Page 73 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes The maximum weight of any scrip shall be capped at 20 per cent and the constituent weightage
shall be reviewed at the time of inclusion/ or exclusion of a scrip and on monthly rebalancing.
Index value on August 21, 2009 is 1901.67 and the index would be calculated and disseminated on
a real-time basis through BOLT effective August 24, 2009. However, follow-on public issues
shall not be considered for inclusion in the index and a minimum of 10 scrips shall be maintained
on the index at any given point in time, the statement added.
Specifications

Base Date May 3, 2004
Base Index Value 1000
Calculation Methodology Free float Methodology
No. of Scrips on launch date 48

BSE disseminates information on the Price-Earnings Ratio, the Price to Book Value Ratio and the
Dividend Yield Percentage on day-to-day basis of all its major indices.
The values of all BSE indices are updated on real time basis during market hours and displayed
through the BOLT system, BSE website and news wire agencies.
All BSE Indices are reviewed periodically by the BSE Index Committee. This Committee which
comprises eminent independent finance professionals frames the broad policy guidelines for
the development and maintenance of all BSE indices. The BSE Index Cell carries out the day-to-
day maintenance of all indices and conducts research on development of new indices.

Case Study SEBI seeks more details on FIIs' Structure

ROUND-TRIPPING FEARS.
New Norms

The FII has to "declare that it is not a Protected Cell Company or Segregated Portfolio
Company and doesn't have an equivalent structure," said the SEBI circular issued.
The Securities and Exchange Board of India has issued a circular on Thursday directing FIIs
to provide additional information pertaining to their structure by September 30.
This is an obvious indicator that SEBI is suspicious that the very structure of the Foreign
Institutional Investors could be misused for round-tripping, whereas earlier the regulator's
concentration was on misuse of P-note issuances by FIIs, said an expert on regulatory
matters.
The FII has to "declare that it is not a Protected Cell Company (PCC) or Segregated
Portfolio Company (SPC) and doesn't have an equivalent structure," said the SEBI circular.

FIIs have also been directed to declare that they are not a multi-class share vehicle (MCV)
by constitution and do not have an equivalent structure. (MCV by definition means the
entity has issued different classes of shares to investors which differentiate the ownership
pattern of shareholders.)
The FIIs have to declare that "it (FII investment) contains only single class share," (instead
of MCV), said SEBI.
Contd...

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