliation

F&O Segment.

(Circular No. 297, download reference no. NSE/MEMB/3661 dated October 07, 2002)

Trading Members on the F&O segment intending to change their association/affiliation from one Clearing Member to another in the F&O segment are required to submit the following documents:

1. Letter from the Trading Member, requesting the change in affiliation as per Annexure I 2. Letter from the disaffiliating / outgoing Clearing Member as per Annexure II 3. Letter from the affiliating / incoming Clearing Member as per Annexure III 4. Draft Clearing Member – Trading Member Agreement as per Annexure VIII A

Clearing Members undertaking such functions for every trading member are required to remit Interest Free Cash Security Deposit of Rs.2 lakhs and Collateral Security Deposit of Rs.8 lakhs

156

to NSCCL on behalf of each such trading member.

CDS Segment.

(Circular No. NSE/MEM/2008/653, download reference no. NSE/MEMB/11534 dated October 23, 2008)

Trading Members on the Currency Derivatives segment intending to change their association/affiliation from one Clearing Member to another in the Currency Derivatives segment are required to submit the following documents:

1. Letter from the Trading Member, requesting the change in affiliation as per Annexure I 2. Letter from the disaffiliating / outgoing Clearing Member as per Annexure II 3. Letter from the affiliating / incoming Clearing Member as per Annexure III 4. Draft Clearing Member – Trading Member Agreement, Annexure VIII B

IRF on CDS Segment

Trading Members on the Interest Rate Futures on Currency Derivatives segment intending to change their association/affiliation from one Clearing Member to another in the Currency Derivatives segment are required to submit the following documents:

1. Letter from the Trading Member, requesting the change in affiliation as per Annexure I 2. Letter from the disaffiliating / outgoing Clearing Member as per Annexure II 3. Letter from the affiliating / incoming Clearing Member as per Annexure III 4. Draft Clearing Member – Trading Member Agreement, Annexure VIII C

 

Trading Members / Clearing Members are requested to take note of the above and ensure its due compliance accordingly.

Telecom Connectivity

NSE uses TCP/IP protocol based Wide Area Network facilitating higher bandwidth of 2Mbps, expansion and scalability.

In order to provide equal access to all the Trading Members spread over a wide geographical area, the Exchange offers two forms of telecommunication connectivity viz

VSAT (Very Small Aperture Terminal) –satellite based connectivity Leased Line-Terrestrial based connectivity

Trading Members are required to choose a scenario from the categories mentioned below in order to apply for connectivity.

Key features of Category A, B, C and Category T type of connectivity

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Particulars Category A Category B Category C Category T

Bandwidth 2 Mbps 2 Mbps 2 Mbps 2 Mbps

Interactive messages per second

40 messages 100 messages 200 messages Nil

Market Data Broadcast

Yes No No Yes

No of user id's

20 user id's can be in any combination for CM and F&O segment and additional 10 user id's can be availed only for the CD segment.

50 user id's can be in any combination for CM and F&O segment and additional 10 user id's can be availed only for the CD segment.

100 user id’s including all the segments.

Nil

No of scenario's

5 2 2 2

Types of Scenario's

A1- Single VSAT.

A2-Single Leased Line.

A3-Single Leased Line with VSAT as a Back-up.

A4- Dual Leased Lines to One or two POP's .

A5- Dual Leased Lines and VSAT as a back-up.  

B1-Single Leased Line.

B2-Dual Leased Lines to One or two POP’s.

C1-Single Leased Line.

C2-Dual Leased Lines to One or two POP’s.

T1- Single Leased Line.

T2-Dual Leased Lines to one or two POP’s.

Formats

Application for new scenario Application for shifting of scenario Application for cancellation of non-commissioned scenario Application for surrender of scenario Format of VSAT Undertaking Format of NOC from the owner of premises for VSAT Application for Change in Scenario Application for shifting of IDU of VSAT Application for shifting of ODU of VSAT Port II Activation of VSAT Undertaking for Activation of Port II of VSAT

Deposits & Costing 

158

Co-location

RELEVANT CIRCULARS

Download ReferenceNumber

Date Subject

NSE/MEMB/14222 04-Mar-2010 Co-location services at NSEIL premises

NSE/MEMB/14134 18-Feb-2010 POP at Cochin & Jaipur

NSE/MEMB/13599 3-Dec-2009 IP Connectivity for Category T (Tick by Tick)

NSE/MEMB/13539 25-Nov-2009 IP Connectivity for Category C (200 Messages/per second)

NSE/MEMB/13025 7-Sep-2009 POP at Rajkot

NSE/MEMB/12985 31-Aug-2009 Co location services at NSEIL premises

NSE/MEMB/11832 31-Dec-2008 Business Continuity Planning(BCP)/Disaster Recovery (DR)

NSE/MEMB/11821 30-Dec-2008 Sun Outage - Continuation of Trading

NSE/MEMB/11052 29-Jul-2008 Increase in number of User Ids in TCP/IP

NSE/MEMB/11042 25-Jul-2008 Application forms for connectivity on TCP/IP Technology

NSE/MEMB/10884 25-Jun-2008Application form for VSAT migration from X.25 protocol to TCP/IP protocol

NSE/MEMB/10833 13-Jun-2008 Migration from X.25 protocol to TCP/IP - Including costing

NSE/MEMB/10365 28-Feb-2008 Connectivity at Third Party Data Centre/Service Provider Location

In case of any query or clarification on connectivity, please contact us on +91 22 26598249 or write to us on minward@nse.co.in 

Top

User ID / CTCL ID :

User ID

CTCL ID

User ID

159

(Circular No. 640, download reference no. NSE/MEMB/11052 dated July 29, 2008)

In view of the migration from X.25 protocol to TCP/IP based trading network. Members are requested to note that the Exchange has reviewed the allotment of user ids per TAP as follows:

1. the maximum number of NEAT user ids that would be enabled per TAP for both the segments of Capital Market and F&O is 20 user ids for 40 messages/per second line and 50 user ids for 100 messages/per second line. The member can specify the distribution of these user ids in each of the segments (Capital Market and F&O) but should not exceed the maximum number of 20 user ids for 40 messages/per second line and 50 user ids for 100 messages/per second line per TAP id.

2. the maximum number of CTCL ids that would be enabled per TAP id is 2 ids per segment and 4 ids across the two segments of Capital Market and F&O.

Further the Exchange requirement of NCFM certification in Capital Market Segment would be maintained as under:-

o In case of NEAT Terminal: - Every Approved User is linked to a branch manager and under each branch for every five NEAT user there is a requirement of one valid NCFM certification. The requirement of valid NCFM certification shall continue to be applicable for Corporate Manager ID.

o In case of CTCL Terminal: - In case of CTCL Users, each CTCL location is identified as a branch (refers to the Branch ID in the 12 digit CTCL ID) and for every 5 CTCL Users or part thereof (in that branch), 1 User should be NCFM certified and shall continue to have valid certification.

The existing norm on NCFM for F&O would continue that is for every approved user there is a requirement of one valid NCFM certification.

Further Circular No. 651 download Reference No. NSE/MEMB/11421 dated October 3, 2008 in regard to the number of user ids in Currency Derivatives Segment is as follows:

All trading members are informed that in view of launch of trading in Currency Derivatives, Exchange would enable 10 additional user ids per TAP IP and three additional user-ids on X.25 protocol.

The maximum number of CTCL ids that would be enabled per TAP IP is 2 ids for Currency Derivatives Segment.

