July 02, 2009

NSE’S NEWS UPDATE

Change in Index Maintenance Procedure for all IISL indices

India Index Services & Products Ltd. (IISL) is a joint venture between the National Stock Exchange of India Ltd. (NSE) and CRISIL Ltd. (formerly the Credit Rating Information Services of India Limited). IISL has been formed with the objective of providing a variety of indices and index related services and products for the capital markets.

Currently, IISL indices adjust the share capital of their constituents on an immediate basis after receiving information for such additional issue of capital arising out of ESOPs, QIPs, ADR/GDR issues, private placements, warrant conversions, FCCB conversions, etc.

The following modification is being made to the Index Maintenance Procedure for all IISL indices in line with global index practices:

Change in Capital: 5% or more:-

All singular instances of share changes (arising out of aforementioned events) , having impact of 5% or more on the issued share capital of the security, will be effected after providing 5 days’ notice period. Share repurchase (buyback) will also have the same rules as applicable to share changes.

Changes entailing less than 5% impact on the issued share capital will be accumulated and effected on a monthly basis.

Where cumulative share changes exceed 5% of the issued share capital within a month, such changes would be effected after providing 5 days notice period (from the date when such cumulative changes exceeded 5%).

It is clarified that in case of corporate actions such as stock split, dividend, rights, bonus, spin-off / demerger, changes would be effected on the respective ex-dates (as per the current practice).

The above change is effective from July 1, 2009.

Change in Index computation methodology of S&P CNX Nifty, CNX 100 and S&P CNX Defty w.e.f June 26, 2009.

S&P CNX Nifty is a well diversified 50 stock index accounting for 21 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds. Nifty stocks represent about 65.34% of the total market capitalization as on Mar 31, 2009. The total traded value for the last six months of all Nifty stocks is approximately 65.68% of the traded value of all stocks on the NSE.

CNX 100 is a diversified 100 stock index accounting for 35 sector of the economy. CNX 100 represents about 75.24% of the total market capitalization as on Mar 31, 2009. The average traded value for the last six months of all CNX100 stocks is approximately 80.56 % of the traded value of all stocks on the NSE.

S&P CNX Defty is S&P CNX Nifty, measured in dollars. Computations of S&P CNX Defty is done using the S&P CNX Nifty index calculated on the NEAT trading system of NSE and INR-USD exchange rate that is based on the real time polled data feed.

Till June 25, 2009 the S&P CNX Nifty, CNX 100 and S&P CNX Defty were computed using total market capitalization weighted methodology. With effect from June 26, 2009 S&P CNX Nifty, CNX 100 and S&P CNX Defty are computed based on free float market capitalization methodology.