August 29, 2011

 

Press Release No. 1

NSE announces incentives for trade in Global Indices

 

The National Stock Exchange is launching liquidity enhancement scheme (LES) for derivatives on S&P 500 and DJIA Indices.  The scheme shall come into effect from September 15, 2011.

 

In June 2011, SEBI had permitted exchanges to introduce LES in specific securities subject to fulfillment of the stipulated conditions for a maximum period of six months. The introduction of LES by NSE is in line with the above circular issued by SEBI.

 

Internationally, exchanges introduce such schemes in order to enhance liquidity, particularly in newly launched products.  Trading interest is observed to be enhanced by Liquidity enhancement scheme (LES) in products having inherent potential.  When there are multiple competing products, LES acts as an important incentive to attract the attention of market participants and thus generate liquidity in the long run.

 

The scheme is open to all market participants, i.e. it shall include the members and their clients as well.  The scheme provides a three tier incentive structure, i.e. order level, trade level and open interest level.

 

With regard to the order level incentive, all market participants fulfilling the stipulated obligations and criteria shall be eligible to receive incentives on a proportionate basis from a pool allocated in this regard.

 

In respect of trade level incentives, a buy trade shall entail an incentive of Rs.400 per crore and a sell trade Rs.1700 per crore.

 

The incentive will be given on the basis of the contract value of the futures contract and in the case of options, on the basis of premium paid for the contracts. 

 

In respect of Open interest level incentives, top five participants in terms of the total open interest shall be provided incentives from a specifically allocated pool for this purpose. 

 

All these incentives are subject to applicable limits and conditions as detailed in the circular.

 

As may be noted, no transaction charges will be levied on the trades done in these contracts from the date of commencement till February 29, 2012.  The above referred incentives through LES are over and above this waiver of transaction charges.

 

Press Release No. 2

First day volumes in Global Indices

 

The National Stock exchange today launched derivative contracts on the world’s most followed indices S&P 500 and Dow Jones Industrial average. At the close of trading at 3.30 pm, the traded value of derivative contracts on S&P 500 futures, S&P 500 options and DJIA futures was nearly Rs 122 crores.

 

The total number of contracts that were traded in the derivative contracts of the global indices were 4122 contracts.

 

While the traded value of futures contracts of S&P 500 and DJIA were good, S&P options contracts also clocked in volumes of Rs 50 crores.

 

This is the first time that derivative contracts on global indices have been launched in India.  This is the also the first time in the world that futures contracts on the S&P 500 index have been introduced and listed on an exchange outside of their home country, USA.  

 

NSE has waived transaction fees for trading in the global indices, till February 29, 2012 to encourage active participation in the contracts.

 

Please refer to the press release issued on liquidity enhancement schemes for trading in global indices. 

 

 

Press Release No. 3

News about DLF and Infrastructure Development Finance Company Limited

 

The media had reports that DLF is in talks with Infrastructure Development Finance Company Limited to sell its Noida IT Park stake.

 

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 companies.

 

DLF Limited has vide its letter inter-alia stated, "The asset (IT Park, Noida) is held in a joint venture company through a wholly-owned subsidiary of the Company. The subsidiary is exploring various strategic options including the sale of its holding in the joint venture company. As and when at transaction is consummated, the Stock exchanges shall be informed as per the listing guidelines."

 

Infrastructure Development Finance Company Limited has vide its letter inter-alia stated, “It is clarified that as a part of IDFC's normal business, the Company does evaluate opportunities for loan and investments in Infrastructure Projects from time to time. In line with its normal businesses, IDFC is in talks with DLF for a business proposal, which may or may not lead to any deal as aforesaid."

 

Press Release No. 4

NSE completes its 2877th Normal Settlement

 

The Exchange has successfully completed its 2877th Normal Settlement (Rolling T+2 following SEBI directive) since inception i.e., Settlement Number N – 2011163 on Aug 29, 2011. The settlement statistics are as follows:   

 

Particulars

Value

 

N-2011163

Total traded quantity (lakhs)

7386.21

Total traded value (Rs. In Crores)

          13386.74

Total value of the settlement (Securities) (Rs. In Crores)

4145.68

Total value of the settlement (Funds) (Rs. In Crores)

1819.81

Shortages for the settlement

0.09%

% of  Delivery ( No. of shares deliverable / No. of shares traded )

32.86%


Retail Debt Market has completed its 2150th settlements, details of which are as follows:

 

Settlement No.

Traded Value

Settlement Value

 

 

Securities

Funds

D- 2011163

NIL

NIL

NIL