Appendix 1

Analysis of Questionnaire I for Regulators:

1. On query of whether the institutions monitor derivative trading, the institutions replied:
2. On query on the list of instruments allowed to trade in derivatives market,
3. How many audits do you perform in a year?
4. Do you train market participants in derivatives trading?
5. How do you train derivative traders?
6. How frequently?
7. How do you enforce regulation compliance?
8. How many times do you carry out periodic audits?
9. How many times in a year does a trader have to present a compliance report?
10. How many surprise checks do you carry out in a year?
11. How many periodic meeting do you conduct with the traders and institutional investors in
a year?
12. What does the compliance report consist of?
13. Does a trader have to be qualified for derivatives trading?
14. How do you ensure compliance?
15. How do you incorporate new regulations?
16. How do you ensure compliance on information dissemination?
17. How do you make investors aware of the risk involved in derivatives trading?
18. How many companies approach SEBI for derivative trading?
19. How many listed companies (%) of the applied meet SEBI criteria in participating in
derivatives trading?
20. Do you collaborate with SEC?
21. How much international exposure do you allow in derivatives trading
22. How is the red alert signaled?
23. How do you monitor mark to market investors positions?
24. How does SEBI monitor day to day trading pattern?
25. How do you penalize non- compliance?
26. Do you think a separate exchange for derivative trading should be established?
27. If yes, why do you think so?
28. How frequently do you introduce new products in the Derivatives Market?

219

29. Do you think Indian Financial System is matured enough to adapt to exotic products in
Derivatives?
30. Why?
31. Has any trader/broker defaulted?
32. Have you taken any action on the defaulted trader/ broker?
33. If yes, then how many?
34. On what grounds have the traders/ brokers defaulted?
35. What actions do you normally take on the default by the traders/ brokers?
36. Do you have a mechanism to monitor high performance individuals/ traders/ brokers?
37. If yes, then how do you monitor high performance individuals/ traders / brokers?
38. Are there any regulatory concerns to be addressed in the near future?
39. If yes, then what?

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Appendix 2
Questionnaire for professionals in banking and finance area
I am an Assistant Professor at Symbiosis Institute of Management Studies pursuing Doctoral
programme under the aegis of Symbiosis International (Deemed) University, Pune,
Maharashtra, India. The title of my thesis is An Analytical study of the present regulatory
structure for Indian Derivatives Market. In this regard a questionnaire has been drafted to
collect primary data from the stakeholders in the derivative market. I am reaching out to you
for your help in collecting the same. You being an expert and knowledgeable in the above
mentioned area of study, are hence requested to kindly fill the questionnaire for a more
comprehensive analysis of the topic and to validate data collected through secondary
research. I assure you that the data collected would be kept confidential and would be used
for academic purposes only. This gesture of help on your part would be thankfully
appreciated in the interest of academic research promotion. Please spare few minutes to
complete the following questionnaire. Please tick the appropriate answer. Please rate the
parameters between 1-5 for an appropriate answer, if the question desires. 5- Strongly Agree,
4- Agree, 3- Neither Agree nor Disagree, 2- Disagree, 1- Strongly Disagree. It is purely an
academic exercise. Data would be kept confidential.
* Required
1. Do you trade in Financial Derivatives?

Yes

No

2. If yes, what is the approximate annual turnover of the financial derivative trading (in Rs.)?

Less than 100 crore

100-200 crore

200-300 crore

300-400 crore

400 and above

3. Trading in derivative instrument help meet you following objectives. *

Hedging

Wealth creation through speculation

Arbitrage

Operating in an Efficient Market

Appropriate Price Discovery

221

Price Stability

4. The Indian Financial System is efficient and robust. 5- Strongly Agree, 1- Strongly
Disagree
1

5. Inefficient Derivative Markets would highly impact the Indian Financial System. 5Strongly Agree, 1- Strongly Disagree
1

6. Indian Derivative Markets are efficiently regulated. 5- Strongly Agree, 1- Strongly

Disagree
1

7. Derivative Trading is better than Badla Trading. 5- Strongly Agree, 1- Strongly Disagree
1

8. Derivative Trading has resulted in exposure to high risk. 5- Strongly Agree, 1- Strongly
Disagree
1

9. Over The Counter (OTC) trades are risker than Exchange regulated trades. 5- Strongly
Agree, 1- Strongly Disagree
1

222

10. One of the factors contributing to the recent sub- prime crisis and financial meltdown was
due to the Over The Counter (OTC) trades in derivative products. 5- Strongly Agree, 1Strongly Disagree
1

11. What could be the factors from the following which may lead to financial crisis? * You
may choose multiple factors.

Introduction of Exotic and complex derivatives products

Lack of regulation in Derivative Markets.

Lack of regulation in Cash Market

Greed

Improper use of derivative instruments

Inadequate understanding on the use of derivative instruments

Human Nature

Lack of regulation in OTC derivatives market

All of the above

Other

12. What could be the factors from the following which may have lead the financial crisis due
to derivatives trading in the past? * You may choose multiple factors.

Introduction of Exotic and complex derivatives products

Lack of regulation in Derivative Markets.

Lack of regulation in Cash Market

Greed

Improper use of derivative instruments

Inadequate understanding on the use of derivative instruments

Human Nature

Lack of regulation in OTC Derivatives Market

All of the above

223

13. Which factors have helped India tide the recent financial crisis (2007) in the world? *
You may choose multiple factors.

Conservative Banking regulations

Conservative Derivative Regulatory Structure

Conservative Monetary and Fiscal Policies

Our limited Exposure to World Markets

All of the above

Other

Do not agree with the statement

14. Do you think Indian Derivative Markets are efficient?

Yes

No

Maybe

15. Please state the factors in either case.

16. Following factors help regulate the derivatives market efficiently.

High Margins

Maintenance of High Net worth by brokers/ traders

Periodic Audits and Reporting

Adequate awareness generation of dynamics of derivative trading

Monitoring of high volume/ value trades

Monitoring Speculative tendencies

Ensuring basic compliance for competent Market Participants

Periodic Training to Market Participants

All of the above

Other
224

17. Do you think a need to establish a separate Derivative Exchange?

Yes

No

Maybe

18. Do you think a need to establish a centralized clearing corporation for all exchanges?

Yes

No

Maybe

19. Derivative Trades under exchanges are well regulated. 5- Strongly Agree, 1- Strongly
Disagree
1

20. Innovation in Derivative Products would lead to an efficient market. 5- Strongly Agree,
1- Strongly Disagree
1

Name of the Bank/ Institution (Optional)

THANK YOU

225

Appendix 3
Questionnaire for derivative stock brokers
I am an Assistant Professor at Symbiosis Institute of Management Studies pursuing Doctoral
programme under the aegis of Symbiosis International (Deemed) University, Pune,
Maharashtra, India. The title of my thesis is An Analytical study of the present regulatory
structure for Indian Derivatives Market. In this regard a questionnaire has been drafted to
collect primary data from the stakeholders in the derivative market. You being an expert and
knowledgeable in the above mentioned area of study, are hence requested to kindly fill the
questionnaire for a more comprehensive analysis of the topic and to validate data collected
through secondary research. I assure you that the data collected would be kept confidential
and would be used for academic purposes only. This gesture of help on your part would be
thankfully appreciated in the interest of academic research promotion. Please spare few
minutes to complete the following questionnaire. Please tick the appropriate answer. Please
rate the parameters between 1-5 for an appropriate answer, if the question desires. 5- Strongly
Agree, 4- Agree, 3- Neither Agree nor Disagree, 2- Disagree, 1- Strongly Disagree. It is
purely an academic exercise. Data would be kept confidential.
1. Do you trade in derivatives?

Yes

No

2. If yes, please tick the appropriate response:

Stock Index Futures

Stock Index Options

Futures on Individual Stocks

Options on Individual Stocks

Interest Rate Futures

Currency Futures

Any Other

3. What is your turnover from derivatives trading?

Less than 1 crore

1-2 Crores
226

2-3 Crores

3-10 Crores

Above 10 Crores

Any Other

4. Does derivative instruments form a major portion of your financial portfolio?

Yes

No

5. Which other instruments do you trade in?

Shares

Bonds

Money Markets

Commodities

Currency

Any other

6. Are you aware of the regulations governing derivatives trading?

Yes

No

Maybe

7. Do you receive notifications or updates on derivative trading from Exchanges and SEBI
frequently?

Yes

No

Maybe

8. Do you have to be qualified in trading in derivative instruments?

Yes

No

Maybe

227

9. Were you trained in trading of derivative instruments?

Yes

No

Maybe

10. Do you undergo training in derivatives trading from time to time?

Yes

No

Maybe

11. If yes, how frequently?

Quarterly

Semi Annually

Annually

More than a year

12. Who trains you in derivatives trading?

SEBI

NSE

BSE

MCX/ NCDEX

Any Other

13. Are you aware of broker's rights incase of default by Exchange or any other financial
intermediary?

Yes

No

14. Do you sensitize your investors on the risk of derivatives trading?

Yes

No

228

15. If yes, then how?

16. Which are the statutory regulatory clauses are you concerned with closely and need to
comply with without exception?

17. What percentage of your customers/ clients of yours, trade in derivative instruments?

Less than 10%

10%-20%

20%-30%

30%-40%

Above 40%

18. How would you categorize them in terms of investment capacities?

High Net Worth

Medium

Small

19. How much do you charge your investors?

Less than 10%

10%-20%

20%-30%

30%-40%

20. How much margin do you extend to your investors?

229

Less than 1 Crore

1-2 Crore

More than 2 Crore

21. What interest do you charge for the money lent?

Less than 1%

1%-2%

2%-4%

Above 4%

Risk Free

LIBOR/ MIBOR

22. The above interest charged is:

Per day

Per week

Per month

Quarterly

Semi- annually

Annually

23. How many clients trade in futures?

Less than 10

10-20

20-30

30-40

Above 40

24. How many clients trade in options?

Less than 10

10-20

20-30

30-40

Above 40
230

25. Derivative instruments are fully useful to hedge risks. 5- Strongly agree, 1- Strongly
Disagree
1
2
3
4
5

26. How are Derivative instruments useful/ not useful to hedge risks? Suggest changes, if
required. Please state in brief.

27. Derivative Instruments help in earning wealth. 5- Strongly agree, 1- Strongly Disagree
1
2
3
4
5

28. How are Derivative Instruments useful/ not useful in earning wealth? Please state in brief.

29. Do you have an international exposure in trading in derivative instruments?

Yes

No

30. If yes, please tick the appropriate choice:

Stock Index Futures

Stock Index Options

Futures on Individual Stocks

Options on Individual Stocks

Interest rate Futures

Currency Futures
231

Any other

31. What is the percentage of exposure in terms of total portfolio?

5%-10%

10%-15%

15%-20%

Above 20%

32. What percentage do you earn on trading in futures and options?

1%-2%

2%-4%

4%-6%

6%-8%

Above 8%

33. What is the percentage of exposure in derivatives in terms of value (in Rs.)?

Less than 50 Crores

50-100 Crores

100-150 Crores

150-200 Crores

Above 200 Crores

34. Do you finance your requirement from Banks and other Financial Institutions?

Yes

No

35. If yes, what is the percentage of your borrowing vis-a vis your own contribution?

Less than 10%

10%-20%

20%-30%

30%-40%

Above 40%
232

36. Investors usually trade in derivatives for:

Hedging

Speculating

Arbitrage

Loss covering

37. Indian Banks and Financial Institutions are efficient. 5- Strongly agree, 1- Strongly
disagree
1
2
3
4
5

38. Indian Banks and Financial Institutions operational functions need overhauling. 5Strongly agree, 1- Strongly disagree
1
2
3
4
5

39. Do you interact with international brokers?

Yes

No

40. Do you face any operational difficulties while executing derivative transactions?

Yes

No

41. Please mention difficulties, if any.

42. Indian derivative markets are transparent and investor friendly. 5- Strongly agree, 1Strongly disagree
1

233

43. Indian derivative markets are operated differently from international derivative markets.
5- Strongly agree, 1- Strongly disagree
1

44. Indian derivative markets are influenced by international players. 5- Strongly agree, 1Strongly disagree
1
2
3
4
5

45. Indian regulatory bodies are efficient. 5- Strongly agree, 1- Strongly disagree
1
2
3
4
5

46. How many new products were added in the last two years?

None

1-2

2-4

Above 4

47. How many products were innovated to their present structure?

None

1-2

2-4

Above 4

48. Technology in derivative markets is efficient and robust. 5- Strongly agree, 1- Strongly
disagree
1
2
3
4
5

49. The periodicity of turnover reporting to exchange is:

Daily

Weekly
234

Fortnightly

Monthly

50. The periodicity of audit by regulatory authorities (Exchange and SEBI) is:

Daily

Weekly

Fortnightly

Monthly

Quarterly

Semi- annually

Annually

51. The periodicity of submission of compliance reports to regulatory authorities (Exchange

and SEBI) is:

Daily

Weekly

Fortnightly

Monthly

Quarterly

Semi- annually

Annually

52. Do you have a mechanism to monitor an efficient/ high achiever trader?

Yes

No

53. Do you have position limits?

Yes

No

54. Do you benchmark your actual gains and losses against strategic planned reports?

Yes

No
235

55. Do you speculate?

Yes

No

56. What is the success rate on your speculation?

90%-100%

75%-90%

50%-75%

Below 50%

57. Does your front, middle and back offices operate separately by different individuals?

Yes

No

58. When do you recognize 'inception profits'?

Immediately on occurrence

During the life of the deal

After the deal

59. Do you interact with your clients for 'risk awareness' before selling your products to
them?

Yes

No

60. There is a need to establish a separate derivative exchange. 5- Strongly agree, 1- Strongly
disagree
1
2
3
4
5

61. There is a need to establish a centralized clearing corporation for all exchanges. 5Strongly agree, 1- Strongly disagree
1
2
3
4
5

236

62. Government role in derivative exchange could be enhanced. 5- Strongly agree, 1Strongly disagree
1
2
3
4
5

63. Please suggest any measures to strengthen Indian Derivatives Market, if needed.

THANK YOU.

237

Appendix 4
L C Gupta Committee Report on Regulatory Compliance of Derivative Markets:
Constitution of the Committee on Derivatives
Chairman:
1. Dr. L.C. Gupta, Director Society for Capital Market Research and Development, 32 Raja
Enclave Pitampura, DELHI-110 034.
Member-Secretary:
2. Mr. O.P. Gahrotra, Sr. Executive Director, Securities & Exchange Board of India Mittal
Court, "B" Wing, Nariman Point, MUMBAI-400 021.
Other Members:
3. Dr. Ajay Shah, Indira Gandhi Institute of Dev. Research Gen. Vaidya Marg, Goregaon
(East), MUMBAI-400 065.
4. Mr. B.G. Daga, Chief General Manager, Unit Trust of India New Marine Lines,
MUMBAI-400 020.
5. Mr. Balaji Srinivasan, Jardine Fleming, Amerchand Mansion 16, Madame Cama Road,
MUMBAI-400 001.
6. Mr. D.C. Anjaria, Asian Capital Partners 38, Jolly Maker Chambers II 3rd Floor, Nariman
Point, MUMBAI-400 021.
7. Ms. D.N. Raval, Executive Director (Legal), Securities & Exchange Board of India Mittal
Court, "B" Wing, Nariman Piont MUMBAI-400 021.
8. Mr. Dennis Grubb, Price Waterhourse LLP, 128 T.V. Industrial Estate, Worli, MUMBAI400 025.
9. Mr. L.K. Singhvi, Sr. Executive Director, Securities & Exchange Board of India, Mittal
Court, "B" Wing, Nariman Point, MUMBAI-400 021.
10. Mr. M.G. Damani, President, The Bombay Stock Exchange, Dalal Street, Fort,
MUMBAI-400 001.
11 Mr. M.R. Mayya, 1/19 Kadri Park, Irla, S.V. Road, Vile Parle, MUMBAI-400 056.
12. Mr. Marti Subrahmanyam, Professor New York University,NYU, Saloman Centre,N.Y.,
10012-1118, U.S.A.
13. Prof. P.G. Apte, Indian Instt. of Management, Bannerghatta Road, BANGALORE560076.
238

14. Mr. Percy Mistry, Oxford International, Oxford Centre, 10, Shroff Lane Colaba
Causeway, Colaba, MUMBAI-400 005.
15. Dr. Prasanna Chandra, Indian Institute of Management, Bannerghatta Road,
BANGALORE-560 076.
16. Mr. Pratip Kar, Executive Director, Securities and Exchange Board of India, Mittal Court,
"B" Wing, Nariman Point MUMBAI-400 021.
17. Prof. R. Vaidyanathan, Indian Instt. of Management, Bannerghatta Road, BANGALORE560076.
18. Mr. R. Ravi Mohan, Credit Rating Information Services of India, 301 A, Neelam Centre,
Worli, MUMBAI-400 025.
19. Dr. R.H. Patil, Managing Director, National Stock of India Ltd., Mahindra Towers, "A"
Wing, 1st Floor,RBC, Worli, MUMBAI-400 018.
20. Mr. Ramachandra, Bangalore Stock Exchange Ltd., No. 51, 1st Cross, J.C. Road,
BANGALORE-560 027.
21. Mr. S.S. Sodhi, Delhi Stock Exchange Assn. Ltd., Gate A, West Plaza,I.G. Stadium,
Indraprastha Estate, NEW DELHI-110 002.
22. Mr. Uday Kotak, Kotak Mahindra Finance Ltd., Bakhtawar, 2nd Fl., Nariman Point,
MUMBAI-400 021.
23. Mr. V.K. Agarwal, Forward Market Commission, "Everest", 3rd Floor, 100 Marine
Lines, MUMBAI-400 002.
24. Mr. Vallabh Bhansali, Enam Financial Services Ltd., Ambalal Doshi Marg, 24 BD
Rajabahadur Compound, MUMBAI-400 023.

