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  • NATIONAL STOCK EXCHANGEOF INDIA LIMITED

    NINETEENTH ANNUAL REPORT2010-11

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  • BOARD OF DIRECTORS

    Dr. Vijay L. Kelkar : ChairmanMr. C. AchuthanMr. Anjan BaruaMrs. Ranjana KumarMr. A.P. KurianDr. Rajiv B. LallMr. S. B. MainakMr. Y.H. MalegamMr. S. B. MathurDr. K.R.S. MurthyDr. R.H. PatilMrs. Bhagyam RamaniDr. V.A. SastryMr. Deepak SatwalekarMr. Ravi Narain : Managing DirectorMs. Chitra Ramkrishna : Joint Managing Director

    MANAGEMENT TEAM*

    Mr. J. Ravichandran : Director (F&L) & Company SecretaryMr. R. Sundararaman # : Senior Vice PresidentMr. Yatrik R. Vin : Senior Vice PresidentMr. R. Nanda Kumar : Senior Vice PresidentMr. Ravi Varanasi : Senior Vice PresidentMr. Vidhu Shekhar : Vice PresidentMs. K. Kamala : Vice PresidentMr. Nirmal Mohanty : Vice PresidentMr. Hari K : Vice PresidentMr. Suresh Narayan : Vice PresidentMr. T. Venkat Rao : Vice President & Head-Northern RegionMr. Chandrashekhar Mukherjee : Vice PresidentMr. Suprabhat Lala : Vice PresidentMr. Mahesh Haldipur : Asst. Vice PresidentMr. C.N. Upadhyay : Asst. Vice PresidentMr. Arup Mukherjee : Asst. Vice PresidentMr. R. Jayakumar # : Asst. Vice PresidentMr. Ravindra Mohan Bathula : Asst. Vice PresidentMs. Nisha Subhash : Asst. Vice PresidentMr. Nilesh Tinaikar : Asst. Vice PresidentMs. Rana Usman # : Asst. Vice PresidentMr. Mayur Sindhwad : Asst. Vice PresidentMr. Nagendra Kumar # : Asst. Vice PresidentMr. Vitthal More : Asst. Vice PresidentMr. Sandip Mehta : Asst. Vice PresidentMr. Sumit Tyagi : Head- Sales & MarketingMr. Amol Mahajan : Asst. Vice PresidentMs. Divya Malik Lahiri : Asst. Vice PresidentMr. Rehena Dsauza : Asst. Vice PresidentMr. Sunitha Anand : Asst. Vice President & Head Southern Region

    AUDITORS : M/s. Khandelwal Jain & Co.Chartered Accountants12-B, Baldota Bhavan, 5th Floor Maharshi Karve Road Churchgate, Mumbai-400 020

    REGISTERED OFFICE : Exchange PlazaPlot C-1, Block GBandra Kurla Complex,Bandra (East), Mumbai- 400 051

    REGISTRAR & TRANSFER AGENTS : Link Intime India Pvt. Ltd.C-13, Pannalal Silk Mills CompoundL B S Marg, Bhandup (West)Mumbai-400 078

    # on deputation to NSCCL

    Nineteenth Annual ReportNATIONAL STOCK EXCHANGE OF INDIA LIMITED

  • Nineteenth Annual Report

    1

    NATIONAL STOCK EXCHANGE OF INDIA LIMITED

    DIRECTORS REPORTTo,

    The Members,

    Your Directors have pleasure in presenting the Nineteenth Annual Report and Audited Accounts of the Company

    for the year ended March 31, 2011.

    1. OPERATIONS AND MAJOR DEVELOPMENTS DURING THE YEAR

    1.1 Global rankings- Equity Derivatives Market

    1.1.1 Stock Futures

    During the year 2010, NSE continued to rank as the 2nd largest exchange in respect of contracts traded in stock

    futures. The details of top 5 exchanges trading stock futures is given in Table 1 below:

    Table 1

    Sr. No. Exchange Contracts traded

    during 2010

    (in millions)

    1 NYSE Liffe Europe 291.27

    2 National Stock Exchange of India 175.67

    3 Eurex 150.75

    4 JSE 78.76

    5 Korea Exchange 44.71

    Source: WFE.

    1.1.2 Index Options

    NSE continues to be ranked as the 2nd largest exchange in the world in index options. The details of top 5

    exchanges in index options are given in Table 2 below:

    Table 2

    Sr. No. Exchange Contracts traded

    during 2010

    (in millions)

    1 Korea Exchange 3,525.90

    2 National Stock Exchange of India 529.77

    3 Eurex 342.92

    4 Chicago Board Options Exchange 270.01

    5 Taifex 88.91

    Source: WFE

  • Nineteenth Annual Report

    2

    NATIONAL STOCK EXCHANGE OF INDIA LIMITED

    1.1.3 Index Futures

    NSE continues to be ranked as the 3rd largest exchange in the world in index futures. The details of top 5

    exchanges in index futures are given in Table 3 as under:

    Table 3

    Sr. No. Exchange Contracts tradedduring 2010(in millions)

    1 CME Group 695.15

    2 Eurex 407.77

    3 National Stock Exchange of India 156.35

    4 Osaka SE 147.60

    5 NYSE Liffe Europe 94.27

    Source: WFE

    1.1.4 Nifty Index Global rankings

    Nifty Index options ranked 4th across the top 20 Index options traded globally during the year 2010. Nifty Indexfutures ranked 9th across the top 20 Index futures traded globally during the year 2010.

