July 05, 2013

Press Release No. 1

National Stock Exchange (NSE) announces launch of LIX 15 Index

The National Stock Exchange is pleased to announce the launch of ‘LIX 15’ Index. The index shall be disseminated online, from Monday, the July 08, 2013.

‘LIX 15’ Index is designed to provide exposure to the liquid stocks while making the index easily replicable and tradable. In order to make the index easily replicable and tradable, the index includes limited number of stocks and selection criterion is based on the minimum turnover ratio and free float market capitalization.

The index includes 15 stocks, which are available in the F&O segment. Currently these stocks represent 9 industries, 22% of turnover in Cash Segment and 34% of single stock derivatives turnover in F&O segment on NSE in previous 6 months. The weight of single stock in the index is capped at 15%.

The methodology and values of the index will be available on www.nseindia.com

Press Release No. 2

NSE, in association with SEBI, organizes a Regional Investor Awareness Programme in Varanasi

India’s leading stock exchange, the National Stock exchange (NSE), in association with the market regulator Securities and Exchange Board of India (SEBI), today, organized a Regional Investor Awareness Programme on Securities Market and the Common Man, in Varanasi.

The keynote address was delivered by the Chief Guest, Mr. U. K. Sinha, Chairman, SEBI and Ms. Chitra Ramkrishna, MD and CEO, NSE delivered the opening remarks. The seminar was attended by a large number of investors from the region.

NSE conducts nearly 1500 investor awareness seminars, in different parts of the country every year. The purpose of these awareness programmes is to educate people in the city, about how they can manage their finances better and the investing opportunities that are available.

Ms Chitra Ramkrishna, MD and CEO NSE said, “Today’s seminar is one more step by NSE to empower people from the tier two and tier three cities, to take good financial decisions for a comfortable future. It is important that investors should understand the markets, the precautions they should take in choosing an intermediary or in trading products, before investing. We also want to educate them about good investing opportunities’’

People in Varanasi have purchasing power, because they are engaged in two important industries: tourism and the production of banarasi silk. Investor seminars like these will help residents, to channelize their savings into productive assets. More than 30 lakh pilgrims visit Varanasi every year, to worship at the temples and celebrate festivals. The city’s economy is also driven by small scale industrial units, in which banarasi silk is spun and woven.

At the seminar today, investors were educated about the investor grievance redressal mechanisms, so that they can get their complaints resolved at an early stage. They were also educated on the various products that they could invest in, for example, exchange traded funds (ETF’s) including Nifty ETF’s.

Exchange traded funds are investment funds, traded on an exchange, just like stocks. But they are seen as ideal for retail investors, because it is possible to invest in them at low costs, with a small amount of money and with much lower taxation. For instance, an investor can invest in the top 50 stocks traded on NSE, by buying just one unit of Nifty ETF, for just around 600 rupees. The units are easy to buy and sell on an exchange platform. At the same time, risk is reduced, because you are investing in 50 stocks (of the Nifty index) and not in only one stock.

Investors were also advised on the steps they should take to ensure that their interests are protected. They were given guidance on how to trade cautiously, so that they don’t get misled by market rumors and invest according to a wise investment plan. Investors were also educated on the precautions they should take before, during and after trading. These included a discussion on checking contract notes issued by brokers to investors, to verify whether only authorized trades have been executed by the broker. Investors were also given advice on not getting lured by promises of exceptionally high returns and on the need to check the statement of accounts, to ensure that all transactions are as per the client’s advice and consent.

To ensure investor protection, they were advised on the mandatory and voluntary documents that should be executed between the investor and the member broker and on the need for investors to see the risk disclosure documents, if they are first time investors, so that they take wise investment decisions. Investors were made aware that giving a power of attorney to the broker is voluntary and not mandatory.