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SEBIBULLETINDECEMBER 2015 VOL. 13 NUMBER 12

^maVr {V^y{V Ama {d{Z ~moS Securities and Exchange Board of India

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EDITORIAL COMMITTEE

Mr. Ananta Barua

Mr. J. Ranganayakulu

Mr. S. V. Murali Dhar Rao

Dr. Anil Kumar Sharma

The Securities and Exchange Board of India Bulletin is issued by the Department

of Economic and Policy Analysis, Securities and Exchange Board of India under

the direction of an Editorial Committee. SEBI is not responsible for accuracy

of data/information/interpretations and opinions expressed in the case of

signed articles/speeches as authors are responsible for their personal views.

SEBI has no objection to the material published herein being reproduced,

provided an acknowledgement of the same is made. The soft copy of

SEBI Bulletin is available free of cost to the subscribers/readers, who register

at [email protected] with their complete address. A readable version

of SEBI Bulletin is available at http://www.sebi.gov.in. Any comments and

suggestions on any of the features/sections may be sent to [email protected]

SECURITIES AND EXCHANGE BOARD OF INDIA

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Contents

Page

CAPITAL MARKET REVIEW 1113

GLOBAL MARKIET REVIEW - DECEMBER 2015 1125

HIGHLIGHTS OF DEVELOPMENTS IN INTERNATIONAL SECURITIES MARKET 1147

PRESS RELEASES 1149

1. SEBI to participate in 35th India International Trade Fair 2015, at New Delhi 1149

2. SEBI signs Memorandum of Understanding on bilateral cooperation with the 1149

Bangladesh Securities and Exchange Commission

3. SEBI Board Meeting 1150

POLICY DEVELOPMENTS 1153

A. Circulars 1153

1. Format for Voting Results 1153

2. Format for quarterly holding pattern, disclosure norms for corporate governance 1153

report and manner for compliance with two-way fungibility of Indian Depository

Receipts (IDRs)

3. Format for Business Responsibility Report (BRR) 1153

4. Streamlining the Process of Public Issue of Equity Shares and Convertibles 1154

5. Annual System Audit, Business Continuity Plan(BCP) and Disaster Recovery (DR) 1155

6. Investor Grievance Redressal System and Arbitration Mechanism 1156 7. Timelines for Compliance with various provisions of Securities Laws by 1157

Commodity Derivatives Exchanges

8. Issue of No Objection Certificate for release of 1% of issue amount 1159

9. Non-compliance with certain provisions of SEBI (Listing Obligations and 1160Disclosure Requirements) Regulations, 2015 and Standard Operating Procedure for

suspension and revocation of trading of specified securities

10. Disclosure of holding of specified securities and Holding of specified securities 1161

in dematerialized form

11. Manner of achieving minimum public shareholding 1163

12. Formats for publishing financial results 1163 13. Schemes of Arrangement by Listed Entities and (ii) Relaxation under 1165

Sub-rule (7) of rule 19 of the Securities Contracts (Regulation) Rules, 1957

REGULATORY ACTIONS TAKEN BY SEBI 1166

TABLES 1181

PUBLICATIONS 1228

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DECEMBER SEBI BULLETIN 2015

I Trends in Primary Market

A. Public and Rights Issues

During November 2015, three companies accessed theprimary market and mobilised `311 crore comparedto `7,715 crore mobilised through 10 issues inOctober 2015, showing a decrease of 96 percent fromthe previous month. There were two public issues andone Rights issues during the month. Among the publicissues, IPOs garnered `one crore.During 2015-16 so far, 63 companies have accessed

CAPITAL MARKET REVIEW

the capital market and raised `22,492 crore comparedto `10,784 crore raised through 59 issues during thecorresponding period of 2014-15 (Exhibit 1). Therewere 54 public issues which raised `13,862 crore andnine rights issues which raised `8,631 crore duringApr-Nov 2015. Among the public issues, there were44 IPOs and ten public debt issues.

Exhibit 1: Primary Market Trends (Public & Rights Issues)

Items

Nov-15 Oct-15 2015-16$ 2014-15$

No. of

Issues

Amount

(` crore)

No. of

Issues

Amount

(` crore)

No. of

Issues

Amount

(` crore)

No. of

Issues

Amount

(` crore)1 2 3 4 5 6 7 8 9

a. Public Issues 2 231 8 6,924 54 13,862 48 7,979

(i) Debt 1 230 4 2,200 10 4,232 18 6,912

(ii) Equity, of which

IPOs 1 1 4 4,724 44 9,629 30 1,067

FPOs 0 0 0 0 0 0 0 0

b. Rights Issues 1 80 2 791 9 8,631 11 2,805

Total Equity Issues a(ii)+b 2 81 6 5,515 53 18,260 41 3,872

Grand Total (a+b) 3 311 10 7,715 63 22,492 59 10,784Notes: 1. IPOs - Initial Public Offers, FPOs - Follow on Public Offers

2. Amount raised through debt issues for the last two months are provisional.

3. $ indicates as on last day of November of the respective year.

Source: SEBI

2015, `409 crore was raised through one QIP issues ascompared to nil amount raised in October 2015. Thecumulative amount mobilised through QIP allotmentsroute during 2015-16, so far, stood at `13,067 crore

(Details in Table 10).

B. Private Placement

1. QIPs Listed at BSE and NSE

QIP is an alternative mode of resource raising availablefor listed companies to raise funds from domesticmarket. In a QIP, a listed issuer issues equity shares ornon-convertible debt instruments along with warrants

and convertible securities other than warrants toQualified Institutions Buyers only. In November

2. Preferential Allotments Listed at BSE and NSE

Preferential allotment also serves as an alternativemechanism of resource mobilization wherein a listedissuer issues shares or convertible securities, to aselect group of persons. There were 29 preferentialallotments ( 4,903 crore) listed at BSE and NSE

during November 2015 as compared to 23 preferentialallotments ( 16,382 crore) in October 2015. Thecumulative amount mobilised through preferentialallotments route during 2015-16, so far, stood at`42,160 crore through 240 issues (Details in Table 11).

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3. Private Placement of Corporate Debt

Private placement mechanism dominates the resourcemobilization through corporate bonds. In November2015,`24,618 crore was raised through private placementroute in the corporate bond market and no amountwas raised through public issue route. The cumulative

amount mobilised through private placement ofcorporate debt during 2015-16, so far, stood at `3,11,269crore (Details in Table 12 and Exhibit 1A).

Further in November 2015, the total amountmobilised through public issue and private placementof debt and equity combined stood at `30,242 croreas against `68,028 crore in October 2015. In 2015-16 (Apr-Nov), `3,88,988 crore was raised through

primary market via public issues and privateplacement of debt and equity.

Exhibit 1A: Total Resources Mobilised by Corporate Sector (Amount in `crore)

Month

Equity Issues Debt Issues Total Resource

Mobilisation

(4+7)Public &

Rights

Private

Placements

Total

(2+3)Public

Private

Placements

Total

(5+6)

1 2 3 4 5 6 7 8

2014-15 9,789 57,362 67,151 9,413 4,04,136 4,13,492 4,80,643

2015-16$ 18,260 55,228 73,488 4,232 3,11,268 3,15,500 3,88,988

Apr-15 8,890 11,517 20,407 710 84,807 85,517 1,05,924

May-15 493 6,133 6,626 0 20,692 20,692 27,318

Jun-15 439 3,013 3,452 0 36,125 36,125 39,577

Jul-15 719 5,482 6,201 164 27,920 28,084 34,285

Aug-15 1,913 2,019 3,932 228 46,564 46,792 50,724

Sep-15 210 5,369 5,579 700 26,612 27,312 32,891

Oct-15 5,515 16,382 21,897 2,200 43,931 46,131 68,028

Nov-15 81 5,313 5,394 230 24,618 24,848 30,242

Notes: 1. Private placement of Equity includes, amount raised through preferential allotments, QIP and IPP mechanism,

2. Public Equity Issues includes IPO, FPO & Rights issues of common equity shares.

3. $ indicates as on last day of November 2015.

Source: SEBI

II. Resource Mobilisation by Mutual Funds

In November 2015, there was net outflow frommutual funds amounting to `31,196 crore. Whilenet outflow from private sector mutual funds was`21,041 crore, that from public sector mutual fundswas `10,155 crore. During April-November 2015, thetotal amount raised by all mutual funds was `1,84,263crore, of which, the share of private sector was 75 percent and public sector mutual funds was 25 percent.Of the total amount mobilized in 2015-16 so far, debt

funds accounted for 55.3 percent, followed growth/equity funds 36.0 percent and 7.2 percent by balancedschemes. Further, the FoF schemes and GETFs haveregistered net outflows during April-November 2015period. The cumulative net assets under managementby all mutual funds decreased by 2.2 per cent to` 12,95,131 crore as on November 30, 2015 from`13,24,165 crore as on October 31, 2015 (Details inTable 64 & 66).Trends in the Secondary Market

During November 2015, the benchmark indices,S&P BSE Sensex and CNX Nifty fell by 1.9 and 1.6percent to close at 26,145.7 and 7,935.3 respectivelyon November 30, 2015 (Figure 1). Sensex and Nifty

touched their respective intraday highs of 26,824.3 and8336.3 on November 02, 2015 and November 04, 2015respectively. Sensex touched intraday low of 25,451.4and Nifty at 7714.2 on November 16, 2015.

III. Trends in the Secondary Market

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Figure 1: Movement of Sensex and Nifty

Reflecting the downtrend in market movements,the market capitalisation of BSE and NSE fell by

0.6 percent and 0.2 percent to `98,88,227 crore and`96,75,669 crore, respectively, at the end of November2015 from `98,33,359 crore and `96,54,114 crore,

recorded at the end of October 2015. The P/E ratios ofS&P BSE Sensex and CNX Nifty were 20.6 and 21.5,

respectively at the end of November 2015 comparedto 21.4 and 22.1 a month ago (Exhibit 2).

Exhibit 2: The Basic Indicators in Cash Segment

2014-15 2015-16$ Oct-15 Nov-15Percentage change

over previous month

1 2 3 4 5 6

A. Indices

S&P BSE Sensex 27,957 26,146 26,656.8 26,145.7 -1.9

CNX Nifty 8,607 7,935 8,065.8 7,935.3 -1.6

B. Market Capitalisation BSE 1,01,49,290 98,88,227 98,33,359 98,88,227 0.6

NSE 99,30,122 96,75,669 96,54,114 96,75,669 0.2

C. Gross Turnover

BSE 8,54,845 4,95,840 58,143 50,799 -12.6

NSE 43,29,655 28,47,352 3,33,801 3,07,150 -8.0

D. P/E Ratio

S&P BSE Sensex 19.5 20.6 21.4 20.6 -3.8

CNX Nifty 22.7 21.5 22.1 21.5 -2.8

E. No. of Listed companies

BSE 5624.0 5806.0 5788.0 5806.0 0.3

NSE 1733.0 1786.0 1781.0 1786.0 0.3

$ indicates as on last day of November of the respective year.