239

Executive Summary
The Committee strongly favours the introduction of financial derivatives in order to provide
the facility for hedging in the most cost-efficient way against market risk. This is an
important economic purpose. At the same time, it recognises that in order to make hedging
possible, the market should also have speculators who are prepared to be counter-parties to
hedgers. A derivatives market wholly or mostly consisting of speculators is unlikely to be a
sound economic institution. A soundly based derivatives market requires the presence of both
hedgers and speculators.
1. The Committee is of the opinion that there is need for equity derivatives, interest rate
derivatives and currency derivatives. In the case of equity derivatives, while the
Committee believes that the type of derivatives contracts to be introduced will be
determined by market forces under the general oversight of SEBI and that both
futures and options will be needed, the Committee suggests that a beginning may be
made with stock index futures.
2. The Committee favours the introduction of equity derivatives in a phased manner so
that the complex types are introduced after the market participants have acquired
some degree of comfort and familiarity with the simpler types. This would be
desirable from the regulatory angle too.
3. The Committee's recommendations on regulatory framework for derivatives trading
envisage two-level regulation, i.e. exchange-level and SEBI-level. The Committees
main emphasis is on exchange-level regulation by ensuring that the derivative
exchanges operate as effective self-regulatory organizations under the overall
supervision of SEBI.
Since the Committee has placed considerable emphasis on the self-regulatory competence of
derivatives exchanges under the over-all supervision and guidance of SEBI, it is necessary
that SEBI should review the working of the governance system of stock exchanges and
strengthen it further. A much stricter governance system is needed for the derivative
exchanges in order to ensure that a derivative exchange will be a totally disciplined market
place.

240

4. The Committee is of the opinion that the entry requirements for brokers/dealers for
derivatives market have to be more stringent than for the cash market. These include
not only capital adequacy requirements but also knowledge requirements in the form
of mandatory passing of a certification programme by the brokers/dealers and the
sales persons. An important regulatory aspect of derivatives trading is the strict
regulation of sales practices.
5. Many of the SEBI's important regulations relating to exchanges, brokers-dealers,
prevention of fraud, investor protection, etc., are of general and over-riding nature and
hence, these should be reviewed in detail in order to be applicable to derivatives
exchanges and their members.
6. The Committee has recommended that the regulatory prohibition on the use of
derivatives by mutual funds should go. At the same time, the Committee is of the
opinion that the use of derivatives by mutual funds should be only for hedging and
portfolio balancing and not for speculation. The responsibility for proper control in
this regard should be cast on the trustees of mutual funds. The Committee does not
favour framing of detailed SEBI regulations for this purpose in order to allow
flexibility and development of ideas.
7. SEBI, as the overseeing authority, will have to ensure that the new futures market
operates fairly, efficiently and on sound principles. The operation of the underlying
cash markets, on which the derivatives market is based, needs improvement in many
respects. The equity derivatives market and the equity cash market are parts of the
equity market mechanism as a whole.
8. SEBI should create a Derivatives Cell, a Derivatives Advisory Committee, and
Economic Research Wing. It would need to develop a competence among its
personnel in order to be able to guide this new development along sound lines.

Regulatory Framework for Derivatives:

The Guiding Principles
Regulatory objectives
1. The Committee believes that regulation should be designed to achieve specific, welldefined goals. It is inclined towards positive regulation designed to encourage healthy
activity and behaviour. It has been guided by the following objectives :

241

a. Investor Protection: Attention needs to be given to the following four

aspects:
i.

Fairness and Transparency: The trading rules should ensure that trading
is conducted in a fair and transparent manner. Experience in other
countries shows that in many cases, derivatives brokers/dealers failed to
disclose potential risk to the clients. In this context, sales practices adopted
by dealers for derivatives would require specific regulation. In some of the
most widely reported mishaps in the derivatives market elsewhere, the
underlying reason was inadequate internal control system at the user-firm
itself so that overall exposure was not controlled and the use of derivatives
was for speculation rather than for risk hedging. These experiences
provide useful lessons for us for designing regulations.

ii.

Safeguard for clients' moneys: Moneys and securities deposited by

clients with the trading members should not only be kept in a separate
clients' account but should also not be attachable for meeting the broker's
own debts. It should be ensured that trading by dealers on own account is
totally segregated from that for clients.

iii.

Competent and honest service: The eligibility criteria for trading

members should be designed to encourage competent and qualified
personnel so that investors/clients are served well. This makes it necessary
to prescribe qualification for derivatives brokers/dealers and the sales
persons appointed by them in terms of a knowledge base.

iv.

Market integrity: The trading system should ensure that the market's
integrity is safeguarded by minimising the possibility of defaults. This
requires framing appropriate rules about capital adequacy, margins,
clearing corporation, etc.

a. Quality of markets: The concept of "Quality of Markets" goes well beyond

market integrity and aims at enhancing important market qualities, such as
cost-efficiency, price-continuity, and price-discovery. This is a much broader
objective than market integrity.
b. Innovation: While curbing any undesirable tendencies, the regulatory
framework should not stifle innovation which is the source of all economic
242

progress, more so because financial derivatives represent a new rapidly

developing area, aided by advancements in information technology.
2. Of course, the ultimate objective of regulation of financial markets has to be to
promote more efficient functioning of markets on the "real" side of the economy, i.e.
economic efficiency.

3. Leaving aside those who use derivatives for hedging of risk to which they are
exposed, the other participants in derivatives trading are attracted by the speculative
opportunities which such trading offers due to inherently high leverage. For this
reason, the risk involved for derivative traders and speculators is high. This is
indicated by some of the widely publicized mishaps in other countries. Hence, the
regulatory frame for derivative trading, in all its aspects, has to be much stricter than
what exists for cash trading. The scope of regulation should cover derivative
exchanges, derivative traders, brokers and sales-persons, derivative contracts or
products, derivative trading rules and derivative clearing mechanism.
In the Committee's view, the regulatory responsibility for derivatives trading will have to be
shared between the exchange conducting derivatives trading on the one hand and SEBI on the
other. The committee envisages that this sharing of regulatory responsibility is so designed as
to maximize regulatory effectiveness and to minimize regulatory costs.
Major issues concerning regulatory framework
a. The Committee's attention had been drawn to several important issues in
connection with derivatives trading. The Committee has considered such issues,
some of which have a direct bearing on the design of the regulatory framework.
They are listed below :
a. Should a derivatives exchange be organized as independent and separate from an
existing stock exchange?
b. What exactly should be the division of regulatory responsibility, including both
framing and enforcing the regulations, between SEBI and the derivatives
exchange?

243

c. How should we ensure that the derivatives exchange will effectively fulfill its
regulatory responsibility.
d. What criteria should SEBI adopt for granting permission for derivatives trading to
an exchange?
e. What conditions should the clearing mechanism for derivatives trading satisfy in
view of high leverage involved?
f. What new regulations or changes in existing regulations will have to be
introduced by SEBI for derivatives trading?
Should derivatives trading be conducted in a separate exchange?
4. A major issue raised before the Committee for its decision was whether regulations
should mandate the creation of a separate exchange for derivatives trading, or allow
an existing stock exchange to conduct such trading. The Committee has examined
various aspects of the problem. It has also reviewed the position prevailing in other
countries. Exchange-traded financial derivatives originated in USA and were
subsequently introduced in many other countries. Organizational and regulatory
arrangements are not the same in all countries. Interestingly, in U.S.A., for reasons of
history and regulatory structure, futures trading in financial instruments, including
currency, bonds and equities, was started in early 1970s, under the auspices of
commodity futures markets rather than under securities exchanges where the
underlying bonds and equities were being traded. This may have happened partly
because currency futures, which had nothing to do with securities markets, were the
first to emerge among financial derivatives in U.S.A. and partly because derivatives
were not "securities" under U.S. laws. Cash trading in securities and options on
securities were under the Securities and Exchange Commission (SEC) while futures
trading was under the Commodities Futures Trading Commission (CFTC). In other
countries, the arrangements have varied.
The Committee examined the relative merits of allowing derivatives trading to be conducted
by an existing stock exchange vis-a-vis a separate exchange for derivatives. The arguments
for each are summarised below.

244

Arguments for allowing existing stock exchanges to start futures trading:

a. The most weighty argument in this regard is the advantage of synergies arising
from the pooling of costs of expensive information technology networks and the
sharing of expertise required for running a modern exchange. Setting-up a
separate derivatives exchange will involve high costs and require more time.
b. The recent trend in other countries seems to be towards bringing futures and cash
trading under coordinated supervision. The lack of coordination was recognized as
an important problem in U.S.A. in the aftermath of the October 1987 market
crash. Exchange-level supervisory coordination between futures and cash markets
is greatly facilitated if both are parts of the same exchange.
Arguments for setting-up separate futures exchange:
a. The trading rules and entry requirements for futures trading would have to be
different from those for cash trading.
b. The possibility of collusion among traders for market manipulation seems to be
greater if cash and futures trading are conducted in the same exchange.
c. A separate exchange will start with a clean slate and would not have to restrict the
entry to the existing members only but the entry will be thrown open to all
potential eligible players.
Recommendation
1. From the purely regulatory angle, a separate exchange for futures trading seems to be a
neater arrangement. However, considering the constraints in infrastructure facilities, the
existing stock exchanges having cash trading may also be permitted to trade derivatives
provided they meet the minimum eligibility conditions as indicated below :
2. The trading should take place through an online screen-based trading system, which also
has a disaster recovery site. The per-half-hour capacity of the computers and the network
should be at least 4 to 5 times of the anticipated peak load in any half hour, or of the
actual peak load seen in any half-hour during the preceding six months. This shall be
reviewed from time to time on the basis of experience.
3. The clearing of the derivatives market should be done by an independent clearing
corporation, which satisfies the conditions listed in a later chapter of this report.
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4. The exchange must have an online surveillance capability which monitors positions,
prices and volumes in realtime so as to deter market manipulation. Price and position
limits should be used for improving market quality.
5. Information about trades, quantities, and quotes should be disseminated by the exchange
in realtime over at least two information vending networks which are accessible to
investors in the country.
6. The Exchange should have at least 50 members to start derivatives trading.
7. If derivatives trading is to take place at an existing cash market, it should be done in a
separate segment with a separate membership; i.e., all members of the existing cash
market would not automatically become members of the derivatives market.
8. The derivatives market should have a separate governing council which shall not have
representation of trading/clearing members of the derivatives Exchange beyond whatever
percentage SEBI may prescribe after reviewing the working of the present governance
system of exchanges.
9. The Chairman of the Governing Council of the Derivative Division/Exchange shall be a
member of the Governing Council. If the Chairman is a Broker/Dealer, then, he shall not
carry on any Broking or Dealing Business on any Exchange during his tenure as
Chairman.
10. The exchange should have arbitration and investor grievances redressal mechanism
operative from all the four areas/regions of the country.
11. The exchange should have an adequate inspection capability.
12. No trading/clearing member should be allowed simultaneously to be on the governing
council of both the derivatives market and the cash market.
13. If already existing, the Exchange should have a satisfactory record of monitoring its
members, handling investor complaints and preventing irregularities in trading.
3.9 The next section will elaborate how the regulatory responsibilities placed on the
derivative exchange and the SEBI are to be carried out in a detailed manner.
Division of Regulatory Responsibility
Two levels of regulation
The task entrusted to the Committee is to develop the "regulatory framework for derivatives
trading". Such regulatory framework really comprises two distinct levels, viz.(1) a derivatives
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exchange's own operational rules and regulations and (2) SEBI rules and regulations with
which the exchange and its members must comply. The Committee feels that since the
Securities Contracts (Regulation) Act, 1956 and the Rules framed there under, SEBI
Act and various Rules and Regulations regarding stock exchanges and brokers/dealers
are of general and over-riding nature, they could be reviewed and designed to be
applicable equally to derivatives exchanges also.
Emphasis on exchange-level regulation
A crucial pre-condition for the success of derivatives trading is that the derivatives exchange
should be capable of acting as an effective self-regulator on its own. In the Committee's
opinion, the derivatives exchange, being in day to day touch with the market, will be in a
position to spot a problem and take prompt corrective action. As a statutory body, SEBI
will first have to enquire, collect all the facts and go through a certain statutory
procedure before acting. In addition, the regulatory costs can also be minimized by
shifting the administrative and compliance costs as much as possible to the exchanges
which are the beneficiaries from the business opportunity provided. These
considerations have led the Committee to emphasize that a derivatives exchange should
be designed, right from the start, as a competent and effective regulating organization
in every possible way.
Governance of derivative exchange
The Committee was informed about the regulatory concerns regarding the working of
governance system in many stock exchanges and took note of reported problems in this area.
The Committee regards this as important matter in the context of introducing derivatives. The
Committee recommends that SEBI should review its own experience of the present stock
exchange governance system in terms of how far the system has been able to ensure the
functioning of stock exchanges as effective self-regulatory organizations and what further
improvements, if any, are needed. As most of the regulatory responsibility in regard to
derivatives trading has to be carried out by the exchanges themselves and any slackness in
this regard can be disastrous, it is necessary to ensure that a proper governance structure is in
place. If necessary, SEBI may lay down a separate governance structure for exchanges which
are allowed to have derivatives trading.

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Most of the new regulations required for derivatives trading are exchange-level
regulations. Such regulations have necessarily to be very detailed and highly technical.
It will require the formulation of detailed rules, regulations and bye-laws and the creation of a
really effective monitoring and enforcement mechanism, covering all aspects of the
exchange's operation. The exchange-level regulations include entry requirements for
derivatives traders/members, design of derivatives contracts, broker-client relationship
including sales procedures and risk disclosure to clients, trading and reporting procedures,
internal risk control systems, margining, clearing, settlement and dispute resolution. In the
Committee's opinion, a derivatives exchange must necessarily be consciously designed to
play the role of effective self-regulator. This is so important that if there is any doubt in the
exchange's ability in this regard, SEBI should not allow it to conduct derivatives trading. The
role of SEBI will be to provide over-all supervision and guidance to the exchange and to
act as the regulator of last resort.
The Committee is of the view that all the above regulations have to be much stricter for
derivatives trading than the existing regulations for cash trading. Another demanding
requirement is that derivatives trading, clearing, settlement, margining, reporting and
monitoring, all involve the application of most modern on-line screen-based systems which
should be designed to be both fool-proof and fail-proof.
The Committee also feels that every derivative trader/member (not just 10 per cent of
them) should be inspected by the derivative exchange annually, both to provide
guidance in the initial years and to check compliance. This is particularly important at the
initial stage of derivatives trading. The derivative exchange should be required to have a
strong inspection department. Its staff should be given specialised training for the purpose.
SEBI's Regulatory Responsibility
SEBI should approve the rules, bye-laws and regulations of the derivative exchange and
should also approve the proposed derivative contracts before commencement of
trading. Any change in the rules, bye-laws and regulations of the Derivative Exchange
would need prior approval of SEBI.
The Committee feels that SEBI need not be involved in framing exchange-level rules but
it should evaluate them, identify deficiencies and suggest improvements. Its regulatory
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staff should have a thorough understanding of the theory and practice of financial derivatives
so that it can provide guidance and can evaluate various kinds of derivative products. SEBI's
overseeing function cannot be delegated. SEBI will have to acquire the necessary expertise
by training its own people and recruiting some specialised personnel. SEBI will function as
an overseeing authority. It would have to be closely involved in guiding this new and
complex development along right lines. It would have to ensure a successful launch of futures
trading in India by providing appropriate guidance and over-all supervision of the process.
Such success will be beneficial for the country's economy and will bring credit to SEBI.
SEBI's obligation to oversee the functioning of derivatives exchange is bound to be a
demanding task in terms of new knowledge and understanding required by its staff.
Regulatory review of Derivative Contract
In most countries regulatory approval is required for new derivatives contracts to be traded.
The regulatory authority has to determine whether such trading would be in public interest. In
U.S.A., the Commodities Trading Futures Commission, before granting its approval to a new
contract, has to be satisfied that the contract would serve an economic purpose, such as
making fairer pricing possible or making hedging possible. Providing an arena for
speculation is not regarded as enough to show that a futures contract would serve an
economic function. According to the information provided to the Committee by courtesy of
Price Waterhouse LLP under USAID's FIRE Project, more than 90 per cent of countries with
established derivatives markets use a contract review procedure as a threshold test to permit a
new derivatives contract to trade on an authorised derivative exchange.
The Committee suggests that before starting trading in a new derivatives product, the
derivatives exchange should submit the proposal for SEBI's approval, giving (a) full details
of the proposed derivatives contract to be traded (b) the economic purposes it is intended to
serve (c) its likely contribution to the market's development and (d) the safeguards
incorporated to ensure protection of investors/clients and fair trading. SEBI officers should be
in a position to provide effective supervision and constructive guidance in this regard.
SEBI Derivative Cell, Advisory Council and Economic Research Wing
In view of what has been said above, the Committee recommends the following steps to be
taken by SEBI :
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a. SEBI should immediately create a special Derivatives Cell because derivatives

demand special knowledge. It should encourage its staff members to undergo
training in derivatives and also recruit some specialised personnel.
b. A Derivatives Advisory Council may also be created to tap the outside expertise
for independent advice on many problems which are bound to arise from time to
time in regard to derivatives.
c. SEBI should urgently consider the creation of an Economic Research Wing.
Complex economic questions arise about derivatives, e.g. their effect on cash
market volatility and price discovery. Many such questions have been raised from
time to time in other countries. Administrative persons are unlikely to have the
time to study and analyse data. They can be usefully assisted by the Economic
Research Wing. SEBI, as the country's capital market authority, should be
regularly conducting studies of critical problems affecting the market and
collecting data.
4.12 The division of regulatory responsibility at two levels as suggested above by the
Committee, is aimed at securing the triple advantages of (a) permitting desirable
flexibility, (b) maximising regulatory effectiveness and (c) minimising regulatory cost.
SPECIAL ENTRY RULES FOR DERIVATIVES
BROKERS/DEALERS
No automatic entry for existing stock brokers
The Committee feels that the derivatives market will have to be subjected to more stringent
requirements than is the case with present cash markets. This implies that when an existing
exchange decides to start derivatives trading, the members of the existing cash market will
not automatically become members of the derivatives market. Only those who satisfy the
stricter eligibility conditions of the derivatives market will be admitted to derivatives trading.
Capital adequacy
The experience of Indian exchanges has been that the credibility of the broker firms balance
sheet figures of networth is questionable and that, in any case, a brokers or dealers stated
networth is very often not available to meet the claims payable to the exchange. Hence, for

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effectively ensuring capital adequacy, principal reliance has to be placed on the capital and
margins actually deposited by the brokers/dealers with the exchange. Taking note of the
above, the views of the Committee regarding capital adequacy requirements for derivatives
brokers/dealers are presented below:
Guiding considerations
The absolute amount of minimum capital adequacy requirement for derivative
brokers/dealers has to be much higher than for cash market. Further, if a broker/dealer is
involved both in cash and futures segments, or in several exchanges, the capital adequacy
requirement should be satisfied for each exchange/segment separately. A decision on
minimum capital adequacy requirement involves balancing the need for ensuring markets
integrity against the need for having sufficient participation of brokers/dealers and sufficient
competition. Too high a requirement may keep most Indian firms out of the derivatives
market.
Clearing and Non-clearing members
In order to somewhat ease the constraint on participation in the derivatives market due to
high capital adequacy requirements, the Committee recommends that consideration may be
given to a two-level system of members, viz., Clearing Members and Non-Clearing
Members, as found in several countries, an example being the Singapore International
Monetary Exchange. Under such a system, networth requirement for the Clearing Members is
higher than for the Non-Clearing members. The Non-Clearing members have to depend on
the Clearing Members for settlement of trades. The Clearing Member has to take
responsibility for the non-clearing members position so far as the Clearing Corporation is
concerned. The Clearing Member thus becomes the guarantor for the Non-Clearing members.
In a sense, a Clearing Member has a number of satellite traders for whom he takes financial
responsibility towards the Clearing Corporation. The advantage of the two-level system is
that it can help to bring in more traders into derivatives trading, thus enhancing the markets
liquidity.

