RESEARCH PAPER INTERNATIONAL

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1 May 11 1 RESEARCH PAPER Market Integration and Efficiency of Indian Stock Markets: A Study of NSE by Prashant Joshi The study tries to explore the dynamics of comovement of stock markets of USA,Brazil, Mexico, China and India for the period from January 1996 to July 7 using daily closing price data. It attempts to analyze the speed of adjustment coefficients using daily, weekly and monthly data. It also tries to examine the efficiency of the stock market as a result of initiatives and regulatory measures taken by NSE and SEBI respectively. The complete research paper is available at: REGULATORY CHANGES Initiated by SEBI ASBA facility made mandatory for QIBs and NIIs making application in public/ rights issue Initiated by RBI Setting up of Central Electronic Registry under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security InterestAct The objective of setting up of Central Registry is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. This Registry has become operational on March 31, 11. It may be noted that initially transactions relating to securitization and reconstruction of financial assets and those relating to mortgage by deposit of title deeds to secure any loan or advances granted by banks and financial institutions, are to be registered in the Central Registry. INTERNATIONAL NEWS CME Group announces the introduction of Sovereign Yield Spread Futures to help manage risk exposure between government bond markets CME Group, the world's leading and most diverse derivatives market, has announced that it will introduce cash settled Sovereign Yield Spread futures beginning May for a trade date of May 3. The six countries represented in the initial launch phase include France (OAT), Germany (Bund), Italy (BTP), Netherlands (DSL), United Kingdom (Treasury Gilts), and United States (Treasury Notes). These products are listed by and subject to the rules of CME, and further diversifies CME Group's Interest Rates product portfolio. Key features and benefits of the new contract include the following: 1. Sovereign Yield Spread futures wrap a sovereign yield spread exposure into a single futures contract - with no need to execute and manage individual legs in cash bond/repo markets or across multiple futures exchanges.. Sovereign Yield Spread futures make trading and monitoring of sovereign yield spread exposures simpler, more cost-effective, and more capital efficient than ever before. Intercontinental Exchange, a leading operator of regulated global futures exchanges, clearing houses and over-the counter (OTC) markets, announced a partnership to launch BRIX, a Brazilian marketplace for electric power. 1 Paper completed under NSE Research Initiative. Assistant Professor, I-Shou University, Taiwan, ROC. prashant_m_joshi@yahoo.com

2 May 11 MARKET REVIEW Performance of select sectors vis-a-vis Nifty (Rebased to 1-- March 31, 11) Performance of select sectors vis-a-vis Nifty (Rebased to 1-- March 31, 11) /31/11 4/7/11 4/14/11 4/1/11 4/8/11 3/31/11 4/7/11 4/14/11 4/1/11 4/8/11 CNX IT CNX FMCG S&P CNX Finance Nifty 5 DOW Jones NIKKEI 5 HANG SENG NASDAQ S&P CNX Petrohemicals S&P CNX Pharmaceuticals CNX Bank Nifty CNX Infrastructure S&P CNX Nifty Capital Market Segment F&O Segment May-1 Jun-1 Jul-1 Aug-1 Sep-1 Oct-1 Nov-1 Dec-1 May-1 Jun-1 Jul-1 Aug-1 Sep-1 Oct-1 Nov-1 Dec Currency F&O May-1 Jun-1 Jul-1 Aug-1 Sep-1 Oct-1 Nov-1 Dec WDM Segment May-1 Jun-1 Jul-1 Aug-1 Sep-1 Oct-1 Nov-1 Dec-1 ( ` ' crore) ( ` ' crore) Segments CM WDM Equity F&O Currency F&O Interest Rate Futures TOTAL NSE MARKET STATISTICS Percentage Average Change over daily Market Turnover (` crore) last month turnover Capitalisation (` crore) (` crore) 55,71 8,348 (1.7) 1,686 6,753,614 44,363 39,75 (1.39),484 3,658,38,877,9,351,3 (18.3) 13,68 378, ,467 (7.94) 1, (64.15).1 3,556,493,967,868 (16.55) 167,578 1,411,65 NSE's GLOBAL RANKINGS Parameters Rank Single Stock Futures Stock Index Options nd nd rd Stock Index Futures 3 th Market Capitalisation 9 Source : WFE (Rankings done for the period Jan - Dec 1). Rankings for single stock futures, stock index options and stock index futures is based on number of contracts traded. Prepared by Economic Policy & Research National Stock Exchange of India Ltd. Exchange Plaza, Bandra Kurla Complex, Bandra (E) Mumbai Tel No: For detailed NSE Newsletter or for e-subscription, log on to Room>NSE Newsletter. For Market Data, refer to Disclaimer- The views expressed in the published articles are those of respective authors and do not necessarily reflect views of NSE. NSE does not guarantee accuracy of data used in Newsletter and accepts no responsibility whatsoever for any consumption of their use.