Source: BSE, NSE

The monthly turnover of BSE (cash segment)decreased by 12.6 percent to`50,799 crore in November2015 from `58,143 crore in October 2015. Themonthly turnover of NSE (cash segment) decreasedby 8.0 percent to `3,07,150 crore in November 2015

from `3,33,801 crore in October 2015. The grossturnover at the cash market segments at BSE and NSEduring April-November 2015 was `4,95,840 crore and`28,47,352 crore respectively.

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Figure 2: Trends in Average Daily value of Sensex and BSE Turnover

There was a widespread loss in majority of sectoraland other indices during November 2015. At theend of November 2015, of the 15 indices (each atBSE and NSE), 12 recorded negative return at BSE

and 10 indices at NSE closed negative. Among BSEindices, BSE Metal index decreased the most by 8.2percent, followed by BSE Capital Goods index (6.4percent) and BSE PSU index (3.2 percent). AmongNSE indices, in November 2015, CNX Infrastructureindex decreased the most by 4.3 percent, followed by

CNX PSE Index (3.2 percent) and CNX Nifty Juniorindex (2.4 percent). During November 2015, the dailyvolatility of BSE Metal index was the highest at 2.3percent, followed by BSE Bankex index (2.0 percent)

and BSE Capital Goods index, (1.7 percent). AtNSE, among all the indices, daily volatility of CNXBank Nifty index was the highest at 1.9 percent,followed by CNX Finance (1.8 percent) and CNXInfrastructure index (1.7 percent) during November2015 (Exhibit 3).

Figure 3: Trends in Average Daily Values of Nifty and NSE Turnover

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Exhibit 3: Performance of Indices at BSE and NSE during November 2015 (Percent)

BSE NSE

IndexChange over

Previous monthVolatility Index

Change overPrevious month

Volatility

1 2 3 4 5 6BSE Sensex -1.9 0.8 CNX Nifty -1.6 0.8BSE 100 -1.4 0.7 CNX Nifty Junior -0.6 0.8BSE 200 -1.1 0.7 CNX 500 -1.0 0.7BSE 500 -0.8 0.7 CNX Mid-cap 0.1 0.8BSE Small Cap 2.8 0.8 CNX 100 -1.5 0.7BSE FMCG 0.8 0.9 CNX Defty -4.0 0.8BSE Consumer Durables 5.0 0.9 CNX IT -2.4 1.0BSE Capital Goods -2.4 1.0 Bank Nifty 0.4 1.0BSE Bankex 0.7 1.0 Nifty Mid-cap 50 3.0 1.0BSE Teck -2.8 1.0 CNX Infrastructure -2.2 0.8BSE Oil & Gas 2.9 1.2 CNX PSE 0.5 0.9BSE Metal -2.6 1.0 CNX Finance -1.3 0.9BSE Auto 4.4 0.9 CNX Pharma -12.7 1.2BSE PSU 1.5 0.8 CNX MNC -2.0 0.8BSE Healthcare -9.8 1.1 CNX Media 1.1 1.4

Source: BSE and NSE

IV. Trends in Depository Accounts

The total number of investor accounts was 142.1lakh at NSDL and 102.9 lakh at CDSL at the endof November 2015. In November 2015, the numberof investor accounts at NSDL and CDSL increasedby 0.2 percent and 0.8 percent, respectively, over

the previous month. A comparison with November2014 showed there was an increase in the number ofinvestor accounts to the extent of 4.9 percent at NSDLand 11.2 percent at CDSL (Details in Table 70).

V. Trends in Derivatives Segment

A. Equity Derivatives

India is one of the vibrant markets for exchange tradedequity derivatives in the world. The trading volumes inthe equity derivative market surpassed that of the cash

segment turnover by 12.4 times in November 2015.The monthly total turnover in equity derivative marketat NSE decreased by 1.9 percent to `43,47,054 crorein November 2015 from `44,29,629 crore in October2015 (Figure 4). The index options segment has beenthe clear leader in the product-wise turnover of thefutures and options segment in the NSE. In November

2015, the turnover in the index options category was73.6 percent of the total turnover in the F&O segmentof the NSE. During November 2015, index futures,

stock futures and stock options recorded decrease inturnover over the previous month, while index optionssegment registered increase in turnover as comparedto previous month. The open interest in value termsin equity derivative segment of NSE increased by 3.6percent to `1,81,087 crore as on November 30, 2015from `1,74,768 crore as on October 31, 2015.

Figure 4: Trends of Equity Derivatives Segment at NSE (`crore)

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The monthly total turnover in equity derivative segmentof BSE decreased by 67.3 percent to `1,05,526 crore inNovember 2015 from `3,22,277 crore in October 2015.While index options comprised 96.3 percent of BSEsequity derivative turnover, stock options constituted3.3 percent. During November 2015, index futures,

index options and stock futures recorded decrease inturnover over the previous month, while stock optionssegment registered growth in turnover as compared

to previous month. The open interest in value termsin equity derivative segment of BSE increased by 11.5percent to `272 crore as on November 30, 2015 from`244 crore as on October 31, 2015.

In November 2015, NSE had 97.6 percent share intotal equity derivatives turnover in India while BSEs

share was 2.4 percent. In terms of open interest (invalue terms), NSE had 99.85 percent share while BSEhad 0.15 percent share (Exhibit 4).

Exhibit 4: Trends in Equity Derivatives Market

Particular

NSE BSE

Nov-15 Oct-15

Percentage

Change Over

Month

Nov-15 Oct-15

Percentage

Change Over

Month

1 2 3 4 5 6 7

A. Turnover (` crore)

(i) Index Futures 2,89,439 3,35,582 -13.8 405 958 -57.7 (ii) Options on Index

Put 14,47,834 15,34,880 -5.7 22,410 2,74,380 -91.8

Call 17,49,524 16,45,579 6.3 79,201 44,410 78.3

(iii) Stock Futures 5,97,633 6,27,671 -4.8 16 52 -68.7 (iv) Options on Stock

Put 86,405 96,745 -10.7 1,650 1,061 55.5

Call 1,76,221 1,89,173 -6.8 1,843 1,416 30.1Total 43,47,054 44,29,629 -1.9 1,05,526 3,22,277 -67.3

B. No. of Contracts

(i) Index Futures 51,39,901 1,15,02,566 -55.3 7,790 22,040 -64.7

(ii) Options on Index

Put 2,52,28,432 6,61,38,404 -61.9 4,40,825 69,46,843 -93.7

Call 2,92,69,261 6,71,66,048 -56.4 14,88,080 10,51,513 41.5 (iii) Stock Futures 1,18,76,912 2,07,17,819 -42.7 332 2,638 -87.4

(iv) Options on Stock

Put 17,40,663 35,40,218 -50.8 30,652 36,781 -16.7 Call 33,15,699 64,45,041 -48.6 37,518 49,309 -23.9

Total 7,65,70,868 17,55,10,096 -56.4 20,05,197 81,09,124 -75.3

C. Open Interest in terms of Value ( `crore)

(i) Index Futures 19,452 21,475 -9.4 218 222 -1.8

(ii) Options on IndexPut 43,654 39,718 9.9 19 9 104.7

Call 47,431 46,746 1.5 19 9 107.2 (iii) Stock Futures 61,986 58,206 6.5 2 2 7.1

(iv) Options on StockPut 3,100 3,129 -0.9 9 1 1,271.9

Call 5,464 5,496 -0.6 4 0 1,234.4Total 1,81,087 1,74,768 3.6 272 244 11.5

D. Open Interest in terms of No of Contracts (i) Index Futures 3,35,105 3,65,066 -8.2 4,171 4,166 0.1 (ii) Options on Index

Put 7,41,448 6,62,522 11.9 368 174 111.5

Call 8,03,973 7,80,520 3.0 364 170 114.1

(iii) Stock Futures 12,30,246 11,51,650 6.8 43 40 7.5 (iv) Options on Stock

Put 61,430 62,544 -1.8 204 12 1,600.0

Call 1,07,460 1,10,489 -2.7 79 7 1,028.6Total 32,79,662 31,32,791 4.7 5,229 4,569 14.4

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B. VIX Futures at NSE

NSE introduced futures contracts on India VIX inFutures & Options segment of NSE w.e.f. February26, 2014. India VIX is Indias first volatility Indexwhich is a key measure of market expectations of near-term. The contract symbol is INDIAVIX and 3 weekly

futures contract were made available for trading. The

contracts shall expire on every Tuesday. The tick sizeis 0.25 and lot size is 550. During November 2015,eleven VIX futures contracts with total value of `0.9crore were traded at F&O segment of NSE (Figure 5).The open interest in INDIAVIX contracts was zero at

the end of November 2015.Figure 5: Trends in VIX futures at NSE

C. Currency Derivatives at NSE, MSEI and BSE

During November 2015, the monthly turnover ofcurrency derivatives at NSE decreased by 6.2 percent to`3,35,711 crore from `3,57,978 crore in October 2015.The turnover of currency derivatives at BSE decreasedby 3.5 percent to `1,80,138 crore in November 2015

from `1,86,708 crore in October 2015. At MSEI, themonthly turnover of currency derivatives decreasedby 13.8 percent to `19,275 crore in November 2015from `22,351 crore in October 2015 (Figure 6) (Detailsin Table 42, 43 and 44).

Figure 6: Trends of Currency Derivatives at NSE, MSEI and BSE (`crore)

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D. Interest Rate Derivatives at NSE, BSE and MSEI

During November 2015, the monthly turnover ofcurrency derivatives at NSE decreased by 6.2 percent to`3,35,711 crore from `3,57,978 crore in October 2015.The turnover of currency derivatives at BSE decreasedby 3.5 percent to `1,80,138 crore in November 2015

from `1,86,708 crore in October 2015. At MSEI, themonthly turnover of currency derivatives decreased by13.8 percent to `19,275 crore in November 2015 from`22,351 crore in October 2015 (Figure 6) (Details inTable 42, 43 and 44)

Figure 7: Trends of Interest Rate Derivatives at NSE, BSE and MSEI ( crore)

VI. Commodities Futures Markets

During November 2015, the benchmark indexMCXCOMDEX and NCDEX Dhaanya decreasedby 5.6 percent and 1.3 percent respectively to closeat 2651.4 and 2869.3 respectively on November 30,

2015 (Figure 8). MCXCOMDEX touched an intraday

high of 2821.5 on November 4, 2015 while touchingan in intraday low of 2570.5 on November 23, 2015.NCDEX Dhaanya touched an intraday high of 2958.9on November 6, 2015 and an intraday low of 2826.5

on November 24, 2015. (Details in Table 74 & 75)

Figure 8: Movement of Commodity Futures Market Indices

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MCXCOMDEX recorded a volatility of 0.8 percentduring November 2015 while NCDEX Dhaanyarecorded a volatility of 1.0 percent. The volatility and

return of commodity futures market indices is shownin the Exhibit 5 below:

Exhibit 5: Performance of Indices at MCX and NCDEX during November 2015 (Percent)

MCX NCDEX

Index Change overPrevious month

Volatility Index Change overPrevious month

Volatility

1 2 3 4 5 6

MCXCOMDEX -5.6 0.8 Dhaanya -1.3 1.0

MCX Metal -5.9 0.8

MCX Energy -7.3 1.8

MCX Agri -0.5 0.6

The total turnover in the commodities segmentat MCX was `4,01,674 crore in November 2015registering a decline of 14.3 percent from `4,68,663

crore registered in October 2015. The turnover ofBullion stood at 34.0 percent of the total turnoverwhile that of the Energy segment was at 35.1 percent.Agricultural commodities had a share of 1.7 percent inthe total turnover at MCX while the contribution ofmetals was 29.2 percent.