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Networth and initial margin

The Committee recommends that the Clearing Members of the derivatives exchange should
have a minimum net worth of Rs. 300 lakh as per SEBIs definition and shall make a
deposit of Rs.50 lakh with the Exchange/Clearing Corporation in the form of liquid assets,
such as Cash, Fixed Deposits pledged in the name of the Exchange, or other securities. Bank
Guarantee in lieu of such deposit may also be accepted. The Clearing Corporation can permit
clearing members to clear the trades of non-clearing trading members. The regulations for the
non-clearing trading members shall be specified by the Derivatives Exchange/Division. The
Committee further recommends that the requirement of minimum networth and deposit in
case of Option writers will need to be still higher.
Certification Requirement
The broker-members, sales persons/dealers in the derivatives market must have passed a
certification programme which is considered adequate by SEBI.
Registration with SEBI
Brokers/dealers of Derivatives Exchange/Division should be required to be registered as such
with SEBI. This would be in addition to their registration as brokers/dealers of any stock
exchange. SEBI may require registration of sales persons working at Derivatives brokerage
firms.
CLEARING CORPORATION
Importance of separate Clearing Corporation
6.1 In the Committees view, the clearing mechanism should be organised as separate and
independent entity, preferably in the form of a Clearing Corporation. Clearing Corporation
should become a legal counterparty to all trades and be responsible for guaranteeing
settlement for all open positions. Hence, if any Clearing Member defaults, settlement for
other Clearing Members would not be affected. This would protect the reputation of the
Exchange and would minimise the default risk of trading/clearing members as the risks
arising from insolvency of any individual Clearing Member are shouldered effectively by the

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Clearing Corporation. The credibility of the Clearing Corporation, therefore, will have to be
assured.
6.2 The Clearing Corporation will collect initial (i.e. upfront) margin to which the exposure
limits of the broker/dealer would be linked, as explained later. The Clearing Corporation will
enforce the "mark-to-market margin" system. In case of failure of a clearing/trading member,
the Clearing Corporation should have recourse to disable the Clearing/trading member from
trading in order to stop further increase in his exposure.
6.3The requirements for capital adequacy and upfront margin should be set taking into
account the volatility of the underlying market. For this purpose, normally, daily volatility (as
measured by standard deviation of average return from one-day holding periods) is taken into
account. Such daily volatility in India for major stock indices is around 1.3-1.4 per cent
compared to just around 1 per cent for the S&P 500 Index in U.S.A. In addition, we have to
take into account two more facts, viz., first, the collection of daily mark-to-market margin
may take more than one day because electronic funds transfer facility is not yet universal in
India; and second, the worst scenario possibility, i.e. largest 1-day or 2-day fluctuation
experienced over the last few years.
6.4 Since market volatility changes over time, the Committee feels that the Clearing
Corporation should continuously analyse this problem and may modify the margin
requirements to safeguard the market. The dual objective has to be guaranteeing its own
solvency and avoiding unnecessary tying up of members capital.
6.5The Committee recommends that the Clearing Corporation should be an independent
corporation. Its Governing Board should be immune to any interference or direct/indirect
pressure by trading interests. For this reason, there is no need to have the representation of
trading interests on its Governing Board.
6.6The Committee feels that ideally an independent centralised Clearing Corporation for the
stock exchanges would be most effective arrangement. However, since this may be difficult
to achieve in the immediate future, it should remain as the ultimate goal to be achieved.
Efforts should continue to be made in this direction. Until such an independent centralised
entity is created, the Committee recognises that existing Clearing Corporations/Houses may
continue to be used by existing exchanges provided the following conditions are satisfied:
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1. the Clearing Corporation/House becomes counterparty to all trades or provides

unconditional guarantee for settlement of all trades; and
2. the Exchange agrees to participate in the Central Clearing Corporation as and
when that entity comes up.
The Committee strongly urges SEBI to take the initiatives with potential promoters to set up
a national-level Clearing Corporation.
Maximum exposure limit
6.7 Apart from the minimum networth requirement, there should be a maximum exposure
limit computed on gross basis for each broker/dealer. Such exposure limit should be linked to
the amount of deposits/margins kept by a broker/dealer as deposit with the Clearing
House/Clearing Corporation in the prescribed liquid assets. It was strongly represented to the
Committee, as mentioned earlier, that, in Indian context, the minimum networth requirement
has not proved adequate.
Mark-to-market margins
6.8 The Committee feels that even the system of mark-to-market margins on daily basis will
not be adequate for safeguarding the markets integrity unless the margins are actually
collected before the start of the next days trading. Even a days delay in actual collection of
mark-to-market margin can pose a serious threat to the markets integrity. The Committee
noted that electronic funds transfer (EFT) was not yet pervasive in India. If the mark-tomarket margins cannot be collected before the start of next days trading, the networth
requirement and initial deposit with the exchange would have to be higher. The Committee
recommends that the aim should be to collect mark-to-market margins before the next days
trading starts. For this purpose all derivatives dealers/brokers should be required to be
connected to Electronic Funds Transfer Facility. The capital adequacy requirement for
derivatives trading should be finally decided after taking into account both the extent of
volatility and the time taken for funds transfer from dealers/members to the exchange.

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Cross-margining
6.9 At the initial stage of derivatives market in India, the Committee does not favour crossmargining which takes into account a dealers combined position in the cash and derivative
segments and across all stock exchanges. The Committee recognises that cross-margining is
logical and would economise the use of a trading members capital, but a conservative
approach would be more advisable until the reliability of systems has been fully established.
The systems capability has to emerge before adopting sophisticated systems.
Margin Collection from clients
6.10 In the Committees view, collection of initial and mark-to-market margins by brokers
from their clients should be insisted upon in the case of derivatives trading. In other words,
margin collection from clients should not be left to the discretion of brokers/dealers. SEBI
should require derivatives exchanges to ensure, through systems of inspection, reporting, etc.,
that margins are actually collected from all clients without exception, including financial
institutions. This is necessary because of the high leverage and consequently higher risk
involved in derivatives trading. Two indirect methods of ensuring this should also be
adopted, viz. (1) exposure limits for dealers/traders in relation to upfront initial margin
deposited with the exchange should be fixed on gross basis and (2) brokers/dealers should be
required to disclose to the exchange the trading done on their own behalf separately from
trading on clients behalf at the time of order entry. The trading volume should also be
divided into sales and purchases.
Safeguarding clients money
The Committee further recommends that the Clearing Corporation should segregate the
upfront/initial margins deposited by Clearing Members for trades on their own account from
the margins deposited with it on client account. The Clearing Corporation shall not utilise the
margins deposited with it on client account for fulfilling the dues which a Clearing Member
may owe to the Clearing Corporation in respect of trades on the members own account. The
principle which the Committee would like to advocate regarding client moneys is that these
should be regarded as held in trust for client purpose only and should not be allowed to be
diverted to any other purpose. Such moneys are sacrosanct as they usually represent the
clients hard earned savings.
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The following process may be adopted by the Clearing Corporation for segregating the
margin money held against a brokers own position from that held against the client position.
At the time of opening a position, the dealer/broker should indicate whether the position is for
the client or for the broker himself. On all client positions, both buy or sell, margins should
be collected on gross basis (i.e. on buy and sell positions separately without netting them).
Similarly, when closing a position, the Clearing Corporation would have to be informed by
the Clearing Member whether it was a client position or Members own position. In case of a
Clearing Member default, the margin paid by such Member on his own account only would
be allowed to be used by Clearing Corporation for realising its own dues from the Member.
There should be an independent Investor Protection Fund for the Derivative
Division/Exchange which should be available to compensate clients in case of Member
default.
SEBI approval for clearing corporation
6.13 The Committee feels that a clearing corporation must have SEBI approval for
functioning as such. To be eligible for such approval, it should satisfy the following
conditions:
1. The clearing corporation must perform full novation, i.e. the clearing corporation
should interpose itself between both legs of every trade, becoming the legal
counterparty to both or alternatively should provide an unconditional guarantee
for settlement of all trades.
2. The clearing corporation should have the capacity to monitor the overall position
of members across both cash and derivatives markets for those members who are
participating in both.
3. The level of initial margin required on a position should be related to the risk of
loss on the position. The concept of "value at risk" should be used in calculating
required levels of initial margin. The initial margin should be large enough to
cover the one-day loss that can be encountered on the position on 99% of the days.
These capital adequacy norms should apply intra-day, so that there is no instant of
time where the good funds deposited by the member to the clearing corporation
are smaller than the value at risk of the position at that point in time. The clearing
corporation should have intra-day monitoring software to ensure that this
condition is met at every single instant within the day. "Good funds" here are
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defined as the initial margin and the mark to market margin available with the
clearing corporation.
4. In the event of unusual positions of a member, the clearing corporation should
charge special margin over and above the normal margins.
5. The clearing corporation must establish facilities for electronic funds transfer
(EFT) for swift movement of margin payments. In situations where EFT is
unavailable, the clearing corporation should collect correspondingly larger initial
margin to cover the potential for losses over the time elapsed in collection of mark
to market margin. For example, if two days elapse in moving funds, then the value
at risk should be calculated based on the prospective two-day loss.
6. In the event of a member default in meeting its liabilities, the Clearing
Corporation/House should have processing capability to require either the prompt
transfer of client positions and assets to another member or to close-out all open
positions.
6.14 The clearing mechanism is the centre-piece of a derivatives market, both for
implementing the margin system and for providing trade guarantee. Hence, the arrangements
must require SEBI approval. The policy should be to nudge the system towards a single
national clearing corporation for all stock exchanges.
REGULATION OF SALES PRACTICES AND DISCLOSURES FOR DERIVATIVES
Why derivatives sales practices need regulation
The Committee has identified broker-client relationship and sales practices for derivatives as
needing special regulatory focus. The potential risk involved in speculating (as opposed to
hedging) with derivatives is not understood widely. In the case of pricing of complex
derivatives contracts, there is a real danger of unethical sales practices. Clients may be fooled
or induced to buy unsuitable derivatives contracts at unfair prices and without properly
understanding the risks involved. Many widely reported legal disputes between broker-dealer
and the client have arisen in U.S.A. on some such ground. That is why it has become a
standard practice in other countries to require a "risk disclosure document" to be provided by
broker/dealer to every client in respect of the particular type of derivatives contracts being
sold.

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Also, derivatives brokers/dealers are expected to know their clients and to exercise care to
ensure that the derivative product being sold by them to a particular client is suitable to his
understanding and financial capabilities. Derivatives may tempt many people because of high
leverage, which is a double-edged instrument, having, at the same time, the potential of high
profitability on the margin money invested and high risk. The concept of "know-your-client"
needs to be implemented and every broker/trader should obtain a client identity form, as
suggested in Model Rules for Derivatives Exchanges, being formulated by the Committee
separately.
Options and their complexity
The risk and complexity vary among derivative products. While some derivatives are
relatively simple, many others, specially options, could be highly complex and would require
additional safeguards from investors viewpoint. In due course, a derivatives exchange may
decide to introduce options on stock index or on individual stocks. Options are a more
complex derivative product than index futures because evaluating the fairness of option
premium is a complex matter, not being apparent. Regulations in the U.S.A. clearly recognise
the greater complexity of options by requiring stricter supervision over sales of options
contracts.
In order to give some idea in this regard, the Committee enquired into sales practice
regulations relating to derivatives in U.S. in order to learn from the experiences of U.S.
regulatory authorities. The U.S. authorities have recognised that derivatives, based on options
trading strategies, could be highly complex. Hence, there is a special regulatory regime for
options. This is instructive for Indian authorities. In order to give a concrete idea about what
the regulation of sales practices, particularly for complex type of derivatives, may involve,
some special features found in the U.S. are enumerated below:
a. The options trading rules of a derivative exchange require heightened suitability
standards. Such rules prohibit brokers-dealers from recommending to any client
any options transaction unless they have reasonable grounds to believe that the
entire recommended transaction is not unsuitable for the customer on the basis of
information furnished after reasonable inquiry concerning the customers
investment objectives.

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b. In addition, the rules prohibit brokers-dealers from recommending opening

options transaction unless they have a reasonable basis for believing that the
customer has such knowledge and financial experience that he or she can be
expected to be capable of evaluating, and financially able to bear, the risks of the
transaction.
c. The broker-dealer must seek to obtain and verify specific categories of
information about its customers including, but not limited to, their net worth,
annual income and investment experience and knowledge. A separate approval
also may be required for trading in particular types of options strategies and types
of options contracts, such as foreign currencies.
d. In addition, the approval of account opening must be in writing and can be made
only by a senior options supervisor who must ensure that investors are offered an
explanation of the special characteristics and risks applicable to the trading of
options.
e. The derivatives exchange also requires that all the supervisory and sales personnel
pass a general securities examination that includes options materials. People
selling or supervising the sale of options on debt securities or foreign currency
also must pass a separate interest rate options or foreign currency examination.
f. The exchange also requires the brokers-dealers to keep a current customer
complaint log for all options-related complaints which include: (a) the name of the
complainant; (2) the date when the complaint was received; (3) the sales person
servicing the account; (4) a description of the complaint; and (5) a record of the
action taken.
g. In addition, the broker-dealer firm is required to submit all sales literature and
educational material to the exchange for pre-use approval.
h. The disclosure document about options should contain information describing the
mechanics and risks of options trading, transaction costs, margin requirements and
tax consequences of margin trading. The broker-dealer must provide a copy of this
document at or prior to the time such customers account is approved for
standardized options trading.
i. There are also special trading rules applicable to the options markets. These rules
include separate surveillance procedures, front-running prohibitions and position
limits.

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Exchanges responsibility
The Committee recommends that attention be given to proper supervision of sales
practices for derivatives from the very beginning. It should be the responsibility of the
Derivatives Exchange, as a self-regulatory organisation, to take the necessary steps in
this regard under the general oversight of SEBI. Risk Disclosure to the client is an
important aspect of the regulation of sales practices. In connection with entry
requirements for derivative brokers/dealer, the Committee has earlier recommended
that, not only derivatives brokers/dealers, but also sales persons working for derivatives
brokers should have passed a certification programme. If sufficient attention is not paid
to this initially, we may have a situation analogous to a large number of ill-trained
drivers whom it becomes difficult to control later.
Basically, the regulation of derivatives sales practices aims at enforcing strictly the "know
your customer" rule and requires that every client trading in derivatives should be registered
with the derivatives broker. Data base on clients should be available with the broker.
Customers should be given a risk disclosure document prior to their registration by the
derivatives broker.
Sales to corporate clients
In the case of corporate clients, banks, financial institutions and mutual funds, they should be
allowed to trade derivatives only if and to the extent authorised by their Board of
Directors/Trustees. Such authorisation should specify the scope of permissible derivative
trading, i.e. the purposes or objectives for which derivatives trading may be undertaken, (e.g.
hedging etc.), over-all limits for derivative exposure, the authority level for giving approval
in this regard, the type of derivatives contracts (e.g. futures, forwards, options, swaps) and
broad derivative category (e.g. derivatives on interest rate, exchange rate, equities and
commodities). Derivatives broker/dealer may execute orders for such clients only if the
orders are supported by the necessary authorisation of the clients Board of
Directors/Trustees.