Members may please note that for allotment of user IDs in the Currency Derivative Segment, NISM (National Institute of Securities Market) certification of NSE, BSE or MCX-SX would be applicable as per circular no. NSE/MEMB/12421 dated May 20, 2009.

Members can apply for new/additional user ids, shifting, dual locking and disablement on IP based technology through ENIT. (Path for User ID Application – Login > Exchange > User Requests)

CTCL ID

a. Upload of CTCL data

160

(Circular No. NSE/MEM/2006/547, download reference no. NSE/MEMB/7913 dated September 25, 2006)

In order to enhance the operational effectiveness in uploading the CTCL data, the Exchange had introduced an ‘Integrated CTCL Database’. This database uses ENIT (available at https://www.enit.co.in), an internet enabled interface, for uploading of the CTCL data by the members. This has eliminated the need for uploading the details of CTCL terminals in two different databases namely ‘TERM CTCL’ and ‘MEM CTCL’.

In this regard, the procedure for uploading fresh CTCL data to the Exchange is as follows. Procedure.

It may be noted that with effect from October 9, 2006, only the Integrated CTCL Database has been operational. Accordingly, the details of all the activations and deactivations are being uploaded through this database only with effect from October 9, 2006.

It is reiterated that the trading terminals of the member shall be located only at its registered office / main office / branch office or at the office of its registered sub-broker (only in Capital Market segment) or at the office of its approved Authorised Person (only in Futures and Options Segment). In order to capture the location of the CTCL terminal, a new field has been added to the database wherein the member is required to mandatorily update the status of the office where the terminal is located.

Failure to upload the details, by a member, if observed shall render such terminals unauthorized and shall consequently attract disciplinary action as prescribed by the Exchange from time to time.

b. Levy of non uploading charges of CTCL details in ENIT

(Circular No. 587, download reference no NSE/MEMB/8754 dated April 2, 2007). It has been observed that some members do not upload the complete details of CTCL IDs in integrated CTCL database through ENIT, which results to mismatches between CTCL IDs uploaded in ENIT & trade order logs.

Trading members are requested to ensure upload of complete CTCL details in ENIT at their end. Failure to do so will attract non uploading charges @ Rs.100/- per day per CTCL ID mismatch. Here it is clarified that every CTCL ID should be reported in ENIT whether they are used for admin, trading, testing or view purpose.

In this regard, please note that in case any CTCL ID is charged continuously for two months or any members is charged continuously for three months, such members would be referred to Disciplinary Action Committee for appropriate action, if necessary. Further, please note that non reporting of CTCL IDs which are used for admin, testing or view purpose will be considered as violation during inspection.

For further information kindly contact Ms. Amla Kamat Ghanekar & Mr. Yogesh Deshmukh on 022-26598249.

Continuing Membership

Compliance with respect to Trading Members

Code of Advertisement

Upgradation of Membership

161

Merger / Amalgamation of Membership

Transfer of Membership

Change in Name

Multiple Memberships

Suspension of Membership & Expulsion

Declaration of Default

SEBI Turnover Fees

Stamp Duty

SUB BROKER

a. Registration of Sub Broker

(Circular No. 637 download Ref. No. NSE/MEMB/10917dated June 30, 2008)

Trading Members are requested to note the new procedure applicable for sub broker registration applications from July 1, 2008 and this circular is in replacement to the Exchange Circular reference number: NSE/MEMB/9421 dated August 31, 2007.

1. Members would continue to submit the sub broker registration applications electronically through ENIT (go to sub broker master and click on ‘Fresh’) and ensure that the physical documents are received by the Exchange within 7 days from submission of application in ENIT.

2. In case of non receipt of physical documents by the Exchange within 7 days from submission of application in ENIT, the Reference request number would be rejected in ENIT.

3. Members would be informed through letter and Bill vide FTP to make available in its Exchange Dues Account the processing fee amounting to Rs. 2,000/- plus the applicable service tax for every sub broker registration application. Alternatively, the status of the sub broker registration application would be ‘Documents Received’ in ENIT.

4. In case of any deficiency in the application, the application form would be returned to the member.

5. In case the member desires to resubmit the same application vide ENIT after rectifying the deficiencies then the member needs to go to the sub broker master and click on the ‘Resubmit’ button. The member then needs to enter the ‘ENIT reference request number’ and the details of that sub broker registration application would be displayed. The member needs to check and update the details as required and then submit the same to the Exchange. In such cases of resubmission, the Exchange would not charge the sub broker registration processing fee.

6. In case of complete applications, members would be informed through letter in FTP regarding the applications complete in all respect and for which the requisite SEBI registration fees should be made available in their Exchange dues account.

7. The Exchange would start collecting the SEBI registration fees through debiting the Exchange dues account of the members for sub broker applications which are processed and complete in all respect from the very next day of intimation to the member.

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8. In case the amount of SEBI registration fees is not debited from the member’s Exchange Dues Account within 10 days from the date of intimation to the member, then the respective sub broker applications would be returned to the member. In case of resubmission of such applications, the Exchange would process the applications from point 1 considering the application as a fresh application.

9. Status of applicants for which the applicable SEBI registration fees has been collected and recognized by the SRC, would be informed to the members by way of display of ‘Date of recognition’ through ENIT.

10. For cases where applicants is not recognized by SRC or the sub broker registration application has been withdrawn by the member, then the Exchange would not refund the SEBI registration fee collected but such fees would be adjusted towards subsequent sub broker registration application by the same member.

11. After recognition granted by SRC, status of sub broker applications uploaded by Exchange to SEBI would be informed to members by way of display of ‘Upload reference number’ and ‘Upload date’ through ENIT within 3 days of upload by Exchange to SEBI.

12. In case the member applies for withdrawal of the sub broker registration application after its recognition by SRC or for cancellation of the application after it is registered with SEBI, then the member would need to procure the refund of the SEBI registration fees directly from SEBI.

13. On receipt of the sub broker registration certificate from SEBI, the details of registration number and registration date would be made available to the member through ENIT. The physical sub broker registration certificate would be forwarded to the member for onward dispatch to sub broker.

14. Partial or the total amount collected towards SEBI sub broker registration fees would not be adjusted towards any other dues payable to the Exchange.

15. In case the member applies afresh for SEBI registration for sub brokers applications returned to the member who have been derecognized since they were unable to provide necessary clarification as sought by SEBI within the time stipulated by SEBI, then the Exchange would process such applications from point 1 as given in this circular.

Further, the members need to attach the scanned copies and send the physical copies of the following documents as of the latest date along with the sub broker registration application form:

a. Proof of address of the applicant entity (trade name) – This is a mandatory field and the address on the proof needs to match with that of the application. Only the latest Telephone Bill, Electricity bill, valid ration card, valid Passport, valid Driving License and bank statement of the last one month from a Nationalised Bank is acceptable.

b. Proof of experience certificate – This is a mandatory field only in cases where qualification of Individual/Partner/Director is less than HSC. Experience of atleast two years in the capacity of employee/dealer in capital market in the name of Individual/Partner/Director is only acceptable.

c. Documents to be submitted along with print of ENIT application - Formats d. Model agreement between stock broker and sub broker - Format

b. Change in affiliation

(Circular No. 625 with download ref . NSE/MEMB/10577 dated April 10, 2008)

SEBI vide its circular dated December 20, 2007 (ref no.MIRSD/DR1/MK/CIR-15/111600/07) has intimated to the Exchange the procedure to be followed for change in affiliation of Sub-brokers from one member to another member of the Exchange. The procedure to be followed is attached in Annexure 1.

