This document summarizes a presentation given by Jagannadham Thunuguntla, Equity Head of SMC Capitals Limited, at the National Banking Summit on the role of the financial sector in the Indian economy. The presentation included statistics on growth in the Indian financial markets from 2009-2010, including increases in mobile connections, demat accounts, equity and commodity trading volumes, and declines in private equity investments. It also discussed recent SEBI guidelines aimed at facilitating initial public offerings by small and medium enterprises.

1. NATIONAL BANKING SUMMIT
Role of Financial Sector in the Indian Economy 10 May 2010
Presented by : Jagannadham Thunuguntla
Equity Head,
SMC Capitals Limited

2. Monthly Average Additions:
Mobile Connections and Demat Accounts

3. Total: Mobile Connections & Demat Accounts

4. Interest Rate Futures Volume – Sept’09 to Mar’10AmountinRs.Crores

5. Daily Mutual Fund Trading Volume on NSEAmountinRs.Crores

6. Average Traded Quantity under SLB Mechanism
Total Trading Days: 496
Total Number of days with ‘0’ trades: 346
% of days with ‘0’ trades: 69.76%

7. 91,980
1,592
0
25000
50000
75000
100000
Equity Trading Volumes* Corporate Debt Trading Volumes
Equity Trading Volumes V/s Corporate Bond Trading
April 2009 – March 2010
* Cash and Derivatives
TradingVolume(inRs.Crores)

8. Equity Trading Volumes V/s Commodity Trading
April 2009 – March 2010
* Cash and Derivatives
91,980
29,011
0
25000
50000
75000
100000
Equity Trading Volumes* Commodity Trading Volumes
TradingVolume(inRs.Crores)

9. 91,980
14,791
-
25,000
50,000
75,000
100,000
Equity Trading Volumes* Currency Trading Volumes
Equity Trading Volumes V/s Currency Futures Volumes
April 2009 – March 2010
* Cash and Derivatives
Daily average Currency
Volume in India is US$3 Bn
Vs
Daily Global Average of
US$4 Tn
TradingVolume(inRs.Crores)

10. Large Cap Index Mid Cap Index Small Cap Index
Percentage representation of Midcap and Smallcap
in Total Market Cap of BSE continues to be thin
Total Market Cap of BSE : Rs.61,602 Bn
BSE Midcap
Rs.10,155 Bn
BSE Small cap
Rs.4,503 Bn
BSE Large cap
Rs.47,544 Bn

11. Size wise breakup of IPOs in 2009
Large IPOs crowding out Small IPOs
Aggregate value of
IPOs with more than
Rs. 150 Crs size:
Rs. 16,364 Crs
96%
4%
Aggregate value of
IPOs with less than
Rs. 150 Crs size:
Rs. 644 Crs

12. For Equity funding, SEBI has come out
with some innovative solution of IPOs by SMEs
• Issued Guidelines on 13th
April, 2010
• Paid up capital: between Rs. 10 to Rs. 25 Crs
• Companies are exempted from ‘Eligibility norms’
of ICDR
• SEBI approval is not required
• “Mandatory Underwriting”, and “Mandatory
Market Making” by Merchant Banker
• Min. application size and Min. trading lot to be
Rs. 1 Lakh

13. Bank Deposits V/s Equity Mutual Fund AUMsAmountinRs.LacCrores
Data is as on March 2010
3.88%

14. Market Cap V/s Equity Mutual Fund AUMsAmountinRs.LacCrores
Data is as on March 2010
2.82%

15. QIP investments going up
Was that all ‘Hot Money’?

16. PE investments dipping
Was that all ‘Hot Money’?

17. Private Equity (Controlling stake):
% representation of Number of PE Deals and Total PE Value
% stake : 80%
Investment : $200 Mn
% stake : 50%
Investment : $180.23
Mn
% stake : 65%
Investment : $23
Mn
97%
3%
Total PE Deals(Nos) : 405
Total Controlling deal (Nos) : 11
% of controlling stake : 2.72%
Total PE Value : US$ 19.50 Bn
Total Controlling : US$ 697.12 Mn
deal Value
% of controlling stake : 3.57%

18. 18
Phoenix India
Acquisition Corp.
New
Variants
New Variants of Private Equity

19. Thank You
SMC Capitals : Thanks You!
Services: IPOs, FPOs, Rights Issues, Buy Backs, Delisting, Open Offers, Private Equity, QIPs, FCCBs
Debt Syndication, ESOP FBT Valuation / Implementation, M&A and Other advisory services
For Merchant Banking Queries, Contact: Jagannadham Thunuguntla, Equity Head
Mobile: 9312788860, 9312063677, Tel: +91 11 25826706, E-mail: jt@smccapitals.com
Mumbai: +91-22-66651450-55, Chennai: +91-44-42088256
Disclaimer : This report is for information purposes only. Due care has been taken in compilation of the report to ensure that the
information is accurate to the best of our knowledge and belief. The information contained in the report has been obtained from
reliable and publicly available sources. SMC Capitals Ltd, makes no representations or warranties regarding the accuracy or
completeness of such information and expressly disclaims any and all liabilities based on such information or on omissions there
from.
SMC Capitals Limited
Corporate Office
11 / 6 B, Ground floor, Shanti Chambers,
Pusa Road New Delhi - 110005
INDIA
Tel: +91 011 2582 6706/ 2586 3648
Fax: +91 11 2586 3606
www.smccapitals.com