The document provides information about the S&P CNX Nifty and NASDAQ-100 stock indices. The S&P CNX Nifty tracks the performance of the 50 largest Indian companies listed on the National Stock Exchange of India based on market capitalization. It covers 23 sectors of the Indian economy. The NASDAQ-100 tracks the performance of 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization. Both indices have eligibility criteria for initial and continued inclusion and use formulae to calculate index values based on the market values and weights of constituent securities.

1. STOCK INDICES
NSE INDIA S&P CNX NIFTY
&
NASDAQ 100

2. THE S&P CNX NIFTY
(NIFTY 50)
Source : India Index Services & Products Limited

3. 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

4. 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

5. SECTOR BREAK-UP
●
Banks ●
Refineries ●
Engineering
●
Software ●
Finance ●
Pharmaceuticals
●
Cigarettes ●
Automobiles ●
Oil Production
●
Gas ●
Construction
●
Power ●
Cement ●
Electrical
●
Steel ●
Telecom ●
Paints
●
Diversified ●
Mining ●
Financial
●
Aluminium ●
Metals

6. ELIGIBILITY CRITERIA

7. 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.

8. 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

9. FLOAT-ADJUSTED MARKET
CAPITALISATION
●
The company must have at least twice the float-
adjusted market capitalization of the current
smallest index constituent.

10. 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.

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

12. 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.

13. 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.

14. CHANGES TO THE INDEX
(RANKING REVIEW)

15. ●
The index is reviewed semi-annually,
and a six-week notice is given to the
market before making any changes to the
index constituents.

16. 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.

17. 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.

18. 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.

19. INDEX CALCULATION FORMULAE

20. In = (I0 x MCn) / MC0

21. MCn
Float-adjusted index market
capitalization as of current date

22. MCn = NΣk Pk x Qk

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

24. Pk
Security price of the kth
issue as of the current date

25. N
Total number of component securities
used in the index calculation

26. MCn = NΣk Pk x Qk

27. I0
Index value of initial date
Base Index Value 1000

28. In
Index value of current date

29. MC0
Base Index market capitalization of
Rs 2.06tr as on November 3, 1995

30. In = (I0 x MCn) / MC0

31. NASDAQ - 100
Source : Nasdaq

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

33. NASDAQ - 100
●
Reflects companies across major industry
groups including computer hardware and
software, telecommunications, retail/wholesale
trade and biotechnology.

34. NASDAQ - 100
●
Does not contain securities of financial
companies including investment companies.

35. NASDAQ - 100
●
Calculated under a modified capitalization-
weighted methodology, expected to retain in
general the economic attributes of
capitalization-weighting while providing
enhanced diversification.

36. NASDAQ - 100
●
Reviewed on a quarterly basis, with the
adjustment of weights of index components
made using a proprietary algorithm.

37. ELIGIBILITY CRITERIA

38. INITIAL INCLUSION
●
The security’s 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

39. 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

40. 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

41. 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)

42. 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.

43. CONTINUED INCLUSION
●
The security’s 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)

44. 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)

45. 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)

46. 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

47. 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

48. CHANGES TO THE INDEX
(RANKING REVIEW)

49. 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

50. 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

51. INDEX CALCULATION FORMULAE

52. I = MCagg / D

53. MCagg = NΣk Sk x Pk

54. MCagg
Aggregate Market value

55. Sk
Index Share weight of Security k

56. Pk
Last Sale Price of Security k

57. MCagg = NΣk Sk x Pk

58. D = ( MCf /MCi ) x Di
Appropriated Index Divisor

59. MCf
Market value after adjustments

60. MCi
Market value before adjustments

61. Di
Divisor before adjustments

62. D = ( MCf /MCi ) x Di
Appropriated Index Divisor

63. I = MCagg / D

65. THANK YOU