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The set of documents required to be submitted to the Exchange is attached in Annexure 2

c. Sub Broker Annual Fees

(Circular No. 606 download Ref. No. NSE/MEMB/9437 dated September 4, 2007)

Members are kindly requested to take note and accordingly forward sub broker annual fees, as per Schedule III of the SEBI (Brokers and Sub-Brokers) Regulations, 1992.

d. Cancellation of Sub Broker

(Circular No. 428 download ref. No. NSE/MEMB/5548 dated October 26, 2004)

The documentary requirements relating to surrender of SEBI registration of sub-brokers are given below:

1. Request from Trading Member for surrender of registration of sub-broker. 2. Application from Sub-broker for surrender of registration, in the format given as Annexure.

Please note that the said format includes a clause requesting to dispense with the procedure laid down in the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 as amended vide SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) (Second Amendment) Regulations 2004 notified on September 2, 2004. The said clause may be retained while making the application at the option of the applicant sub-broker.

3. Copy of public notification intimating the investors/general public of the surrender, issued in the local newspaper where the sub broker’s registered office, Head Office/Corporate office is situated and another in English daily news paper with wide circulation.

4. SEBI registration certificate of the sub-broker in original. In case the original certificate is lost, an affidavit to SEBI in this regard by the concerned trading member and the sub-broker separately on stamp paper of appropriate value, duly notarised.

Trading members are advised to take note of the above and ensure that the aforesaid documents are enclosed while forwarding the surrender requests in respect of the sub-brokers affiliated to them.

e. Withdrawal of sub-broker application

Trading Members wanting to withdraw the sub-broker application already submitted to the Exchange are requested to submit the withdrawal application in the format attached.

 

f. Procedure for Change in Constitution /Status of registered Sub-Broker

As per SEBI Circular no. 439 (download ref no. NSE/MEM/5677) dated December 21, 2004 in case of change in status and constitution of Sub-brokers the Members are required to apply to the Exchange for prior approval of SEBI. Upon receipt of prior approval of SEBI, Trading Members have to apply for cancellation of registration of the Sub-broker who is undergoing change in status and/or constitution and simultaneously for fresh registration of the Sub-broker.

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Documents to be submitted seeking prior approval:

1) Covering letter from the Trading Member on its letterhead (duly stamped and signed by the authorised signatory) seeking prior approval of the Exchange for the change in status and/or constitution of its Sub-broker providing the following details:i) Confirmation that there are no any complaints /arbitration /disciplinary proceeding /investigation /inquiry pending against the Sub-broker with the Exchange,ii) Confirmation that there in no outstanding fees payable to SEBI for any of their sub-brokers on any Stock Exchange,iii) Granting of approval by the trading member for the change in status /constitution of the specified registered sub-broker from one form to another (Proprietorship, Partnership Corporate and Reconstitution of Partnership.)

2) Letter from Sub-broker (duly signed and stamped) applying to the Trading Member for the change in status and/or constitution as the case may be providing the following details:i) Reason for change in status/constitution,ii) Confirmation that they have no pending dues payable to the Exchange and SEBI,iii) Confirmation that there are no any complaints /arbitration /disciplinary proceeding /investigation /inquiry are pending against the sub-broker with the Exchange, pending against them,iv) Undertaking that they would be jointly / severally liable for all liabilities / obligations (including monetary penalties) for violations, if any, of the provisions of the SEBI Act, 1992 and the SEBI (Stock Brokers and Sub-brokers) Rules and Regulations, 1992 that have taken place before the change in status and constitution.v) Details of current and proposed list of directors/partners and shareholding pattern/sharing ratio of the Sub-broker.

Documents to be submitted upon receipt of prior approval:

1) Covering letter from the Trading Member on its letterhead (duly stamped and signed by the authorised signatory) has to be submitted with subject line ‘Change in Status and/or Constitution of Sub-broker, ___________(name of the sub-broker) while applying for cancellation and fresh registration of sub-broker upon receipt of prior approval of SEBI.

2) Application for cancellation of sub-broker registration as per Exchange Circular No. 428 (download ref. no. NSE/MEMB/5548) dated October 26, 2004.

3) Application for fresh registration of sub-broker registration as per Exchange Circular No. 637 (download ref. no. NSE/MEMB/10917) dated June 30, 2008.

Authorised Person

Definition of Authorised Person

As per Circular No. 702, download Ref no. NSE/MEMB/13429 dated Nov 9, 2009 an Authorised Person is

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"Any person-individual, partnership firm, LLP or body corporate-who is appointed as such by a stock broker (including trading member) and who provides access to trading platform of a stock Exchange as an agent of the stock broker."

Eligibility Criteria

1. An individual is eligible to be appointed as an authorised person if he:

o is a citizen of India; o is not less than 18 years of age; o Has not been convicted of any offence involving fraud and dishonesty; o Has good reputation and character; o Has passed at least 10th standard or equivalent examination from an institution

recognized by the government; and o Has the certification, as applicable to approved user/sales personnel of the respective

segment and undertakes to continue to have valid certification thereafter.

2. A partnership firm, LLP or a body corporate is eligible to be appointed as authorised person

o If all the partners and directors, as the case may be, comply with the requirement contained in clause no.1 above.

o The object clause of the partnership deed and the Memorandum of Association contains a clause permitting the person to deal in securities business.

3. The person shall have necessary infrastructure like adequate office space, equipment and manpower to effectively discharge the activities on behalf of the Trading Member.

Conditions of Appointment

The following are the conditions of appointment of an authorised person:

1. The Trading Member shall be responsible for all acts of omission and commission of the authorised person.

2. All acts of omissions and commission of the authorised person shall be deemed to be that of the Trading Member.

3. The authorised person shall not receive or pay any money or securities in its own name or account. All receipts and payments of securities and funds shall be made in the name or account of a Trading Member.

4. The authorised person shall receive his remuneration-fees, charges, commission, salary etc for his services only from the Trading Member and he shall not charge any amount from the clients.

5. A person shall not be appointed as a authorised person by more than one Trading Member.

6. A partner or director of an authorised person shall not be appointed as an authorised person with the Exchange.

7. The Trading member and authorised person shall enter in to written agreement(s) in the form(s) prescribed by the Exchange. The agreement shall inter-alia cover scope of the activities, responsibilities, confidentiality of information, commission sharing,

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termination clause, etc.

Procedure for Appointment

Trading members desirous of appointing Authorised Persons are advised to note that approval of the Exchange is required for appointment of an Authorised Person.

An applicant has to apply through ENIT via link https//:.enit.co.in.> Exchange > Authorised Person, for each segment i.e Capital Market, Futures & Options and Currency Segment along with the following documents:-

1. Physical copy of request submitted through ENIT along with the prescribed formats for appointment.

2. Copy of the agreement between the Trading Member and the Authorised Person. 3. Copy of NCFM/BCDE or NISM certificate as applicable.

It may be noted that approval for appointment of Authorised Person is subject to receipt of complete set of documents by the Exchange. Trading members are required to ensure that the Authorised Person appointed by them comply with the requirement relating to their appointment on an ongoing basis.