The total turnover at NCDEX decreased from`1,08,477 crore in October 2015 to `75,562 crore inNovember 2015 indicating a decrease of 30.3 percent.The contribution of agricultural commodities in thetotal turnover stood at 96.9 percent while that of theBullion segment stood at 3.1 percent.

The total turnover at NMCE declined from `1,817crore in October 2015 to `1,605 crore in November2015 indicating a 11.7 percent decrease. The entire

turnover at the exchange is contributed by theagricultural commodities.

The total turnover in agricultural commodities atall the three exchanges stood at `81,643 crore whilethat of the non - agricultural commodities stood at`3,97,199 crore. The total turnover of agriculturalcommodities was the highest at NCDEX ( 73,238crore) followed by MCX ( 6,800 crore) and NMCE( 1,605 crore). The total turnover of non- agriculturalcommodities was the highest at MCX ( 3,94,874crore) followed by NCDEX ( 2,325 crore).(Details in Table 78, 79 & 80)

Figure 9: Turnover of Agricultural Commodities Futures at Exchanges (`crore)

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Rajkot Commodity Exchange Ltd. recorded a turnoverof `158 crore in November 2015 as against `219 crorein October 2015, with only castor seed contracts beingtraded at the exchange. At Chamber of Commerce,

Hapur the monthly turnover was recorded at `899crore in November 2015 against `1,319 crore inOctober 2015, with only the contracts on mustardseed being currently being traded at the exchange.

VII. Trading in Corporate Debt Market

During November 2015, 1,132 trades with a tradedvalue of `14,672 crore was reported on BSE comparedto 1,784 trades with a traded value of `22,528 crorereported in October 2015.At NSE, 3,263 trades were

reported in November 2015 with a traded value of`56,900 crore compared to 4,637 trades with value of`79,015 crore in October 2015 (Figure 11) (Details inTable 13).

Figure 10: Turnover of Non- Agricultural Commodities Futures at Exchanges (`crore)

Figure 11: Trends in Reported Turnover of Corporate Bonds (` crore)

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VIII. Trends in Institutional Investment

The institutional investment was positive in Indian markets in November 2015.

A. Trends in Investment by Mutual Funds

The total net investment in the secondary market bymutual funds was `37,387 crore in November 2015

compared to `27,947 crore in October 2015. Theyinvested `6,548 crore in equity in November 2015compared to `2,935 crore in October 2015. In thedebt segment, mutual funds invested `30,839 crore inNovember 2015 as against `25,011 crore in October2015 (Figure 12). During 2015-16 (April-November),the total net investment by mutual funds was`2,79,458 crore of which `2,20,933 crore was in debt

and `58,525 crore in equity.As on November 30, 2015 there were a total of 2,191

mutual fund schemes of which income/debt orientedschemes were 1,618 (73.8 percent), growth/equityoriented schemes were 463 (21.1 percent), exchangetraded funds were 53 schemes (2.4 percent), balancedschemes were 26 (1.2 percent) and fund of fundsinvesting overseas schemes were 31 (1.4 percent).(Details in Table 67 & 68)

Figure 12: Trends in Mutual Funds Investment (`crore)

B. Trends in Investment by Foreign Portfolio Investors (FPIs)

In November 2015, FPIs recorded net outflowsamounting to `10,826 crore. There was a net outflowin equity segment of `7,074 crore while debt segmentwitnessed a net outflow of `3,752 crore (Figure 13).During 2015-16 (April-November 2015), the totalnet outflows by FPIs in the Indian stock market was`7,009 crore, comprising of a net outflow of `15,849crore in the equity segment and inflow of `8,842 crore

from the debt segment.

The assets under custody of FPIs at the end ofNovember 2015 stands at `23,08,769 crore, out ofwhich the value of offshore derivative instrumentsincluding ODIs on derivatives is `2,54,600 crore,constituting 11.0 percent of the total asset undercustody of FPIs. (Details in Table 60, 61 & 62)

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Figure 13: Trends in FPIs Investment (`crore)

Total assets under management (AUM) of portfoliomanagement services (PMS) industry has increased by1.6 percent to `9,94,588 crore in November 2015 from`9,94,588 crore in October 2015. As on November30, 2015, AUM of discretionary PMS constitute76.1 percent of the total AUM of PMS followed byadvisory PMS (18.4 percent) and non-discretionary

PMS (5.5 percent).

In terms of number of clients, discretionary servicescategory leads with total of 50,890 clients, out of56,739 clients in PMS industry, followed by non-discretionary category with 3,570 clients and advisorycategory with 2,279 clients. (Details in Table 69)

In November 2015, seven open offers with offer value

of `157 crore were made to the shareholders as against

IX. Trends in Portfolio Management Services

X. Trends in Substantial Acquisition of Shares and Takeovers

five open offers with offer value of `1,677 crore in

October 2015. (Details in Table 4)

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GLOBAL MARKET REVIEW - DECEMBER 2015

Introduction:

1.1. Global equity markets remained lacklustrein November 2015 with MSCI World Index

returning -0.7 per cent returns. Focus remainedon the prospect of a US rate rise as US dollarstrengthened further against all the majorcurrencies ahead of FOMC meeting on December16, 2015. Eurozone equities outperformed otherregions, supported by expectations that theEuropean Central Bank would announce furthermonetary policy easing in December. Emergingmarkets lagged their developed counterparts asthe stronger US dollar weighed on emergingmarket currencies. Renewed commodity price

weakness had a negative impact on severalmarkets. In fixed income markets, the divergingoutlook for monetary policy saw US sovereignyields rise while those in the eurozone declined.

1.2. The US economy expanded by 2.1 per cent(Q-o-Q) (in annualised terms) in Q3 2015compared to a growth rate of 3.9 per cent in Q2on account of downturn in private inventoryinvestment. The British economy advanced 2.3per cent year-on-year (Y-o-Y) in the third quarterof 2015, slowing down marginally from a 2.4 per

cent expansion in the second quarter of 2015.Revised data confirmed that the Japan avoided arecession in Q3 as investment was stronger thanpreviously reported. Japans real GDP grewby 1.0per cent (Q-o-Q) (in annualised terms)in Q3 as compared to 0.8per cent contractionestimated in the first estimate. Euro area realGDP increased by 1.6 per cent (Y-o-Y) in thethird quarter of 2015, following a rise of 1.5 percent in the previous quarter.

1.3. Relative to last year, growth in advanced

economies is expected to pick up slightly, whileit is projected to decline in emerging marketand developing economies. With decliningcommodity prices, depreciating emergingmarket currencies, and increasing financialmarket volatility, downside risks to the outlookhave risen, particularly for emerging marketand developing economies. Global activity isprojected to gather some pace in 2016.

United States:

The US economy expanded by 2.1per cent (Q-o-Q) (inannualised terms) in Q3 2015 compared to a growth rate of3.9per cent in Q2 2015. Consumer prices in the US increased0.5per cent (Y-o-Y) in November 2015 compared to 0.2percent in October 2015. The unemployment rate fell to 4.8percent in November 2015.

United Kingdom

The UK economy advanced 2.3per cent (Y-o-Y) in Q3 2015,slowing from a 2.4per cent expansion in Q2 2015. CPI inflationremained increased marginally to 0.1per cent (Y-o-Y) from -0.1per cent in previous month. The unemployment rate decreasedto 5.2per cent in three months to October 2015.

Japan:

The Japan economy expanded 1per cent (Y-o-Y) in Q3 2015,same as in Q2 2015. Consumer prices in the Japan were flat(Y-o-Y) in September 2015, slowing down from 0.2per cent inAugust 2015. Unemployment rate in Japan was 3.4per cent inSeptember 2015, the same as in previous month.

Euro Zone:

The Eurozone economy expanded 1.6per cent (Y-o-Y) in Q32015, slightly higher than 1.5per cent in Q2 of 2015. DuringOctober 2015, annual inflation in Euro Area increased to0.2per cent (Y-o-Y) compared to 0.1per cent in previousmonth. Unemployment rate in the EA19 decreased slightlyto 10.7per cent in October 2015 from 10.8 per cent in previousmonth.

BRIC Nations:

Real GDP of Brazil contracted further by 4.5per cent (Y-o-Y)in Q3 2015, compared to -2.6 per cent in Q2 2015. AnnualCPI inflation grew to 10.5per cent in November 2015.Unemployment increased marginally to 7.9per cent in October2015.

Real GDP of Russia contracted by 4.1per cent (Y-o-Y) in Q3 of2015. Annual CPI inflation decreased marginally to 15per centin November 2015. Unemployment rate in Russia increasedto 5.5per cent in October 2015 from 5.2per cent in previous

month. Indias real GDP grew by 7.4per cent (Y-o-Y) in Q3 of

2015(new series). IIP grew by 9.8per cent (Y-o-Y) in October2015, strongest since 2011. Consumer prices grew by 5.4percent (Y-o-Y) in November of 2015, compared to 5per cent inOctober 2015.

During Q3 2015, real GDP of China grew by 6.9per cent(Y-o-Y), slightly down from 7per cent in Q2 2015. In October2015, the annual CPI inflation increased to 1.5per cent from1.3per cent in previous month.

Snapshots

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2. Major Recent Developments Across the Globe:

2.1. Us Federal Reserve hikes interest rate first timesince 2006:

2.1.1 US Federal Open Market Committee (FOMC),in its meeting on December 16, 2015, raised therange of its benchmark interest rate (Federal

Fund Rate) by a 25 bps to between 0.25 percent and 0.50 per cent from present 0 per centto 0.25 per cent range, the first increase sinceJune 29, 2006. Equity markets in the U.S. andAsia rallied strongly as committee signalled thegradual increases in the federal funds rate. TheDow Jones industrial average gained 1.3 per centon December 16, 2015 while the bond yield onthe 10-year Treasury note rose slightly to 2.29per cent.

2.1.2 The committee in its statement said that theUS economic activity has been expanding at

a moderate pace. Household spending andbusiness fixed investment have been increasingat solid rates in recent months, and the housingsector has improved further. Federal reserveexpect GDP growth of 2.1 per cent this year,

unchanged from their September estimate.Growth in 2016 is expected to be 2.4 per cent ,slightly higher than the previous forecast of 2.3per cent .The unemployment rate is expected toremain at its current level of 5 per cent this year,and fall to 4.7 per cent in 2016. Inflation hascontinued to run below the Committees 2 percent longer-run objective. Inflation is expectedto rise to 2 per cent over the medium term asthe transitory effects of declines in energy andimport prices dissipate and the labor marketstrengthens further.

