The CNX Smallcap Index is designed to reflect the behaviour and performance of the small capitalised segment of the

financial market. The CNX Smallcap Index comprises 100 tradable, exchange listed companies. Methodology: CNX Smallcap Index is computed using free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalization value. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, right issue, new issue of shares etc. without affecting the index value. Market Representation: The CNX Smallcap Index represents about 2.85% of the free float market capitalization of the stocks listed on NSE as on September 28, 2012. The total traded value for the last six months ending September 2012 of all CNX Smallcap Index constituents is approximately 7.74% of the traded value of all stocks on NSE.

Selection Criteria: The criteria for the CNX Smallcap Index include the following: a) All the companies that are listed on NSE, which individually constitute more than 5% free-float market capitalization of the universe, shall be excluded in order to reduce the skewness in the weightage of the companies in the universe. b) After step (a), the weightage of the remaining companies in the universe will be determined again. c) After step (b), the cumulative weightage will be calculated. d) After step (c), companies which form part of the cumulative percentage in ascending order upto the first 90 percent (i.e. up to 89.99 percent) of the revised universe shall be excluded. e) After step (d), companies within the range of 90
th th

to 95

percentile shall be ranked in the

descending order of aggregate turnover for the last six months. f) After step (e), the top 100 companies shall constitute the CNX Smallcap Index subject to fulfilment of the following additional criteria: i. The company must have a 3 years track record of operations with positive net worth. ii. Companies must have demonstrated a trading frequency of at least 90 % in the last six months

iii. All constituents of the CNX Smallcap Index must have a minimum listing record of 6 months. A company which comes out with an IPO will be eligible for inclusion in the index, if it fulfils the normal eligibility criteria for the index for a 3 month period instead of a 6 month period. g) The review will be carried out on a semi-annual basis. Index Performance:
7000 6000 Index Value 5000 4000 3000 2000 1000 0 Feb-05 Jun-09 Mar-06 Apr-07 May-08 Aug-11 Sep-12 Jan-04 Jul-10

Date

Statistics:

Period Returns (%) 4.30 1 year 7.20 3 years -16.93 5 years 245.17 Since Inception *As on September 28, 2012. Top 10 Constituents:

Volatility (%) 1.12 1.16 1.74 1.66

Avg. Daily Return (%) 0.02 0.01 -0.01 0.06

Company Name Amara Raja Batteries Ltd. MindTree Ltd. TV18 Broadcast Ltd. Gujarat Mineral Development Corporation Ltd. Hathway Cable & Datacom Ltd. Bajaj Finance Ltd. Dena Bank Gujarat Pipavav Port Ltd. KPIT Cummins Infosystem Ltd. Orissa Min Dev Co Ltd. Free Float Market Capitalization as on September 28, 2012.

Mkt. Cap. (Rs. Cr.)* 1795 1687 1650 1634 1632 1512 1485 1440 1383 1364

Weight (%) 2.35 2.21 2.16 2.14 2.14 1.98 1.94 1.88 1.81 1.79

Sector Breakup Mkt. Cap. Weight (Rs. Cr.)* (%) 8790 11.50 7335 9.60 6948 9.09 5656 7.40 3316 4.34 3282 4.29 2553 3.34 2218 2.90 2166 2.83 2127 2.78 2113 2.77 2015 2.64 1930 2.53 1926 2.52 1926 2.52 1795 2.35 1503 1.97 1456 1.90 1412 1.85 1366 1.79 1308 1.71 1268 1.66 1035 1.35 950 1.24 922 1.21 856 1.12 847 1.11 795 1.04 794 1.04 753 0.98 695 0.91 656 0.86 642 0.84 597 0.78 448 0.59 444 0.58 414 0.54 382 0.50 351 0.46 279 0.36 151 0.20 * Free Float Market Capitalization as on September 28, 2012 Industry Name Computers - Software Finance Construction Banks Mining Media & Entertainment Consumer Durables Travel And Transport Shipping Textile Products Textiles - Synthetic Pharmaceuticals Miscellaneous Sugar Engineering Auto Ancillaries Oil Exploration/Production Power Electrical Equipment Telecommunication - Services Gems, Jewellery And Watches Chemicals - Organic Plastic And Plastic Products Paints Diesel Engines Automobiles - 2 And 3 Wheelers Metals Tea And Coffee Fertilisers Chemicals - Speciality Refineries Chemicals - Inorganic Cement And Cement Products Electrodes Automobiles - 4 Wheelers Food And Food Processing Steel And Steel Products Packaging Hotels Transmission Towers Computers - Hardware