    (Source: www.futuresindustry.org rankings based on number of contracts traded or cleared between Jan 10 - Dec 10)

    1.1.5 All products

    NSE ranked 5th across all the Derivatives exchanges in the world based on the volume of contracts traded duringthe year 2010.

    (Source: www.futuresindustry.org rankings based on number of contracts traded or cleared between Jan 10 - Dec 10)

    1.2 Global rankings-Capital Market

    In capital market segment, NSE continues to remain the fourth largest exchange in the world based on the numberof transactions during the calendar year 2010. The details of top 10 Exchanges are given in the Table 4 below.

    Table 4

    Sr. No. Exchange No. oftransactions

    (in Thousands)

    1 NYSE Euronext (US) 2,050,985.2

    2 NASDAQ OMX 1,743,302.2

    3 Shanghai SE 1,661,489.0

    4 National Stock Exchange of India 1,556,620.5

    5 Shenzhen SE 1,329,287.6

    6 Korea Exchange 921,843.2

    7 Bombay SE 555,719.3

    8 Tokyo SE Group 334,676.9

    9 Taiwan SE Corp. 232,740.0

    10 London SE Group 207,497.8

    Source: WFE. The sale and purchase of a share are counted as one transaction

  • Nineteenth Annual Report

    3

    NATIONAL STOCK EXCHANGE OF INDIA LIMITED

    1.3 Membership at NSE

    92 new members (61 in CM, F&O and CD segments; 18 in CM and F&O segments; 12 in CD segment; and 1 in

    CM and CD segments) were registered during the Financial Year 2010-11. The Exchange also granted additional

    segment membership to 68 members during the Financial Year 2010-11.

    Table 5 showing membership details for the Financial Year 2010-11

    Particulars CM WDM F&O CD

    segment segment segment segment

    SEBI registered trading members 1,337 81 1,210 739

    Members registered in additional segments 4 1 10 57

    Registered Sub-brokers / Authorised persons 54,290 Nil 44,731 3,020

    Surrender of membership 10 4 9 4

    1.4 Wholesale Debt Market (WDM) segment

    The WDM segment provides a trading platform for trading of a wide range of fixed income securities. Initially,

    government securities, treasury bills and bonds issued by public sector undertakings (PSUs) were made available

    for trading. This range has been widened to include non-traditional instruments like floating rate bonds, zero

    coupon bonds, index bonds, structured products, corporate debentures, state government loans, SLR and

    non-SLR bonds issued by financial institutions, units of mutual funds and Supra Institutions (Foreign institutions).

    There were 4,479 securities available for trading as on March 31, 2011 all belonging to listed category.

    The turnover on WDM segment decreased in the financial year 2010-11. The turnover decreased from

    Rs 5,63,815.93 crores in 2009-10 to Rs 5,59,446.75 crores in 2010-11 registering a decline of 0.77%. The average

    daily turnover decreased to Rs 2,255.83 crores in 2010-11 from Rs 2,359.06 crores in 2009-10.

    The business growth on the WDM segment of the Exchange is presented in Figure 1.

    Figure 1

  • Nineteenth Annual Report

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    NATIONAL STOCK EXCHANGE OF INDIA LIMITED

    Turnover in WDM segment for FY 2010-11 is presented in Figure 2 as under:-

    Figure 2

    The transaction in government securities account for a substantial share of transaction on the WDM segment with

    54.49% in 2010-11. Market capitalisation of the WDM segment has witnessed a constant increase indicating an

    increase in the number of securities available for trading on this segment. Total market capitalisation of the

    securities available for trading on WDM segment stood at Rs 35,94,877.15 crores as on March 31,2011.

    Table 6: Trades in WDM segment

    Particulars 2010-11 2009-10

    Number of Trades 20,383 24,069

    Average monthly number of trades 1,699 2,006

    Average daily number of trades 82 101

    Average Trade Value (Rs. in crores) 27.45 23.42

    Average Daily Turnover (Rs. in crores) 2,255.83 2,359.06

    Turnover (Rs. in crores) 5,59,446.75 5,63,815.93

    Number of Active Scrips 1,111 1,144

    Number of Active members 35 36

    1.4.1 Securities Profile

    The turnover of government securities in WDM segment decreased by 7.02 % during 2010-11. Its share in total

    turnover decreased from 58.15% in 2009-10 to 54.49% in 2010-11. The share of Treasury Bills increased from

    16.49% in 2009-10 to 17.64% in 2010-11. The turnover of Non Government securities in WDM segment increased

    by 9.01% during 2010-11. During 2010-11, the share of Non Government Securities in total turnover increased

    to 27.87% as compared to 25.37% in 2009-10.

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  • Nineteenth Annual Report

    5

    NATIONAL STOCK EXCHANGE OF INDIA LIMITED

    Table 7 and Figure 3 represent security-wise distribution of turnover.

    Table 7: Security-wise Distribution of Turnover

    Securities 2010-11 2009-10

    Turnover % of Turnover % of(Rs. in crores) Turnover (Rs.in crores) Turnover

    Government Securities 3,04,836.02 54.49 3,27,837.41 58.15

    T-Bills 98,713.15 17.64 92,961.12 16.49

    PSU Bonds 53,641.20 9.59 60,883.20 10.80

    Institutional Bonds 55,944.31 10.00 25,949.67 4.60

    Bank Bonds and others 2,475.30 0.44 2,520.00 0.44

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