Chart 1A: US Benchmark Interest Rate (lower bound) history

Source: Bloomberg

2.2. ECB extends Quantitative Easing, cuts depositrates: - European Central Bank (ECB), onDecember 3 2015, extended the Quantitative

Easing program for another six months, tillMarch 2017, rather than originally announcedplans of ending QE in September 2016 in orderto provide more stimulus to European Economy.Earlier on January 22, 2015 ECB had announcedexpanded asset purchase programme of buyingeuro-area bonds from central governments,

agencies and European institutions worth 60billion per month for 18 months beginningMarch 2015.It further cut the bank deposit rate

to -0.3 per cent from -0.2 per cent. The markethowever reacted negatively as investors expectedfurther expansion of QE in terms of amountof bonds bought per month. Major Europeanmarkets like Germany, France, Italy fell in therange of 2-4 per cent intraday.

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2.3. Chinas Yuan enters reserve currency basket:

2.3.1 The International Monetary Fund (IMF) onNovember 30, 2015 announced its decision to addthe Chinese Yuan to its reserve currency basket,known as Special Drawing Rights (SDR). In astatement, IMF Managing Director Christine

Lagarde noted the Yuans inclusion is a clearrepresentation of the reforms taking place inChina. The continuation and deepening ofthese efforts will bring about a more robustinternational monetary and financial system,which in turn will support the growth andstability of China and the global economy. Theaddition of the Yuan, or Renminbi, will takeeffect in October 2016. It will join the Euro, Yen,Pound and Dollar in the reserves basket. The

Yuan will have about an 11 per cent weightagein the SDR.

2.4 Chinas Yuan falls to 4 and 1/2 years Low

2.4.1 On December 17, 2015, the Chinese currencyRenminbi, or the Yuan, weakened further by 0.16per cent to 6.4837 against the U.S. dollar, for the

10 the consecutive day since December 4, 2015.While recent data show the Chinese economyis stabilizing, trade is still a reason for concernafter exports fell for a fifth month in Novemberamid tepid global demand. Afters IMFs decisionof inclusion of CNY in reserve currency basketon November 30, 2015, the Chinese Yuan hasdepreciated by more than 1.3per cent againstUSD.

Chart 1B: Chinese Yuan at 4-1/2 years Low

Source: Bloomberg

2.5 Oil Falls To 7 Years Low as Supply of CrudeSwells:-

2.5.1 Oil prices extended their freefall on December11, 2015, flirting with 11-year lows, after theInternational Energy Agency (IEA) warned thatglobal oversupply of crude could worsen nextyear. Data from the U.S. Energy InformationAdministration showed crude inventories hasincreased to 4.8 million barrels. With productionaround the world remaining at or near recordhighs and new supplies looming from Iran and

the United States, the Oil is expected to remainunder pressure for quite some time.

2.5.2 On December 4, 2015, the Organization ofPetroleum Exporting Countries (OPEC) inits meeting in Vienna had decided to leaveproduction level unchanged at current actuallevel (around 31.7 million barrels per day),higher than the official target of 30 millionbarrels per day. Guided by its biggest producerSaudi Arabia, OPEC has increased output in anoversupplied market in a bid to force higher-

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cost producers to scale back their operations.Meanwhile majority of OPEC members hadrequested Saudi Arabia to cut back the OPECsoutput target level below 30 million barrels perday (mb/d). Venezuela had proposed for a 5 percent cut in the groups production, which was

rejected as Iran joined the ranks of membersrefusing to accept any curbs.

2.5.3 On December 14, 2015, Brent Oil Futures fell to

$36.33 intraday, 13 cents above the $36.20 low setin December 2008. Below that level, it would be atits lowest since July 2004, when oil was reboundingfrom single-digits lows hit during the 1998 financialcrisis. Similarly, Crude Oil also traded at 7 yearlow when near month crude oil futures traded at

NYMEX fell to $34.53 on December 14, 2015. Thehistory of Crude Oil WTI and Crude Oil Brentis given below in the chart.

Chart 1C: Crude Oil & Brent Oil at 7 years low

Source: Bloomberg

3. The World Economy:

3.1. IMF, in its October 2015 World EconomicOutlook (WEO) update, has reduced the globalgrowth projections by 0.2 percentage points forboth 2015 and 2016 to 3.1 per cent and 3.6 percent respectively. IMF has revised (upwards)its growth projections for United States by0.1 percentage points to 2.6 per cent in 2015,while reduced the U.S. growth forecast by

0.2 percentage points to 2.8 per cent in 2016.Among other major advance economies, IMF

has projected the growth in United Kingdomat 2.5 per cent, Germany at 1.5 per cent, Franceat 1.2 per cent, Canada at 1.0 per cent and inJapan at 0.6 per cent, during the year 2015. Inmajor emerging economies, during 2015, theGDP growth in India is projected at 7.3 per cent,China at 6.8 per cent, Mexico at 2.3 per cent,South Africa at 1.4 per cent, Brazil at -3.0 percent and Russia at -3.8 per cent (Exhibit 1).

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Exhibit 1: Overview of the World Economic Outlook Projections: October 2015

Year over Year Q4 over Q4

2013 2014 ProjectionsDifference from July2015 WEO Update1

Estimates Projections

2015 2016 2015 2016 2014 2015 2016World Output 2 3.4 3.4 3.1 3.6 -0.2 -0.2 3.3 3.0 3.6Advanced Economies 1.4 1.8 2.0 2.2 -0.1 -0.2 1.8 2.0 2.3

United States 2.2 2.4 2.6 2.8 0.1 -0.2 2.5 2.5 2.8Euro Area -0.4 0.8 1.5 1.6 0.0 -0.1 0.9 1.5 1.7Germany 0.2 1.6 1.5 1.6 -0.1 -0.1 1.5 1.6 1.6France 0.7 0.2 1.2 1.5 0.0 0.0 0.1 1.5 1.5Italy 1.7 0.4 0.8 1.3 0.1 0.1 -0.4 1.2 1.5Spain 1.2 1.4 3.1 2.5 0.0 0.0 2.0 3.2 2.2Japan 1.6 -0.1 0.6 1.0 -0.2 -0.2 -0.8 1.3 1.3United Kingdom 1.7 2.9 2.5 2.2 0.1 0.0 3.4 2.2 2.2Canada 2.0 2.4 1.0 1.7 -0.5 -0.4 2.5 0.5 2.0Other Advanced Economies 2 2.2 2.8 2.3 2.7 -0.4 -0.4 2.6 2.5 2.6Emerging Market andDeveloping Economies

5.0 4.6 4.0 4.5 -0.2 -0.2 4.7 4.0 4.8

Emerging and Developing Asia 7.0 6.8 6.5 6.4 -0.1 0.0 6.8 6.4 6.4ASEAN-5 4 5.1 4.6 4.6 4.9 -0.1 -0.2 4.8 4.4 5.2

Emerging and Developing Europe 2.9 2.8 3.0 3.0 0.1 0.1 2.6 3.2 4.2BRICS NationsBrazil 2.7 0.1 -3.0 -1.0 -1.5 -1.7 0.2 -4.4 1.3Russia 1.3 0.6 -3.8 -0.6 -0.4 -0.8 0.3 -4.6 0.0India 3 6.9 7.3 7.3 7.5 -0.2 0.0 7.6 7.3 7.5China 7.7 7.4 6.8 6.3 0.0 0.0 7.1 6.7 6.3South Africa 2.2 1.5 1.4 1.3 -0.6 -0.8 1.3 0.7 1.7

Note: Real effective exchange rates are assumed to remain constant at the levels prevailing during July 27August 24, 2015. Economies arelisted on the basis of economic size. The aggregated quarterly data are seasonally adjusted. Data for Lithuania are included in the euroarea aggregates but were excluded in the April 2015 World Economic Outlook (WEO).

1. Difference based on rounded figures for both the current, July 2015 WEO Update, and April 2015 World Economic Outlookforecasts.

2. Excludes the G7 (Canada, France, Germany, Italy, Japan, United Kingdom, United States) and euro area countries.

3. For India, data and forecasts are presented on a fiscal year basis and GDP from 2011 onward is based on GDP at market priceswith FY2011/12 as a base year.

4. Indonesia, Malaysia, Philippines, Thailand, Vietnam

Source: IMF

Exhibit 2: Major Macroeconomic Indicators

Country / RegionQuarterly Growth Real GDP Annual CPI

InflationUnemployment

RateBenchmark

Interest RateYOY QOQ

Developed

Countries

United States 2.2 Q3 2.1* Q3 0.5 Nov-15 4.8 Nov-15 0.25United Kingdom 2.3 Q3 0.5 Q3 0.1 Nov-15 5.4 Sep-15 0.50Germany 1.7 Q3 0.3 Q3 0.4 Nov-15 4.5 Oct-15 0.05France 1.2 Q3 0.3 Q3 0.0 Nov-15 10.5 Oct-15 0.05Eurozone 1.6 Q3 0.3 Q3 0.2 Nov-15 10.7 Oct-15 0.05Japan 1.6 Q3 0.3 Q3 0.3 Oct-15 3.1 Oct-15 0.08

Hong Kong 2.3 Q3 0.9 Q3 2.4 Oct-15 3.3 Sep-15 0.50

BRIC

Brazil -4.5 Q3 -1.7 Q3 10.5 Nov-15 7.9 Oct-15 14.25Russia -4.1 Q3 -0.6 Q3 15.0 Nov-15 5.5 Oct-15 11.00India 7.4 Q3 NA NA 6.3 Oct-15 NA NA 6.75China 6.9 Q3 NA NA 1.5 Nov-15 4.1 Sep-15 4.35

Other

Ems South Korea 2.7 Q3 1.3 Q3 1.0 Nov-15 3.1 Nov-15 1.50

Indonesia 4.7 Q3 3.2 Q3 4.9 Nov-15 6.2 Aug-15 7.50Turkey 4.0 Q2 1.3 Q2 8.1 Nov-15 10.3 Sep-15 7.50

Note: (Q3) represents third quarter of 2015. (*) represents figure in annualised terms.

Source:Bloomberg

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Chart 1: Year-on-Year real GDP growth rates of major countries/ region (per cent)

Source: Bloomberg

Chart 2: Year-on-Year Consumer Price Inflation (per cent)

Source: Bloomberg

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highlighted by a further decrease in average inputcosts and an associated reduction in factory gate

selling prices, Annual CPI inflation remained innegative territory by 0.1 per cent, on account ofongoing reductions in global commodity prices. Theunemployment rate reaches 7 years low of 5.3 per

cent in September 2015.

Japan:

3.11. Real GDP of Japan was revised upwards to apositive growth rate, which allowed Japanseconomy to avoid what was believed to be atechnical recession as of the first preliminaryestimate. Japans real GDP grew at an annualizedrate of 1.0per cent (Q-o-Q) in Q3 2015, revisedupward from 0.8 per cent contraction as per firstestimate for Q3 of 2015, compared to contraction

of 0.5per cent in Q2 2015. The bright spot was theupward revision to private capital investment,which was originally reported to have declined5per cent but grew 2.3per cent as of the secondpreliminary estimate. GDP of world third largesteconomy rose by 1.6per cent (Y-o-Y) during Q3of 2015 compared to 1per cent (Y-o-Y) duringQ2 of 2015 .

