INDEX OF INDIA

Key Features About

SX40 is the flagship Index of MCX-SX. A free float based index of 40 large cap - liquid stocks representing diversified sectors of the economy. SX40 is designed to measure the economic performance with better representation of various industries and sectors based on ICB, leading global Industry Classification system from FTSE. The Index is devised to oer cost-eective support for investment and structured products such as index futures and option, index portfolio, exchange traded funds, Index funds, etc.

Superior return & risk adjusted return A unique Index of India benchmarking global best practices of index designing Better Reflection of the Organised Sector in the Economy through enhanced industry representation using ICB of FTSE Rule based, transparent & replicable Industry capping eliminates industry bias and enhances Index stability Lower churning rate Low cost for funds (MFs, ETFs) construction and maintenance Low tracking error for passive portfolio management (MFs, ETFs etc)

Objective SX40 is designed to be a performance benchmark and to provide for ecient investment and risk management instrument. It would also help in structuring passive investment vehicles. Investability Free-float weighted to bolster ecient investability. Transparency Index rules are overseen by an independent index committee comprising of leading investment industry professionals, academicians, and financial experts. The Committee also monitors constituent liquidity to ensure ecient portfolio trading while keeping index turnover to a minimum. Complete details of these guidelines, including the criteria for index additions and removals, policy statements, and research papers are freely and transparently available in public domain. These guidelines provide complete transparency and fairness. Availability Calculated and disseminated based on real time basis.

Selection Criteria
Underlying stocks must have a positive net-worth The stock must have free float of at least 10% & within top 100 liquid companies Industry capping at 20% ()2% band Fast Entry for companies with better free float market cap and liquidity Top 40 companies meeting above criteria constitute SX40
www.mcx-sx.com

INDEX OF INDIA

Performance
Index Returns (%) FY 2010-11 FY 2011-12 FY 2012-13* 2010 2013* SX40 11.7 -8.8 14.2 16.3 Nifty Sensex 11.1 -9.2 14.0 15.0 10.9 -10.5 14.3 13.5
125 120 115 110 105 100 95 90 85 Apr10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12

SX40

NIFTY

SENSEX

Constituents
ACC Ltd. Ambuja Cements Ltd. Asian Paints Ltd. Bajaj Auto Ltd. Bharat Petroleum Corp Ltd. Bharti Airtel Ltd. BHEL Cairn India Ltd. Cipla Ltd. Coal India Ltd. Dr. Reddy's Laboratories Gail (India) Ltd. HCL Technologies Ltd. HDFC Bank Ltd. HDFC Ltd. Hero Motocorp Ltd. Hindalco Industries Ltd. Hindustan Unilever Ltd. ICICI Bank Ltd. Infosys Ltd. ITC Ltd. Jaiprakash Associates Ltd. Jindal Steel & Power Ltd. Larsen & Toubro Ltd. Lupin Ltd. Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd. Ntpc Ltd. Oil and Natural Gas Corp. Power Grid Corp. Ltd. Reliance Industries Ltd. Sun Pharmaceuticals Ind. Tata Consultancy Serv Ltd. Tata Motors Ltd. Tata Power Co Ltd. Tata Steel Ltd. Titan Industries Ltd. United Spirits Ltd. Wipro Ltd. Zee Entertainment Ltd.

Industry Weights (%)* Basic Materials Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities
Index Characteristics (%)

Quick Facts SX 40 4.7 18.2 0.7 22.0 5.1 14.8 14.8 14.2 2.4 3.1 SX40 9.4 62.4 Nifty 4.6 14.7 0.0 29.4 4.9 15.5 13.1 12.7 2.1 3.1 Nifty 8.8 57.4 Sensex 5.9 17.2 0.0 26.4 4.5 12.0 14.7 14.2 2.7 2.5 Sensex 10.3 67.8

Index Universe: Large Cap companies No. of Companies: 40 Index Launch: February 11, 2013 Base Date: March 31, 2010 Base Value:10,000 Currency: Indian Rupee Index Basket Recasting: Semi-Annually Minor Share Issuance adjustment: Monthly

Weight of the largest constituent* Top 10 Holding* International Practices Parameters Minimum Free Float Liquidity Review Minor Share Issuance adjustment Free Float Change Industry Cap Industry Classification
*As on January 31, 2013

SX-40 10%

International Practices FTSE-25%, CAC 20%, S&P 500- 50%

NSE 10% Impact cost Monthly

Within Top 100 NIKKEI: Turnover as Liquidity Monthly DAX, FTSE: QTRLY, 10% and above changed else annual, Nasdaq, S&P 500 Qtrly if less than 5% TSX &various variants of other Indices STOXX/ FTSE, NASDAQ, NYSE, LSE, Kuwait SE, SGX, Taiwan SX

Semi-Annually Quarterly, Half yearly, Annual, Need Based Semi-Annually

20% ICB

No Internal

Exchange Square, Suren Road, Andheri (E), Mumbai - 400 093 Tel.: +91-22-6731 9000 Fax: +91-22-6731 9004 Email: index@mcx-sx.com

Disclaimer: All the information in the brochure, including, but not limited to, characters, data, charts and tables (hereinafter referred to as information) are properties of MCX-SX Stock Exchange Ltd. (hereinafter referred to as MCX-SX) except brands names and logos if any belonging to other persons. The contents of this documentare solely for informationalpurposes. It is not intended to be used as trading advice by anybody and should not in any way be treated as a recommendation to trade. While the information in the document has been compiled from sources believed to be reliable and in good faith, recipients and audience of this document may note that the contents thereof including text, graphics, links or other items are provided without warranties of any kind. MCX Stock Exchange Ltd.(MCX-SX) expressly disclaims any warranty as to the accuracy, correctness, reliability, timeliness, merchantability or fitness for any particular purpose and shall not be liable for any damage or loss of any kind, howsoever caused as a result (direct or indirect) of the use of the information or data contained in this document.The charts and graphs may reflect hypothetical historical performance. All information presented prior to the index inception date is back-tested. Back-tested performance is not actual performance, but is hypothetical. SX-40 and the SX40 logo are proprietary trademarks of MCX-SX.