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Accounting and disclosure requirements

The accounting treatment and disclosure requirement about an organisations involvement in
derivatives trading is important so that shareholders and investors can know how such
involvement fits into the organisations objectives and affects its revenues, financial position
and risk profile. The Committee was informed that a Study Group on Derivatives constituted
by the Institute of Chartered Accountants of India is examining the accounting and disclosure
norms for derivatives trading by corporate bodies.
Mutual Funds as clients
The SEBI (Mutual Fund) Regulations presently prohibit the use of derivatives by mutual
funds. The Committee is of the opinion that mutual funds need hedging facility. They will be
among the most important users of equity hedging through stock index derivatives. Hence,
the regulatory prohibition should be removed. The soundness of the derivatives market
depends on the presence of both hedgers and speculators. A derivatives market consisting
wholly or mostly of speculators is unlikely to be a healthy market. It is, therefore, all the
more important that the regulatory prohibition on the use of derivatives for hedging by
mutual funds should be withdrawn immediately.
Mutual funds should be allowed to use financial derivatives for hedging purposes (including
anticipated hedging) and portfolio re-balancing within a policy framework and rules laid
down by their Board of Trustees who should specify what derivatives are allowed to be used,
within what limits, for what purposes, for which schemes, and also the authorisation
procedure. The responsibilities of the trustees of mutual funds as per SEBI regulations should
be re-defined to cover this aspect.
At this stage, the Committee does not consider it advisable to frame detailed SEBI
regulations about the use of derivatives by mutual funds as this would stifle the development
of ideas. The Committee prefers that the responsibility for proper control in this regard
should be placed on the trustees of mutual funds. This would help evolution of practices on
sound lines without creating a strait jacket.
Further, what has been said earlier about internal control, accounting treatment and disclosure
of derivatives trading by corporate clients should apply to mutual funds also. The offer

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documents of mutual fund schemes should disclose whether the scheme permits the use of
derivatives and the details in this regard. Also the income and balance sheet of each mutual
fund scheme would have to disclose the impact of derivatives trading and of any open
position in this regard.
Concluding observations
1. There is no doubt that equity derivatives and other financial derivatives have some
definite positive uses and serve an economic purpose, as clearly recognised in
economic literature. They represent a financial innovation of considerable
significance. They can be helpful in making financial markets more efficient and
enhancing economic efficiency in general.
2. At the same time, derivatives trading inherently involves high leverage. For this
reason, it can be a temptation to inadequately capitalised traders or speculators.
Also some users may not fully understand derivatives and use them
inappropriately. The regulatory system has to be designed to minimise these
possible dangers.
3. In drawing up a regulatory framework for derivatives, the Committee has kept in
view not only the need for allowing adequate flexibility in order to permit the
derivatives market to develop in India but also the need for strict watch so that the
development is along sound lines.
USES OF EQUITY DERIVATIVES
Brokers

67

Mutual funds

10

Banks & financial institutions

14

FIIs

12

Merchant banks

09

Total

112

Survey findings about potential for financial derivatives in India

The Committee made an assessment of the nature of felt-need and interest in the various
types of financial derivatives among potential market participants through a Questionnairebased survey. The survey covered all types of potential players in the derivatives market,
262

such as mutual funds, other financial institutions, commercial banks, investment bankers and
stockbrokers. Out of about 300 Questionnaires sent out by the Committee in May 1997, the
number of replies received was 112, comprising 67 brokers and 45 others. The break-up of
our sample is as follows:
In addition, the Committee held a full day session to interact with groups representing each of
the above categories of interests. A total of about 35 persons attended the group-wise
discussions.
The survey clearly revealed that there was wide recognition of the need for all the three major
types of financial derivatives, viz., equity derivatives, interest rate derivatives and currency
derivatives. The results of the survey are summarised in Table 2.1 given at the end of this
chapter.
Interestingly, the survey findings showed that stock index futures ranked as the most popular
and preferred type of equity derivative, the second being stock index options and the third
being options on individual stocks. Considerable interest exists in all the three types of equity
derivatives mentioned above. The fourth type, viz. individual stock futures, was favoured
much less. It is pertinent to note that the U.S.A. does not permit individual stock futures.
Only one or two countries in the world are known to have futures on individual stocks. Stock
Index Futures are internationally the most popular forms of equity derivative.
The difference in relative preferences among the various financial derivative types is shown
more sharply when we look at answers to the question: Which of the derivative products
should be introduced first? The respondents who placed stock index futures as first
represented 65% of the sample, compared to 39 per cent who placed stock index options as
first (see Table 2.1).
The survey also showed that there exists widespread demand for hedging facility, as indicated
by the finding that nearly 70% of the respondents in our sample indicated that they would like
to use the various types of equity derivatives for hedging purpose. On the other hand, about
39% of respondents would like to participate in the derivatives market as dealer/speculator,
64% as broker and only about 36% as option writer. Many of the respondents would like to
participate in more than one capacity.

263

In terms of contract duration of Stock Index futures and options, the 3 months duration was
the most favoured, as may be expected. As regards the choice between the American and
European types of options, the former was favoured overwhelmingly.
As regards expectations of growth of stock index futures and options trading in India, about
33% of respondents expected it to grow very fast, 41% expected it to grow moderately and
the remaining 16% expected slow growth of trading. On the whole, the survey findings are
very positive about the need and prospects of equity derivatives trading in India.
Popularity of Stock Index Futures
There are many reasons for the wide international acceptance of stock index futures and for
the strong preference for this instrument in India too compared to other forms of equity
derivatives. This is because of the following advantages of stock index futures:
Institutional and other large equityholders need portfolio hedging facility. Hence, indexbased derivatives are more suited to them and more cost-effective than derivatives based on
individual stocks. Even pension funds in U.S.A. are known to use stock index futures for risk
hedging purposes.
Stock index is difficult to be manipulated as compared to individual stock prices, more so in
India, and the possibility of cornering is reduced. This is partly because an individual stock
has a limited supply which can be cornered. Of course, manipulation of stock index can be
attempted by influencing the cash prices of its component securities. While the possibility of
such manipulation is not ruled out, it is reduced by designing the index appropriately. There
is need for minimising it further by undertaking cash market reforms, as suggested by the
Committee later in this chapter.
Stock index futures enjoy distinctly greater popularity, and are, therefore, likely to be more
liquid than all other types of equity derivatives, as shown both by responses to the
Committees questionnaire and by international experience.
Stock index, being an average, is much less volatile than individual stock prices. This implies
much lower capital adequacy and margin requirements in the case of index futures than in the
case of derivatives on individual stocks. The lower margins will induce more players to join
the market.
264

In the case of individual stocks, the positions which remain outstanding on the expiration date
will have to be settled by physical delivery. This is an accepted principle everywhere. The
futures and the cash market prices have to converge on the expiration date. Since Index
futures do not represent a physically deliverable asset, they are cash settled all over the world
on the premise that the index value is derived from the cash market. This, of course, implies
that the cash market is functioning in a reasonably sound manner and the index values based
on it can be safely accepted as the settlement price.
Regulatory complexity is likely to be less in the case of stock index futures than for other
kinds of equity derivatives, such as stock index options, or individual stock options.
Cash and futures market relationship
The objective of SEBI is to make both derivatives market and cash market fair, efficient and
transparent. Economically, it is important to realise that equity cash market and equity
derivatives market are of one piece. Their sound development is inter-related closely. The
Committee has kept this objective in view and would like to ensure that the new derivatives
market is developed along sound lines. This objective can best be achieved by separating
cash market and futures market and thereby regulating them effectively. At present, almost
90 per cent of the trading volume in the cash market does not settle in deliveries of the stock.
The great bulk (over 85 per cent) of such trading is in 5 scrips only. The Committee noted
that several earlier committees on stock exchange reforms, including the G.S. Patel
Committee (1984-85), had expressed concern at the small percentage of deliveries in Indian
exchanges. They had also lamented the illiquidity of a majority of listed shares and the
practice of switching of positions from one exchange to another due to different exchanges
having different settlement cycles.
The Committee hopes that some of the speculative transactions, which are presently
conducted in the cash market, would be attracted towards the proposed derivatives market.
The Committee recognizes that an efficient cash market is required for an efficient futures
market. The Committee also recognizes the danger that if the cash market behavior is erratic
or does not reflect fundamentals, a futures market, based on such a cash market, will fail to
give a correct indication of future spot prices and its usefulness for price discovery will be
reduced.
265

The Committee is of the opinion that the following revisions could lead to a further
strengthening of the underlying cash market:
a. uniform settlement cycle among all the stock exchanges moving towards rolling
settlement cycles to prevent the cash market from effectively being used as an
unregulated futures market;
b. strengthening of administrative machinery of the existing stock exchanges wherever
necessary to tighten the exchanges regulatory oversight; such tight supervision being
essential for successful derivatives trading.
c. speeding up dematerialisation of securities without which options on individual
securities should not be allowed as non-dematerialised securities involve settlement
delays and problems; allowing options without dematerialisation is likely to make the
options market manipulable; and
d. taking steps to encourage more delivery based transactions in a greater number of
securities.
The Committee is of the view that arbitrage transactions between the index futures market
and the cash market for equities is likely to have a beneficial effect on the functioning of the
cash market in terms of price discovery, broadening of liquidity and over-all efficiency.
Strengthening the influence of fundamental factors
The Committee thought of ways to ensure that fundamental factors adequately enter into the
price discovery process in the cash market and, through it, in the futures market. In this
connection, the Committee noted that it was important in the case of futures markets, whether
commodity futures or other futures, to assist the price discovery process by promoting the
dissemination of all relevant market information about the "real" factors, such as supplies,
demand, prospects, etc. In regard to stock index futures, the Committee feels that there are
two important ways of promoting its linkage to fundamental factors. First, there must be a
requirement that average P/E ratio of the index used for futures trading should be made
available by the exchange concerned on daily basis as essential market information. Second,
the arbitrage between the index futures market and the cash market for the shares composing
the index should be facilitated by requiring such shares to be traded in the depository mode
and also by making available the facility of stock borrowing so that short-selling is rendered
possible.
266

Strategic uses of stock index futures

It was represented to the Committee by mutual funds and other financial institutions that they
were handicapped in their investment strategy because of the non-availability of portfolio
hedging facility in India. They need derivatives, not for generating speculative profits, but for
strategic purposes of controlling risk or restructuring portfolios. Given below are some
practical examples from a presentation made before the Committee by some institutional
representatives :
i.

Reducing the equity exposure in a mutual fund scheme: Suppose that a balanced
mutual fund scheme decides to reduce its equity exposure from, say, 40% to 30% of
the corpus. Presently, this can be achieved only by actual selling of equityholdings.
Such selling entails three problems: first, it is likely to depress equity prices to the
disadvantage of the Scheme and the whole market; second, it cannot be achieved
speedily and may take some months, and third, it is a costly procedure because of
brokerage, etc. The same objective can be achieved through index futures at once, at
much less cost and with much less impact on the cash market. The scheme may
immediately sell index futures. The actual sale of equityholdings may be done
gradually depending on market conditions in order to realise the best possible prices.
As unloading of holdings progresses, the index futures transaction may be unwound
by an opposite transaction to the same extent.

ii.

Investing the funds raised by new schemes: When a new scheme is floated, the
money raised does not get fully invested for considerable time. Suitable securities at
reasonable prices may not be immediately available in sufficient quantity. Rushing to
invest the whole money is likely to drive up prices to the disadvantage of the scheme.
Timing is important in the case of equity schemes. If the scheme is launched to take
advantage of low equity prices, such advantage may be lost due to delay in acquiring
suitable securities as the market situation may change. The availability of stock index
futures can take care of this entire problem.

iii.

Partial liquidation of portfolio in case of open-ended fund: In the case of an openended scheme, repurchases may sometimes necessitate liquidation of a part of the
portfolio but there are problems in executing such liquidation. Selling each holding in
proportion to its weight in the portfolio is often impracticable. Some of the holdings
may be relatively illiquid. Rushing to the cash market to liquidate would drive down
267

prices. The price actually realised may be different from the price used in NAV
computation for repurchase. The timing of liquidation may not be right because of
market depression. Stock Index Futures can help to overcome these problems to the
advantage of unitholders.
iv.

Preserving the value of portfolio during times of market stress: There are times
when the main worry is the possibility that the value of the entire equity portfolio may
fall substantially if, say, event "X" occurs. Sale of Stock Index Futures can be used to
insure against the risk. Such insurance is specially important if the accounts closing
date is nearby because the yearly results will get affected if the risk materialises.
Stock index futures can neutralise such risk.

v.

International investors: The buying and selling operations of FIIs presently cause
disproportionate price-effect on the Indian equities market because all transactions are
through the cash market only. This is an important factor making the Indian equities
market highly volatile from day to day. The FIIs' buying/selling is aimed at either
increasing or reducing their exposure to the Indian equities market. In other words,
what the FIIs buy/sell is a "piece" of the whole Indian equities market. If stock index
futures are available, this can be carried out with greater speed and less cost and
without adding too much to market volatility. The FII flows show sudden changes
from time to time. While trying to maximise the net inflow of FII portfolio
investment, its disturbing effects on the cash market for Indian equities can possibly
be minimised if the facility of stock index futures is available. The availability of such
a hedging device is likely to increase the international investors' appetite for Indian
equities.

Phasing needed
The Committee believes that the types of equity derivatives to be introduced in India should
ultimately be left to the market forces under over-all general supervision of SEBI. It is likely
to be an evolutionary process, as has been the case in other countries. The experience in other
countries also shows that only a small proportion of new futures contracts prove to be
successful and survive for long. The market decides which ones will succeed.
The consensus in the Committee was that stock index futures would be the best starting
point for equity derivatives in India. The Committee has arrived at this conclusion after
careful examination of all aspects of the problem, including the survey findings and
268

regulatory preparedness. The Committee would favour the introduction of other types of
equity derivatives also, as the derivatives market grows and the market players acquire
familiarity with its operations. Other equity derivatives include options on stock index or on
individual stocks. There may also be room for more than one stock index futures. It is bound
to be a gradual process, shaped by market forces under the over-all supervision of SEBI. One
member of the Committee, i.e. Mr. P.S. Mistry, formally dissociated himself from the
consensus mentioned above by favouring the introduction of options contracts before the
introduction of futures.
The enabling legal changes
It is understood that the Central Government is already considering the legal action required
in order to enable the use of stock index derivatives by expanding the definition of
"securities" under Section 2(h)(iia) of the Securities Contracts (Regulation) Act, 1956, by
declaring derivatives contracts based on index of prices of securities and other derivatives
contracts to be securities. The Committee recommends that this should be done expeditiously.
The Committee also recommends that the notification issued by the Central Government in
June 1969 under Section 16 of the SC(R) A be amended so as to enable trading in futures and
options contracts. The prohibition of trading in options on securities has already been
withdrawn by the Securities Laws Amendment Act with effect from January 25, 1995.
Table 2.1
ANALYSIS OF REPLIES TO THE COMMITTEES QUESTIONNAIRE
ADDRESSED TO POTENTIAL PLAYERS IN THE FINANCIAL
DERIVATIVE MARKET IN INDIA
Q.
No.

Question

Number and percentage

of affirmative replies
(Total respondents=112)

1a.

% to total

96

85.71

Which risks are of most concern in your

operations?

Systematic risk
269

Number

Interest rate risk

35

32.25

Exchange rate risk

27

24.11

Default risk

71

63.39

Asset-liability mismatch

23

20.54

Any other

11

9.82

85

75.89

1c.

Are you handicapped because index-based

futures and options are not available in India?

2a.

Is there a need for having

2b.

3a.

Stock Index Futures

98

87.50

Stock Index Options

92

82.14

Futures on Individual Stocks

71

63.39

Options on Individual Stocks

90

80.36

Interest rate futures

68

60.71

Currency futures

67

59.82

Which of the above do you favour most?

Stock Index Futures

73

65.28

Stock Index Options

45

40.18

Futures on Individual Stocks

22

19.64

Options on Individual Stocks

32

28.57

Interest rate futures

21

18.75

Currency futures

14

12.5

In which of the following would you like to

participate?

Stock Index Futures

92

82.14

Stock Index Options

82

73.21

Futures on Individual Stocks

61

54.46

270

3b.

4a.

4b.

Options on Individual Stocks

78

69.64

Interest rate futures

43

38.39

Currency futures

37

33.04

Which of the derivative products mentioned

above should be introduced first?

Stock Index Futures

73

65.18

Stock Index Options

44

39.29

Futures on Individual Stocks

14

12.5

Options on Individual Stocks

15

13.39

Interest rate futures

13

11.61

Currency futures

6.25

In the case of the first four products mentioned in

the previous question will you like to participate
as:

hedger

78

69.64

dealers/speculators

44

39.29

broker

72

64.29

option writer

40

35.71

any other

5.36

Which derivative product is likely to be the most

popular in India?

Stock Index Futures

63

56.25

Stock Index Options

40

35.71

Futures on Individual Stocks

23

20.54

Options on Individual Stocks

38

33.93

Interest rate futures

7.14

271


5a.

6a.

7a.

Currency futures

6.25

Which derivative product are needed most in

India for improving stock market efficiency?

Stock Index Futures

66

58.93

Stock Index Options

47

41.96

Futures on Individual Stocks

35

31.25

Options on Individual Stocks

36

32.14

Interest rate futures

5.36

Currency futures

1.79

Do you expect that the trading in Stock Index

Futures and Options in India will

Grow very fast

37

33.03

Grow moderately

46

41.07

Grow slowly

18

16.07

Not grow much

1.79

Cant say anything

1.79

3 months

93

83.04

6 months

70

62.50

9 months

37

33.04

12 months

35

31.25

3 months

88

78.57

6 months

60

53.57

9 months

27

24.11

What contract maturity period would interest you

for trading in:

Stock Index Futures and Options

Futures and Options on Individual Stocks

272

12 months
8a.