3.12. During November 2015, growth in manufacturingsector hit one-year high on account of increasein employment and buying activity. Seasonallyadjusted Markit Japan Manufacturing PMI

grew to 52.6 in November 2015 from 52.4 inprevious month, indicating improvement inmanufacturing sector business activity (PMIabove 50 mark indicates an expansion in businessactivity). New export orders also picked up tothe fastest since June 2015, supported by stronginternational demand. Both buying activity andemployment showed a solid growth. Inflationarypressures strengthened in November as reportsof higher raw material costs stemming from thefalling yen/dollar rate continued to drive upcost burdens. However, service sector businessactivity slowed down during November 2015.Markit Japanese Services PMI fell to 51.6 inNovember 2015 from 52.2 in previous month.

3.13. According to the estimates by Statistics Bureauand the Director-General for Policy Planning ofJapan, Consumer prices in Japan rose by 0.3 percent (Y-o-Y) in October of 2015, after showingno growth in the previous month. It was the

highest figure in four months, as food cost rosefurther while prices of fuel dropped at a slowerpace.

3.14. In its Monetary Policy meeting held on October30, 2015, Bank of Japan kept its pledge toconduct money market operations so that the

monetary base will increase at an annual paceof around 80 trillion yen. Policymakers alsodecided to purchase exchange-traded funds(ETFs) and Japan real estate investment trusts(J-REITs) so that their amounts outstanding willincrease at an annual paces of about 3 trillionyen and about 90 billion yen respectively. Asfor Commercial Paper and corporate bonds, theBank will maintain their amounts outstanding atabout 2.2 trillion yen and about 3.2 trillion yenrespectively. The unemployment rate in Japanremained fell to 3.1 per cent in November 2015

compared to previous month.3.15. Observations:The GDP in Japan advanced 0.3 per

cent on quarter in the three months to Septemberof 2015, compared to an initial estimate of a 0.2

per cent contraction. Capital expenditure increasedwhile inventories shrank less than expected, final

figures showed. On an annualized basis, theeconomy advanced 1 per cent, compared to aninitial 0.8 per cent contraction and well abovemarket expectations of a 0.1 per cent increase. CPIinflation and Interest rate were 0 per cent while

unemployment rate remained stable at 3.1 per centduring November 2015.

Euro Area (EA19):

3.16. The Eurozone or the Euro area is a monetaryunion of 19 of the 28 European Union (EU)member states which have adopted the euro astheir common currency. The Eurozone consistsof Austria, Belgium, Cyprus, Estonia, Finland,France, Germany, Greece, Ireland, Italy, Latvia,Lithuania, Luxembourg, Malta, Netherlands,

Portugal, Slovakia, Slovenia, and Spain.3.17. The Gross Domestic Product (GDP) in the EuroArea expanded 1.60 per cent (Y-o-Y) in the thirdquarter of 2015 over the same quarter of theprevious year, slightly higher than 1.5 per cent inthe previous period but below market forecasts.The real GDP of Germany and France grew by1.7 per cent and 1.2 per cent (Y-o-Y) respectivelyduring Q3 of 2015.

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3.18. Euro Area manufacturing and services sectorcontinued to expand further during November2015. Markit Euro Area Manufacturing PMIincreased to 52.8, strongest in 19 months, inNovember 2015, compared to 52.3 in previousmonth. Further, Markit Euro Area Services PMI

increased to 54.2 in November 2015 from 54.1 inOctober 2015.

3.19. As per the estimate released by Eurostat, annualinflation in Euro Area remained unchanged at0.1 per cent in November 2015. The inflationrate has been below the ECBs 2 per cent targetsince January of 2013. The highest annual rateswere recorded in Belgium (+1.4 per cent), Malta(+1.3 per cent) and Sweden (+0.8 per cent). Bycontrast, the lowest annual rates were registeredin Cyprus (-1.5 per cent), Bulgaria, Romaniaand Slovenia (all -0.9 per cent). Compared withOctober 2015, annual inflation rose in fifteenMember States, remained stable in two and fellin ten.

3.20. The seasonally-adjusted unemployment rate inthe Eurozone decreased slightly to 10.7 per centin October 2015 compared with 10.8 per cent inprevious month and from 11.5 per cent reportedin November of 2014. Among Member States,the lowest unemployment rates in October wererecorded in Germany (4.5 per cent), the CzechRepublic (4.7 per cent)) and Malta (5.1 per cent),

and the highest in Greece (24.6 per cent in August2015) and Spain (21.6 per cent).

3.21. Observations: Euro Area economy continues togrow at a moderate pace as economy stabilises afterstrong recovery since Q4 of 2013. In its latest policymeeting, ECBs President Mario Draghi in theirefforts to provide more monetary stimulus extendedits 60bn asset purchase program further by sixmore month. The flat inflation rate , however,remains the concerns for the policy makers. Theunemployment rate is decreasing consistently over

past 12 months while both manufacturing andservices PMI shows stable growth outlook.

Brazil:

3.22. The Brazilian economy shrank 4.5 per cent(Y-o-Y) in Q3 of 2015, sixth consecutivecontraction and the worst since 1996 ascompared to contraction of 3 per cent (Y-o-Y)in Q2 of 2015. During Q3 of 2015, The GDP of

Brazil contracted by 1.7 per cent (Q-o-Q) in thethird quarter of 2015 as compared to 2.1 per cent(Q-o-Q) contraction in Q2 of 2015. Agriculturesector contracted by 2 per cent while servicessector output fell by 2.9 per cent during Q3of 2015 (Y-o-Y). Further, industrial sector and

manufacturing sector contracted by 6.7 per centand 11.3 per cent respectively during Q3 of 2015(Y-o-Y).

3.23. Brazils annual inflation rate (IPCA) increasedfrom 9.93 per cent in October 2015 to 10.48 percent in November 2015, the biggest rise sinceNovember of 2003 when the inflation hit 11.02per cent. The country is struggling with highinflation since mid-2014 after the governmentimposed several tax increases aiming at balancingoverall budget while its currency Brazilian Realfell around 46 per cent against the USD in the

first 11 months of the year. Brazils inflationis way above the official target of 4.5 per cent.Evaluating the macroeconomic outlook andperspectives for inflation, Brazils Central Bank,in its November 2015 meeting, has kept thebenchmark Selic rate unchanged at 14.25 percent, the highest in nine years, as policymakersstruggle to curb rising inflation amid economiccontraction. Brazils unemployment rateincreased to 7.9 per cent in October 2015 from7.6 per cent in September 2015.

China:

324. The worlds second largest economy expandedby 6.9 per cent (Y-o-Y) in the July-Septemberquarter, slowing from a 7 per cent increasein the previous quarter, according to ChinasNational Bureau of Statistics. As per WorldBank estimates, the growth in China is expectedto increase to 7.1 per cent in 2016 and to 6.9per cent by 2017. The International MonetaryFund (IMF) has revised growth forecast forChina to 6.8 per cent in 2015 and 6.3 per cent in2016. The Caixin China General manufacturingPurchasing Manager Index (PMI) increased to48.6 in November 2015 after reaching 48 monthslow of 47 in September 2015. While the readingwas the highest since April, it remained below50 for the ninth straight month. The CaixinPurchasing Managers Index for services droppedto 51.2 in November 2015 from 52 in October2015.

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3.25. Chinas activity data was stronger than expectedin November 2015, with factory output growthpicking up to a five-month high, signalling thesteady growth in the Chinese Economy. TheFactory output grew an annual 6.2 per centin November, compared to 5.6 per cent in

October 2015 while retail sales grew at 11.2 percent compared to 11 per cent in October 2015.Fixed assets investment , one of the key driverof economic growth, grew at 10.2 per cent in thefirst 11 month of 2015.

3.26. As regards price situation, the annual ConsumerPrice Inflation in China marginally decreased to1.5 per cent in November 2015 from 1.6 per centin October 2015.The food prices went up by 2.3per cent, while the non-food prices increased 1.1per cent. On a monthly basis, consumer pricesremained unchanged, following a 0.3 per cent

drop in October 2015.

Russia:

3.27. Quarterly real GDP of Russia contracted by 4.1per cent (Y-o-Y) during third quarter of 2015following 4.6 per cent drop in previous period.In 2014, the Russian economy grew at 0.6 percent. According to World Bank estimates,Russian GDP will fall to 2.7 per cent in 2015,before reaching 0.7 per cent in 2016, and 2.5 percent in 2017.

3.28. The Central Bank of Russia said in its Guidelinesfor the Single State Monetary Policy for 2016-2018 that if oil prices continue to stay below $40per barrel, the GDP could fall by 5 per cent ormore in 2016 while inflation would stay within7 to 9 per cent.

3.29. As regards price situation, the annual CPIinflation rate decreased from 15.6 per cent inOctober 2015 to 15 per cent in November2015. On a monthly basis, inflation went up to0.8 per cent, from 0.7 per cent in the previous

month. The Bank of Russia has set a target ofreducing the inflation to 4 per cent in 2017. TheCentral Bank of Russia has kept its key one-week

repo rate on hold at 11 per cent in December2015, recognizing growing inflation riskswhile the risks of economic cooling remained.However, policymakers signalled rate cuts inthe next meetings, if inflation slows down inline with forecasts and on condition inflation

risks recede. In December 2014, the Russiancentral bank had increased the interest rate torecord 17 per cent to stem the falling currency.The unemployment rate in Russia unexpectedlyincreased to 5.5 per cent in October 2015 from5.2 per cent in September 2015.

4. Review of Global Financial Markets:

4.1. During November 2015, Global equities showedmixed returns as the focus remained on theprospect of a US rate rise. Emerging marketslagged their developed counterparts as thestronger US dollar weighed on emerging marketcurrencies. Eurozone equities outperformedother regions because of the expectations that theEuropean Central Bank would announce furthermonetary policy easing in coming months.

Stock Market:

4.2. US stocks recorded modest gains duringNovember 2015. Stocks of Germany postedgains as the unemployment figures fell to itslowest level. Japanese stocks advanced as thetwo important indicators industrial output andretail sales grew in the month of November.Russian stocks rallied as oil prices stabilizedand the economy showed signs of recovery.Indian stocks shed during the concerned period.Mexican stocks also declined slightly. Brazilianand Mexican stocks fell for the period underreview.

4.3. MSCI World Index, which is a leading indicatorfor tracking the overall performance of stockmarkets in developed markets witnessed a

decrease of -0.67 per cent. Further, the MSCIEmerging Market Index also registered a fall of-3.96 per cent during November 2015. (Chart 3).

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Chart 3: Movement in MSCI World and Emerging Market Index

Source: Bloomberg

Bond Market:

4.4. The Merrill Lynch Eurozone Government bondindex >5 years posted a gain of 0.53 per cent inNovember 2015, bringing the return for the yearto date to +3.65 per cent. Bond markets ralliedthrough the month as market expectations grewabout further monetary easing by the ECB. 10year government bond yield of Germany, Spainand UK declined by 8.5 per cent, 9 per cent and5 per cent respectively in November 2015.