Change in Constitution/Status

Trading members who want to change the constitution/Status of any of their Authorised Persons from Individual to Partnership Firm/LLP/Corporate or from Partnership Firm/LLP to Partnership Firm/LLP/Corporate needs to submit an application in the prescribed format.

Withdrawal/Cancellation of Appointment

Withdrawal given to an authorised person may be withdrawn by the Exchange if:

1. On receipt of a request to that effect from the stock broker concerned or the authorised person, subject to compliance with the requirements prescribed by the Exchange, or

2. On being satisfied that the continuation of authorised person is detrimental to the interest of investors or securities market or the authorised person at a subsequent date becomes ineligible under any of the clauses under the eligibility criteria mentioned above.

Trading Members, who want to withdraw/cancel the appointment of any of their Authorised Persons, needs to give an application for the same in the prescribed format.

Formats

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Checklist for Appointment of Authorised Person Application Checklist for Cancellation of Authorised Person Application Application for Appointment of Authorised Person Application for cancellation of Authorised Person Change in Status and constitution of Authorised Person Agreement format between the Trading Member and Authorised Person

RELEVANT CIRCULARS

Download Reference Number

Date Subject

NSE/MEMB/136013-Dec-2009

Procedure to be followed for appointment and cancellation of Authorised Persons

NSE/MEMB/134299-Nov-2009

Market Access through Authorised Persons

In case of any query or clarification on Authorised Person, please contact us on +91 22 26598249 or write to us on minward@nse.co.in.

Home > Members > ENIT

ENIT

a. User Management

Circular No. 568 with download reference no. NSE/MEMB/8364 dated January 12, 2007)

As you may be aware, the Exchange has introduced a new facility called ‘ENIT’ – Electronic NSE Interface for Trading Members, which is fully electronic, internet enabled application. This interface is expected to provide a two way mechanism for exchange of information for various processes between the trading members and the Exchange. Currently there is one login id which is given to the User (which is Corporate manager id for Trading and clearing members in Capital Market and F&O, Corporate manager id + Code for Professional Clearing member and Privelege id + Code for Wholesale Debt Market segment)

With the invention of various utilities through ENIT, we have been receiving various representations from members to provide different login ids for different utilities since the information cannot to be shared between different users using different utilities.

Taking into view the same, to facilitate the members, we intend introducing a User Management tool in ENIT wherein the Current user (to be termed as the Admin User of the members) would be allowed to create and manage 10 Users under it. These Users can be

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created by the Admin User, the password can be reset by the Admin Users of the members and also the Users can be deleted by the Admin Users.

The path for the same would be ENIT>Members Login>Users. The User name created will by default be prefixed with the 5 digit trading member SEBI code. Members can input 7 characters after the 5 digit code as their User Id.

Eg:- SEBI Code 12345, 7 character User name desired – 1234567In this case the user name would be “123451234567”.

Please note that the User name should be more than 1 digit (Alphanumeric) and can be upto 7 digits.

The management (creation, password reset and deletion) of the User ids created will be done by the Admin User of the Trading member who is currently using the ENIT login id.

b. Grants of rights and privileges to users in ENIT

(Circular no. 639 with download reference no. NSE/MEMB/10977 dated July 11, 2008)

In regard to creation of ten sub-users in ENIT for different utilities, members have been representing to the Exchange that due to the various enhancements in ENIT, they would prefer to provide limited rights and privileges to their sub-users accessing ENIT.

The Exchange after taking into consideration the member’s representation has now provided a utility in ENIT that would enable the main user of the member to provide limited rights and privileges to their sub-users accessing ENIT.

The path for the same is ENIT>Members Login>Users. Against each sub-user a link called permissions would be displayed. On clicking permissions, a screen “Assign Menu Permissions” wherein all the existing modules in ENIT would be displayed. The main user would have an option to grant access to specific or all modules by ticking on the modules. The screens are attached in Annexure I for your reference.

c. Updation of member contact details

Vide circular no. 618 with Ref. No. NSE/MEMB/10257 dated February 13, 2008 the Exchange informed that the Exchange displays certain details relating to Members on its website www.nseindia.com under the Icon “Members” in the “Member Directory” folder. It is noticed that the members are not informing changes to corporate information which results in display of incorrect information to general investors at large.

Further, Exchange is also proposing to enhance the contents of the Directory to include all locations of members where the trading terminals of the member is located along with the details of the person in charge at these locations and contact numbers. It would be very important to disseminate the correct information to investors. In view of this, members are requested to report on an ongoing basis, the changes in key information to Exchange immediately so that the particulars could also be updated by the Exchange on a continuous basis.

In order to ensure accuracy of the information, Exchange would be downloading various existing information which is proposed to be put up on the website for review by Members. In

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case any discrepancy is noticed, members may please provide the correct information so that the database could be updated with the correct information.

The format in which particulars would be displayed on website is attached herewith for immediate reference of the Members in Annexure 1.

d. Digital Signature Certificate for Members

(Circular No. NSE/MEM/2006/556, download reference no. NSE/MEMB/8109 dated November 15, 2006)

The Exchange is also in process of servicing the requests of trading members like Application for VSATs / Leased Lines, Application for Sub-brokers and Change in Shareholding / Directors, etc through ENIT. This would make interaction and tracking of the status more transparent and reliable. It is proposed to accept all aforesaid requests only through ENIT after successful implementation of the digital signature and to avoid receipt of applications in hard form.

In our continuous endeavor to ensure smooth flow of communication with our members and make your effort hassle free, the Exchange has decided that it would provide every member with Class 2 digital signature certificate, legally valid under the Indian IT Act 2000.

In this regard, the members are requested to note the following:-

1. The member would be required to send a request for digital signature to be allotted to one designated Director (already approved by the Exchange/SEBI) involved in the day to day activities. Kindly note that signature once obtained for a specified designated director cannot be transferred in favor of any other person. In the event of resignation / cessation of service of such a designated director on whose behalf digital signature is obtained by the member through the Exchange, the member would have to apply for cancellation / revocation of the digital signature and apply afresh for another digital signature in the name of another designated director, in which case, the cost would be borne by the member. 

2. The Exchange would bear the cost of providing one digital signature per member with a validity period of two years.  

3. All the members are requested to go through Process guide as provided in Annexure 1 and submit the application form as per Annexure 2 on or before December 10, 2006.  

4. After submission of application form in hard copy along with the relevant documents, NSE.IT would issue Token Redemption Number and a CD Serial Key which will be forwarded to the email address mentioned in the application form of the member. Subsequently, the member has to send a request through online enrolment. In this regard, please refer to Annexure 3. 

5. The digital certificate issued will have a validity period of two years from the date of issuance and needs to be renewed by the member before the expiry of the term. 

6. The cost of renewing the digital certificate (obtained through the said scheme) will be Rs.1000/- + taxes as applicable, which shall be required to be borne by the member. 

7. Members are advised to directly communicate with NSE.IT for cancellation /

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revocation / renewal of the digital certificate. Members need to take utmost care and caution to ensure that the digital signature obtained by them on behalf of their designated director are not misused, stolen etc since the liability and responsibility for the usage shall solely vest with the member entity.

For any query related to submission of documents by a member, processing of application, downloading certificate etc. members may contact Ms. Sneha Mody on 022-28277741.