31

27.68

In case of Options do you favour:

American

79

70.54

European

30

26.79

Note: Questions 2b, 3b and 4c expected respondents to tick against one type only but some
respondents ticked more than one, resulting in double counting. Hence, the percentages add
to more than 100. This does not, however, vitiate the relative comparison among the
derivative types.

273

Appendix 5
List of Registered Custodian of Securities
Sr. No.

Name of Custodian

Contact Address

1.

The Royal Bank Of

Scotland N.V.
(Formerly ABN Amro
Bank N.V.)

Custodian Services,
1st Floor, Brady House, 14 Veer
Nariman Road,
Fort, Mumbai - 400 001.
Tel. 022 - 66585908
Fax.- 022 22812589

Axis Bank Limited

4.

6.

7.

8.

Solaris C Wing, 9th Floor, Saki

Vihar Road, Opp. L & T Gate
No. 6, Powai, Mumbai 400072.
Tel No.: 022-40754264/83; Fax
No.: 022-40754261/62
BNP Paribas
62, Homji Street, Fort,
Mumbai 400 001
Phone: 022-66501300
Fax: 022-22642004
Citibank N. A.
Citibank, N.A.,
Securities & Fund Services
Trend House, 3rd Floor,
G Block, Plot No. 60,
Bandra Kurla Complex,
Bandra (East), Mumbai 400051
Tel. No. 022-40296300
Fax no. 022-26532202
DBS Bank Ltd. India 3rd Floor, Fort House
221, Dr. D.N.Road,
Fort , Mumbai - 400 001.
Tel.- 022- 5638 8888,
Fax.- 022 56388899
Deutsche Bank AG
Domestic Custodial Services
DB House, Hazarimal Somani
Marg, Fort
Mumbai-400 001.
Tel.No.: 022 - 56584600
Fax : 022 22075975
Edelweiss Custodial 14th Floor, Express Towers,
Services Limited
Nariman Point,
Mumbai-400021
Phone: 022-22864400
Fax: 022-40040793
HDFC Bank Ltd.
Custody Services,
Lodha I Think Techno Campus,
Building -Alpha, 8th Floor,
Opposite Crompton Greaves,
Kanjur Marg (East),
274

Registration
Valid Until
October 31, 2012

April 25, 2013

January 31, 2013

October 31, 2012

October 31, 2012

October 31, 2012

August 17, 2013

October 31, 2012

9.

Hongkong
and
Shanghai
Banking
Corporation Limited

10.

ICICI Bank Limited.

11

IL&FS
Services

12

JPMorgan Chase
Bank, N.A.

13.

Kotak Mahindra Bank

Limited

14.

Orbis
Financial
Corporation Ltd.

15.

SBI-SG
Global
Securities
Services
Pvt. Ltd (Formerly
SBI Custodial Services
Pvt. Ltd.)

Securities
Ltd.

Mumbai 400 042.

Tel.No. 022-30752800
Fax.- 022-25799861/25799862
Custody and Clearing,
October 31, 2012
Plot No. 139-140 B, Western
Express Highway,
Sahar Road Junction, Vile Parle
(East),,
Mumbai 400 057.
Tel.No. 022 40357000,
Fax.- 022 40357469
October 31, 2012
Securities Markets Services,
Empire Complex, 1st Floor,
E7/F7 Senapati Bapat Marg,
Lower Parel, Mumbai 400 013,
Tel.No. 022 66672071/2005.
Fax.- 022 66672740/2779
IL&FS House,
October 31, 2012
Plot No. 14, Raheja Vihar,
Chandivli, Andheri East, Mumbai
400 072
Tel.No.: 022 2857 0965
Fax : 022- 2857 0948/49
6th Floor, Paradigm Towers,
Wing B, Mindspace, Malad,
Mumbai - 400 064.
Tel.- 022- 66506000
Fax.- 022- 66492504/05
Kotak Infiniti,
6th Floor, Zone IV,
Custody Services Unit
Building No. 21, Infinity Park,
Off Western Express Highway,
General A K Vaidya Marg,
Malad (E),
Mumbai 400 097
Tel.- 02266056825/66056933/
66056898
Fax.- 022-67259060
4A Technopolis, Sector 54, Golf
Club Road,
Gurgaon - 122 002
Tel.-0124 4546565
Fax.- 0124- 4546500
12th Floor, State Bank Bhavan,
Madam Cama Road,
Mumbai 4000 21
Phone: 022-22833008/22855821
Fax: 022-22855822
275

October 31, 2012

October 31, 2012

June 16, 2011

November
2012

19,

16.

17.

18.

19

Standard
Bank

Chartered Custodial Services

23-24, Mahatma Gandhi Road
Fort, Mumbai - 400 001.
Tel.No: 022 2204 4444
Fax : 022 - 2285 3857/8
Depository Participant & Global
State Bank of India
Custodial Services,
Division (DP&GCS), Mumbai
Main Branch, Mezzanine Floor,
Post Box No. 13, Mumbai
Samachar Marg, Fort, Mumbai 400 001.
Tel. No.: 022
22691088/22690749
Fax No.: 022 - 22624643
Stock
Holding Centre Point , Unit No. 301,
Corporation of India 3rd Floor, Dr. B. Ambedkar Road,
Opposite Bharatmata Cinema,
Limited
Parel, Mumbai 400 012.
Tel.: 022 61779400-09
The Bank of Nova Mittal Tower, B Wing,
Scotia (Only for Gold Nariman Point,
and Gold related Mumbai 400 021
instrument)
Tel.-022 883411-15,
Fax.- 022- 22881078

October 31, 2012

October 31, 2012

October 31, 2012

October 31, 2012

List of entities where in-principle approval has been granted

Sr. no.

Name of Entity

Contact Address

1.

India Infoline Ltd.

Building No. 75, Nirlon

Complex,

Approval
Valid
Until
June 04, 2010

Off Western Express Highway,

Goregaon (East),
Mumbai 400 063
Phone:022-66775900

2.

Fax: 022-66489000
Globe Capital market 609-Ansal Bhawan,
Ltd.
16-K.G.Marg,
New Delhi 110001

276

December 03, 2010

Phone : 011-30412345

3.

Fax: 011-23720883
Quant Transactional 612-617, 6th Floor,
Services
Private Chambers IV
Limited
Nariman Point

Maker June 29, 2012

Mumbai 400 021

Phone : 022-40880100
Fax : 022-40880249/40880250

Note: The in principle approval is valid upto one year within which the entities are required
to satisfy the conditions mentioned in their respective approvals. Some of the general
conditions inter-alia are as given below:
a. Confirm the fulfillment of networth criteria as per the Regulation on the basis of
audited financials.
b. File documents evidencing presence of necessary vaults for safe custody of securities,
computer systems capability, software to support custody operations required to
effective discharge of your activities as custodian of securities.
c. Undergo a system audit prior to commencement of operations. (The scope of the audit
to be defined in consultation with SEBI.)
d. Confirm the presence of adequate and competent persons who have the experience,
capacity and ability of managing the business of the custodian of securities before the
commencement of business.

277

Appendix 6
List of Mutual Funds
Name of the Asset Management Company
Axis Asset Management Company Ltd.

Website
www.axismf.com

Baroda Pioneer Asset Management Company

Limited
Birla Sun Life Asset Management Company
Limited
BNP Paribas Asset Management India Private
Limited

www.barodapioneer.in
www.birlasunlife.com
www.bnpparibasmf.in

BOI AXA Investment Managers Private Limited www.boiaxa-im.com

Canara Robeco Asset Management Company
Limited
Daiwa Asset Management (India) Private
Limited

www.canararobeco.com
www.daiwafunds.in

Deutsche Asset Management (India) Pvt. Ltd.

www.dws-india.com

DSP BlackRock Investment Managers Private

Limited

www.dspblackrock.com

Edelweiss Asset Management Limited

www.edelweissmf.com

Escorts Asset Management Limited

www.escortsmutual.com

Franklin Templeton Asset Management (India)

Private Limited
Goldman Sachs Asset Management (India)
Private Limited

www.franklintempletonindia.com
www.gsam.in

HDFC Asset Management Company Limited

www.hdfcfund.com

HSBC Asset Management (India) Private Ltd.

www.assetmanagement.hsbc.com/in

ICICI Prudential Asset Mgmt.Company Limited

www.icicipruamc.com

IDBI Asset Management Ltd.

www.idbimutual.co.in

IDFC Asset Management Company Limited

www.idfcmf.com

India Infoline Asset Management Co. Ltd.

www.iiflmf.com

Indiabulls Asset Management Company Ltd.

www.indiabullsmf.com

ING Investment Management (India) Pvt. Ltd.

www.ingim.co.in

278

JM Financial Asset Management Private

Limited

www.jmfinancialmf.com

JPMorgan Asset Management India Pvt. Ltd.

www.jpmorganmf.com

Kotak Mahindra Asset Management Company

Limited(KMAMCL)

www.kotakmutual.com

L&T Investment Management Limited

www.lntmf.com

LIC NOMURA Mutual Fund Asset

Management Company Limited
Mirae Asset Global Investments (India) Pvt.
Ltd.
Morgan Stanley Investment Management
Pvt.Ltd.
Motilal Oswal Asset Management Company
Limited

www.licnomuramf.com
www.miraeassetmf.co.in
www.morganstanley.com/indiamf
www.motilaloswal.com/assetmanagement/

Peerless Funds Management Co. Ltd.

www.peerlessmf.co.in

PineBridge Investments Asset Management

Company (India) Pvt. Ltd.

www.aiginvestments.co.in

PPFAS Asset Management Pvt. Ltd.

amc.ppfas.com

Pramerica Asset Managers Private Limited

www.pramericamf.com

Principal Pnb Asset Management Co. Pvt. Ltd.

www.principalindia.com

Quantum Asset Management Company Private

Limited

www.QuantumAMC.com

Reliance Capital Asset Management Ltd.

www.reliancemutual.com

Religare Asset Management Company Private

Limited
Sahara Asset Management Company Private
Limited

www.religaremf.com
www.saharamutual.com

SBI Funds Management Private Limited

www.sbimf.com

Sundaram Asset Management Company

Limited

www.sundarammutual.com

Tata Asset Management Limited

www.tatamutualfund.com

Taurus Asset Management Company Limited

www.taurusmutualfund.com

Union KBC Asset Management Company

Private Limited

www.unionkbc.com

UTI Asset Management Company Ltd

www.utimf.com

279

Appendix 7
List of Merchant Bankers
A.K. Capital Services Ltd
Abans Securities Ltd.
Ajcon Global Services Ltd.
Akasam Consulting Pvt. Ltd.
Allbank Finance Ltd.
Almondz Global Securities Ltd (Formerly Allianz Securities Ltd)
Alpen Capital India Pvt. Ltd.
Altius Finserv Pvt. Ltd. (Formerly Upvan Securities Pvt., Ltd.
Anand Rathi Advisors Limited
Andhra Bank
Antique Capital Markets Pvt. Ltd.
Arihant Capital Markets Ltd
Aryaman Financial Services Limited
Ashika Capital Ltd
Asit C. Mehta Investment Interrmediates Ltd
Atherstone Capital Markets Limited
Axis Bank Ltd.(Formerly Uti Bank Ltd.)
Bajaj Capital Ltd
Bank Of Maharashtra
Barclays Bank Plc
Barclays Securities (India) Pvt. Ltd.
Basan Financial Services Ltd.
Batlivala & Karani Securities India Pvt Ltd
Birla Capital And Financial Services Limited
Bnk Securities Pvt. Ltd.
Bnp Paribas
Bob Capital Markets Ltd
Brics Securities Ltd
Canara Bank
Centbank Financial Services Ltd.
280

Central Bank Of India

Centrum Capital Limited (Formerly Centrum Finance Ltd)
Choice Capital Advisors Pvt. Ltd.
Cil Securities Ltd
Citibank N A
Citigroup Global Markets India Pvt. Ltd.
Clsa India Ltd
Collins Stewart Inga Pvt Ltd.(Formerly Inga Advisors Pvt. Ltd.)
Comfort Securities Ltd
Corporate Professionals Capital Pvt. Ltd.
Corporate Strategic Allianz Pvt Ltd
Credit Agricole Corporate And Investment Bank (Formely Known As Calyon Bank)
Credit Suisse Securities (India) Pvt Ltd
D & A Financial Services Pvt. Ltd.
Daiwa Capital Markets India Private Limited
Dalmia Securities Pvt. Ltd.
Darashaw & Company Private Ltd (Formerly Badar Financ
Dbs Bank Ltd
Deutsche Bank
Deutsche Equities India Private Limited
Development Credit Bank Ltd.
Dolat Merchant Banking And Financial Services Pvt. Ltd.
Dsp Merrill Lynch
Edelweiss Financial Services Ltd
Elara Capital (India) Private Limited
Emkay Global Financial Services Limited (Formerly Emkay Share And Stock Brokers
Limited)
Enam Securities Pvt Ltd (Formerly Enam Financial Consultants Pvt Ltd)
Equirus Capital (P) Ltd
Ernst & Young Merchant Banking Services Pvt. Ltd.(Formerly Ind Global Corporate
Finance Pvt Ltd)
Escorts Securities Ltd
Fedex Securities Ltd

281

Fiduciary Euromax Capital Markets Pvt. Lt.D (Formerly Known As Fiduciary Shares
And Stocks Pvt. Lt.D
First Global Finance Pvt Ltd
First Overseas Capital Ltd (Lloyds Capital Management Ltd)
Firstcall India Equity Advisors Pvt. Ltd.
Firstrand Bank Ltd.
Fortress Capital Management Services Pvt Ltd
Fortune Financial Services (India) Ltd
Global Trustcapital Finance Pvt. Ltd.
Goldman Sachs(India) Securities Pvt. Ltd.
Gsfs Capital & Securities Ltd
Guiness Merchant Bankers Pvt. Ltd.
Hdfc Bank Ltd
Hem Securities Ltd.(Formerly Hem Financial Services Ltd)
Hongkong And Shanghai Banking Corporatio
Hsbc Securities And Capital Markets (India) Pvt Ltd
Hdfc Bank Ltd
Hem Securities Ltd.(Formerly Hem Financial Services Ltd)
Hongkong And Shanghai Banking Corporatio
Hsbc Securities And Capital Markets (India) Pvt Ltd
Icici Bank Ltd
Icici Securities Ltd
Icici Securities Primary Dealership Limited
Idbi Bank Ltd.(Formerly Industrial Development Bank Of India)
Idbi Capital Market Services Ltd
Idfc Capital Limited (Formely Known As Idfc-Sski Ltd.)
Idfc Limited
Ifci Financial Services Ltd
Il&Fs Capital Advisors Ltd.
Imperial Corporate Finance & Services Pvt Ltd
Indbank Merchant Banking Services Ltd
India Capital Markets Private Limited
India Infoline Ltd.(Formerly India Infoline Securities Pvt Ltd)

282

Indiabulls Securities Limited (Formerly Orbis Sec Ltd And Gpf Securities Pvt Ltd)
Indian Overseas Bank
Ing Vysya Bank Ltd. (Erstwhile The Vysya Bank Ltd.)
Integrated Enterprises (India) Ltd (Integrated Advisory Serv
Intensive Fiscal Services Pvt Ltd
Inter Corporate Financiers & Consultants Ltd.
Inventure Merchant Banker Services Pvt. Ltd.
Investec Capital Services (I) Pvt. Ltd.
Jefferies India Private Limited
Karn Merchant Bankers Ltd.
Karur Vysya Bank Ltd, The
Karvy Investor Services Ltd
Keynote Corporate Services Ltd
Khambatta Securities Limited
Kifs Securities Ltd (Formely Known As Kifs Securities Pvt. Ltd)
Kim Eng Securities India Pvt. Ltd.
Kjmc Corporate Advisors (India) Ltd (Formerly Known As Kjmc Global Markets (I)
Ltd.)
Kkr Capital Markets India Pvt. Ltd.
Kotak Mahindra Capital Company Ltd
Ladderup Corporate Advisory Pvt. Ltd.
Lazard India Private Ltd ( Lazard Credit Capital Ltd.)
Lkp Securities Ltd (Formerly Lkp Shares And Securities Ltd)
Lodha Capital Markets Ltd
Lsi Financial Services Pvt. Ltd.
Macquarie India Advisory Services Pvt Ltd
Mape Advisory Group Pvt Ltd
Master Capital Services Ltd
Mata Securities India Private Ltd
Mefcom Capital Markets Ltd
Meghraj Capital Advisors Pvt. Ltd. (Formerly Meghraj Sp Corporate Finance Pvt. Ltd.)
Mehta Integrated Finance Ltd
Microsec Capital Ltd(Formerly Microsec India Ltd)

283

Morgan Stanley India Company Pvt Ltd

Mpa Financial Services Limited
Munoth Financial Services Ltd
Networth Stock Broking Ltd.
Nexgen Financial Solutions Pvt. Ltd.
Nirbhay Capital Services Pvt Ltd
Nomura Financial Advisory And Securities (India) Pvt. Ltd.
O3 Capital Global Advisory Pvt. Ltd.(Formerly Ozone Capital Advisory Pvt. Ltd.)
Onelife Capital Advisors Pvt. Ltd.
Oriental Bank Of Commerce
Peerless Securities Ltd.
Pioneer Investcorp Ltd.
Pioneer Money Management Limited
Pl Capital Markets Pvt Ltd
Pnb Investment Services Ltd.
Pnr Securities Ltd
Prime Securities Ltd
Pug Securities Pvt. Ltd.
Puneet Advisory Services Pvt Ltd
Punjab National Bank
Quant Investment Services Pvt. Ltd.
Quintessence Enterpriese Pvt. Ltd.
R R Investors Capital Services Pvt. Ltd.(Formerly R R Financial Consultants Ltd)
Rabo India Securities Private Limited
Rbs Equities (India) Ltd.
Rbsa Capital Advisors Llp
Real Growth Securities Pvt. Ltd.
Reliance Investment Banking Services Ltd.(Formerly Reliance Securities Limited)
Religare Capital Markets Limited
Rothschild (India) Private Ltd, Formerly Rothschild (India) Private Ltd, Formerly N M
Rothschild And Sons (India) Pvt Ltd
Saffron Capital Advisors Pvt Ltd
Sal Securities Pvt. Ltd.