4.5. 10 year government bond yields of US rose by 3per cent to 2.2 per cent at the end of November2015.

4.6. Among emerging market economies, bond yieldof 10 year government bond of Brazil, Russia,China and India fell modest by 2 per cent, 1.1 percent, 1.9 per cent and 1.4 per cent, respectively toclose at 16.1 per cent, 10.3 per cent, 7.8 per centand 3.1 per cent, respectively.

Chart 4: Movement in 10 year bond yield of major countries

Source: Bloomberg

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Currency Market:

4.7. In November 2015, US Dollar strengthenedfurther against the major currencies as the U.S.economy showed signs of sustaining recovery andpartly also because of expectation of impendinginterest rate hike by US federal reserve.

4.8. Major emerging markets and developed marketscurrency depreciated during November 2015.Russian Ruble, Brazilian Real, Chinese Yuan andIndian Rupee depreciated by 3.9 per cent, 0.3 percent, 1.3 per cent and 2.1 per cent, respectivelyagainst USD. GBP, Euro and Yen depreciatedby 2.5 per cent, 4.2 per cent and 2.1 per cent,respectively against USD in November 2015 ascompared to the previous month.

4.9. Since the beginning of January 2013 till November2015, Brazilian Real and Russian Ruble havedepreciated significantly by 89 per cent and 117per cent, respectively against USD. During thesame period, Indian Rupees & Japanese Yen

depreciated by 22 per cent and 42 per cent,respectively against USD. Euro depreciated by25 per cent against USD while British Pounddepreciated marginally by 7 per cent againstUSD. In spite of recent devaluation, ChineseYuan depreciated just by 2.5 per cent againstUSD compared to beginning of the January 2013.(Exchange rate represents the closing price of theinterbank foreign currency trade).

Chart 5: Movement of major currencies against US Dollar ($)

Source: Bloomberg

Trend in Market Indices:

4.10. Major stock indices all over the world exhibitedmixed trends during November 2015. Amongstthe developed markets Dax of Germany, Nikkei225 of Japan and CAC 40 of France continuedto grow for the second consecutive month by(4.90 per cent), (3.48 per cent) and (1.22 percent) respectively. On the contrary, a fall wasregistered by Straits Times of Singapore (-4.75per cent)followed by Hang Seng of Hong Kong(-2.84 per cent) and All Ordinaries of Australia(-1.33 per cent) during the period under review.

4.11. As regards the emerging market indices,

Budapest Stock Exchange of Hungary witnessedan increase of 10.26 per cent followed byShanghai SE Composite IX of China (1.86 percent ) and Russian Traded of Russia (0.55 percent ) during the period under consideration. Onthe contrary, the fall in indices was witnessed byHermes of Egypt by -17.89 per cent followed byIGBC General of Colombia (-8.19 per cent) andKarachi 30 of Pakistan (-7.15 per cent) duringNovember 2015.

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Chart 6: Trend in Major Developed Market Indices

Source: Bloomberg

Chart 7: Trend in Market Indices of BRIC Nations

Source: Bloomberg

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Market Capitalisation:

4.12. Market capitalisation of major countries in theworld, at the end of November 2015, is givenin table A6 and is illustrated in Chart 8. Therewas a mix trend in market capitalisation of thedeveloped and developing markets. Market

capitalisation of Japan, USA, Germany andChina amongst others recovered smartly toregister a gain after registering the fall in theinitial couple of weeks.

4.13. Among major developed markets, the marketcapitalisation of Japan rose highest by 2.7 percent, followed by Germany (0.4 per cent) andUSA (0.1 per cent) during November 2015.On the contrary, the market capitalisation ofSingapore, UK, France and Hong Kong declinedby 5.3 per cent, 2.9 per cent, 2.4 per cent and 2.3

per cent respectively. NYSE Euronext (US) andLondon Stock Exchange (UK) market cap stoodat USD 24.06 Trillion & USD 3.48 Trillionrespectively at the end of November 2015.

4.14. As regards the major emerging markets, market

capitalisation of China rose highest by 8.6 per centfollowed by Argentina (6 per cent), Hungary (4.6per cent) and Malaysia (1.6 per cent) respectivelywhile that of Colombia, South Africa, Egyptand Chile declined by 13 per cent, 11.8 percent, 6.5 per cent and 6.3 per cent respectively.Market Capitalisation of Chinas Shanghai StockExchange increased by 8.6 per cent to USD 6.6Trillion, while that of Indias NSE declined by1.2 per cent to USD 1.49 Trillion, at the end ofNovember 2015.

Chart 8: Trend in Market Capitalisation of Major Exchanges (US$ Trillion)

Source: Bloomberg

Derivative Market:

4.15. Among the major stock exchanges covered inthe review (Table A4 & A5), during November2015, the monthly notional turnover of index

futures in CME Group was at USD 3,757 billionfollowed by EUREX (USD 1,483 billion) andOsaka Stock Exchange (USD 671 billion). KoreaExchange of South Korea recorded the monthlyturnover of USD 3,206 billion in stock futuresfollowed by CME Group (USD 1,386 billion)and Eurex (USD 1,040 billion).

4.16. In the case of Stock Index Options, KoreaExchange of South Korea recorded highest

volume (30 billion contracts) in terms ofmonthly contracts traded on the major worldexchanges followed by Chicago Board Options

Exchange (CBOE) (29 billion contracts), Eurex (24.9 billion contracts) and TAIFEX (18.9 billioncontracts) in November 2015. In case of StockOptions, NYSE Liffe (US) witnessed the highestvolume of 41.7 billion contracts traded followedby BM&FBOVESPA (40.7 billion contracts),Chicago Board Options Exchange (31 billioncontracts) and International Securities Exchange(25.4 billion contracts) in November 2015.

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Exhibit 3: Quarterly Estimates of GVA (Y-o-Y) (at 2011-12 prices)

Items2013-14(NS)

2014-15(PE)

2014-15 2015-16

Q1 Q2 Q3 Q4 Q1 Q2

1. Agriculture & allied activities 3.7 0.2 2.6 2.1 -1.1 -1.4 1.9 2.2

2. Industry

Mining & Quarrying 5.4 2.4 4.3 1.4 1.5 2.3 4.0 3.2

Manufacturing 5.3 7.1 8.4 7.9 3.6 8.4 7.2 9.3

Electricity, Gas, Water Supply& Other Utility Services 4.8 7.9 10.1 8.7 8.7 4.2 3.2 6.7

3. Services

Construction 2.5 4.8 6.5 8.7 3.1 1.4 6.9 2.6

Trade, Hotel, Transport, Communication andservices related to broadcasting

11.1 10.7 12.1 8.9 7.4 14.1 12.8 10.6

Financial, Real Estate & Professional Services 7.9 11.5 9.3 13.5 13.3 10.2 8.9 9.7

Public Administration, Defence and Other services 7.9 7.2 2.8 7.1 19.7 0.1 2.7 4.7

Gross Value Added at Basic Price 6.6 7.2 7.4 8.4 6.8 6.1 7.1 7.4GDP 6.9 7.3 6.7 8.4 6.6 7.5 7.0 7.4

Source: CSO

NS- New Series Estimates; PE- Provisional Estimates

5. Review of Indian Economy

5.1. The Ministry of Statistics and ProgrammeImplementation released quarterly estimates ofGDP for Q2 of 2015-16. As per the estimates,growth in GDP at constant prices (2011-12)during Q2 of 2015-16 increased to 7.4 per cent

as compared to 7.0 per cent in Q1 of 2015-16,owing to strong growth in manufacturing, trade,hotels, transport and communication services.Agriculture sectors growth has been estimatedat 2.2 per cent in Q2 of 2015-16 as against 1.9

per cent in Q1 of 2015-16. Manufacturing andServices sector are estimated to grow at 9.3 percent and 10.6 per cent, respectively during Q2 of2015-16.

5.2. GVA (Gross Value Added) growth was registered

at 7.4 per cent as compared to 7.1 per cent in theprevious quarter. IMF, in its World EconomicOutlook, has estimated Indias GDP growth tobe 7.3 per cent and 7.5 per cent in the years 2015and 2016, respectively.

5.3. The Nikkei Purchasing Managers Index (PMI)decreased to a twenty five month low of 50.4in November 2015 from 50.7 in October2015. It pointed towards continued, althoughweaker, marginal improvement in the healthof manufacturing sector during the month.

Similarly, Nikkei India Composite OutputIndex decreased from 52.6 in October 2015to 50.2 in November 2015, highlighting little-change in the level of private sector activity inIndia.

5.4. Indias fiscal deficit during April-October 2015

reached Rs. 4.11 trillion (USD 61.67 billion)during April-October or 74 per cent of the full-year budget target. The deficit was 89.6 per centof the full-year target during the same perioda year ago. In the Union Budget 2014-15, thegovernment kept a fiscal deficit target of 4.1 per

cent of GDP. The Union budget 2015-16 hasset Indias fiscal deficit target for the 2015-16 at3.9 per cent of GDP (Rs. 5,55,649 lakh crore)which would gradually come down to 3 percent by 2017-18, one year later than previouslyexpected.

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Index of Industrial Production

5.5. Indias General Index of Industrial Production(IIP) growth rocketed to a five year highof 9.8 per cent in October 2015 comparedwith 3.8 per cent in September 2015. Thejump has been attributed to robust growth in

consumer products and capital goods duringthe festive season. The manufacturing sector,a key indicator of economic activity, grew10.6 per cent year-on-year in October. Thegrowth in the consumer durables segmentwas a whopping 42.2 per cent in Octoberover the same month last year. While, theconsumer goods category saw a growth of 18.4per cent and consumer non-durables rose by4.7 per cent. The cumulative growth for theperiod April-October 2015 is recorded at 4.8per cent.

Inflation

5.6. Indias Consumer Price Index (CPI) Inflationincreased to a fourteen month high of 5.41 percent in the month of November 2015 from 5.0per cent in the month of October 2015. Thefood inflation rose to 6.07 per cent from 5.25 per

cent. Inflation measured by the wholesale priceindex fell 1.9 per cent in November comparedto a decline of 3.8 per cent in October. Foodinflation rose 5.2 per cent in November, pickingup from 2.4 per cent increase in October. Of this,prices of pulses, onions and vegetables showedthe biggest spike with pulse prices shooting upby 58.17 per cent in November on year, whileonion prices rose by 53 per cent and that ofvegetables 14 per cent. Reserve Bank of India didnot alter the Repo rate in its Monetary Policystatement announced on December 1, 2015.

Chart 9: Inflation as measured by WPI and CPI (in per cent)

Source: CSO, RBI, Office of Economic Advisor

Trade Exports and Imports

5.7. Indias exports remained in the negative territoryand contracted for the twelfth consecutive monthin November 2015 and dipped by around 24.43

per cent to USD 20.01 billion. Imports declined30.26 per cent to USD 29.79 billion, yieldinga trade deficit of USD 9.78 billion marginallyup from USD 9.76 billion in the previousmonth. Oil imports during November stood at

USD 6.44 billion, down 45 per cent from USD11.70 billion in the corresponding period lastyear. Non-oil imports declined 25 per cent to

USD 23.3 billion. The overall trade deficit hasnarrowed to USD 87.54 billion, cumulatively formonths leading upto November in the currentfinancial year. The corresponding figure for theprevious year was USD 102 billion.

