7/27/2019 SX40 Leaflet

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Superior return & risk adjusted return

A unique Index of India

benchmarking global best practices

of index designing

Better Reection of the Organised

Sector in the Economy through

enhanced industry representation

using ICB of FTSE Rule based, transparent & replicable

Industry capping eliminates industry

bias and enhances Index stability

Lower churning rate

Low cost for funds (MFs, ETFs)

construction and maintenance

Low tracking error for passive port-

folio management (MFs, ETFs etc)

SX40 is the agship Index of MCX-SX. A free oat based index of 40

large cap - liquid stocks representing diversied sectors of the economy.

SX40 is designed to measure the economic performance with better

representation of various industries and sectors based on ICB, leading

global Industry Classication system from FTSE. The Index is devised tooffer cost-effective support for investment and structured products

such as index futures and option, index portfolio, exchange traded

funds, Index funds, etc.

Objective

SX40 is designed to be a performance benchmark and to provide for

efficient investment and risk management instrument. It would also

help in structuring passive investment vehicles.

Investability

Free-oat weighted to bolster efficient investability.

Transparency

Index rules are overseen by an independent index committee

comprising of leading investment industry professionals, academicians,

and nancial experts. The Committee also monitors constituent

liquidity to ensure efficient portfolio trading while keeping index

turnover to a minimum. Complete details of these guidelines, including

the criteria for index additions and removals, policy statements, and

research papers are freely and transparently available in public domain.

These guidelines provide complete transparency and fairness.

Availability

Calculated and disseminated based on real time basis.

About

INDEX OF INDIA

Key Features

Underlying stocks must have a

positive net-worth

The stock must have free oat of at least

10% & within top 100 liquid companies

Industry capping at 20% ()2% band

Fast Entry for companies with betterfree oat market cap and liquidity

Top 40 companies meeting above

criteria constitute SX40

Selection Criteria

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ACC Ltd.

Ambuja Cements Ltd. Asian Paints Ltd.

Bajaj Auto Ltd.

Bharat Petroleum Corp Ltd.

Bharti Airtel Ltd.

BHEL

Cairn India Ltd.

Cipla Ltd.

Coal India Ltd.

Dr. Reddy's Laboratories

Gail (India) Ltd.

HCL Technologies Ltd.

HDFC Bank Ltd. HDFC Ltd.

Hero Motocorp Ltd.

Hindalco Industries Ltd.

Hindustan Unilever Ltd.

ICICI Bank Ltd.

Infosys Ltd.

ITC Ltd.

Jaiprakash Associates Ltd.

Jindal Steel & Power Ltd.

Larsen & Toubro Ltd.

Lupin Ltd.

Mahindra & Mahindra Ltd.

Maruti Suzuki India Ltd.

Ntpc Ltd.

Oil and Natural Gas Corp.

Power Grid Corp. Ltd.

Reliance Industries Ltd.

Sun Pharmaceuticals Ind.

Tata Consultancy Serv Ltd.

Tata Motors Ltd.

Tata Power Co Ltd.

Tata Steel Ltd.

Titan Industries Ltd. United Spirits Ltd.

Wipro Ltd.

Zee Entertainment Ltd.

Exchange Square, Suren Road, Andheri (E), Mumbai - 400 093

Tel.: +91-22-6731 9000 Fax: +91-22-6731 9004

Email: index@mcx-sx.com

Performance

INDEX OF INDIA

Disclaimer: All the information in the brochure, including, but not limited to, characters, data, charts and tables (hereinafter referred to as information) are properties of MCX-SX Stock Exchange Ltd. (hereinafter referred to as MCX-SX) except

brands names and logos if any belonging to other persons. The contents of this documentare solely for informationalpurposes. It is not intended to be used as trading advice by anybody and should not in any way be treated as a

recommendation to trade. While the information in the document has been compiled from sources believed to be reliable and in good faith, recipients and audience of this document may note that the contents thereof including text,

graphics, links or other items are provided without warranties of any kind. MCX Stock Exchange Ltd.(MCX-SX) expressly disclaims any warranty as to the accuracy, correctness, reliability, timeliness, merchantability or tness for any particular

purpose and shall not be liable for any damage or loss of any kind, howsoever caused as a result (direct or indirect) of the use of the information or data contained in this document.The charts and graphs may reect hypothetical historical

performance. All information presented prior to the index inception date is back-tested. Back-tested performance is not actual performance, but is hypothetical. SX-40 and the SX40 logo are proprietary trademarks of MCX-SX.

Index Returns (%) SX40 Nifty Sensex

FY 2010-11 11.7 11.1 10.9

FY 2011-12 -8.8 -9.2 -10.5

FY 2012-13* 14.2 14.0 14.3

2010 2013* 16.3 15.0 13.5

Industry Weights (%)*

SX 40 Nifty SensexBasic Materials 4.7 4.6 5.9

Consumer Goods 18.2 14.7 17.2

Consumer Services 0.7 0.0 0.0

Financials 22.0 29.4 26.4

Health Care 5.1 4.9 4.5

Industrials 14.8 15.5 12.0

Oil & Gas 14.8 13.1 14.7

Technology 14.2 12.7 14.2

Telecommunications 2.4 2.1 2.7

Utilities 3.1 3.1 2.5

Index Characteristics (%) SX40 Nifty Sensex

Weight of the largest

constituent* 9.4 8.8 10.3

Top 10 Holding* 62.4 57.4 67.8

Constituents

*As on January 31, 2013

Parameters

Minimum Free Float

Liquidity

Review

Minor Share Issu-

ance adjustment

Free Float Change

Industry Cap

Industry

Classication

SX-40

10%

Within Top 100

Semi-Annually

Monthly

20%

ICB

NSE

10%

Impact cost

Semi-Annually

Monthly

No

Internal

International Practices

FTSE-25%, CAC 20%, S&P 500- 50%

NIKKEI: Turnover as Liquidity

Quarterly, Half yearly, Annual, Need Based

DAX, FTSE: QTRLY, 10% and above

changed else annual, Nasdaq, S&P 500

Qtrly if less than 5%

TSX &various variants of other Indices

STOXX/ FTSE, NASDAQ, NYSE, LSE,

Kuwait SE, SGX, Taiwan SX

International Practices

Index Universe:Large Cap companies

No. of Companies: 40

Index Launch:

February 11, 2013

Base Date:

March 31, 2010

Base Value:10,000

Currency: Indian Rupee

Index Basket Recasting:

Semi-Annually

Minor Share Issuance

adjustment: Monthly

85

90

95

100

105

110

115

120

125

Apr10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12

SX40 NIFTY SENSEX

Quick Facts