284

Sbi Capital Markets Ltd

Scsi Ventures Advisors Pvt. Ltd.
Sicom Ltd
Smc Capitals Limited
Smifs Capital Markets Ltd
Sobhagya Capital Options Ltd.
Spa Capital Advisors Limited
Spark Capital Advisors (India) Pvt Ltd
Srei Capital Markets Ltd
Standard Chartered Securities (India) Ltd. (Formerly Known As Standard CharteredStci Capital Markets Limited)
State Bank Of Bikaner And Jaipur
State Bank Of Hyderabad
Stellant Capital Advisory Services Pvt. Ltd.
Sumedha Fiscal Services Ltd
Syndicate Bank
Tamilnad Mercantile Bank Ltd
Tarragon Capital Advisors (India) Pvt. Ltd.
Tata Securities Limited (Formerly Tata Capital Markets Limited)
Taurus Corporate Advisory Services Ltd.
The Catholic Syrian Bank Ltd
The Dhanlakshmi Bank Limited
The Federal Bank Ltd
Tipsons Consultancy Services Pvt. Ltd.
Trust Investment Advisors Pvt Ltd
Ubs Securities India Pvt. Ltd.
Uljk Securities Pvt. Ltd.
Unicon Capital Services Pvt. Ltd.
Union Bank Of India
United Bank Of India
V.B. Desai Financial Services Ltd
Value Line Advisors Pvt Ltd.(Formerly S B & T Finance Private Ltd)
Vc Corporate Advisors Pvt. Ltd. (Formerly Eccentric Capital Pvt Ltd.)

285

Vertex Securities Ltd ( Formely Known As Transwarranty Capital Pvt Ltd)

Vijaya Bank
Violet Arch Capital Advisors Private Limited
Vivro Financial Services Pvt Ltd
Vls Securities Limited
Yes Bank Ltd.

286

Appendix 8
List of Portfolio Managers
A. K. Wealth Management Private Limited
ABN Amro Bank N.V.
Accuracap Consultancy Services Private Limited
Acumen Capital Market (India) Limited
ADA Sustainable Investment Services Private Limited
Aditya Birla Money Limited
Alankit Assignments Ltd.
Alchemy Capital Management Private Ltd
Alfaccurate Advisors Pvt. Ltd.
Allegro Capital Advisors Pvt Ltd
Almondz Global Securities Limited
Ambit Capital Private Ltd
AMJ Stock Brokers Private Limited
Anand Rathi Financial Services Ltd.
Angel Broking Ltd.
Antique Stock Broking Limited
Anvil Wealth Management Pvt Ltd
Aries Stocktrades Pvt. Ltd.
Ashika Stock Broking Limited
Ashwani Gujral Investment & Portfolio Management Pvt. Ltd.
Asit C Mehta Investment Interrmediates Ltd.
Ask Investment Managers Private Limited
Aten Portfolio Managers Private Limited
Atlas Integrated Finance Ltd
Aum Capital Market Private Limited
Auroch Investment Managers Private Limited
Avant Garde Wealth Management Pvt. Ltd.
Avendus Capital Private Limited
Avendus Pe Investment Advisors Private Limited
Axis Asset Management Company Limited
287

Axis Bank Ltd (Uti Bank Ltd.)

Axis Equities Pvt. Ltd.
Banhem Securities Pvt. Ltd.
Banyan Capital Advisors Private Limited
Banyan Tree Advisors Private Limited
Barclays Bank Plc
Barclays Securities (India) Private Limited
Bay Capital Investment Managers Private Limited
Bellwether Capital Private Limited
Benchmark Asset Management Company Private Limited
Birla Sun Life Asset Management Company Limited
Bma Wealth Creators Ltd
Bnp Paribas Asset Management India Private Limited
Bnp Paribas Investment Services India Pvt Ltd
Boi Axa Investment Managers Private Limited
Bonanza Portfolio Limited
Brics Securities Limited
Calibre Financial Services Ltd
Canara Robeco Asset Management Company Limited
Capstocks And Securities (India) Private
Care Portfolio Managers Private Limited
Cd Research (P) Ltd
Centrum Broking Limited
Centrum Broking Private Ltd
Cholamandalam Securities Limited
Chona Financial Services Private Ltd.
Concept Securities Private Limited
Consortium Securities Pvt. Ltd.
Convexity Solutions And Advisors Private Limited
Credit Suisse Securities (India) Private Limited ("Cs India")
Daiwa Asset Management (India) Private Limited
Dalal & Broacha Stock Broking Pvt. Ltd.
Dalmia Securities Pvt Ltd

288

Derivium Tradition Securities (India) Pvt. Ltd.

Destimoney India Services Private Limited
Deutche Asset Management India Private Limited
Deutsche Bank Ag
Deutsche Investments India Private Limited
Dhfl Venture Capital India Private Limited
Doha Brokerage And Financial Services Ltd
Dsp Blackrock Investment Managers Private Limited
Dsp Merrill Lynch Limited
Dutt Capital Advisors Private Limited
Dynamic Equities Private Limited
Edelweiss Asset Management Limited
Edelweiss Global Wealth Management Limited
Elite Wealth Advisors Limited
Enam Asset Management Co.Pvt.Ltd
Envision Capital Services Pvt.Ltd.
Equirus Securities Private Limited
Equity Intelligence India Pvt. Ltd.
Escorts Securities Limited
Estee Advisors Pvt Ltd.
Eureka Portfolio Management Services Pvt. Ltd.
Exclusive Securities Limited
Geojit Bnp Paribas Financial Services Limited
Gepl Capital Private Limited
Ghalla Bhansali Stock Brokers Private Limited
Globe Capital Market Ltd.
Goldmine Stocks Pvt. Ltd.
Harmoney Wealth Advisory Services India Pvt Ltd
Hdfc Asset Management Company Ltd
Hdfc Bank Ltd.
Hedge Equities Ltd
Hornic Investments Private Limited
Hsbc Asset Management (India) Pvt. Ltd.

289

Icici Prudential Asset Management Company Ltd.

Icici Securities Limited
Icici Securities Primary Dealership Ltd.
Idbi Capital Market Services Ltd
Idfc Investment Advisors Ltd.
Iifl Wealth Management Limited
Il&Fs Portfolio Management Services Limited.
Il&Fs Investment Managers Limited
Impetus Wealth Managment Pvt Ltd
India Capital Markets Pvt. Ltd.
India Infoline Ltd
Indiabulls Securities Ltd.
Indianivesh Securities Private Limited
Indiareit Fund Advisors Private Limited
Indsec Securities And Finance Ltd.
Ing Investment Management (India) Pvt Lt
Ing Vysya Bank Limited
Inventure Growth & Securities Limited
J.J. Bhabhera Share Brokers Pvt. Ltd.
Janak Merchant Securities Pvt Ltd
Jasper Financial Services Private Limited
Jeetay Investments Pvt Ltd
Jm Financial Asset Management Pvt. Ltd.
Jm Financial Services Pvt Ltd
Karma Capital Advisors Pvt. Ltd.
Karvy Stock Broking Ltd.
Kb Capital Markets Pvt. Ltd.
Keynote Capitals Limited
Khandwala Securities Ltd
Kifs Securities Pvt. Ltd.
Kisan Ratilal Choksey Shares And Securities Pvt. Ltd.
Kkr India Financial Services Private Limited
Kotak Mahindra Asset Management Company Ltd

290

Kotak Mahindra Bank Limited

Kotak Securities Ltd
Kumar Share Brokers Limited
Kunvarji Finstock Pvt. Ltd
L&T Capital Company Ltd
L&T Investment Management Limited
Laburnum Capital Advisors Private Limited
Lic Nomura Mutual Fund Asset Management Company Ltd
M/S Jhp Securities Private Limited
Majortrend Capital Pvt Ltd
Mangal Keshav Securities Limited
Marwadi Shares & Finance Ltd.
Master Portfolio Services Ltd
Mf Global Sify Securities India Private Ltd
Microsec Capital Limited
Milestone Capital Advisors Private Limited
Millennium Finance Ltd.
Miv Investment Services Pvt. Ltd.
Moneybee Securities Private Limited
Morgan Stanley India Financial Services Private Limited
Motilal Oswal Asset Management Company Limited
Multi Act-Equity Consultantancy Pvt Ltd
Munoth Financial Services Ltd
Narnolia Securities Ltd.
Neminath Portfolio Management Services Private Limited
New Horizon Wealth Management Private Limited
Nine Rivers Capital Holdings Private Limited
Nirmal Bang Securities Private Limited
Nj Advisory Services Private Limited
Novastar Fund Advisors Private Limited
Ohm Portfolio Equi Research Pvt Ltd.
Onelife Capital Advisors Pvt Ltd.
Oxus Investments Pvt Ltd

291

P N Vijay Financial Services Pvt Ltd

P.C.S Securities Limited
Pace Stock Broking Services Pvt Ltd
Parag Parikh Financial Advisory Services
Paterson Securities Limited
Peerless Securities Limited
Pioneer Wealth Management Services Limited
Pnb Gilts Ltd.
Prabhudas Lilladher Pvt. Ltd.
Pramerica Asset Managers Private Limited
Prime Broking Company (India) Ltd.
Primus Investment Advisors Private Limited
Principal Pnb Asset Management Co Pvt Ltd
Quant Capital Advisors Private Limited
Quantum Advisors Pvt.Ltd.
Quantum Securities Pvt Ltd
Quest Investment Advisors Pvt. Ltd.
R. Wadiwala Securities Private Limited
Ratnabali Capital Markets Limited
Reliance Capital Asset Management Ltd
Reliance Wealth Management Limited
Religare Asset Management Company Ltd.
Revelation Portfolio Management Pvt. Ltd.
Rgam Corporation Pvt Ltd
Right Horizons Portfolio Management Private Limited
Sai Soft Securities Ltd
Satco Securities & Financial Services Ltd.
Sbi Funds Management Pvt Ltd
Sbicap Securities Limited
Securities Investment Management Private Limited
Shah Investor'S Home Ltd
Sharekhan Limited
Shcil Services Ltd

292

Shriram Insight Share Brokers Limited

Shroff Securities Private Limited
Ski Capital Services Ltd.
Sks Capital & Research Pvt. Ltd.
Soldiers Field Investments Private Limited
Somayajulu & Co Ltd
Span Caplease Pvt. Ltd.
Spfl Securities Ltd.
Sskm Corporate Advisory Pvt. Ltd.
Standard Chartered - Stci Capital Markets Limited
Standard Chartered Bank
State Bank Of India
Stci Primary Dealer Limited
Sugal & Damani Share Brokers Ltd.
Sumedha Fiscal Services Limited
Sundaram Asset Management Company Ltd.
Sunidhi Securities & Finance Limited
Surefin Financial Consultants Pvt. Ltd
Suresh Rathi Securities Private Limited
Sushil Finance Consultants Ltd.
Sykes & Ray Equities (I) Ltd.
Systematix Shares And Stocks (India) Limited
Tata Asset Management Limited
Tata Capital Ltd.
Tata Securities Ltd.
Taurus Asset Management Co. Ltd.
Tcg Advisory Services Private Limited
The Hongkong And Shanghai Banking Corpor
Trustline Holding Pvt. Ltd.
Trustline Securities Limited
Twin Earth Securities Private Limited
Unicon Securities Private Limited
Unifi Capital Private Limited

293

Uti Asset Management Company Pvt Ltd

Value Prolific Investments & Consulting Private Limited
Valuequest Investment Advisors Pvt. Ltd.
Ventura Securities Limited
Vls Securities Limited
Way2Wealth Brokers Private Ltd.
Wealth Advisors (India) Private Limited
Wealth Management Advisory Services Ltd.
Wealth Managers (India) Private Limited
Wegmans Financial Services Ltd.
White Stone Financial Advisors Private Limited
Yes Bank Ltd.
Zen Wealth Management Services Limited

294

Appendix 9
List of Derivative Members at BSE
TM 278 ABN Amro Asia Equities (India) Ltd. Dara Kapadia Sanjay Dameja 2854363,
Ext. 366/343 2027770 83/84, 8th Floor, Sakhar Bhawan, Behind Oberoi, Nariman Point,
Mumbai TCM 754 Ajaya S.Jain Ajaya Jain Mr.Ajaya Jain 2677205/212 2677202 311,
Gundecha Chambers, Nagindas Master Road, Fort, Mumbai-23 TCM 150 Alchemy Share &
Stockbrokers Pvt.Ltd. Aswin Kedia/ Lashit Sanghvi:,Madhukar Pai: Mr. Madhukar Pai
2033565 2033575 Navsari Building, 4th floor, 240, D.N. Road, Fort, Mumbai-1 TM643
Alliance Finstock Ltd. Sandeep Bhatia Sandeep Bhatia 2672588, 26237466, 2657452/67
2623310/ 2671034 Currimjee Bldg.,3rd Flr.,111, M.G. Road, Fort, Mumbai-23 TM 91 Alpic
Securities Ltd. Vipul Dalal/ Vijay Paranjpe: Praveen Darji 2317831 to 5 2317839 63, New
Excelsior Talkies Building, 6th Floor, Wallace Street, Fort, Mumbai-1 TM 29 Amit Nalin
Securities Pvt.Ltd. Amit Dalal/ Nalin Dalal: Amitt Dlal 2650661/ 2656922 2653200 20,
Rajabahadur Mansion, 3rd Floor Hamam Street, Fort Mumbai TCM 25 Amu Shares &
Securities Ltd. Ashok Chheda/ Arvind Shah: Yatin Satra 2653410/ 2656989, 2679221
2655299 4,Crescent Chambers,Gd. Floor, Homi Modi Cross Street No. 2, Fort, Mumbai-23
TCM 30 Anand Rathi Financial Services Ltd. Sunil Sarda/Amit Rathi S.S. kakani 269033335 2610033/34 109, Podar Chambers, S.A. Brelvi Road, Fort, Mumbai TCM 28 Angel
Securities Ltd. Nilkanth Nagarkar, Lalit T Thakker Sanjeev Dhami, Deepak Mahirishi
6555560/70 6555558 Harikesh, Gr.Floor, Corner of Waterfield, 30th Road, Bandra(W),
Mumbai-50 TCM 32 Anvil Share & Stock Broking Pvt.Ltd. Anuj Seth Himanshu Gandhi
Himanshu Gandhi 2650150/ 2650154 2658423 19, Bank Street Cross lane, Fort, Mumbai 23
TM 771 Apex Stock Brokers Pvt.Ltd. Munish P.Doshi,Pravin A.Mehta Ruchir 2657318/
2657316 2335081 719,7th floor, P.J.Towers, Dalal Street, Mumbai TM 18 Ashok C.Samani
Ashok Samani Ashok Samani 2653689 2655461 1207B, 12th Floor, P J Towers,Dalal
Street,Mumbai-1 TCM 3 Asit C.Mehta Investment Interrmediates Ltd. Deena Mehta
T.S.Natrajan 2831230/ 2851155/ 2700115/6/7 2700118 67, Podar Chambers, 3rd floor, S.A.
Brelvi Road, Fort , Mumbai-1 TCM 74 Babubhai Purshottamdas Stock Brokers Pvt.Ltd.
Ashok Thakkar: Mr. Rajeev Menon, Nilesh Dhanani 2700601-603 2700601 (telefax) First
Floor, Kama Building, Dalal Street TCM 721 Bajaj Share & Stock Brokers Pvt.Ltd.
Rajkamal Bajaj Mr.Anil Desai 2656290/# 2655889/ 6290 2653599 24B, Raja Bahadur
Compound, 1st Floor, Hammam Street, Fort, Mumbai-23 TCM 164 Bakliwal Financial
Services (India) Pvt.Ltd. Rahul Bakliwal/ Vijay Pahade: Atul Manot
2619533/2700153/2700228, 2619533 108, 1st Floor, Commerce House, Nagin Das Master
Road, Fort,Mumbai. TM 56 Bang Equity Broking Pvt.Ltd. Kishore Bang / Ajay Karia Rakesh
Bhandari 2624415/16/18 2650109 38 B, Khatau Building, 2nd Floor, Alkesh Dinesh Modi
Marg, Fort, Mumbai-23 TCM 736 Batlivala & Karani Securities India Pvt.Ltd. Thanmal
Dugar: Mr.Mukarram 2672182/ 2674990/48 2691829 III rd Flr,Union Bank Bldg,Fort,
Mumbai-01 TM 58 Bhagirat Merchant Stock Broking Pvt.Ltd. B.Subodh: Jatin Shah
2621618/2621526/2661220 2621526 24B,Rajabahadur Compound, 3rd Floor, Hamam Street,
Fort, Mumbai-23 TCM 381 Bhagwandas Gordhandas Financial Pvt.Ltd. Kirit Shah Kirit
2657373/2656363/2651817 FAX:2654913 4th floor,Cama Bldg.,Dalal Street, Fort, Mumbai
400 023. TM 51 BHH Securities Pvt.Ltd. Sharad Harlalka Uday Shetty 2655729/2658650,
2693512 2650259 634, Rotunda Building, B.S. Marg, Fort, Mumbai-1. TCM 191 BLB Ltd.
C.R. Bagri/ BR Bagri B.R. Bagri/ Shailendra Singh 2654418/22 011-3274343,3272728 0113285758 4318/3, Ansari Road, Dariya Ganj, New Delhi/ 13, Rajabahadur Mansion, 32,
Ambalal Doshi Marg, Mumbai-1 TM 71 BNR Capital Services Pvt.Ltd. B.N.Rathi/ P.N.
Rathi: Srivallabh Vyas 2670029, 2675155 2618723 303,Veena Chambers, 21, Dlal Street,
295

