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Being
a member of the National Stock Exchange (NSE),
dealer with Over The Counter Exchange of India
(OTCEI) and M.P. Stock Exchange we handle your
trading needs, through a network of experienced
dealers across the country, and through our comprehensive
website. |
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The
Indian equity markets have been witnessing a strong
rally since 2003 with the benchmark BSE Sensex
crossing the 14,500 mark in February 2007 from
5,200 in September 2004 and 6,600 in January 2005
setting a new historical high.
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| Growth
of volume traded in Secondary Market (NSE) |
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Units |
Year ended
31 March |
| Capital
Market |
|
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
No of
Companies Listed
|
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785 |
793 |
818 |
909 |
970 |
1,069 |
| Traded
Quantity |
Million |
32,953 |
27,841 |
36,407 |
71,330 |
79,768 |
84,448 |
| Turnover |
Rs billion |
13,395 |
5132 |
6,180 |
10,995 |
11,400 |
15,696 |
| Avg Daily
Turnover |
Rs billion |
54 |
21 |
25 |
43 |
45 |
63 |
Wholesale
Debt Market
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| Number
of trades |
‘000 |
64 |
145 |
168 |
190 |
124 |
62 |
| Net Traded
Volume |
Rs billion |
4286 |
9472 |
10687 |
13,161 |
8873 |
4755 |
| Avg Daily
Volumes |
Rs billion |
15 |
33 |
36 |
45 |
30 |
18 |
| Derivatives |
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| Number
of contracts |
‘000 |
91 |
4197 |
16,769 |
56,887 |
77017 |
157619 |
| Turnover |
Rs billion |
23 |
1019 |
4,399 |
21,306 |
25470 |
48,242 |
| Avg Daily
Turnover |
Rs Million |
110 |
4100 |
17,520 |
83,880 |
101,070 |
192,200 |
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Source:
NSE Website. |
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| Growth
of volume traded in Secondary Market (BSE) |
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Units |
|
Year ended 31
March
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| Capital Market |
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2004 |
2005 |
2006 |
| No of Companies Listed |
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5528 |
4731 |
4781 |
| Traded Quantity |
Million |
202.80 |
237.41 |
264.01 |
| Turnover * |
Rs billion |
5,026.18 |
5187.16 |
8160.74 |
| Avg Daily Turnover * |
Rs billion |
237.56 |
246.16 |
389.79 |
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*Including
Equity, Debt and Government Securities.
Source: BSE Website |
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Foreign
Participation: FII investments in India have increased
significantly over the last few years. FII registrations
with SEBI have increased from 482 in FY 2001 to
1,048 as on Jan 11, 2006. FII inflows have also
risen considerably in recent years as depicted
in the table below:
Net FII inflow in India : |
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| Net
FII in India |
Net FII in India Year ended
March 31
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No. of FIIs |
(US $ Million) |
| 2006 |
882 |
9,332 |
| 2005 |
685 |
10,152 |
| 2004 |
540 |
9,950 |
| 2003 |
502 |
562 |
| 2002 |
490 |
1,849 |
| 2001 |
527 |
2,159 |
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Source: RBI
Equity Brokerage
As the Indian capital markets continue to evolve,
they are undergoing rapid consolidation driven
by increased trading volumes, increased regulation,
customer sophistication, availability of better
technology and increased back-office requirements.
As a result, significant changes have been introduced
to strengthen risk management systems. Changes
in the regulatory framework and settlement mechanics
have resulted in smaller operating players losing
market share, leading to consolidation in the
industry. The market share of the top five brokers
on the NSE has increased from 12% in FY-04 to
about 16% in FY- 06. Similarly the market share
of the top ten brokers on the NSE has grown
from approximately 17% in FY 04 to 23% in FY-06.
These figures indicate a long-term consolidation
process in a highly fragmented securities brokerage
industry, with hundreds of smaller players exiting
the market and the larger brokers gaining market
shares. The following table shows the volume
of trades on the NSE and the percentage undertaken
by the top brokers:
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Volume
of trades on the NSE and the percentage Undertaken
by the top brokers: |
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| Year Ended March 31 |
5 |
10 |
100 |
| Feb-08 |
14 |
25 |
76 |
| Jan-08 |
15 |
27 |
76 |
| Dec-07 |
15 |
26 |
74 |
| Nov-07 |
15 |
26 |
75 |
| Oct-07 |
15 |
26 |
76 |
| Sep-07 |
15 |
26 |
73 |
| Aug-07 |
15 |
26 |
73 |
| Jul-07 |
15 |
26 |
74 |
| Jun-07 |
15 |
26 |
73 |
| May-07 |
15 |
26 |
73 |
| Apr-07 |
16 |
26 |
74 |
| 2006-2007 |
15 |
24 |
71 |
| 2005-2006 |
15 |
23 |
68 |
| 2004-2005 |
14 |
20 |
65 |
| 2003-2004 |
12 |
17 |
61 |
| 2002-2003 |
10 |
16 |
59 |
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*
Market Capitalisation
in CM segment
Source: NSE Website. |
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Market
consolidation is even more pronounced in the on-line
trading category where the top five brokers control
a very significant share in the market. The rapid
growth in on-line trading volumes can be attributed
to the growing sophistication of retail investors,
availability of reliable internet connectivity
and the sophistication of the internet trading
products. The following table shows average on-line
trading volume for the periods indicated and the
percentage of total trading volume. |
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Average
on-line trading volume for the periods indicated
and the percentage of total trading volume. |
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| Year ended March 31 |
Enabled
Members
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Registered
Clients
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Trading Volume
( Rs. Billion)
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% of total Trading volume |
| 2001 |
61 |
123,578 |
72.88 |
0.54 |
| 2002 |
82 |
231,899 |
81.39 |
1.59 |
| 2003 |
80 |
346,420 |
153.61 |
2.48 |
| 2004 |
70 |
463,560 |
379.45 |
3.45 |
| 2005 |
78 |
849,696 |
810.34 |
7.11 |
| 2006 |
142 |
1443,291 |
1834.29 |
11.68 |
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Source: NSE Factbook 2006. |
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