3 Visit to NSE Program It has been the endeavor of NSE to spread knowledge about financial markets as widely as possible. As part of this endeavor, we have been organizing Visit to NSE Program, under which groups of students visit NSE to attend a hour session. The session includes lectures on Overview of the Exchange, Capital Markets, Derivative Markets and Currency Derivatives. In this session, the students learn about stock exchange structure, its operations, products traded on it and so on. They also learn about NSE s NCFM certification which not only expands their knowledge base, but also improves their career prospects. This program is conducted in the Mumbai office as well as the regional offices located at Delhi, Kolkata and Chennai. On behalf of the schools, colleges and educational institutions desiring to participate in the program, a coordinator needs to contact the Mumbai office or a regional office depending on their respective location. MUMBAI DELHI KOLKATA CHENNAI

4 NSE NEWSLETTER MANAGERIAL PERSONNEL NSE May August NAME DESIGNATION DEPARTMENT TEL. NO. EXTN. Dr. Vijay L Kelkar Chairman Mr. Ravi Narain Managing Director and CEO Ms. Chitra Ramkrishna Jt. Managing Director Mr. J. Ravichandran Director Finance & Accounts, Legal & Secretarial Mr. Ravi Apte Chief Technology Officer Mr. R. Nanda Kumar Sr. Vice President National Commodity Clearing Limited, New Projects & International Business Mr. R. Sundararaman Sr. Vice President National Securities Clearing Corporation Ltd. Mr. Ravi Varanasi Sr. Vice President Investigation, Surveillance, Data Analytics, RO-Ahmedabad, Inspection & Compliance, Sales & Marketing Mr. Yatrik R Vin Sr. Vice President Finance & Accounts Mr. Chandrashekar Mukherjee Vice President Human Resource Mr. Hari K Vice President Listing & Membership Ms. Kamala Vice President Inspection, Compliance, & Investor Service Cell Mr. Nirmal Mohanty Head Economic Policy & Research Mr. Suprabhat Lala Vice President Trade - (Capital Market, F&O, Currency Derivatives & WDM), CRM & Marketing Mr. Suresh Narayan Vice President India Index Services & Products Ltd. & DotEx International Limited Mr. T Venkat Rao Vice President & Regional Office - Delhi (11) Head Northern Region Mr. Vidhu Shekhar Vice President New Products & Six Sigma Initiatives Mr. Sumit Tyagi Head Sales & Marketing Mr Amol Mahajan Asst. Vice President Finance & Accounts /4 381 Mr. Arup Mukherjee Asst. Vice President SBU - Education Mr. C. N. Upadhyay Asst. Vice President Inspection & Compliance Mr. Mahesh Haldipur Asst. Vice President Premises Mr. Mayur Sindhwad Asst. Vice President NOW, Dotex International Ltd. & Web Team Mr. Nilesh Tinaikar Asst. Vice President Development Ms. Nisha Subhash Asst. Vice President Investigation Mr. R Jayakumar Asst. Vice President Secretarial Ms. Rana Usman Asst. Vice President NSCCL - Risk Management, Colleterals,Funds Mr. Ravi Tyagi Officer on Special SME Project Duty Ms. Rehana D'Souza Asst. Vice President Membership Mr. Ravindra Mohan Bathula Asst. Vice President Legal Mr. S R V S Nagendra Kumar Asst. Vice President NSCCL - Securities Mr. Sandip Mehta Asst. Vice President CTCL

