General Information NSE

The National Stock Exchange (NSE), located in Bombay, is India's first debt market. It was set up in
1993 to encourage stock exchange reform through system modernization and competition. It opened for
trading in mid-1994. It was recently accorded recognition as a stock exchange by the Department of
Company Affairs. The instruments traded are, treasury bills, government security and bonds issued by
public sector companies.
The number of members trading on the exchange has been on a steady increase, helping integrate
the national market and providing a modern system with a complete audit trail of all transactions.

Membership

1026 trading members on the Capital Market segment, of which around 86% account for
corporates and the remaining individuals and firms.

113 trading members on the Wholesale Debt Market segment, all of which account for
corporates. (Out of these 113 trading members, 106 are members of the Capital Market segment
also and are included in the 1026 members indicated above).

Geographic Distribution

Over 2600 trading terminals

Over 1500 VSATs across the country with a 24 hour Network monitoring system in over 160
cities as of December 31st, 1997.

Number of Companies

On the Capital Market segment, 600 securities are listed and 762 securities are permitted to trade
as of December 31st, 1997.

On the Wholesale Debt Market segment, 470 securities are listed and 369 securities are
permitted to trade as of December 31st, 1997. Of the 470 securities listed, 267 are Government
Securities, T-Bills and the balance account for other securities.

Capital Market Operations

NSE is working to increase the capacity of the trading system from the present 4,00,000 trades
per day to more than 10,00,000 trades per day.

The average daily numbers of trades have gone up from over 893 trades in November-94 to over
1,48,783 trades in November 97. On August 7, 97 the number of trades reached a record high of
2,36,411 which makes NSE one of the largest stock exchanges in the world.

Average daily traded value has increased from Rs.7 crores in November-94 to more than Rs.
1480 crores in December-97 with a high of Rs.3,080.61 crores recorded on 26th June-97.

Number of shares traded has increased from 76.10 lakhs in November-94 to 11,148.21 lakhs in
December-97.

Net traded value has increased from Rs.125 crores in November -94 to Rs. 32,549 crores in
December-97.

Delivered value (settlement wise) has increased from Rs.60 crores in November -94 to Rs.5,008
crores in December -97.

Number of shares traded (depository segment) has increased from 200 shares in December -96
to 1,19,102 shares in December-97.

Net traded value (depository segment) has increased from Rs.0.43 lakhs in December -96 to
Rs.185.44 lakhs in December-97.

Market share of cities other than five metros (Mumbai, Delhi, Calcutta, Chennai & Ahmedabad)
which was about 16% in first quarter of 1996 grew to as high as 24% during the last quarter of
1997.

The ratio of contribution to turnover from Non Stock Exchange centres to Stock Exchange centres
has risen from 0.36% in first quarter (Jan to Mar) of 1996 to over 10% in fourth quarter of 1997.

The market capitalisation of companies has increased from Rs. 292637 crores in November'94 to
Rs. 4571663 crores in February'98.

Clearing & Settlement

Completed 170 settlements successfully without any delay or postponement as on February 28,
1998.

Value of shares handled by the Clearing house per week has increased from Rs. 30 crores in
November-94 to over Rs.1042 crores per week in December-97. The highest value of shares
handled during the period was more than Rs. 2251.40 crores.

Inter-Region Clearing : NSCCL has Regional Clearing Centres at Delhi, Calcutta, Chennai and a
Central Clearing Centre at Mumbai. Members have the option of delivering/receiving the
securities at a clearing centre chosen by them.

Wholesale Debt Market Operations

The WDM segment commenced operations on June 30, 1994 with 224 securities carrying an
outstanding debt value of Rs. 1,35,000 crores (US$ 34 billion). This has now increased to 839
securities with a market capitalisation of Rs. 3,50,565 crores (US$ 88 billion). More than half of
the securities available for trading are listed and the balance are permitted to trade.

Currently, the Exchange has 78 registered participants on the WDM segment which includes 24
Public sector banks, 18 Foreign banks, 15 Private sector banks, 6 Primary dealers, 5 Financial
institutions, the others being corporate bodies, mutual funds and foreign debt fund.

Average daily value in the WDM segment increased from Rs. 2.4 crores in June-94 to Rs. 298.17
crores in December -97 with a high of Rs. 1831.27 crores recorded on 12-Aug-97.

Net traded value in the WDM segment increased from Rs. 1096.25 crores in July -94 to Rs.
7,752.52 crores in December-97 with a high of Rs. 15,545.40 crores recorded in July '97.

There has been a consistent increase in NSEs share of the total volume of activity in the market
(gilt securities) over the period. Government securities along with Treasury bills together account
for over 80% of the total market activity.

The share of the Exchange of the total market activity in Government Securities and T-Bills has
increased from a mere 22% in 1996 to 53% in 1997.

Corporate Office
National Stock Exchange of India Ltd. Mahindra Towers
"A" Wing, 1st floor, Worli, Mumbai 400 018.
Tel No : (022)496 0525, 493 2555
Fax No : 493 5631
E-mail : webmaster@nse-india.com

General Information - Bombay Stock Exchange

Of the 22 stock exchanges in the country, Mumbai's (earlier known as Bombay), Bombay Stock
Exchange is the largest, with over 6,000 stocks listed. The BSE accounts for over two thirds of the total

trading volume in the country. Established in 1875, the exchange is also the oldest in Asia. Among the
twenty-two Stock Exchanges recognised by the Government of India under the Securities Contracts
(Regulation) Act, 1956, it was the first one to be recognised and it is the only one that had the privilege of
getting permanent recognition ab-initio.
Approximately 70,000 deals are executed on a daily basis, giving it one of the highest per hour
rates of trading in the world. There are around 3,500 companies in the country which are listed and have
a serious trading volume. The market capitalization of the BSE is Rs.5 trillion. The BSE `Sensex' is a
widely used market index for the BSE.
The main aims and objectives of the BSE is to provide a market place for the purchase and sale
of security evidencing the ownership of business property or of a public or business debt. It aims to
promote, develop and maintain a well regulated market for dealing in securities and to safeguard the
interest of members and the investing public having dealings on the Exchange. It helps industrial
development of the country through efficient resource mobilization. To establish and promote honourable
and just practices in securities transactions
BSE Sensex
The BSE Sensex is a value-weighted index composed of 30 companies with the base April 1979
= 100. It has grown by more than four times from January 1990 till date.The set of companies in the index
is essentially fixed. These companies account for around one-fifth of the market capitalization of the BSE.
We can use information from April 1979 onwards in estimating the long-run rate of return on the BSE
Sensex and that comes to 0.52% per week (continuously compounded) with a standard deviation of
3.67%. This translates to 27% per annum, which translates to roughly 18% per annum after
compensating for inflation.
New Developments

In November, 1996, as a move to reduce the counter party risk, the Exchange set up a trade
guarantee scheme i.e. all trades carried out on the BOLT are guaranteed by the Clearing House of the
Exchange.
A depository has been set up as a joint venture by the Bank of India and the Exchange. However,
it will be a subsidiary of the Bank of India. The Exchange introduced trading in fixed income securities
under a separate group to give impetus to trading in debentures and other corporate debt instruments, to
increase trading in government dated securities.
Research & Statistics Department,
21st Floor, P. J. Towers,
Dalal Street, Fort,
Mumbai - 400 001.
INDIA.
Phone : 91 22 2655860 / 2655861 / 2655641 (Extension : 8290)
FAX : 91 22 2675250
e-mail : info@bseindia.com