June 25, 2009

NSE’S NEWS UPDATE

Change in Index computation methodology of S&P CNX Nifty

"The S&P CNX Nifty Index is currently being computed using full market capitalization weighted methodology. With effect from June 26, 2009, the S&P CNX Nifty Index will be calculated using free float market capitalization methodology:

Other indices computed by IISL currently using full market capitalization weighted methodology will also be computed using free float weighted market capitalization subsequently in a phased manner."

Exchange Traded Interest Rate Futures

The Reserve Bank of India – Securities and Exchange Board of India Standing Technical Committee published a report with a view to operationalising the exchange traded Interest Rate Futures product in India.

The operational norms for the introduction of a physically settled Interest Rate Futures contract on 10 year GOI notional coupon bearing security have been issued. The Interest Rate Futures contract shall trade on currency derivatives segment of exchange. This derivatives instrument with linear pay-offs, shall provide benefits such as standardization, transparency and elimination of counter-party risk.

Currency Derivatives Segment

The National Stock Exchange of India clocked a record turnover of 1.09 million contracts (USD 1.09 Billion) in the USDINR futures contract on June 22, 2009. A record volume of 124,856 spread contracts was also registered on the same day. The Currency Derivatives Segment at NSE has witnessed tremendous growth since inception in August 2008. Average daily turnover has increased from USD 57 million in September 2008 to USD 699 million in June 2009 till date.