Further vide circular no. 628 with download ref no. NSE/MEM/10693 dated May 13, 2008 Members are intimated to have atleast one digital signature to sign the application through ENIT digitally for various processes/functions.

e. Upload of Direct Market Access (DMA) User Ids data to the Exchange

(Circular No. NSE/MEM/2008/640, download ref no. NSE/MEMB/11019 dated July 21, 2008)

As per the Circular ref no. NSE/CMTR/10679 dated May 09, 2008 and NSE/FAOP/10680 dated May 09, 2008, members are required to provide details of all user-ids activated / deactivated by the member for DMA facility to the Exchange.

Trading Members are requested to report the details of DMA IDs to the Exchange through ENIT (available at https://www.enit.co.in) in the following manner:

1. Upload the details of NEAT Id when the same is enabled for DMA facility. Instructions given in Annexure – 1.

2. Upload the DMA User Id with complete details of client, when DMA User Id is activated / deactivated. Instructions given in Annexure–2.

For queries, if any, you may contact Ms. Amla Kamat Ghanekar & Mr. Yogesh Deshmukh  at 022 – 26598249.

f. Status Report

Vide circular no. 636 with download Reference No. NSE/MEMB/10910 dated June 30, 2008 trading members were informed that to facilitate the members for submitting online requests for Status Report, the Exchange has provided a facility to accept these requests through ENIT (Electronic NSE Interface for Trading Members) w.e.f. July 01, 2008. Please note that no physical request for Status Report shall be accepted after June 30, 2008.

In this regard, members are requested to note the following procedure:

The member needs to login through https://www.enit.co.in with his corporate manager user id of the Capital Market segment, The detailed manual for submitting the request has been enumerated in Annexure 1.

On submission of the request through ENIT, a unique request reference no. will be generated which has to be used for future correspondence (will also be displayed in Login>Exchange>Status Report>Status Report Details).

The member would have to make available in its Exchange Dues account an amount

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of Rs 1000 /- for every Status report request. The member would be intimated about the same vide letter sent through File Transfer Protocol (FTP). (As per Circular no. ref. no. 634 download ref. no.10846 dated June 17, 2008).

The member’s Exchange Dues Account would be debited on the day the unique request reference no. is generated in ENIT.

Members will not be able to submit multiple requests on the same day in ENIT for the same “Purpose” and same “As on Date”. Further, members will not be able to submit requests in ENIT for a future date.

For any further queries, you may contact Ms. Molly D’Mello on 26598130 (direct) or through Board line 022-26598100-14 (Extn. 3006).

Top

Surrender of Membership

Circular no. 658 with downlof reference no. NSE/MEMB/11755 dated December 11, 2008)

Trading members are hereby informed that the norms for surrender of membership have been revised.

1. A Trading Member desirous of surrendering its membership of the Exchange shall send its request in writing in the prescribed format as per Annexure III (A).

2. Trading Members shall, before submission of an application for surrender of membership, be required to comply with all the Pre-requisites for application of surrender as per Annexure II.

3. In respect of an application for surrender from a Trading Member,o who has been suspended/ disciplinary action taken by the Exchange /SEBI, o in respect of whom any investigation/ action consequent to a default has been initiated

by the Exchange /SEBI, o who is falling within the category of “associates” as defined by SEBI,o who owes dues to the Exchange/ NSCCL, o against whom claims by investors of value of Rs.10 lakhs or more are pending or any

claim for any amount is pending for a period more than 6 months, o against whom any other claim /complaint is pending which, in the opinion of the

Exchange/ NSCCL, needs to be resolved by the concerned trading member, o whose turnover fees liability to SEBI is still outstanding,

The Exchange shall have absolute discretion in dealing with such applications and if it decides to process/ accept the surrender application of such trading member, it may impose additional terms and conditions as it may deem fit.

4. An application for surrender shall not be allowed to be withdrawn unless permitted by the Exchange at its discretion. However, once the request for surrender of trading membership is approved, whether communicated to the trading member or not, no withdrawal of surrender application will be permitted. 

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5. No trading member, who has surrendered its trading membership, their partners (in case of partnership firm) and/ or dominant shareholders (in case of corporates) shall be eligible to be readmitted to the Trading Membership of the Exchange in any form for a period of one year from the date of cessation of trading membership (i.e. from the date of cancellation of registration from SEBI).

6. The application of surrender of trading membership is subject to fulfillment of the following conditions :

o Submission of original SEBI registration certificate(s) on all segments on which the trading member is registered.

o Submission of proof of payment of SEBI turnover fees.o Submission of an undertaking/ declaration that no investigation/Enquiry/Disciplinary

action pending against the trading member or any of its shareholders/ directors as per Annexure III (B).

o Submission of details of Directors and shareholders (as per Annexure III (D) and Annexure III (E)) as on date of surrender application.

7. Penal charges, the interest on dues and late submission charges to the Exchange and/ or NSCCL in respect of such trading member shall be levied up to and including the date on which such dues/ interest/ charges are paid remitted to or appropriated /adjusted by the Exchange / NSCCL.

8. In case, a Trading Member desires to withdraw the application for surrender and the Exchange in its discretion approves the same in writing, the application and levy of annual subscription, interest and penal charges shall be as if the Trading Member had not applied for the surrender of trading membership. All the costs related to the installation of new VSAT(s) will also be borne by the concerned Trading Member.

9. A notice to public by way of a public notification in newspapers shall be made by the Exchange. The time period (from the date of public notification) given to investors, public, etc. to lodge claims against the surrendering trading member will be as follows:

Trading Member Category Duration of Public Notification Trading members whose applications are with SEBI for registration, are SEBI registered

but not enabled, enabled but have not traded at all No public notification Trading members who have traded during last 12 months preceding the date of receipt

of surrender application 2 months Trading members who have not traded during last 12 months preceding the date of

receipt of surrender application 1 month Trading members who have not traded during last 24 months preceding the date of

receipt of surrender application 15 days

10. A letter shall be sent to SEBI seeking pending dues, if any, from member.

11. On the expiry of period for receipt of investor claims and on receipt of intimation of dues amount, if any, from SEBI, the total amount payable by the member shall be appropriated against Trading Member’s deposits available with the Exchange / NSCCL and the Trading member will be intimated accordingly. Incase the amount payable exceeds the deposits, the trading Member would be intimated to bring in the requisite amount within 21 days of

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intimation. Upon the failure of the member to do so within 21 days of intimation, the case shall be referred to the relevant authority for further action.

12. Upon the application for surrender being approved, the Exchange shall notify to all the Trading Members the fact of such approval. The concerned Trading Member, whose application has been approved, shall also be accordingly informed and also intimated of the terms and conditions subject to which their surrender has been approved.

13. On receipt of confirmation of cancellation of registration from SEBI, the deposits shall be refunded to the member after adjustments of dues, if any.

14. Upon acceptance/ approval of surrender of trading membership as aforesaid, the concerned Trading Members shall not be entitled to any rights or privileges accorded under the Bye-Laws, Rules and Regulations of the Exchange/ NSCCL, but shall continue to be liable to meet their liabilities/obligations under the Bye-Laws, Rules and Regulations of the Exchange/NSCCL.

15. A Trading Member, whose public notification has been issued, has an option to seek substitution of the interest-free security deposits, details of which are as follows :

16. Cash component of IFSD may be substituted with the FDRs.

o Under this scheme, their IFSD would be converted to FDRs with the Clearing Bank of the surrendering trading member in multiples of 5 FDRs of Rs 1 lakh, one FDR of Rs. 5 lakhs and one FDR for the remaining amount of deposits with the minimum retention of at least Rs.5 lakhs in cash with the Exchange/ NSCCL. The duration of the FDRs would be six months.

o Trading members desirous of availing the said facility are required to submit their request as per Annexure III (C) which shall be submitted along with their application for surrender. 

