report write 2

8/13/2019 Report Write 2

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Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services LimitedBSE: 532892 NSE: MOTILALOFS Bloomberg:MOFS:IN Reuters: MOFS.BO

www.motilaloswal.com


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CorporateOverview

Businesses Strategy Performance Industry facts


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Group Profile & Structure

Evolution

Our Businesses

Our Strengths

Corporate Governance

Management Team

CorporateOverview



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Group Profile and Structure

Well-diversified, financial services company offering a range of financial products and services

Focused on wealth creation for all its customers, such as institutional clients, HNWIs and retail customers

Network spread over 527 cities comprising 1,484 business locations operated by our business partners and us with 773,716 total

registered customers

Shares listed on the Bombay Stock Exchange and National Stock Exchange in Mumbai

99.95%

Motilal OswalSecurities Ltd.

Institutional Equities

Broking & Distribution

Motilal Oswal InvestmentAdvisors Private Ltd.

Investment Banking

Motilal Oswal PrivateEquity Advisors Private Ltd.

Private Equity

Real Estate

100% 85% 99.95% #

# through Motilal Oswal Securities Limited

Motilal Oswal Financial Services Ltd.

4

Motilal OswalWealth Management Pvt. Ltd.

Financial Strategy

Wealth Management

99.95% #

Motilal Oswal AssetManagement Co. Ltd.

Portfolio Mgmt ServicesMutual Funds

Offshore Funds

Data as on Mar 2013


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Retail broking

InstitutionalEquities

PMS

DistributionMF, IPO Insurance

Investment Banking

Retail broking


DistributionMF, IPO

Retail broking


Private Equity

Lending(LAS)

PMS

WealthManagement

Retail broking


Investment Banking

Private Equity

Principal Strategies

Lending(LAS)

PMS

WealthManagement


Broking Integrated Financial Services

1987 - 95 1996 - 2005 2006 - 2007 2008 2010

Retail broking


Investment Banking

Private Equity


Lending(LAS)

PMS

WealthManagement


Mutual Fund

Evolution

5


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Well establishedDISTRIBUTION NETWORK

Independent and INSIGHTFULRESEARCH

STRONG RELATIONSHIPSwithinstitutional investorsand high net worth investors(HNIs)

HIGH CREDIBILITYresulting inhigher cross-sellingopportunities

INTEGRATED FINANCIAL SERVICES PROVIDER

Broking &Distribution

PrivateEquity

Asset

Management

PrincipalStrategies

InvestmentBanking

WealthManagement

Institutional

Equities

Our Businesses

6


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Experienced TopManagement

Strong BrandName

Leadership inFranchiseeBusiness

LargePan-India

DistributionNetwork

StrongInvestment

Culture

Independentand Insightful

Research

FinancialPrudence

Strong RiskManagement

Practices

Our Strengths

7


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Corporate Governance

MOFSL is committed to ensuring compliance with the best

practices in corporate governance

Composition of MOFSLs Board of Directors:o The Board currently consists of 6 members with 50%

composition of Independent Directors

MOFSL has six major Board level Committees :

o Audit Committee

o Shareholders / Investors Grievance Committeeo Remuneration / Compensation Committee

o Nomination Committee

o Risk Management Committee

o Asset Liability Management Committee

o ESOP Committee

o Debenture Committee

External auditors play a role in providing an independent

assessment of MOFSLs financial position

8

Independent Directors

Mr Paranjpe is a consultant in HR & strategicmanagement with companies like RelianceIndustries, Blackstone etc. He was the Director,HR Operations at HP Singapore, and hasworked with Hotel Corp, Johnson & Johnson,Hindustan Lever etc

Vivek Paranjpe

Praveen Tripathi

Balkumar Agarwal

Mr Tripathi is the CEO of Magic9 Media &Consumer Knowledge Pvt Ltd. He is theChairman of the National ConsumerClassification System Committee and has alsoworked with Pidilite, Hansa Consulting,Zenithmedia, Starcom/Leo Burnett etc

Mr Agarwal a retired IAS officer (1967 batch). Hehas served as Additional Chief Secretary,Secretary (Housing), Secretary (Transport),Secretary (Industries) to the Government of Maharashtra, and as the MD at MaharashtraState Warehousing Corp, Maharashtra StateFinancial Corp etc


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Management Team

Chairman & Managing Director

Motilal Oswal

Joint Managing Director & Co-founder

Raamdeo Agrawal

Director

Navin Agarwal

9

Corporate Affairs Harsh Joshi

Chief Financial Officer Sameer Kamath

Business Process Excellence Praveen Arora

Information Technology Ashwini Yadav

Chief Operating Officer Ajay Menon

Research Rajat Rajgarhia

Marketing Ramnik Chhabra

Human Resources & OD Sudhir Dhar

Ashutosh Maheshvari

Vishal Tulsyan

Vijay Goel

A.V. Srikanth

Aashish Somaiyaa

Srikanth Iyengar

Navin Agarwal

Investment Banking

Private Equity



Wealth Management

Asset Management


Commodity & Currency Kishore Narne


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Building Infrastructure for the Future Motilal Oswal Tower

10

MOFSL has invested in a new Corporate Office building in

Prabhadevi, Mumbai with the aim to consolidate all businesses

within a single location and leverage on group synergies.

