1. INDEX OF INDIA
Key Features
About • Superior return & risk adjusted return
• A unique Index of India
benchmarking global best practices
SX40 is the flagship Index of MCX-SX. A free float based index of 40 of index designing
large cap - liquid stocks representing diversified sectors of the economy. • Better Reflection of the Organised
SX40 is designed to measure the economic performance with better Sector in the Economy through
representation of various industries and sectors based on ICB®, leading enhanced industry representation
global Industry Classification system from FTSE. The Index is devised to using ICB® of FTSE
offer cost-effective support for investment and structured products
• Rule based, transparent & replicable
such as index futures and option, index portfolio, exchange traded
funds, Index funds, etc. • Industry capping eliminates industry
bias and enhances Index stability
Objective
• Lower churning rate
SX40 is designed to be a performance benchmark and to provide for
efficient investment and risk management instrument. It would also • Low cost for funds (MFs, ETFs)
help in structuring passive investment vehicles. construction and maintenance
Investability • Low tracking error for passive port-
folio management (MFs, ETFs etc)
Free-float weighted to bolster efficient investability.
Transparency
Index rules are overseen by an independent index committee Selection Criteria
comprising of leading investment industry professionals, academicians,
• Underlying stocks must have a
and financial experts. The Committee also monitors constituent
positive net-worth
liquidity to ensure efficient portfolio trading while keeping index
turnover to a minimum. Complete details of these guidelines, including • The stock must have free float of at least
the criteria for index additions and removals, policy statements, and
10% & within top 100 liquid companies
research papers are freely and transparently available in public domain. • Industry capping – at 20% (±)2% band
These guidelines provide complete transparency and fairness. • Fast Entry for companies with better
Availability free float market cap and liquidity
Calculated and disseminated based on real time basis. • Top 40 companies meeting above
criteria constitute SX40
www.mcx-sx.com

2. INDEX OF INDIA
Performance
125
Index Returns (%) SX40 Nifty Sensex 120
SX40 NIFTY SENSEX
FY 2010-11 11.7 11.1 10.9 115
110
FY 2011-12 -8.8 -9.2 -10.5
105
FY 2012-13* 14.2 14.0 14.3 100
95
2010 – 2013* 16.3 15.0 13.5
90
85
Apr10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12
Constituents
• ACC Ltd. Industry Weights (%)* Quick Facts
• Ambuja Cements Ltd. SX 40 Nifty Sensex • Index Universe:
• Asian Paints Ltd. Basic Materials 4.7 4.6 5.9 Large Cap companies
• Bajaj Auto Ltd.
Consumer Goods 18.2 14.7 17.2
• Bharat Petroleum Corp Ltd. • No. of Companies: 40
• Bharti Airtel Ltd. Consumer Services 0.7 0.0 0.0
• BHEL Financials 22.0 29.4 26.4 • Index Launch:
• Cairn India Ltd. Health Care 5.1 4.9 4.5 February 11, 2013
• Cipla Ltd.
Industrials 14.8 15.5 12.0
• Coal India Ltd. • Base Date:
• Dr. Reddy's Laboratories Oil & Gas 14.8 13.1 14.7 March 31, 2010
• Gail (India) Ltd. Technology 14.2 12.7 14.2
• HCL Technologies Ltd. Telecommunications 2.4 2.1 2.7
• Base Value:10,000
• HDFC Bank Ltd. Utilities 3.1 3.1 2.5 • Currency: Indian Rupee
• HDFC Ltd.
• Hero Motocorp Ltd. • Index Basket Recasting:
Index Characteristics (%) SX40 Nifty Sensex
• Hindalco Industries Ltd.
Semi-Annually
• Hindustan Unilever Ltd. Weight of the largest
• ICICI Bank Ltd. constituent* 9.4 8.8 10.3 • Minor Share Issuance
• Infosys Ltd. Top 10 Holding* 62.4 57.4 67.8 adjustment: Monthly
• ITC Ltd.
• Jaiprakash Associates Ltd.
International Practices
• Jindal Steel & Power Ltd.
• Larsen & Toubro Ltd. Parameters SX-40 International Practices NSE
• Lupin Ltd. Minimum Free Float 10% FTSE-25%, CAC 20%, S&P 500- 50% 10%
• Mahindra & Mahindra Ltd.
Liquidity Within Top 100 NIKKEI: Turnover as Liquidity Impact cost
• Maruti Suzuki India Ltd.
• Ntpc Ltd. Review Semi-Annually Quarterly, Half yearly, Annual, Need Based Semi-Annually
• Oil and Natural Gas Corp. Minor Share Issu- Monthly DAX, FTSE: QTRLY, 10% and above Monthly
• Power Grid Corp. Ltd. ance adjustment changed else annual, Nasdaq, S&P 500
• Reliance Industries Ltd. Free Float Change Qtrly if less than 5%
• Sun Pharmaceuticals Ind.
• Tata Consultancy Serv Ltd. Industry Cap 20% TSX &various variants of other Indices No
• Tata Motors Ltd. Industry ICB® STOXX/ FTSE, NASDAQ, NYSE, LSE, Internal
• Tata Power Co Ltd. Classification Kuwait SE, SGX, Taiwan SX
• Tata Steel Ltd. *As on January 31, 2013
• Titan Industries Ltd.
• United Spirits Ltd. Exchange Square, Suren Road, Andheri (E), Mumbai - 400 093
• Wipro Ltd. Tel.: +91-22-6731 9000 Fax: +91-22-6731 9004
• Zee Entertainment Ltd. Email: index@mcx-sx.com
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 fitness 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 reflect 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.