17. A facility to substitute the IFSD with Bank Guarantees issued by one of the bankers approved by the Exchange/NSCCL is also available to the trading members.

In either case, (i.e. substitution of cash component of the IFSD with FD/BG), a minimum deposit component of Rs.5 Lakhs in cash form will be retained by the Exchange/ NSCCL in order to meet any dues / obligations falling due immediately.

18. Refund of any part component of the deposits is subject to the Trading Member :

o Making payment to SEBI of all the turnover fees, interest payable thereon etc. as may be applicable to such trading members in respect of all the segments they have been admitted to.

o Obtaining No Dues Certificate from SEBI.o Redressing, to the satisfaction of the Exchange, all investors’ complaints and other

grievances pending against the trading member.o Making, in respect of arbitration proceedings, suitable arrangements to the satisfaction

of the Exchange so as to meet any obligation that may arise out of awards that may be made against them.

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The release/ refund of any component/ portion of a trading member’s IFSD or any other monies owing to a surrendering trading member shall be made through the Trading Member's account with their Clearing Bank. As an alternative, refund may be made to any another bank account of the trading member provided they furnish a No Objection Certificate from their Clearing Bank.

19. FDRs/ Bank Guarantees furnished by the Trading Member in connection with surrender of trading membership shall be returned to the Trading Member on the receipt of confirmation of cancellation of registration from SEBI provided there are no un-discharged obligations on account of the trading member or after adjusting such liability from the proceeds of the FDR or through invocation of Bank Guarantee unless adequate money is deposited against such outstanding liability.

20. Upon a Trading Member, whose surrender application has been received / approved by the Exchange, being subsequently declared a defaulter/ expelled by the Exchange, all the process applicable to that of a surrendered trading member shall cease ipso facto and the relevant process pertaining to a defaulter/ expelled trading member shall forthwith commence/ apply.

21. Cessation of membership consequent upon surrender will become final and effective after refund of deposits provided all the terms and conditions stipulated by the Exchange/NSCCL are complied with in its entirety. Till cessation, a Trading Member whose application for surrender has been approved shall be subject to all the terms and conditions set forth herein or as may be stipulated/ decided in future from time to time. Approval of surrender of trading membership shall remain conditional upon due compliance by the concerned Trading Member with all their obligations under the Rules/Regulations/Bye-laws of the Exchange/NSCCL, and circulars issued there under, including arbitration awards and valid investors/ other grievances/claims against them.

22. The Exchange, at its sole discretion, may waive, add, modify or relax one or more of the above requirements wherever it feels appropriate.

 

NSCCL

The National Securities Clearing Corporation Ltd. (NSCCL), a wholly owned subsidiary of NSE, was incorporated in August 1995. It was set up to bring and sustain confidence in clearing and settlement of securities; to promote and maintain, short and consistent settlement cycles; to provide counter-party risk guarantee, and to operate a tight risk containment system. NSCCL commenced clearing operations in April 1996.

NSCCL carries out the clearing and settlement of the trades executed in the Equities and Derivatives segments and operates Subsidiary General Ledger (SGL) for settlement of trades in government securities. 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.

NSCCL has successfully brought about an up-gradation of the clearing and settlement procedures and has brought Indian financial markets in line with international markets.

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NSCCL, The Organisation

The National Securities Clearing Corporation Ltd. (NSCCL), a wholly owned subsidiary of NSE, was incorporated in August 1995. It was the first clearing corporation to be established in the country and also the first clearing corporation in the country to introduce settlement guarantee.

It was set up with the following objectives:

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.

NSCCL commenced clearing operations in April 1996. It has since completed more than 2400 settlements (equities segment) without delays or disruptions.

National Securities Clearing Corporation Limited First Indian Clearing Corporation to get rated

CRISIL has assigned its highest corporate credit rating of ‘AAA’ to the National Securities Clearing Corporation Ltd (NSCCL). 'AAA' rating indicates highest degree of strength with regard to honouring debt obligations. NSCCL is the first Indian Clearing Corporation to get this rating. The rating reflects NSCCL’s status as Clearing Corporation for NSE, India’s largest stock exchange. The rating also factors in NSCCL’s rigorous risk management controls and adequate settlement guarantee cover.  

Products & Services

Clearing & Settlement

Guarantee

Risk Management

Corporate Bonds

Clearing & Settlement

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NSCCL 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, nets the positions to determine the liabilities of members and ensures movement of funds and securities to meet respective liabilities.

NSCCL has empanelled 13 clearing banks to provide banking services to trading members and has established connectivity with both the depositories for electronic settlement of securities.

It also undertakes settlement of transactions on other stock exchanges like, the Over the Counter Exchange of India.

Guarantee

NSCCL assumes the counter-party risk of each member and guarantees settlement through a fine-tuned risk management system and an innovative method of on-line position monitoring.

A large Settlement Guarantee Fund 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 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. As a consequence, credit risk no longer poses any threat in the market place. The market has full confidence that settlement shall take place in time and shall be completed irrespective of default by isolated trading members.

A separate Settlement Guarantee Fund is maintained for the Futures & Options segment.

Risk Management

A sound risk management system is integral to an efficient clearing and settlement system. NSE introduced for the first time in India, risk containment measures that were common internationally but were absent from the Indian securities markets.

NSCCL has put in place a comprehensive risk management system, which is constantly upgraded to pre-empt market failures. The Clearing Corporation ensures that trading member obligations are commensurate with their networth.

Risk containment measures include capital adequacy requirements of members, monitoring of member performance and track record, stringent margin requirements, position limits based on capital, online monitoring of member positions and automatic disablement from trading when limits are breached, etc.

Clearing & Settlement (Corporate Bonds)

NSCCL provides a facility for settlement of deals in corporate bonds.

Settlement of Corporate Bond Transactions

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All trades in corporate bonds available in demat form which are reported on any of the following platforms provided viz., FIMMDA, NSE-WDM and NSE web site shall be eligible for settlement through NSCCL.

In order to facilitate settlement of corporate bond trades through NSCCL, both buy and sell participants shall be required to explicitly express their intention to settle the corporate bond trades through NSCCL.

The trades will be settled at participant level on DVP I basis i.e., on gross basis for securities and funds. The settlements shall be carried out through the bank and DP accounts specified by the participants.

On the settlement date, during the pay-in, participants shall be required to transfer the securities to the Depository account specified by NSCCL and transfer the funds to the bank account specified by NSCCL within the stipulated cut-off time.

On successful completion of pay-in of both securities and funds, the securities / funds shall be transferred by NSCCL to the depository / bank account of the counter-party.

Custodian Trades

The participants desirous of clearing and settling the trade through a custodian may do so by specifying the custodian details.

Custodian may be specified either for a participant wherein all the trades for such participant shall be eligible for settlement by custodian or for a trade wherein only that trade shall be eligible for settlement by custodian.

In order to facilitate settlement of trades identified for settlement by custodian, through NSCCL, the custodian shall be required to explicitly express its intention to settle such trades through NSCCL. The settlement of trade in such case shall take place through the custodian’s bank and DP account as specified by the custodian.

