February 26, 2014

Press Release No. 1

NSE launches Futures Contracts on India VIX called NVIX

MUMBAI, February 26: India’s leading stock exchange, the National Stock Exchange (NSE) today launched futures contracts on India VIX* called NVIX. This is the first time that a product has been launched in India, on a volatility index, through which investors can hedge the volatility risk. NSE has been disseminating the India VIX index since 2009.

NVIX was launched this morning in the presence of trading members and NSE’s MD and CEO, Ms Chitra Ramkrishna.

Today NVIX witnessed trading volumes of 325 crores and 227 members participated in trading in NVIX.

MD and CEO of the National Stock exchange , Ms Chitra Ramkrishna said "We have always benchmarked ourselves with global markets when we look at how we perform, and clearly the launch of NVIX will put us right up there with the global best. I am sure in our unique way, NSE in its unique way, will be able to capture the imagination of the global best."

Ms Chitra added "We have a very liquid options market, and that really gave us the stepping stone to create a product of this stature. Three years of dissemination of the product (India VIX) and tracking of the product by one and all has given the comfort to all of you and of course to the regulator to approve this product. NSE is committed to creating awareness on the product among institutions, clients and members."

NSE has been conducting a number of sessions with investors and trading members, to increase awareness on NVIX and its advantages for market participants. Webinars with prominent experts in Indian and global markets have also been conducted. NSE has launched a microsite, on its website, which provides all information on the product along with useful tools for calculation of theoretical price and analysis.

NSE has also offered a rebate on transaction charges for members, to encourage participation in the product. This will be applicable till 31^st March, 2014.

NVIX futures will help market participants to hedge volatility risk, balance portfolios and express views on expected volatility. NVIX future s is traded in the F&O segment of NSE. All market participants currently permitted in the F&O segment are permitted to participate. The NVIX futures are based on underlying India VIX index. There will be 3 weekly futures contracts expiring on every Tuesday of the week. The lot size of NVIX contracts is 750 and tick size is Rs. 0.25. The India VIX index is calculated upto 4 decimals with a tick of 0.0025.

The volatility index has been introduced in several developed and emerging markets. The first volatility index and volatility index derivatives were introduced by CBOE. The progressive step taken by the regulators will help in deepening the equity derivatives market further and provide an asset class which is currently missing in the Indian capital markets.

VIX” is a trademark of Chicago Board Options Exchange, Incorporated (“CBOE”) and Standard & Poor’s has granted a license to NSE, with permission from CBOE, to use such mark in the name of the India VIX and for purposes relating to the India VIX.

Press Release No. 2

News about Polaris Financial Technology Limited

The media had reports that “US based Fiserv in talks to acquire Polaris".

The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the company.

Polaris Financial Technology Limited has vide its letter inter-alia stated, “During our 3rd Quarter results in January 2013, the Board of Directors authorized the Management Team to explore options that would provide an impetus to the company for the next stage of its growth. The context was around leveraging untapped potential in our growth engines i.e. Services, Products and the canvas of opportunities that are available to us as a leading Specialist in the global Financial Technology arena. In lie with the stringent Governance principles the company follows, stakeholders have been updated on progress. As announced, the major legs of the restructuring process have been completed last quarter in Q3 2014.With its singular focus on Banking & Financial Technology for over 2 decades, Polaris has built very robust and comprehensive assets to spearhead transformational projects for the BFSI vertical. The restructuring exercise has been misconstrued by a certain section of stakeholders with repeated mention of possible sale. Despite the company clarifications, these rumours continue to surface, impacting customer relationships, distracting Management and employees. Polaris is not for sale. The company is poised to leverage its rich assets in banking and technology to accelerate growth of its two distinct business- Products (intellect) business and IT Services business."