5 NSE NEWSLETTER MANAGERIAL PERSONNEL NSE ( c o n t d.. ) May August 11 1 NAME DESIGNATION DEPARTMENT TEL. NO. EXTN. Mr. Vitthal More Asst. Vice President New Projects Ms. Sunitha Anand Asst. Vice President & Head Southern Region Regional Office - Chennai & Hyderabad (44) Mr. Achal Jaiswal Chief Manager & Head - Eastern Regional Office - Kolkata (33) Region Mr Ajith Kumar V Chief Manager Administration & Development Mr. Amit Bhobe Chief Manager New Projects & NCCL Mr. Arvind Goyal Chief Manager NSCCL - Currency Derivatives Mr. Avinash Kharkar Chief Manager Investigation Mr. Avishkar Naik Chief Manager NSCCL - Development Ms. Bhawika Wanchoo Chief Manager & In-charge - Ahmedabad Regional Office - Ahmedabad (79) Mr. Bireshwar Chatterjee Chief Manager Data Analytics Mr. Gaurav Kapoor Chief Manager CRM Ms Himabindu Vakkalanka Chief Manager Capital Market - Trade Mr. Huzefa Mahuvawala Chief Manager F&O - Trade Mr. Janardhan Gujaran Chief Manager Development Ms Jayna Gandhi Chief Manager Finance & Accounts Mr. Johnson Joseph Chiriyath Chief Manager Listing Mr. Kiran Sawant Chief Manager Inspection Mr. Kiran Dusane Chief Manager Premises Ms. Nipa Lalitbhai Simaria Chief Manager Surveillance Mr. Prashanto Banerjee Chief Manager Marketing Ms. Rachana Bhusari Chief Manager NSCCL - Collaterals Mr. Sammit Joshi Chief Manager India Index Services & Products Ltd. Mr. Sandeep Dandapat Chief Manager Business Development (11) Mr. Sandeep Manoharan Chief Manager NOW, Dotex International Ltd Ms. Seema Nayak Chief Manager New Projects Mr. Shekhar Rao Chief Manager Finance & Accounts Ms. Sonali Karnik Chief Manager Currency Derivatives - Trade Mr. Sunil Gawde Chief Manager Capital Market - Trade Ms. Sushama Bhagchandani Chief Manager Finance & Accounts Mr. Tojo Banerjee Chief Manager Regional Office - Delhi (11) Mr. Vinayak Shenoy Chief Manager Finance & Accounts

6 NSE NEWSLETTER MANAGERIAL PERSONNEL NSE INFOTECH SERVICES LTD. May August Name Designation Projects Tel. No. Ext Mr. N Muralidaran CEO Mr. G. M. Shenoy Senior Vice President Projects Mr. M. R. Krishnan Vice President Infrastructure Ms. Hema Iyer Vice President Risk Management Mr. Mahesh Soparkar Associate Vice President Projects, DBA/SysAdmin Ms. Mamatha Rangaprasd Associate Vice President Trade Mr. P. R. Visvas Assistant Vice President Quality, DWH Mr. Mahesh Basrur Assistant Vice President FOCASS, NCSS Mr. Deviprasad Singh Assistant Vice President Telecom Mr. Amit Hatalkar Assistant Vice President Web, SBU-Education Ms. Smrati Kaushik Assistant Vice President Trade Mr. Viral Mody Assistant Vice President Retooling Mr. Hitesh Shah Senior Manager DBA /SysAdmin/SysOperations Mr. Sujoy Das Senior Manager Index Mr. Sudhir Sawant Senior Manager Project Management Office Mr. Pranav Gupta Senior Manager Risk Management Mr. Rajanish Nagwekar Senior Manager NGPT Mr. Nipun Dave Senior Manager Neatplus, TAP Mr. Bineet Jha Senior Manager HWARE SUPPORT Mr. Mathew Joseph K Senior Manager NCSS Mr. Benny Sebastian Senior Manager Membership, Inspection, Listing Mr. Umesh Agroya Senior Manager Telecom Mr. Swaminathan Narayan Senior Manager APPSG Mr. Manoj Joshi Manager NOW Ms. Anuja Joshi Manager BCP Mr. Suresh Chandani Manager Trade Mr. Shibu Tomy Manager ISMS Ms. Pranali Taskar Manager Telecom Mr. Joy John Manager BCP - Chennai Mr. Narayan Neelakanthan Manager Telecom Ms. Bernadine Swamy Manager HRD Mr. Anoop Kumar Rawat Consultant DBA Mr. Nitin Gupte Manager Telecom Mr. Prasad Addagatla Manager SysAdmin/SysOperations Mr. Suraj P Bangera Manager Web

7 NSE NEWSLETTER MANAGERIAL PERSONNEL NSE INFOTECH SERVICES LTD. May August 11 1 (contd..) 4 Name Designation Projects Tel. No. Ext Mr. Manoj Kumar Singh Manager TECH - Delhi (11) Mr. Sagar Joshi Manager Project Management Office Mr. Shreekantha Velankar Manager DWH Mr. Balakrishnan M Manager APPSG Mr. Aditya Agarwal Manager Architecture Ms. Meena Hajare Manager Quality Mr. Nishant Jha Manager OPMS Ms. Veena Khilnani Manager DBA Mr. Vinit Naik Manager PRISM Ms. Vishakha Shenoy Manager Survellience Ms. Kavita Shanbhag Manager Listing, NFA/FAMS, WDM Ms. Swarashree Joglekar Manager CN Mr. Shailendra Aggarwal Manager HWARE SUPPORT Mr. Sarang Dhoble Manager Trade