National Stock Exchange of India (NSE) is India's largest Stock Exchange & World's

third largest Stock Exchange in terms of transactions. Located in Mumbai, 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. In April 1993, NSE was
recognized as a Stock exchange under the Securities Contracts (Regulation) Act-1956.
NSE commenced operations in the Wholesale Debt Market (WDM) segment in June
1994. Capital Market (Equities) segment of the NSE commenced operations in November
1994, while operations in the Derivatives segment commenced in June 2000. NSE has
played a catalytic role in reforming Indian securities market in terms of microstructure,
market practices and trading volumes. NSE has set up its trading system as a nation-
wide, fully automated screen based trading system. It has written for itself the mandate to
create World-class Stock Exchange and use it as an instrument of change for the industry
as a whole through competitive pressure. NSE is set up on a demutualised model wherein
the ownership, management and trading rights are in the hands of three different sets of
people. This has completely eliminated any conflict of interest.

NSE was set up with the objectives of:

• Establishing nationwide trading facility for all types of securities

• Ensuring equal access to investors all over the country through an appropriate
telecommunication network
• Providing fair, efficient & transparent securities market using electronic trading
system
• Enabling shorter settlement cycles and book entry settlements
• Meeting International benchmarks and standards

Within a very short span of time, NSE has been able to achieve its objectives for which it
was set up. Indian Capital Markets are a far cry from what they were 12 years back in
terms of market practices, infrastructure, technology, risk management, clearing and
settlement and investor service. To ensure continuity of business, NSE has built a full
fledged BCP site operational for last 7 years.

NSE's markets

NSE provides a fully automated screen-based trading system with national reach in the
following major market segments:-

• Equity OR Capital Markets {NSE's market share is over 65%}

• Futures & Options OR Derivatives Market {NSE's market share over 99.5%}
• Wholesale Debt Market (WDM)
• Mutual Funds (MF)
• Initial Public Offerings (IPO)

What are the IT initiatives of NSE in the last one year?

NSE believes that technology shall continue to provide necessary impetus for any
organisation to retain its competitive edge, ensure timeliness & satisfaction in customer
service. Being fully dependant on Information Technology, NSE has stressed on
innovation and sustained investment in technology on a continual basis to ensure
customer satisfaction, improvement in services which automatically helps in sustaining
business and remain ahead of competition. As a policy, NSE looks to improve the quality
of Services to its customers. Projects are not initiated based on a business model to reap
profits but from a strategic perspective of better productivity, Value-adds & features,
improving efficiency, reducing operational costs, compliance, operational transparency
etc for the customers, investors and to the entire Indian Securities Industry. Some of the
projects taken by NSE last year are as follows:-

1. Trading System Capacity enhancement

2. Re-engineering of Online Position Monitoring (OPMS)
3. Augmentation of Data Warehouse (DWH)
4. STP Central Hub

What was the objective, business benefits that the company derived and
beneficiaries of the implementation of Trading System Capacity enhancement?

Project Objective
NSE's Capital Market Trading system was operational on two machine split architecture
using Fault Tolerant mainframes and geared to handle 3 million trades. However, the CM
segment had started to experience trades nearing 3 Million trades which form a threshold.
Based on the trends & expected volumes, growth in the medium term is more than thrice
the current trading volume, i.e. about 10 Million transactions per day. However with the
then existing 2-machine split architecture, it was required to improve the trading system
transaction handling capacity. The 3-machine split architecture project was thus taken up
to enhance the load handling capacity of the system by introducing a 3-way split
Hardware, Application optimisation and improving the processes for achieving market
volume of around 6 million transactions per day.

Project was completed as per schedule & is currently operational since last 1 year.

Bombay Stock Exchange is the oldest stock exchange in Asia What is now popularly known as
the BSE was established as "The Native Share & Stock Brokers' Association" in 1875.

Over the past 135 years, BSE has facilitated the growth of the Indian corporate sector by
providing it with an efficient capital raising platform.

Today, BSE is the world's number 1 exchange in the world in terms of the number of listed
companies (over 4900). It is the world's 5th most active in terms of number of transactions
handled through its electronic trading system. And it is in the top ten of global exchanges in terms
of the market capitalization of its listed companies (as of December 31, 2009). The companies
listed on BSE command a total market capitalization of USD Trillion 1.28 as of Feb, 2010.
BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000
certification. It is also the first Exchange in the country and second in the world to receive
Information Security Management System Standard BS 7799-2-2002 certification for its BSE On-
Line trading System (BOLT). Presently, we are ISO 27001:2005 certified, which is a ISO version
of BS 7799 for Information Security.

The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index.
Exchange traded funds (ETF) on SENSEX, are listed on BSE and in Hong Kong. Futures and
options on the index are also traded at BSE.

BSE continues to innovate:

• Became the first national exchange to launch its website in Gujarati and Hindi and now
Marathi
• Purchased of Marketplace Technologies in 2009 to enhance the in-house technology
development capabilities of the BSE and allow faster time-to-market for new products
• Launched a reporting platform for corporate bonds christened the ICDM or Indian
Corporate Debt Market
• Acquired a 15% stake in United Stock Exchange (USE) to drive the development and
growth of the currency and interest rate derivatives markets
• Launched 'BSE StAR MF' Mutual fund trading platform, which enables exchange
members to use its existing infrastructure for transaction in MF schemes.
• BSE now offers AMFI Certification for Mutual Fund Advisors through BSE Training
Institute (BTI)
• Co-location facilities for Algorithmic trading
• BSE also successfully launched the BSE IPO index and PSU website
• BSE revamped its website with wide range of new features like 'Live streaming quotes for
SENSEX companies', 'Advanced Stock Reach', 'SENSEX View', 'Market Galaxy', and
'Members'
• Launched 'BSE SENSEX MOBILE STREAMER'

With its tradition of serving the community, BSE has been undertaking Corporate Social
Responsibility (CSR) initiatives with a focus on Education, Health and Environment. BSE has
been awarded by the World Council of Corporate Governance the Golden Peacock Global CSR
Award for its initiatives in Corporate Social Responsibility (CSR).

Other Awards:

• The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and March
31, 2007 have been awarded the ICAI awards for excellence in financial reporting.
• The Human Resource Management at BSE has won the Asia - Pacific HRM awards for
its efforts in employer branding through talent management at work, health management
at work and excellence in HR through technology

Drawing from its rich past and its equally robust performance in the recent times, BSE will
continue to remain an icon in the Indian capital market.

For more details & information, please visit our website: www.bseindia.com