Foreign Exchange Reserves

5.8. Since April 2015, Forex reserves have increasedconsiderably by about USD 10 billion. The

reserves were recorded at USD 351.6 billion ason November 27, 2015. (Exhibit 4)

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Exhibit 4: Foreign Exchange Reserves (USD billion)

Nov 27,

2015Oct 30,

2015Oct 2,2015

Aug 28,2015

July 31,2015

June26, 2015

May 29,2015

May 1,2015

April 3,2015

Feb 27,2015

Jan 30,2015

Total Reserves 351.6 353.6 350.8 351.9 353.5 355.2 352.4 351.9 343.1 338.1 327.9Foreign Currency Assets 327.7 330.1 327.3 328.3 329.8 330.5 327.8 327.2 318.6 312.2 303.3Gold 18.7 18.2 18.2 18.3 18.3 19.3 19.3 19.3 19.0 20.2 19.4

SDRs 3.9 4.0 4.0 4.1 4.0 4.1 4.0 4.1 4.0 4.1 4.1Reserve Position in theIMF

1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.6 1.1

Source: RBI

6. Annex Tables:

Table A1: Trend in major International Indices

Country IndexAs on

March*,2014

As onMarch *,

2015

As onOctober*,

2015

As onNovember*,

2015

1 2 3 4

Australia All Ordinaries 5402.99 5861.92 5288.56 5218.19

France CAC 40 4391.50 5033.64 4897.66 4957.60

Germany Dax 9555.91 11966.17 10850.14 11382.23

Hong Kong HSI Hang Seng 22151.06 24900.89 22640.04 21996.42

Japan NIKKEI Nikkei 225 14827.83 19206.99 19083.10 19747.47

Singapore STI Straits Times 3188.62 3447.01 2998.35 2855.94

UK FTSE 100 6598.37 6773.04 6361.09 6356.09

USA DOW JONES Dow Jones Industrial Average 16457.66 17776.12 17663.54 17719.92

USA NASDAQ Composite Nasdaq Composite 4198.99 4900.89 5053.75 5108.67

India (BSE) S&P BSE Sensex 22386.27 27957.49 26656.83 26145.67

India (NSE) CNX Nifty 6704.20 8491.00 8065.80 7935.25

Brazil Bovespa 50414.92 51150.16 45868.82 45120.36

Chile Stock Market Select 3772.76 3916.92 3827.99 3655.30

China Shanghai SE Composite IX 2033.31 3747.90 3382.56 3445.41

Colombia IGBC General 13827.01 9998.85 9154.37 8404.57

Egypt Hermes 785.68 828.83 673.70 553.19

Hungary Budapest Stock Exchange 17529.99 19689.16 21557.44 23768.60

Indonesia Jakatra Composite 4768.28 5518.68 4455.18 4446.46

Malaysia FTSE Bursa Malaysia KLCI 1849.21 1830.78 1665.71 1672.16

Mexico Bolsa 40461.60 43724.78 44542.76 43418.55

Pakistan Karachi 30 19170.92 19232.27 20417.39 18957.19Russia Russian Traded 1723.97 1222.80 1152.84 1159.23

South Africa FTSE/JSE Africa All Share 47770.92 52181.95 53793.74 51607.83

Taiwan Taiwan Taiex 8849.28 9586.44 8554.31 8320.61

Thailand Stock Exchange of Thai 1376.26 1505.94 1394.94 1359.70

Turkey ISE National 100 69736.34 80846.03 79409.00 75232.79

*Indices are as on last trading day of the month

Source: Bloomberg

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Table A2: Volatility and P/E Ratio of Major International Indices

Country IndexVolatility (per cent) P/E Ratio

Oct-15 Nov-15 Oct-15 Nov-15

1 2 3 4 5 6

Developed Markets

Australia All Ordinaries 0.86 1.03 24.76 25.27

France CAC 40 1.17 1.06 22.53 22.34

Germany Dax 1.19 1.07 23.34 24.35

Hong Kong HSI Hang Seng 1.27 1.26 9.95 9.67

Japan NIKKEI Nikkei 225 1.15 0.94 19.77 20.58

Singapore STI Straits Times 1.03 0.73 13.89 13.23

UK FTSE 100 0.88 0.83 28.99 28.91

USA DOW JONES Dow Jones Industrial Average 0.76 0.73 15.79 15.83

USA NASDAQ Composite Nasdaq Composite 0.94 0.81 29.71 31.22

Emerging Markets

India (BSE) S&P Sensex 0.75 0.75 21.37 20.76

India (NSE) CNX Nifty 0.71 0.76 22.06 20.81

Argentina Indice Bolsa General 2.41 2.02 21.93 23.27

Brazil Bovespa 1.61 1.80 26.07 26.94

Chile Stock Market Select 0.6 0.71 16.15 15.90

China Shanghai SE Composite IX 1.61 1.84 17.7 18.07

Colombia IGBC General 0.86 1.23 NA NAEgypt Hermes 0.96 1.68 16.67 11.95

Hungary Budapest Stock Exchange 0.9 0.85 17.48 22.10

Indonesia Jakatra Composite 1.56 1.02 24.72 26.01

Malaysia FTSE Bursa Malaysia KLCI 0.67 0.45 17.25 17.71

Mexico Bolsa 0.57 0.93 31.35 30.55

Pakistan Karachi 30 0.75 0.76 9.71 9.13

Russia Russian Traded 2.19 2.14 8.96 10.55

South Korea Kospi Index 0.55 0.87 17.39 13.39

South Africa FTSE/JSE Africa All Share 0.8 0.92 27.89 42.67

Taiwan Taiwan Taiex 0.71 1.07 13.35 13.26

Thailand Stock Exchange of Thai 0.78 0.62 16.44 17.69

Turkey ISE National 100 1.12 1.78 11.83 11.44

Note: PE ratio for S&P BSE Sensex and CNX Nifty have been obtained from BSE, NSE respectively

NA.: Not Available

Source: Bloomberg, BSE, NSE

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Table A3: Investment Flows- New Capital raised by Shares and Bonds in the Major Exchanges (US$ million)

Stock ExchangeOct-15 Nov-15

Equities Bonds Total Equities Bonds Total

1 2 3 4 5 6 7

Amman Stock Exchange 0 13 389 1,347 389 1,360

Australian Securities Exchange 5,334 5,089 NA NA 5,334 5,089

BM&FBOVESPA 0 360 0 0 0 360

BME Spanish Exchanges 477 3,256 NA NA 477 3,256

Bolsa de Comercio de Buenos Aires 6 0 4,169 7,042 4,174 7,042

Borsa Istanbul 0 142 4,865 4 4,865 147

Bursa Malaysia 153 1,669 NA NA 153 1,669

Euronext 5,362 6,988 NA NA 5,362 6,988

Hochiminh Stock Exchange 371 493 NA NA 371 493

Hong Kong Exchanges and Clearing 9,291 5,817 554 6,337 9,845 12,154

Indonesia Stock Exchange 252 2,069 NA NA 252 2,069

Japan Exchange Group 208 0 3,106 0 3,313 0

Johannesburg Stock Exchange 2,217 489 3,616 3,200 5,833 3,690

Kazakhstan Stock Exchange NA NA 691 489 691 489

Korea Exchange 542 782 36,028 41,976 36,570 42,758

Luxembourg Stock Exchange 0 0 85,124 70,279 85,124 70,279

Moscow Exchange 0 0 5,872 3,024 5,872 3,024

Nasdaq - US 761 1,007 NA NA 761 1,007

NASDAQ OMX Nordic Exchange 0 0 0 5,015 0 5,015

NYSE 9,971 6,404 NA NA 9,971 6,404

NZX Limited 302 3,089 0 80 302 3,169

Oslo Bors 41 160 4,547 2,605 4,588 2,765

Philippine Stock Exchange 363 301 NA NA 363 301

Shanghai Stock Exchange 2,215 9,286 NA NA 2,215 9,286

Shenzhen Stock Exchange 3,796 11,496 1,245 3,671 5,041 15,167

Singapore Exchange 29 156 9,460 9,880 9,489 10,036

SIX Swiss Exchange 477 0 4,978 3,487 5,455 3,487

Stock Exchange of Thailand 314 148 0 704 314 852

Taipei Exchange 120 144 5,106 1,697 5,226 1,840

Taiwan Stock Exchange Corp. 79 30 1,997 0 2,075 30

Tel-Aviv Stock Exchange 17 52 2,159 1,404 2,175 1,456

TMX Group 1,730 2,941 76 0 1,806 2,941

Wiener Borse 80 54 2,874 3,039 2,954 3,093

NA: Not Available

Source: World Federation of Exchanges

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Table A4: Monthly Turnover in Derivatives (Stock options and Stock futures) in major Stock Exchanges

Exchange

Nov-15

Stock options Stock futures

Number of

contracts traded

Notionalturnover

(USD Million)

Number of

contracts traded

Notionalturnover

(USD Million)

Americas

BM&FBOVESPA 40,693,888 13,462 0 0

Buenos Aires SE 3,665,154 NA 0 0

Chicago Board Options Exchange 31,049,016 NA NA NA

Colombia SE NA NA 24,081 21

International Securities Exchange 25,377,163 NA NA NA

MexDer 36,141 6 500 0

NYSE Liffe (US) 41,714,989 11,189 NA NA

Asia - Pacific

ASX Derivatives Trading 6 006 059 10 690.8 57 938 64.6

Osaka Stock Exchange 54 091 NA NA NA

Hong Kong Exchanges 4 873 518 10 935.9 24 521 70.7

Korea Exchange 198 339 NA 12 461 569 6 951.4

TAIFEX 13 740 27.4 864 164 4 661.4

Thailand Futures Exchange NA NA 1 061 086 NA

Europe - Africa - Middle East

Athens Derivatives Exchange 1,512 1 92,149 53

BME Spanish Exchanges 1,193,645 1,262 179,175 136

Budapest SE 0 0 15,784 59

EUREX 13,637,845 65,167 4,076,302 21,637

Euronext 4,522,028 12,533 214 3

Johannesburg SE 425,759 14 799,783 658Moscow Exchange 1,102,780 191 28,240,078 4,893

OMX Nordic Exchange 2,203,450 3,332 453,171 429

Oslo Brs 376,437 217 101,891 59

Tel Aviv SE 72,926 287 NA NA

NA: Not Available


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Table A5: Monthly Turnover in Derivatives (Index options and Index futures) in major Stock Exchanges

Exchange

Nov-15

Stock index options Stock index futures

Number ofcontracts traded

Notionalturnover

(USD Million)