Failure of Settlement Obligation of Corporate Bond Transactions

If either of the participants / custodians fails to honor their pay-in obligation, either fully or partially, by stipulated time then the transaction shall be cancelled and shall not be considered for settlement. Further the securities / funds received towards the pay-in obligation shall be returned back to the respective participants / custodians.

Partners

 CLEARING MEMBERS

 

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CLEARING BANKS DEPOSITORIES

PROFESSIONAL CLEARING MEMBERS

  CUSTODIANS

Clearing & Settlement

NSCCL 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, nets the positions to determine the liabilities of members and ensures movement of funds and securities to meet respective liabilities.

NSCCL has empanelled 13 clearing banks to provide banking services to trading members and has established connectivity with both the depositories for electronic settlement of securities.

It also undertakes settlement of transactions on other stock exchanges like, the Over the Counter Exchange of India.

Clearing & Settlement (Equities)

NSCCL carries out clearing and settlement functions as per the settlement cycles provided in the settlement schedule.

The clearing function of the clearing corporation is designed to work out a) what members are due to deliver and b) what members are due to receive on the settlement date. Settlement is a two way process which involves transfer of funds and securities on the settlement date.

NSCCL has also devised mechanism to handle various exceptional situations like security shortages, bad delivery, company objections, auction settlement etc.

 

Clearing & Settlement (Derivatives)

National Securities Clearing Corporation Limited (NSCCL) is the clearing and settlement agency for all deals executed on the Derivatives (Futures & Options) segment. NSCCL acts as legal counter-party to all deals on NSE's F&O segment and guarantees settlement.

A Clearing Member (CM) of NSCCL has the responsibility of clearing and settlement of all deals executed by Trading Members (TM) on NSE, who clear and settle such deals through them.

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Clearing & Settlement (Currency Derivatives)

National Securities Clearing Corporation Limited (NSCCL) is the clearing and settlement agency for all deals executed on the Currency Derivatives segment. NSCCL acts as legal counter-party to all deals on NSE's Currency Derivatives segment and guarantees settlement.

A Clearing Member (CM) of NSCCL has the responsibility of clearing and settlement of all deals executed by Trading Members (TM) on NSE, who clear and settle such deals through them.

Home > NSCCL > Clearing & Settlement > Interest Rate Futures

Clearing & Settlement (Interest Rate Futures)

National Securities Clearing Corporation Limited (NSCCL) is the clearing and settlement agency for all deals executed in Interest Rate Futures. NSCCL acts as legal counter-party to all deals on Interest Rate Futures contract and guarantees settlement.

A Clearing Member (CM) of NSCCL has the responsibility of clearing and settlement of all deals executed by Trading Members (TM) on NSE, who clear and settle such deals through them.

Clearing & Settlement (Retail Debt Market)

National Securities Clearing Corporation Limited (NSCCL) is the clearing and settlement agency for all deals executed in Retail Debt Market.

Salient features of Clearing and Settlement in Retail Debt Market segment

Clearing and settlement of all trades in the Retail Debt Market shall be subject to the Bye Laws, Rules and Regulations of the Capital Market Segment and such regulations, circulars and requirements etc. as may be brought into force from time to time in respect of clearing and settlement of trading in Retail Debt Market (Government securities).

Settlement in Retail Debt Market is on T + 2 Rolling basis viz. on the 2nd working day. For arriving at the settlement day all intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded. Typically trades taking place on Monday are settled on Wednesday, Tuesday's trades settled on Thursday and so on.

Clearing and settlement would be based on netting of the trades in a day.

NSCCL shall compute member obligations and make available reports/data by T+1. The obligations shall be computed separately for this market from the obligations of

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the equity market.

The settlement schedule for the Retail Debt Market (Government Securities)

Sr.No. Day Description

1 T Trade Date

2 T + 1   (11:00 a.m.) Custodial Confirmation

3 T + 2  (10.30 a.m.) Securities & Funds pay-in

4 T + 2 Securities & Funds pay-out

Funds settlement and securities settlement shall be through the existing clearing banks and depositories of NSCCL, in a manner similar to the Capital Market segment. The existing clearing bank accounts shall be used for funds settlement.

The existing CM pool account with the depositories that is currently operated for the CM segment, will be utilized for the purpose of settlements of securities.

In case of short deliveries, unsettled positions shall be closed out. The close out would be done at Zero Coupon Yield Curve (ZCYC) valuation for prices plus a 5% penalty factor. The buyer shall be eligible for the highest traded price from the trade date to the date of close out or closing price of the security on the close out date plus interest calculated at the rate of overnight FIMMDA-NSE MIBOR for the close out date whichever is higher and the balance shall be credited to the Investor Protection Fund.

Members may please note that the penal actions and penalty points shall be similar to as in Capital Markets.

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Clearing & Settlement (Corporate Bonds)

NSCCL provides a facility for settlement of deals in corporate bonds.

Settlement of Corporate Bond Transactions

All trades in corporate bonds available in demat form which are reported on any of the following platforms provided viz., FIMMDA, NSE-WDM and NSE web site shall be eligible for settlement through NSCCL.

In order to facilitate settlement of corporate bond trades through NSCCL, both buy and sell participants shall be required to explicitly express their intention to settle the corporate bond trades through NSCCL.

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The trades will be settled at participant level on DVP I basis i.e., on gross basis for securities and funds. The settlements shall be carried out through the bank and DP accounts specified by the participants.

On the settlement date, during the pay-in, participants shall be required to transfer the securities to the Depository account specified by NSCCL and transfer the funds to the bank account specified by NSCCL within the stipulated cut-off time.

On successful completion of pay-in of both securities and funds, the securities / funds shall be transferred by NSCCL to the depository / bank account of the counter-party.

Custodian Trades

The participants desirous of clearing and settling the trade through a custodian may do so by specifying the custodian details.

Custodian may be specified either for a participant wherein all the trades for such participant shall be eligible for settlement by custodian or for a trade wherein only that trade shall be eligible for settlement by custodian.

In order to facilitate settlement of trades identified for settlement by custodian, through NSCCL, the custodian shall be required to explicitly express its intention to settle such trades through NSCCL. The settlement of trade in such case shall take place through the custodian’s bank and DP account as specified by the custodian.

Failure of Settlement Obligation of Corporate Bond Transactions

If either of the participants / custodians fails to honor their pay-in obligation, either fully or partially, by stipulated time then the transaction shall be cancelled and shall not be considered for settlement. Further the securities / funds received towards the pay-in obligation shall be returned back to the respective participants / custodians.

Clearing & Settlement (SLBS)

Participant EligibilityAll Clearing members of NSCCL including Banks and Custodians referred to as ‘Participant’ are eligible to participate in SLBS. In order to participate in SLBS, clearing members have to register as Participants in SLBS.

For this purpose, the eligible persons are required to follow the registration procedure as specified by NSCCL which includes entering into an agreement with NSCCL as per the format specified.

Participants desirous of lending or borrowing securities can do so either on their own account or on behalf of their clients. Prior to undertaking lending or borrowing of securities on account of clients, the Participants are required to enter into an agreement with each client as per the format specified by NSCCL.

The Participant need to apply to NSCCL for allotment of a “Unique client ID” for each client with whom they have entered into the agreement for participating in SLBS.

The formats of Agreement between NSCCL & Participant and Participant & Client along with the

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procedure of UCI allotment to clients is available in SLB Circular NSE/CMPT/10164 dated January 30, 2008.

Eligible Securities

Securities Available for Borrow / Lending

Currently securities available for trading in F&O segment of National Stock Exchange of India Ltd. (NSEIL) are permitted.