Fort, Mumbai TM 576 BRICS Securities Ltd. Ketan Shah: Navneet Munot 2816361, 281449,
2883595 2834404, 2026723 807/808, Raheja Centre, Free Press Journal Marg, Nariman
Point, Mumbai-21 TCM 49 Brijmohan Sagarmal Capital Services Pvt.Ltd. Brijmohan
Sagarmal Vinod K. Agarwal 2650329, 2657670 2657663 412, Stock Exchange
Tower,Fort, Mumbai TCM 798 Centrum Broking Pvt.Ltd. Pashupati Advani / Sangita
Advani Mr Navin 2671533 ext:113 2624369 52,Bhupen Chambers, 9, Dalal Street, Fort,
Mumbai TCM 81 Century Consultants Ltd. Anand Krishnan Johri, Mudit Lal -2631701/702, 2631703/704 -- 22, Mumbai Mutual Chambers, 19/21 A.Doshi
Marg,
Fort, Mumbai-23 TM 209 Churiwala Securities Pvt.Ltd. Gaurishanker B
Churiwala Alok C Churiwala Pooja A Churiwala Alok C Churiwala 2670035, 2671713
2674614 304/305 COMMERCE HOUSE, N.M.Rorad, Fort,Mumbai. TM 369 Classic Share
& Stock Broking Services Ltd. Kartik K Parikh, Kaushik Shah 2652360, 2650963 2652348
P M 1, Mezzanine Floor, Rotunda Building, B S Marg, Mumbai TCM 152 CLSA India Ltd.
H Nemkumar, Shivram Ranganath Shivram Ranganath Sandeep Bhat, Rajendra Mehta,
Shivram Ranganath 2841348 2845551 8 /F Dalamal House, Nariman Point,
Mumbai
400 021 TM 497 Credit Suisse First Boston (India) Securities Ltd. Abhijit Phadnis, K R
Bharat Abhijit Phadnis, G Mohan, Ravi Kandpal, Jayashree Ramaswamy 230 6203, 230
6240, 230 6206, 230 6205 285 1949 284 6262 285 1949 285 1949 35/39, Free Press House,
215, Free Press Journal Marg, Nariman Point, Mumbai-21. TCM 162 Dalal & Broacha Stock
Broking Pvt.Ltd. Priyakant Dalal / Nailesh Dalal Mr. Krunal Damania
2876173/2822992/2851333 2870092 506-507, Maker Chamber No. V, Nariman
Point, Mumbai-21. TCM 530 Dalmia Securities Pvt.Ltd. Narain Prasad Dalmia: Anil Bhav
Singha 2624370/75, 2670010 522, P.J Towers, Dalal Street,
Mumbai-23 TM 161
Darashaw & Co.Pvt.Ltd. K. Mehta: Mrs. Mehta, Navnit Aggarwal 2655119/2654249,
2704233, 2704232 2632709 808, The stock Exchange Towers, B.S. Marg, Fort, Mumbai TM
712 Dhanki Securities Pvt.Ltd. Amar Dhanki: Mr.Jatin 2835052/ 2652562/ 2656925 2826176
R-401,Rotunda Bldg, B S Marg, Mumbai-400001 TCM 350 Dharamshi Broking Pvt.Ltd.
Kalpraj D.DharamshiI Raichand H. Dharamshi Hina K Dharamshi Atul R Thakker Hinesh
B.Lodaya 4155312 4155316 4155323 4147026 4147062 4147011, 4602289 2B,Grease
House, Zakaria Bunder Road, Sewree(W), Mumbai: 400015. TCM 6 Dimensional Securities
Pvt.Ltd. Ajit Surana Tapas Shah 2663420/2662611 2665645 7A, 3rd Floor, Mustafa
Building, Sir. P.M. Road, Fort, Mumbai TM 132 Dipan Mehta Share & Stock Brokers
Pvt.Ltd. Dipan Mehta Dipan Mehta 674277/ 2662448 2655292 Engineers Prmises, 1st Floor,
93/95, B.S. Marg, Mumbai-23. TCM 173 Dolat Capital Market Pvt.Ltd. Pankaj D Shah,
Harendra .D. Shah, Rajendra D Shah Pankaj D Shah 6390334-40 6395414 A/19, Bhagwati
House Veera Desai Road Andheri (W) Mumbai-400059 TCM 130 DSP Merrill Lynch Ltd.
Jayesh Ghiya Jayesh Ghiya 2328000, 2328484/54/70/69 2048518 Maftlal Centre, 10th Flr.,
Nariman Point, Mumbai-21 TCM 185 Emkay Global Financial Services Ltd. Prakash
Kacholia Krishna Kumar Kalwa Prakash Kacholia 4606693 to 96 4904597 Cwing 4th Floor,
Phoenix Centre, Senapati Bapat Marg, Lower Parel, Mumbai TCM 509 Enam Securities
Pvt.Ltd. ManekBhansali/ Nimish Shah:, Rajiv Vikas Mopara # 2656082/ 2655532/35
26662012A & 2B Hari Chambers, 58, Shahid Bhagat Singh Road,
Mumbai-23
TM 775 Evergreen Broking Pvt.Ltd. Vikas Mittal: Mr.Amit Sharma 8493425/26 2620638/
2700390 8402669 40,Yashoda Filmcity Road, Goregaon (E), Mumbai-63 TCM 192 Express
Securities Pvt.Ltd. Vinod Bansal: Vinod Bansal 2814980 2043239 127, Maker ChambersIII,
12th Floor, Nariman Point, Mumbai-21 TCM 725 Falcon Brokerage Pvt.Ltd. Sanil Doshi /
Nitish Vakharia (Rishu Shah) Mr Manish Natwani #2692857/58 2692860 Ballard
House, 2nd Floor, Adi Vardhman Road, Ballard Estate, Mumbai TCM 129 First Global
Stockbroking Pvt.Ltd. Mr. Hiren Shah Shankar Sharma & Devina Mehra Shankar Sharma
2652661 2652702 No.2,Crescent Chambers,4th Flr.,Tamarind Lane,Fort, Mumbai-1 TCM
296

144 Gandhi Securities & Investment Pvt.Ltd. Dhanesh Gandhi/ Rajesh Kansara/ Kjetan D.
Gandhi Rajesh Kansara/ Ketan Gandhi #2650923/2653177 2650933 66, Tamarind Lane,
Fort, Mumbai-1 TCM 328 Geojit Financial Services Ltd. Mr. A P Kurian Mr. C J George Lt
Col A V Viswanadhan Mr. Punnoose George Mr. K V Shamsudheen Mr. B Chandrasekharan
Dr. Susan Thomas Mrs. Shiny George Mr Satish Menon Mr Joseph M M Mr. Suprabhat Lala
( Cochin), Satish Menon (Mumbai) 0494 -371675, 022-6239200 6239300 0494 - 370921,
022 - 6237214 Geojit Securities Ltd 40/7997 Veekshanam Road Cochin - 682 035, "Saooli",
Ist Floor 29, J P Road, Andheri (W) Mumbai - 400 053 TM 724 Gupta Equities Pvt.Ltd.
Vivek Gupta: Gulamally Hussain 2655865/2692848 2043452 922-C, 9th Floor, P J
Towers,
Dalal Street Mumbai TM 270 H.T.Nanavati Securities Pvt.Ltd. Bina Nanavati,
Niranjan Nanavati Prashant Jhaveri 2650449/ 7087 2652885 104, Vikas, 1st Floor, 11, Justice
Vaidya Marg, Mumbai-1 TM 271 Harish Chandra Gutt & Co.Pvt.Ltd. Avinash B.Bhiday,
Gopalswamy Bhaskar Avinash Bhiday 2661331/2662790 2662327 Bank of Maharashtra
Bldg, 45/47, B.S. Marg, Fort, Mumbai - 400 023 TM 393 HDFC Securities Ltd. Girish J.
Bhagat, Mohan Natrajan SNaren 4611700 4965066 Trade World "C" wing, 1stFlr.
Kamala Mill Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400013. TM 248
Hem Securities Ltd. Dhiraj Jain /Abhay Kothari Bhavesh Anand Para 2619046/ 2666156
2625991 14-15, Khatau Bldg., 40, Bank Street, Fort, Mumbai CU 813 ICICI Limited Pankaj
Bose -- 4906868/4906883/4/4924100 2882313 Custodial Services Dept., Zenith House,
Keshavrao Khade Marg,Mahalaxmi,Mumbai - 34. TCM 103 ICICI Brokerage Services Ltd.
Meher Baburaj/ Sharadkumar Bhatia: Sameer Kazi, Praveen Kumar 2886460/6470 2882313
41/44, Minoo Desai Marg, Colaba,
Mumbai -5 TCM 84 IDBI Capital Markets Services
Ltd. VP Singh: Gopikrishna Shenoy: Gopikrishna Shenoy 2160180/1/2,2154487,9820192618
2154256 Corporate Office, IDBI Tower, 13th Floor,
WTC Complex, Cuffe
Parade, Mumbai-05 TCM 623 IDFC-SSKI Securities Ltd. Shankar Valiya Shripal
Makharia Hirendra Doshi 4982000 4982626 A206.Phoenix House, 2nd Floor, Senapati
Bapat Marg, Lower Parel,
Mumbai-13 TM 138 Ikab Securities & Investment Ltd.
Anil Bagri/ Amit Bagri: Amit Bagri 2651348, 2310571, 2310578 2655195, 2310572 2nd
Floor, Rajabahadur Compund, Bldg. No. 5, 43, Tamarind Lane, Fort, Mumbai-23 TM 766
IKM Investor Services Ltd. Rahul Malik/ Pramod Jain Dinesh Chandra Chaube 0113272088/ 3272886, 022-2883627/32 022-2883627, 011-3269720, 011-3286908 156,Great
Western Bldg.,Nagindas Master Road, Fort, Mumbai-23 or Jamna Bhawan,
A-14/3,
Asaf Ali Road, New Delhi-2 TM 125 IL&FS Investsmart Securities Ltd. Hemang H. Raja,
Vimal R Bhandari Hemang 6533047, 6533333, 6533232 6533334 6533075 IL & FS
Financial Centre,8 Flr, Plot C 22, G Block,Bandra Kurla Complex, Bandra East, Mumbai 400051 PCM 807 Infrastructure Leasing & Financial Services Ltd. Ms. Chitra
Bhaskar Mr. Sekhar Jain, Mr. Girish Palshikar 857 0982 857 0983 Plot No. 14, Raheja Vihar,
Chandivali, Andheri (E), Mumbai-72 TM 275 Inventure Growth & Securities Ltd. Pravin
Gala: J P Bohra 2674491/to 94 2705507 1012, P.J. Towers, Dalal Street, Mumbai-1 TM 202
J.G.A.Shah Share Brokers Pvt.Ltd. J.G.A. Shah/ Siddharth: Siddharth Shah 2657350/
2651846 2656058 24B, Rajabahadur Compound, 3rd Floor, Hamam Street, Fort, Mumbai-23
TM 303 J.J.Bhabhera Share Brokers Pvt.Ltd. Jitendra J. Bhabhera Kalpesh Bhabhera
2671882/ 2676473 2677563 213, Veena Chambers, 21, Dalal Street, Fort, Mumbai-23 TCM
324 J.P.Morgan India Pvt.Ltd. Sarosh Irani Mr Khozu Arsiwalla Mr Rajendra Nair 2835841,
2826533 2826588 Amerchand Mansion, 16, Madame Cama Road, Mumbai-400 001 TM 165
Jacob Ballas Securities India Pvt.Ltd. Ravi Chand/ Rajesh Ajmera: Ravi P Cahnd 0222876374/77/78, 011- 4645502-04 022-2701941,011-4604083 C/o Ravi Raj Enterprises Pvt.
Ltd., 1/7, Old Khatau Building, Cabin No 8, C-520, Defence Colony, New Delhi 24 TM 335
Jash Securities Pvt.Ltd. Prashant Kampani Richard Mascarenhas 2314118-21 2651327 22,
Rajabahadur Mansion, 2nd Floor, B.S. Marg, Fort , Mumbai-1 TM 340 JCP Shares &
297

Securities Pvt.Ltd. J C Parekh/ Dhirajlal: Mahesh Desai 2619055/ 8933, 2673580 2653253
22, Rajabahadur Mansion, 3rd Floor, B.S. Marg, Mumbai-1 TCM 295 JHP Securities
Pvt.Ltd. Pankaj J.Patel, Jayantilal Patel Prashant Patel 6113364, 6113426, 6102336 8205689
21-28 Gokul Arcade, S. N. Road, Next To Garware House, Vileparle(E), Mumbai - 400057.
3-A, 1st Floor, 32/34, Churchgate House, Veer Nariman Road, Mumbai - 400 001. TM 400
JM Financial Institutional Securities Pvt.Ltd. SamirKoticha/ Rushabh Sheth Dheeraj Singhal,
Amit Shah, Amar Rathi 4985670/2/3/4/5 4985666 Band Box House, Rear, 2nd Floor, 254/D,
Dr. Sannie Besant Rd., Worli, Mumbai-25 TCM 89 Joindre Capital Services Ltd. Anil
Mutha: Ashish 2690112-21, 2658661-5 2701062 32, Rajabahadur Mansion, Grd. Floor, B.S.
Marg, Fort TM 353 K.Jayantilal Securities Pvt.Ltd. AprvaShah/ Kiran Shah: Apurva Shah
2650294/ 261199, 2632055 2656370 7/10 Botawala Bldg., Nr. Horniman Circle, 2nd Floor,
Office No. 1, Fort Mumbai-23 TCM 352 K.M.Jain Stock Brokers Pvt.Ltd. Kalyan Mal Jain
Madhulika Jain Anand Jain Anand Jain 233-4978, 270-2295 269-1631 814, P.J. Towers
BSE, Dalal Street Mumbai - 400 023 India TCM 427 Kaji & Maulik Securities Pvt.Ltd.
Himanshu Kaji / Nalin Kaji Deepak Jassani 2654350,51 2633016 501, P.J.Towers, Dalal
Street, Fort, Mumbai-1 TCM 361 Kamal Kumar Jalan Securities Pvt.Ltd. KamalKumar Jalan
Mukesh Jain 2657540/41/2317351 to 55 2678670 404, Rotunda Building, B.S. Marg, Fort,
Mumbai TCM 391 Kantilal Chhaganlal Securities Pvt.Ltd. Jayesh Sheth: Amit Ajmera
2613700/ 2622400, 2654238,2677917-23 2651237 2 B, Fort Chambers,
2nd Floor, Hammam Street, Above Stock Exchange Post Office, Mumbai TM 354 Kantilal
Mangaldas Sec. Pvt. Ltd. SushilParikh: Sushil Parikh: 2676500/ 282 2677447 100/104, DG
Chambers, 2nd Flr, Nanik Motwani Marg, Mumbai-1 TM 343 Kaushik Shah Shares &
Securities Pvt.Ltd. KaushikShah/ Saurvin Parekh: Saurin Parekh 2874860, 2844762 2824126
28, ITTS House, Sri Sai Baba Lane, Nr. Rythem House, Fort, Mumbai-23 TCM 120
Keynote Capitals Ltd. Suraj Saraogi, Nitin Kapadia Suraj Saraogi 22817689/90/2025230
2835467 608, Dalamal House, Nariman Point, Mumbai-21 TM 599 Khambatta Securities
Ltd. Russi Khambatta / Nosir Khambatta Jatin 2664287/2659762 Fax 2654652
7/10,Horniman Circle,Botawalla Bldg.,Ground Floor, Fort, Mumbai - 400 001. TCM 385
Kisan Ratilal Choksey Shares & Securities Pvt.Ltd. Ramesh Choksey / Ashok Choksey
Yuvraj/Bhavna 8304914, 8304923 8205311 17, Lumbini Palace, 4, V S Khandakar, Vile
Parle(W), Mumbai-57 TCM 673 Kotak Securities Ltd. Manish Garg: Manish Garg
2308929/ 2027040/ 2826655 2826630 Bakhtawar, 1st Floor, 229, Nariman Point, Mumbai21 TCM 405 Latin Manharlal Securities Pvt.Ltd. Latin Shah: Hitesh Shah 2618813/ 2614497
2620986 301B, Natwar Chambers, N.M. Road, Fort, Mumbai-1 TM 401 Libord Securities
Ltd. YogeshKedia, Lalit Dangi , Nawal Agrawal Lalit Danga 2658108/09, 2679759
2659880 5/9,Beaumon Chambers, 2nd floor,Nagindas Master Road, Mumbai 400 023.& 104,
M K Bhawan, 300, Shahid Bhagat Singh Road, Fort, Mumbai-1 TM 680 Libra Holdings
Pvt.Ltd. Usha / Dushyant Sundaram: Mr. Murthy 2641870/72 FAX:2662520 5/9,Beaumon
Chambers, 2nd floor, Nagindas Master Road, Mumbai 400 023. TM 408 LKP Securities Ltd.
Contact: Mr. Janak Mehta JanakMehta 2659374/ 2663963 2694480/2624490 4th Floor, Bank
of Maharashtra Bldg., 45/47, B.S. Marg, Mumbai-23 TCM 201 Maheshwari Equity Brokers
Pvt.Ltd. G.S. Damani Nirmal Roongta 2853815, 2042514 2812252 601, Dalamal House,
Nariman Point TCM 632 Maliram Makharia Finstock Pvt.Ltd. Ashish Makhria/Narayanan
Bihani Vijay Kedia # 2093429/2093428 2013304 215, Rewa Chambers,31, New
Marine Lines, Mumbai-20 TCM 499 Malti Securities Pvt.Ltd. Sushil Choksi / Bakul
Bhagat Mr. Manoj B. Shah / Vishal Vayeda 2610727, 2611268, 2653088/90 2700678 405,
Rotunda Building TM 697 Manashvi Securities Ltd. Vidyut Shah: Mr.Ashish
2823053/ 2852866/ 2832802 2854431 106,22 Back House, Mh chamber of Comm, Mumbai01 TCM 491 Mangal Keshav Securities Ltd. Navneetlal Bhagat / Paresh Bhagat Mayank
Bhagat #2654141 2651133 35, Ambalal Doshi Marg, opp. Hamam House, Fort, Mumbai TM
298

