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STOCK INDICES

NSE INDIA S&P CNX NIFTY&
NASDAQ 100

THE S&P CNX NIFTY(NIFTY 50)

Source : India Index Services & Products Limited

THE S&P CNX NIFTY

The headline index on NSE India Ltd.

50-stock, float-adjusted, market-capitalization weighted index

23 diversified sectors of the economy

Captures approximately 67% of the market capitalization

THE S&P CNX NIFTY

True reflection of India's stock market

Reward-to-risk ratio higher than other leading indices

Higher correlations with typical investment portfolios in India

SECTOR BREAK-UP

Banks

Software

Cigarettes

Gas

Refineries

Finance

Automobiles

Engineering

Pharmaceuticals

Oil Production

Construction

Electrical

Paints

Financial

Metals

Cement

Telecom

Mining

Power

Steel

Diversified

Aluminium

ELIGIBILITY CRITERIA

IMPACT COST

Impact cost is the cost of executing a transaction in a security in proportion to its index weight, measured by market capitalization at any point in time.

This is the percentage mark up suffered while buying/selling the desired quantity of a security compared to its ideal price,
(best buy + best sell)/2.

LIQUIDITY (IMPACT COST)

The security should have traded at an average impact cost of of 0.50% or less during the last 6 months, for 90% of the observations, for a basket size of Rs 20m

FLOAT-ADJUSTED MARKET CAPITALISATION

The company must have at least twice the float-adjusted market capitalization of the current smallest index constituent.

FREE FLOAT

The company should have at least 10% of its stock available to investors (floating stock).

For this purpose, floating stock is stocks which are not held by the promoters and associated entities (where identifiable) of such companies.

DOMICILE

The company must be domiciled in India and trade on the NSE.

ELIGIBLE SECURITIES

All common shares listed on the NSE (which are of equity and not of a fixed income nature) are eligible for inclusion in the S&P CNX Nifty index.

Convertible stock, bonds, warrants, rights, and preferred stock that provide a guaranteed fixed return are not eligible.

OTHER VARIABLES

A company which comes out with an IPO is eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index, for a 3-month period instead of a 6-month period.

CHANGES TO THE INDEX(RANKING REVIEW)

The index is reviewed semi-annually, and a six-week notice is given to the market before making any changes to the index constituents.

ADDITIONS

The complete list of eligible securities is compiled based on the float-adjusted market capitalization criteria.

After that, the liquidity (impact cost) and float-adjustment filters are applied to them, respectively.

ADDITIONS

The top ranking companies form the replacement pool.

The top stocks, in terms of size (float-adjusted market capitalization) are then identified for inclusion in the index from the replacement pool.

DELETIONS

Stocks may be deleted due to mergers, acquisitions or spin-offs.

If this newly constructed list warrants changes in the existing constituent list, then the smallest existing constituents are dropped in favor of the new additions.

INDEX CALCULATION FORMULAE

In = (I0 x MCn) / MC0

MCn

Float-adjusted index market capitalization as of current date

MCn = Nk Pk x Qk

Qk

Number of float adjusted shares outstanding of the kth issue as of the current date

Pk

Security price of the kthissue as of the current date

N

Total number of component securities used in the index calculation

MCn = Nk Pk x Qk

I0

Index value of initial date
Base Index Value 1000

In

Index value of current date

MC0

Base Index market capitalization of
Rs 2.06tr as on November 3, 1995

In = (I0 x MCn) / MC0

NASDAQ - 100

Source : Nasdaq

NASDAQ - 100

Includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization.

NASDAQ - 100

Reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology.

NASDAQ - 100

Does not contain securities of financial companies including investment companies.

NASDAQ - 100

Calculated under a modified capitalization-weighted methodology, expected to retain in general the economic attributes of capitalization-weighting while providing enhanced diversification.

NASDAQ - 100

Reviewed on a quarterly basis, with the adjustment of weights of index components made using a proprietary algorithm.

ELIGIBILITY CRITERIA

INITIAL INCLUSION

The securitys U.S. listing must be exclusively on the Nasdaq National Market (unless the security was dually listed on another U.S. market prior to January 1, 2004 and has continuously maintained such listing)

The security must be of a non-financial company

INITIAL INCLUSION

The security may not be issued by an issuer currently in bankruptcy proceedings

The security must have average daily trading volume of at least 200,000 shares

INITIAL INCLUSION

Only one class of security per issuer is allowed

The issuer of the security may not have entered into a definitive agreement or other arrangement which would likely result in the security no longer being Index eligible

INITIAL INCLUSION

The issuer of the security may not have annual financial statements with an audit opinion that is currently withdrawn

The issuer of the security must have "seasoned" on NASDAQ or another recognized market (it has been listed on a market for at least two years)

INITIAL INCLUSION

If the security would otherwise qualify to be in the top 25% of the securities included in the Index by market capitalization for the six prior consecutive month-ends, then a one-year "seasoning" criterion would apply.

CONTINUED INCLUSION

The securitys U.S. listing must be exclusively on the Nasdaq National Market (unless the security was dually listed on another U.S. market prior to January 1, 2004 and has continuously maintained such listing)

CONTINUED INCLUSION

The security must be of a non-financial company

The security may not be issued by an issuer currently in bankruptcy proceedings

The security must have average daily trading volume of at least 200,000 shares (measured annually during the ranking review process)

CONTINUED INCLUSION

If the issuer of the security is organized under the laws of a jurisdiction outside the U.S., then such security must have listed options on a recognized options market in the U.S. or be eligible for listed-options trading on a recognized options market in the U.S. (measured annually during the ranking review process)

CONTINUED INCLUSION

The security must have an adjusted market capitalization equal to or exceeding 0.10% of the aggregate adjusted market capitalization of the Index at each month-end.

In the event a company does not meet this criterion for two consecutive month-ends, it will be removed from the Index effective after the close of trading on the third Friday of the following month

CONTINUED INCLUSION

The issuer of the security may not have annual financial statements with an audit opinion that is currently withdrawn.

In administering the Index, Nasdaq will exercise reasonable discretion as it deems appropriate

CHANGES TO THE INDEX(RANKING REVIEW)

RANKING REVIEW

Reviewed on an annual basis

Securities which meet the applicable eligibility criteria are ranked by market value

Securities already in the index and ranked within top 100 are retained

Securities ranked 101-125 that were in top 100 in previous ranking review are also retained

Any other securities are replaced

RANKING REVIEW

Additions and Deletions publicly announced via press release in December

Any security ineligible for continued exclusion during the year will be replaced with the largest market capitalization security, not in the index but meeting eligibility criteria

INDEX CALCULATION FORMULAE

I = MCagg / D

MCagg = Nk Sk x Pk

MCagg

Aggregate Market value

Sk

Index Share weight of Security k

Pk

Last Sale Price of Security k

MCagg = Nk Sk x Pk

D = ( MCf /MCi ) x Di

Appropriated Index Divisor

MCf

Market value after adjustments

MCi

Market value before adjustments

Di

Divisor before adjustments

D = ( MCf /MCi ) x Di

Appropriated Index Divisor

I = MCagg / D

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