March 2010

ARTICLES

Performance Presentation in Global Context - by Jainendra Shandilya - AGM, SEBI

To woo prospective clients, investment management firms often use arbitrarily chosen methods of valuation since no uniform
standards are applied by the firms across the globe. The paper explains how the application of Global Investment Performance
Standards (GIPS) may make transparency a norm which would make adequate information available to investors to select a fund.

Class Action Lawsuit - by Monika Bhardwaj, Company Secretary

Class Action lawsuits have become more frequent in western countries due to sudden bankruptcies like Freddie Mac, Wachovia and
AIG and their consequent losses to large number of investors. This article attempts to understand the concept of shareholder class
action lawsuits and its prevalence in western countries.

SPOTLIGHT

⇒
Report of the 13th Finance Commission (2010-2015) tabled in parliament on February 25, 2010.
⇒
Economic Survey 2009-10 unveiled on February 25, 2010.
⇒
Government releases Budget for 2010-11 for the Indian Economy on February 26, 2010.

R E G U L ATO RY C H A N G E S

Initiated by SEBI
⇒
Changes in the valuation methodology of debt and money market instruments.

⇒
Changes introduced in the standard warning statement to be displayed by mutual funds (while advertising through audio-visual
media) including strict emphasis on no additions or deletion of words (in the statement).

⇒
Committee set up for review of ownership and governance of market infrastructure institutions -- stock exchanges, clearing
corporations and depositories under the chairmanship of Dr. Bimal Jalan.

⇒
Investors advised to exercise caution and not be misled by motivated investment advice.

NSE NEWS

⇒
Dr. Vijay L. Kelkar appointed as a Non-Executive Chairman of NSE.

⇒
Hang Seng Benchmark Exchange Traded Scheme (Hang Seng BeES)– India's first international Exchange Traded Fund (ETF)
launched on NSE on February 15, 2010.

⇒
Transaction charges for all trades in money market ETFs waived and reduced transaction charges for trades in gold ETF from
March 1, 2010 to September 30. 2010.

I N T E R N AT I O N A L N E W S

⇒
International Organization of Securities Commissions (IOSCO) publishes principles for periodic disclosure by listed entities.

⇒
Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the IOSCO review standards for
payment, clearing and settlement systems.
 March 2010

MARKET REVIEW
Nifty Movements vis-a-vis other International Indices Performance of select sectors vis-a-vis Nifty
(Rebased to 100 for March 31, 2009) (Rebased to 100 for March 31, 2009)

250
170 230
155 210
140 190
170
125
150
110 130
95 110
80 90
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10

CNX IT CNX FMCG INDEX S&P CNX Finance

Nifty Dow Jones NIKKIE 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

5000 300 18000 1000
Avg. Daily Trading Value

Avg. Daily Trading Value

250 15000
4000 800
Trading Value

200 Trading Value 12000

3000 600
150 9000
2000 100 400
6000
1000 50 3000 200
Mar-09
A pr-09
May-09

Jun-09
Jul-09
Aug -09
Sep-09

Oct-09
Nov-09
Dec-09

Mar-09
A pr-09
May-09

Jun-09
Jul-09
Aug -09
Sep-09

Oct-09
Nov-09
Dec-09
Jan-10
Feb-10

Jan-10
Feb-10
Currency Futures 700 WDM Segment 35
3000 150
130 600 33
2600 31
Avg. Daily Trading Value

Avg. Daily Trading Value

2200 110 500 29
Trading Value

Trading Value

1800 90 400 27
70 25
1400 300
23
1000 50 200 21
600 30 100 19
10 17
200 0 15
Mar-09
A pr-09
May-09

Jun-09
Jul-09
Aug -09
Sep-09

Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-09
A pr-09
May-09

Jun-09
Jul-09
Aug -09
Sep-09

Oct-09
Nov-09
Dec-09
Jan-10
Feb-10

Trading Value (Rs. hundred crore) Avg. Daily Trading Value (Rs. hundred crore)

NSE MARKET STATISTICS NSE's GLOBAL RANKINGS

Segments Percentage Average daily Market Parameters Rank
nd
Turnover (Rs. crore) change over turnover Capitalisation Single Stock Futures 2
Jan. 2010 Feb. 2010 Jan. 2010 (Rs. crore) (Rs. crore) rd
Stock Index Options 3
rd
CM 338,443 245,143 -27.57 12,257 5,755,305 Stock Index Futures 3
th
WDM 57,036 34,800 -38.99 1,832 3,153,360 No. of Trades 4
F&O 1,490,297 1,569,877 5.34 78,494 Market Capitalisation 14
th

CDS(Currency 276,742 246,875 -10.79 12,993

Futures) Source : WFE (Rankings done for the period Jan - Dec 2009).Rankings
for single stock futures, stock index options and stock index futures
TOTAL 2,162,518 2,096,695 -3.04 8,908,665 is based on number of contracts traded.

Prepared by SBU-EDUCATION
National Stock Exchange of India Ltd.
Exchange Plaza, Bandra Kurla Complex, Bandra (E) Mumbai - 400051. Tel No: 022-26598163
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