Number ofcontracts traded

Notionalturnover

(USD Million)Americas

BM&FBOVESPA 118,642 22,979 8,158,998 33,747

CBOE Future Exchange NA NA 3,481,215 NA

Chicago Board Options Exchange 29,000,970 NA NA NA

CME Group 10,022,875 1,386,040 37,269,939 3,757,520

International Securities Exchange 293,100 NA NA NA

MexDer 3,879 101 87,299 1,622

Asia - Pacific

ASX Derivatives Trading 1 001 980 36 522.1 765 28.3

ASX SFE Derivatives Trading 40 454 3 750.8 691 792 63 486.6

Bursa Malaysia Derivatives 332 NA 222 351 4 265.3

China Financial Futures Exchange NA NA 777 742 136 452.0

Osaka Stock Exchange 2 630 662 NA 19 723 897 671 327.0

Hong Kong Exchanges 1 920 429 162 205.0 6 647 733 573 914.0

Korea Exchange 30 020 158 3 206 220.0 2 502 992 267 700.0

Singapore Exchange 428 871 NA 11 680 839 NA

TAIFEX 18 952 824 247 796.0 5 550 420 201 551.0Thailand Futures Exchange 22 923 NA 1 913 598 NA

Europe - Africa - Middle East

Athens Derivatives Exchange 5 869 6.3 74 494 79.0

BME Spanish Exchanges 271 327 2 942.7 781 181 63 299.8

Borsa Istanbul 2 055 73.2 604 453 12 602.6

Budapest SE 0 0.0 19 188 14.8

EUREX 24 905 700 1 040 480.0 27 669 263 1 483 430.0

Euronext 892 955 44 422.0 3 323 389 210 446.0

Johannesburg SE 257 396 154.7 906 704 22 481.1

Moscow Exchange 2 191 758 3 106.6 19 704 038 31 154.4

OMX Nordic Exchange 822 390 13 995.4 2 992 933 51 580.9

Oslo Brs 41 109 23.7 222 634 128.4

Tel Aviv SE 3 459 268 NA 1 141 NA

NA: Not Available


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Table A6: Market Capitalisation of major Stock Exchanges (US$ Million)

Stock Exchange Mar-15 Oct-15 Nov-15 M-o-M change(per cent)

1 2 3 4 5Developed Market

Australia 1,231,172 1,053,583 1,044,705 (0.8)

France 2,014,318 2,015,277 1,966,497 (2.4)

Germany 1,964,510 1,839,925 1,852,147 0.7Hong Kong 4,526,483 4,147,715 4,053,957 (2.3)

Japan 4,852,326 4,884,613 5,015,777 2.7Singapore 566,432 486,662 460,955 (5.3)UK 3,626,328 3,593,715 3,488,202 (2.9)

USA 24,614,866 24,027,524 24,061,765 0.1Emerging Markets

India 1,628,771 1,508,520 1,490,395 (1.2)Argentina 70,546 71,288 75,556 6.0Brazil 670,273 503,921 494,383 (1.9)

Chile 232,904 201,518 188,871 (6.3)China 6,486,554 6,133,775 6,661,877 8.6

Colombia 122,976 98,549 85,712 (13.0)Egypt 71,709 59,695 55,792 (6.5)Hungary 15,458 16,270 17,022 4.6Indonesia 425,078 342,258 339,275 (0.9)

Malaysia 450,790 368,606 375,213 1.8Mexico 438,251 389,708 379,182 (2.7)Pakistan 68,009 70,621 66,758 (5.5)

Russia 432,731 457,670 455,302 (0.5)South Korea 1,267,330 1,254,052 1,220,035 (2.7)South Africa 514,851 445,973 393,517 (11.8)

Taiwan 1,011,646 877,829 856,771 (2.4)Thailand 428,678 363,761 352,399 (3.1)

Turkey 221,896 195,136 189,055 (3.1)M-o-M: Month on Month.

Source: Bloomberg

Sources:

1. OECD database

2. Bureau of Economic Analysis (US)

3. Bureau of Labor Statistics (US)

4. The Conference Board (US)

5. The Federal Reserve System (US)

6. Institute for Supply Management (US)

7. Office for National Statistics (UK)

8. Bank of England (UK)9. The Cabinet Office (Japan)

10. Statistics Bureau, Director-General for Policy Planning(Statistical Standards) (Japan)

11. Bank of Japan

12. Eurostat (EA18 and EU27)

13. European Central Bank (EA18)

14. Instituto Brasileiro de Geografia e Estatstica (BrazilianInstitute of Geography and Statistics)

15. Banco Central do Brasil(Central Bank of Brazil)

16. Federal State Statistics Service (Russian Federation)

17. The Central Bank of the Russian Federation

18. The Central Statistical Office (India)

19. Office of the Economic Adviser to the Government of India

20. The Reserve Bank of India

21. National Bureau of Statistics of China

22. Peoples Bank of China

23. Markit Financial Information Services

24. World Federation of Exchanges

25. Bloomberg

26. The Bombay Stock Exchange

27. The National Stock Exchange

28. The Bank of Korea

29. Bank Indonesia

30. Central Bank of The Republic of Turkey

31. IMF

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1. ESAs consult on PRIIPs key information for

EU retail investors

The Joint Committee of the European SupervisoryAuthorities (ESAs) EBA, EIOPA and ESMA launched its Joint Consultation Paper on PRIIPs KeyInformation Documents to gather stakeholder viewson proposed rules on the content and presentation ofthe Key Information Documents (KID).

The KID, once finalised and implemented, aims toprovide EU retail investors with consumer friendlyinformation to enable retail investors to understandand compare packaged retail and insurance-basedinvestment products (PRIIPs) across the EU, whether

offered by banking, insurance or securities firms.Source:https://www.esma.europa.eu/sites/default/files/

library/2015/11/jc-2015-078_20151109_esas_consult_

on_priips_key_information_for_retail_investors.pdf

2. SEC Proposes Rules to Enhance Transparency

and Oversight of Alternative Trading Systems

The Securities and Exchange Commission hasannounced that it has voted to propose rules to enhanceoperational transparency and regulatory oversight of

alternative trading systems (ATSs) that trade stockslisted on a national securities exchange (NMS stocks),including dark pools. According to SEC, Investorsand other market participants need more and betterinformation about how alternative trading systemswork,. The proposed changes would represent acritical step forward in delivering greater transparencyto investors and enhancing equity market structure.

The proposal would require an NMS stock ATS to filedetailed disclosures on newly proposed Form ATS-Nabout its operations and the activities of its broker-

dealer operator and its affiliates. These disclosureswould include information regarding trading by thebroker-dealer operator and its affiliates on the ATS,the types of orders and market data used on the ATS,and the ATS execution and priority procedures.

Source: http://www.sec.gov/news/pressrelease/2015-261.html

HIGHLIGHTS OF DEVELOPMENTS IN

INTERNATIONAL SECURITIES MARKET

3. CPMI-IOSCO consultative paper Guidance

on cyber resilience for financial market

infrastructures

The Committee on Payments and MarketInfrastructures (CPMI) and the Board of theInternational Organization of Securities Commissions(IOSCO) released the consultative paper Guidance oncyber resilience for financial market infrastructures(the Cyber Guidance).

Financial market infrastructures (FMIs) play a criticalrole in promoting the stability of the financial system.Thus, the cyber risks faced by FMIs and their level ofreadiness to effectively deal with worst case scenarios

have been considered top priorities by industry leadersand authorities alike. The Cyber Guidance aims toadd momentum to and instil international consistencyin the industrys ongoing efforts to enhance FMIsability to pre-empt cyber attacks, respond rapidly andeffectively to them, and achieve faster and safer targetrecovery objectives if they succeed.

Source: ht tps ://www.iosco.org/l ibrary/pubdocs/pdf/

IOSCOPD513.pdf

4. IOSCO Publishes final report on Standards for

the Custody of CIS Assets

The Board of the International Organization ofSecurities Commissions (IOSCO) published its finalreport on Standards for the Custody of CollectiveInvestment Schemes Assets (CIS Assets). The reportseeks to clarify, modernize and further developinternational guidance for the custody of CIS assetsconsistent with IOSCOs core Objectives andPrinciples of Securities Regulation, June 2010 (IOSCOPrinciples).

It sets out eight standards divided into two sectionsaimed at identifying the core issues that should be keptunder review by the regulatory framework to ensureinvestors assets are effectively protected.

Source: ht tps ://www.iosco.org/l ibrary/pubdocs/pdf/

IOSCOPD512.pdf

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5. IOSCO reports on Transparency of Firms that

Audit Public Companies

The Board of the International Organization ofSecurities Commissions (IOSCO) published thefinal report Transparency of Firms that AuditPublic Companies. The report addresses audit firm

transparency reporting, which considers the practicesemployed by audit firms to be transparent in their ownreporting to investors and other stakeholders about thefirm itself, notably, with respect to firm governanceand elements of their system of quality control for theirfinancial statement audits. Transparency reporting canfoster internal introspection and discipline within audit

firms and may encourage audit firms to sharpen theirfocus on audit quality, which would be of benefit toinvestors and other stakeholders. In comparing auditfirms competing for an audit engagement, audit firm

transparency reporting can aid those responsible forselecting a public companys auditor in their decisionmaking process by providing information on a firmsaudit quality.

Source:https ://www.iosco.org/l ibrary/pubdocs/pdf/

IOSCOPD511.pdf

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I. SEBI to participate in 35th India InternationalTrade Fair 2015, at New Delhi.

As part of its endeavor to showcase the well regulated

securities market of India, as well as spreading themessage of financial literacy and investor awareness,SEBI had set up a Pavilion BHARAT KAA SHARE

BAZAAR in the 35th India International TradeFair 2015 (14-27 November 2015), New Delhi inassociation with market institutions/associations viz.,NSE, BSE, NSDL, CDSL, AMFI, NCDEX, MCX andNISM. Shri U K Sinha, Chairman SEBI inauguratedthe Pavilion on 14th November, 2015 in Hall No.18,Pragati Maidan, New Delhi.

In its efforts in spreading financial literacy andinvestor education, SEBI in recent years has conductedover 30,000 such workshops all over the country.Important investor friendly reforms undertaken inrecent years towards strengthening investor protectionand enhancing fairness, transparency and integrity ofthe securities market in India include opening of LocalOffices in major States, starting an investor helpline in14 languages, computerized online grievance redressalsystem SCORES, sending end of day alerts bySMS / email regarding transactions entered on theirbehalf, expanding the number of investor grievanceand redressal arbitration centers in multiple towns,

etc. Recently, Forward Markets Commission, theerstwhile regulator of commodity derivatives marketin India, got merged into SEBI following the decisionof Government of India in this regard.

The main focus of the exhibition was to showcasethe well regulated Indian Securities market and itsvarious products and to spread investor educationand awareness including cautioning the public at largeagainst illegal money mobilization schemes throughvariety of activities such as talk shows by marketexperts, quizzes, skits, display of major investorfriendly policies & facilities and live demo of SEBI

Complaints Redress System (SCORES).Ref: PR No. 261/2015 dated November, 06, 2015

II. SEBI signs Memorandum of Understandingon bilateral cooperation with the BangladeshSecurities and Exchange Commission.

Securities and Exchange Board of India (SEBI) andthe Bangladesh Securities and Exchange Commission

PRESS RELEASES

(BSEC) signed a Memorandum of Understanding(MoU) on bilateral cooperation and technical assistanceat Dhaka, Bangladesh on November 22, 2015.

The MoU was signed by Sh