413 Manjeetsingh H.Gandhi Mahesh Doshi Harsh Mahajan 2692841/42 2692840 18/19,
Khatau Building, 8-10, Marine street, Fort, Mumbai TM 421 Manoj Javeri Stock Broking
Pvt.Ltd. Manoj M.Javeri,Alok A.Jain Nimesh 2675557/ 5641 1117, 11th Floor, P.J.
Towers,Dalal Street, Fort, Mumbai - 400 023 TM 779 Mansukh Stock Brokers Ltd. Vivek
Aggarwal, Sanjay Gupta, Vivek Aggarwal # 0118-4513325/90, 9820162470 011-3739851
Office No. 5, 4th Floor, Fountain Chambers, 1-C, Nanabhai Lane, Fort, Mumbai-23
& House No 25 Sector 15A, Noida-201301 TCM 495 Manubhai Mangaldas Securities
Pvt.Ltd. Pranav / Kayur Bhagat: Keyur Bhagat 6358535, 6358648-51 6345834 4th Floor,
Heritage Plaza, Opp.Indian Oil Nagar, J. P. Road, Andheri (W), Mumbai-53 TCM 122 Mehta
Equities Ltd. Rakesh Mehta & Mr. Jugal Maheshwari Suraj Saraogi 22817689/90/2025230
2835467 608,Dalamal House,Nariman Point,Mumbai-21 TM 486 Merwanjee Securities Ltd.
Sandeep, Rajesh Pillai Sandeep Todi 2652551, 2826598/99, 2826488 2846070 305,
Regent Chambers, Jamnalal Bajaj Marg, Nariman Point, Mumbai-21 TM 460 Milan
Mahendra Securities Pvt.Ltd. Milan M. Shah/ Parag Shah: Hitesh Shah 2618813,2624498,
2624223 2676747 59, Bhupen Chambers, 4th Floor, 9 Dalal Street,Fort, Mumbai-1 TM 140
Millennium Equities (I) Pvt.Ltd. Kunal Dalal, Surendra Menon Savita Goel, Mr. Suresh Jaju
2659496 2659497 7/10, Botawala Building, 1st Floor, Nr.Horniman Circle, Mumbai-23 TM
423 MLR Securities Pvt.Ltd. Ml Damani, Suchita Damani, Ketan Mundra: Narottam Shah
2671487/ 2651370 2650423 4th Floor, Surya Mahal Building, Burjorjee Barucha Marg, Fort,
Mumbai TCM 446 Motilal Oswal Securities Ltd. Motilal Oswal /Panda: Jeetendra Panda
2812500 2816161 81/81, Bajaj Bhawan Nariman Point, Mumbai TM 412 MSS Securities
Pvt.Ltd. Ajit Sanghvi Ajit Sanghvi & Dhawal Khokhani 2655118, 2653268 2650397 22, Raja
Bahadur Bldg., 2nd Floor, Above George Restaurant, M.S. Marg Fort, Mumbai TCM 450
Mukesh Babu Securities Ltd. Mukesh Babu, Meena Mukesh Dinesh Chandrani & Ami
Gandhi 2834462, 2040533 2025167 111, Maker Chambers III, 223, Nariman Point, Mumbai21 TM 669 Nangalia Stock Broking Pvt.Ltd. Girdhari Nangalia ,Umakant Nangalia Jeetu
2654423/2651493 2651493 5th floor, West Wing, P.J.Towers, Dalal Street, TM 536
Natverlal & Sons Stock Brokers Pvt.Ltd. DilipDalal: Dilip Dalal 2658737/38 2658739 Fairy
Manor, 5th Floor, 13, Rustom Sidhwa Marg, Fort, Mumbai-1 TM 791 Niche Brokerage
Pvt.Ltd. Yogesh Shah: Mr.Sanjay Patil 2095380/81, 2076231-33 2003994 3/E2, Court
Chambers, 35, New Marine Lines, Mumbai-20 TCM 688 Nikko Stock Br. Pvt. Ltd. V.J.
Chowdhary: Arvind 2656770/ 2656771 2653277 Room No. 410, Rotunda Builiding, Fort,
Mumbai TCM 498 Nirmal Bang Securities Pvt.Ltd. Kishore Bhai Rakesh Bhandari
2652111, 2641234, 2702449/50 2702446 38-B/ 39, Khatau Bldg. , 2nd Floor, Alkesh Dinesh
Mody Marg, Fort, Mumbai-23 TM 458 Ohm Stock Broker Pvt.Ltd. AmolParekh/ Uday
Shah: Bhavesh Kamani 2853102/05/ 2853884 2828405 155A, Mittal Towers, Nariman Point,
Mumbai-23 TM 163 Omega Equities Pvt.Ltd. V.D. Shah, D. P. Mallabh Savita Goel, Mr.
Suresh Jaju 2659496 2659497 7/10, Botawala Building, 1st Floor, Nr.Horniman Circle,
Mumbai-23 TM 24 Oracle Securities Pvt.Ltd. ArshadWaheda/ Altaf Waheda: Dinesh
Kothari, Shakir Lakhpatwala 2672551/ 2612460 2626978 4A, Khatau Building, Alkesk
Dinesh Modi Marg, Fort, Mumbai TM 579 Padmakshi Financial Services Ltd. Chetan
Thakkar / Poorvi Chothani Ketan Thakkar #2655737 / 2656071 2164421 96/98, Maker
Tower, 9th Floor, Cuffe Parade, Mumbai TM 551 Pankaj Mangaldas Securities Pvt.Ltd.
Pankaj Mangaldas Thakkar, Atul M. Thakkar Jatin 2676119, 264 1840, 5144728 5144748
701, P. J Towers, Dalal Street, Mumbai-23 TM 559 Parag Parikh Securities Ltd.
Shirishchandra Parikh, Parag S.Parikh, Rajiv Sampat Hiten 2616631/ 2671413 2623220
103, Veena Chambers, 21, Dalal Street, Fort, Mumbai - 400 023. TM 734 PAS Securities
Pvt.Ltd. Premkumar Aggarwal: Mr.Rajesh 8787635/ 2650978/ 2650195 8787642
501,Unique Tower,Near kamath club, off:S V Road, Goregaon (W),Mumbai-62 TM 449
Patani Securities Pvt.Ltd. Mukesh Patani: Kiran Kotak 2651107/ 2651979 2652338
299

11,Crescent Chambers, Tamarind lane, Next to Chhaya Restaurent, Mumbai. TM 740

Pawankumar Chaudhary Pawan Chowdhary: Pawan Chowdhary 2651922/ 2651671 Not yet
910, 9th Floor, Stock Exchange, Dalal Street Mumbai TM 567 Porecha Global Securities
Pvt.Ltd. Sudhir C. Porecha, Dinesh C. Porecha, Samir S. Porecha Mr. Samir S. Porecha, Mr.
Chetan Thacker, Mr. Manan D. Porecha 2650555, 2651119, 2651995 2703959 or 2663470
PG-14, Rotunda Building, Bombay, Stock Exchange, Ground Floor, Mumbai 400023. TCM
564 Prabhudas Lilladher Pvt.Ltd. Arun Seth/Dhiren Seth /Kajaria Vipul Shah 285150,
2825932 2871153 1011, Maker Chambers, V, Nariman Point, Mumbai-21 TM 160 Pragya
Securities Pvt.Ltd. Dipak G Cholera Kishore Patel 5106655, 5149787 5951308 230, Kailash
Plaza, Vallabh Baug Lane, Ghatkopar (East), Mumbai-77 TCM 430 Pranav Securities
Pvt.Ltd. Pranav Shah: Pranav 2651337/1331/ 0674 FAX:2650678/4624 17,B- 1/2, 2nd floor,
8 Rajabahadur Mansion, Fort, Mumbai 400 001. TM 562 PRS Shares & Finance Pvt.Ltd.
Arun Shah Hiren Gandhi 2653000 2653253 1007, Stock Exchange Towers, Dalal Street,
TCM 585 R.B.K.Share Broking Ltd. Radheshyam Khandelwal Purshottam Khandelwal
2652646 2656897 1A, Ali Chambers, 1st Floor, Meadows Estate, Fort, Mumbai-23 TM 589
R.R.Chokhani Stock Brokers Pvt.Ltd. Hitesh Chheda/ Sanat Jain: Sandesh Mullukh
2677771/2 2624520 9/16, Fort Mansion, B S Marg, Mumbai-23 TM 744 Rajen Chandrakant
Sheth Rajen Chandrakant: Mr.Khan 2650407/2651590 2657569 47, Tamarind lane, 2nd
Rajabahadur Mansion,Fort, Mumbai-23 TCM 607 Ramesh M.Damani Ramesh M Damani
Narottam Shah 2651370/2694905 2650423 4th Floor Surya Mahal Building, Burdoch Marg,
Fort, Mumbai TM 722 Ramesh S.Damani Finance Pvt.Ltd. Ramesh S Damani: Mr
Nilesh Sahoo 2654033/2652726 2655567 619, P.J. Towers, Dalal Street, Mumbai-23 TCM
141 Sanghavi Brothers Brokerage Ltd. Dhiren Sanghavi: Hiten Goti 2661060/2665460
2650785 7/10,Botawala Building, Ground Floor, Nr.Hornimon Circle, Bank Street,
Mumbai-23 TCM 21 Sarvin Capital Pvt.Ltd. Ashok Chowdhary, Purshottam Nopany
Purshottam Nopany 2651193/2632602 2884745 713, Maker Chamber 5, Nariman Point,
Mumbai-1 TM 664 Satco Securities & Financial Services Ltd. Dilip Babani/ Ram Vatnani:
Madhavan 6456677/77 6516783 1st Floor, Makhija Chambers, 196, Turner Road,
Bandra
(W), Mumbai-50 TM 534 Seema Securities Pvt.Ltd. Akhilesh Mittal,Rajesh Tiwari Hemant
Miyani 9821112917, 2704408/09 723,P J Towers, Dalal Street, Mumbai-23 TCM 668 SG
Asia Securities India Pvt.Ltd. Sujit Kadakia/ Mahendra Kewalraman: - John Mendonca
2886055 2886043/44 13th Floor, Makers Chamber IV, Nariman Point, Mumbai TM 648
Shailesh Shah Securities Pvt.Ltd. Shailesh D Shah PANKAJ D SHAH H.D.SHAH
RAJENDRA D.SHAH Pankaj D Shah 6390334-40 6395414 A/19, BHAGAWATI HOUSE
VEERA DESAI ROAD ANDHERI(W) MUMBAI - 400059 TM 748 Sharekhan Ltd. Shreyas
Morakhia/ Tarun Shah: Ms Manali 4982000 ext 428/9821129605/2653257/ 1350 4982626
A/203, Phoenix house, Phoenix Mills Compound, Sena Pati Bapat Marg, Lower Parel,
Mumbai-13 TM 769 Shreehari Shares & Stock Brokers Pvt.Ltd. Balkrishna Harlalka: Mr
Rajkumar Harlalka 2811934/2810749 2810749 58,A,Lakshmi Bhavan, 3rd floor, D Road,
Chuchgate,Opp. BCA Club, Mumbai -20 TM 454 Shri Brij Securities Pvt.Ltd. M.
Biyani,Bharat H. Biyani Biyani 2650813/ 2656768 22-2662369 14/B, Khatau
Bldg.Annexe,8, Marine Street, Mumbai-400022 TCM 135 Shriyam Broking Intermediary
Ltd. Yogendra Chaturvedi/ Viraf Katrak Viraf Katrak, Mr. R. Sunderasan 2308500 2846585
712/715, Tulsiyani Chambers, Nariman Point, Mumbai-21 TM 777 SMK Shares & Stock
Broking Pvt.Ltd. Shyamlal Khemka / Dinesh Khemka Parag 2678503/8504, 8784777-83
8784222 305-306,Unit Tower, II Gaiwadi Indl. Estate, S V Road, Near Kamat Club,
Goregaon (W), Mumbai-62 TCM 692 SSJ Finance & Securities Pvt.Ltd. Rajkumar Singhal:
Mr R K Vyas 2651360 2703067 1st Floor, Surya Mahal,5, Burjorji Baroacha Marg, Dalal
Street, Fort, Mumbai TCM 767 Standard Chartered-STCI Capital Markets Ltd. Mohan
Kumar Khanna: MrSiddarth Misra 4974990/91/93 4962582 4962581 2nd Floor, Indage
300

House, Dr. Annie Baseant Road, Mumbai TCM 709 Stewart & Mackertich Wealth
Management Ltd. Yogendra Shah/ N.U. Parekh: Mr.Srikant 2658027/2624411/
2624422 2623364 4th flr,Common Wealth Bldg,82 Nagindas Master Rd,Mumbai-01 CU
812 Stock Holding Corporation of India Ltd. Himanshu Goel: Mr. Paritosh 2855150/
2045483/4/5 9820154177 2850489(D) 2027211 Mittal Court, "B" Wing, 2nd Floor,224,
Nariman Point, Mumbai-21 TCM 291 Sunidhi Consultancy Services Pvt.Ltd. Jayesh Parekh/
Bimal: Mahesh Desai 2619055/ 8933, 2673580, 2624356, 2332705/08 2653253 22,
Rajabahadur Mansion, 3rd Floor, B.S. Marg, Mumbai-1 TM 727 Suresh Rathi Securities
Pvt. Ltd. Suresh Rathi Lalit Mundra Sanjay Bindal V S Rathi # 2634026/ 2613625/ 2634026,
2671242 2671229 Parekh Vora Chambers N M Road, Fort Mumbai- 23 TCM 747 SVS
Securities Pvt.Ltd. Mr. Subhash V Shah Mr. Reshad B Chesson Mrs.Chhaya S Shah
Mr.Sanjay V Shah 270 54 71/72 266 49 11 266 23 84 32/B,Khatau Building, 2nd
Floor,Alkesh Dinesh Modi Marg, Fort, Mumbai - 400 023 TM 662 SVV Share & Stock
Brokers Pvt.Ltd. Sudha Vakharia: Dhawal 3440244/2655648 2656515 603A,P G Towers,
Dalal Street, Fort, Mumbai-1 TM 189 Sykes & Ray Equities (India) Ltd. Yogesh Gupta /
Anup Gupta Anup Gupta 2841811/2846020/2844647 2846021 1st Floor, Daulatram
Mansion, Kitridge Road, Colaba, Mumbai-5 TCM 604 Tata Securities Ltd. Aashish
Wakankar: Chetan Chitroda 266259, 9821052952 2650233, 2703268 Mehta House, 1st
floor , Anderson Centre, Mumbai Samachar Marg, Mumbai 400 023 TM 718 Techno Shares
& Stocks Ltd. Nikhil Mehta: Ms Swapna 2699038/2700952/53 2610041 1,Vikas Premises,G
flr,11,Bank Street,Fort, Mumbai TCM 372 Triumph Sec. Ltd. Ketan Parekh/ Dhiren:
Nimish Dedhia 2880410/11, 2826710 2880416 10, Shroff Lane, Oxford Centre, Colaba
Causway, Colaba, Mumbai-5 TM 675 U.L.J.K.Securities Pvt.Ltd. Umesh Vora: Madhvi Vora
2650207/ 2651031 2651711 703, Stock Exchange Towers, Fort, Mumbai-23 TM 170
Unique Stockbro Pvt.Ltd. Vasantrai L. Popat,Ms. Sonal P. Popat ,Ashish V. Popat Aashish
408 04 44, 408 05 55, 408 06 66 407 80 18 61/8 Chandrabala, Road No. 25C,Sion (West),
Mumbai - 400022 TM 790 V.J.Finsecurities Pvt.Ltd. Vijay Chouradia: Dinesh 2612460/
2624332/ 4335/ 4341 2626978 4A. Khatau Building, Alkesh Dinesh Modi Marg, Fort,
Mumbai TCM 464 Vijan Share & Securities Pvt.Ltd. Mohan Vijan: Mohan Vijan 2675431/
2672749/ 2677506 2672799 117,Commerce House , N.M. Road, Fountain, Mumbai-1 TCM
701 Vikabh Securities Pvt.Ltd. Bharat Biyani, Vinod Biyani Deepak Ohja 2661675, 2666000
22-2662369 14/B, Khatau Bldg.Annexe8, Marine Street, Fort , Mumbai TCM 194 Wallfort
Financial Services Ltd. Anil Jain Deepak Lahoti Ashok Bhardia Manoj Bharadia Deepak
Lahoti 2611523 2611514 2704295 2704296 205,Gundechha Chambers. Nagindas Master
Road Fort. Mumbai. TCM 753 Woodstock Securities Pvt.Ltd. Jugal: Savita Goel, Mr. Suresh
Jaju 2659496 2659497 7/10, Botawala Building, 1st Floor, Nr.Hornimon Circle, Mumbai-23

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