Securities lending and borrowing is permitted in dematerialized form only.

Securities in which there are corporate actions are subject to either foreclosure of transactions or adjustment depending on the type of corporate action.

Period of lendingThe tenure of lending / borrowing shall be thirty trading days. Accordingly the return of securities by borrower shall be scheduled on the T+31 day (where T is the SLBS transaction day). This is a fixed tenure lending / borrowing.

Clearing:All obligations are on a gross basis i.e. there is no netting of transactions. Where the participant have transacted for their client or on their own account the obligation arising out of such transactions shall be on the Participant. However, where participants have transacted for a Custodial Participant (CP) client the transaction shall be subject to confirmation of the respective custodian and the obligation shall be the Custodians. However, non-confirmation of such transactions by the Custodian would revert the transaction to the participants obligation. Obligations for the first leg are downloaded to participants/Custodians on the T day and obligations for the reverse leg are downloaded on T+1 day.

Transactions under SLBS segment are identified based on different settlement types as intimated by NSCCL for the first leg and reverse leg settlements.

Lender’s Obligation : The lenders obligation is the securities lent on T day (Transaction date). The lender is required to deliver the securities by the scheduled time on T+1 day.

Borrower’s Obligation : Borrower’s obligation is the lending fees in cash form and the lending price ( T-1 day closing price in the underlying security) in cash collaterals payable on T+1 day.

Settlement Procedure:The pay-in and pay-out of funds and securities is through the designated bank accounts and securities settlement account respectively.

Transactions are settled on a T+1 day basis for the First LegTransactions are settled on a T+31 day basis for the Reverse leg

Clearing & Settlement cycle for a lending and borrowing transaction

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Designated Bank AccountThe bank account currently used by Participant for settlement of funds in the Capital Market segment is the designated bank account for giving effect to funds debits/credits under SLBS.

Securities Settlement AccountParticipants are required to maintain accounts with both depositories i.e NSDL & CDSL. The pool account currently used by Participants in NSDL for effecting securities pay-in and pay-out in the Capital Market segment is used for settlement under SLBS.

In case of CDSL, Participants are required to open a separate settlement account for effecting securities pay-in and pay-out under SLBS.

Client direct payout facilityParticipants / Custodians have been provided the facility of crediting the payout of securities directly to clients account. In order to avail of this facility, participant/custodian are required to provide a file in the specified file format available in SLB Circular (NSE/CMPT/10134) dated January 25, 2008 containing details of the beneficiary accounts to which direct credit is to be given.

Process of return of securitiesThe borrowing Participants are required to return the securities borrowed on completion of period of lending i.e on T+31 day. The securities are returned to the lender of the securities by NSCCL on the T+31 day. In the case of borrower failing to return securities, NSCCL conducts an auction for obtaining securities. In the event of failure to procure securities in auction the transactions are financially closed-out on the basis of the close-out computation formula.

Shortages and Close outIn the event of funds shortage by the borrower, the SLBS transactions are cancelled and the securities returned to the lenders along with lending fees.

In the event the lender fails to deliver securities, the transaction is closed out as per the below procedure.

Higher of:

25% of closing price of the security on T+1 day (closing price for the security in the capital market segment of NSEIL), or

(Maximum trade price of the security in the capital market segment of NSEIL from T to T+1 day) - (T+1 day closing price of the security in capital market segment of NSEIL)

In the event the borrower fails to return the securities NSCCL conducts a buy-in auction in the Capital Market segment of NSEIL.

If the security cannot be bought through the buy-in auction, the transaction is closed out as per the below procedure.

Higher of:

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The maximum traded price in the Capital Market segment of NSEIL from T+1 day to T+31 day, or

25% above the closing price of the security in the capital market segment on the T+31 day

In all cases of shortages, NSCCL may initiate various actions including withdrawal of access to the order matching platform, withhold of the securities/funds pay-out due to the Participant or any other action as may be intimated by NSCCL.

Adjustment for Corporate ActionsAll transactions in case of corporate actions other than dividend and Stock spilt shall be foreclosed 2 days prior to ex-date.

In case of dividend, the dividend amount shall be collected from the borrower on the reverse leg settlement date and shall be paid to the lender on the reverse leg settlement date.

In case of stock split the position of the borrower would be proportionately adjusted and the lender shall receive the revised quantity on the reverse leg settlement date.

Adjustment of lending fees in case of foreclosureIn case of foreclosure where the corporate action is announced by NSCCL after the transaction has been executed, lending fees shall be adjusted on a pro-rata basis by NSCCL. The lending fee shall be bought by the lender on the foreclosure settlement date and shall be passed on to the borrower.

However in case of foreclosure where the corporate action is announced upfront by NSCCL before the transaction has been executed there shall be no adjustment of lending fee. Market participants shall accordingly quote lending fee for the shorter transaction cycle.

Top Clearing & Settlement (MFSS Clearing and Settlement)

The settlement for Mutual Funds Service System is carried out by NSCCL through the depository and bank interface. The clearing and settlement mechanism provides for funds settlement for subscription of units and transfer of mutual funds units to AMCs for the purpose of redemption. All requests for subscription and redemption are settled on individual basis and only to the extent of the funds/units paid in by participants/clients on the settlement day. Receipt and transfer of funds for subscription of mutual fund units are done on a T+1 day basis. The allotment of units under subscription is carried out directly by the RTA. Receipt and transfer of mutual fund units for redemption is done on T day and is conducted for units in dematerialised form only. The transfer of funds for redemption is carried out directly by the RTA.

The settlement cycles are in accordance with the settlement schedules issued by NSCCL from time to time.

NSCCL is only a facilitator and not a counter party for the subscription and redemption of units.

Subscription of units

Participants have to open a separate clearing bank account for the purpose of settlement of funds for subscription.

Funds pay-in confirmation files are downloaded to participants on the T day for units subscribed.

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Participants have to provide funds in their settlement accounts by 8.30 a.m. on the T+1 day.

Participants have to upload payment confirmation files on the T+1 day by 9.30 a.m. identifying transactions for which payments have been received and transactions for which payments have not been received. Wherever the funds collected from the bank account fall short of the amount indicated in the details provided by the participant, the details are considered defective and are not further processed. In such cases, the funds collected, if any, are returned to the designated bank account of the participant.

Daily funds report   is downloaded to participants after completion of funds settlement.

Redemption of units

Investors are required to transfer units for their transacted orders to the NSCCL pool account on the T day by 4.30 p.m. for the purpose of redemption. The details of such instructions are given in the circular NSE/CMPT/13534 dated November 24, 2009.

Demat Final Delivery Statement (DFDS)  is downloaded to participants after units are received by NSCCL.

Participants can refer to the circular mentioned above for detailed clarifications in relation to clearing and settlement procedures of mutual funds units. 

http://www.nse-india.c

 

Risk Management

A sound risk management system is integral to an efficient clearing and settlement system. NSE introduced for the first time in India, risk containment measures that were common internationally but were absent from the Indian securities markets.

NSCCL has put in place a comprehensive risk management system, which is constantly upgraded to pre-empt market failures. The Clearing Corporation ensures that trading member obligations are commensurate with their networth.

Risk containment measures include capital adequacy requirements of members, monitoring of member performance and track record, stringent margin requirements, position limits based on capital, online monitoring of member positions and automatic disablement from trading when limits are breached, etc.

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