Total built-up area is 260,000 sq feet across 12 floors at a cost of

approximately ` 2.80Bn (funded through internal accruals and

capitalised in balance sheet).

Approximately 33% of the area would be let out in the initial years

of operations

Thus, MOFSL will be able to utilise significantly larger floor space atan incremental cost.

Established in 1987, MOFSL completed 25 years of its journey in 2012. It celebrated its 25 th Annual Day at its own Motilal Oswal Tower


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Wealth Management

Investment Banking

Asset Management

Private Equity

CorporateOverview



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1,289 1,3971,644 1,579 1,484

548 568611

552 527

FY09 FY10 FY11 FY12 FY13

Business Location No of cities

541,372621,215

709,041 746,932773,716


Retail Broking and Distribution

Growing Customer Base Total registered client base of 773,716 including

679,848 retail broking and distribution clients The Customer first philosophy is executed

through strategic focus on:o Increasing distribution reach and customer

segmentation on individual clients needso Wide bouquet of offeringso Customer connect through investor seminars

for our clients and business partners

12

Pan-India Distribution Reach Developed a Pan-India network in 527

cities across 1,484 locations (branches +franchisees), while ensuring the quality of the locations at the same time

Extensive distribution network providesopportunities to cross-sell products

Knowledge First for Client Engagement Use of simplified research products which

have been customized for retail clients tohelp them understand the investment ideasand enable them to take informed decisions

In line with the philosophy of KnowledgeFirst, MOSL conducts education seminars forinvestors and business partners each year ona Pan India basis. Last year, it conducted amulti-city investor education series InvestorKi Kahani Usi Ki Zubaani, which saw ahealthy turnout of investors in all the cities

Total Registered Clients

Retail Broking & Distribution Clients

Distribution (Locations & Cities)

MOFSL offers investment services to retail clients, including equity & commodity broking, currency trading and distribution of financial products

471,062550,401

628,012 657,119679,848



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Retail Broking and Distribution

Partnering For Growth Franchisee Model

Apart from branches, MOFSL also operates afranchisee-based business partner model

Some of our Business Partners have grownmanifold in terms of scale of business

Operates Upper MOST, an interactive onlinetool for business development, reward,recognition for business partners

13

Leveraging on Technology

Delivery models: Our newly developedtrading platform LITE, is powerful, feature-

rich, and available in multiple versions

Advisory Platforms: Direct dissemination of MOSL research and recommendations, withinteractive features and customized view

Online Account Opening is MOSLsindustry first feature

Portfolio Tracking and Review: Review andrestructuring of client portfolios,recommends model portfolios, etc

Strong Advisory Infrastructure

Recent equity strategies like MOSt Velocityetc saw good response from investors

Lite-Web

LITE-Desktop

LITE-Mobile

Idea Dashboard 3.0

Advisory Dashboard

My Motilal Oswal

Portfolio Restructuring


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Institutional Equities: Research is our Strength

Provides equity cash and derivatives brokerage services for

institutional clients

Client base of 527 institutions, as of Mar 2013

Strong research team comprising of 27 research analysts covering

almost 200 companies across over 20 sectors and 27

commodities

Research product portfolio encompasses economic, sector,

company and thematic reports

Research is supported by extremely strong Sales Trading and

Corporate Access teams Its Annual Global Investor Conference is one of the largest event

formats of its kind in this industry

It conducted its 8th edition in Mumbai in August 2012, with over

100 leading companies & experts interacting with over 180

institutional funds from across the world

14

Ranked No. 2 in Best Local Brokerage, Best Overall Sales

Service, Best for Events and/or Conferences & No. 3 in Best

for Most Independent Research Brokerage in the AsiaMoney

Brokers Poll 2012 Won awards at the Zee Business Indias Best Market Analyst

Awards 2011 and 2012 Won 4 awards at the ET-Now Starmine Analyst Awards 2010

placing it amongst the Top 3 award winning brokers Ranked 2 (Best Local Brokerage) by the AsiaMoney Brokers

Poll 2010 and 2009 Rated No.1 (Best Recommendations Mid & Small Caps) and

won awards in 3 out of 4 categories at the Starmine India

Broker Rankings 2009 from Thomson Reuters Ranked 2 (Best Indian Broker 2009) by Institutional Investor No.1 Broker in ET Now-Starmine Analyst Awards 2009

Our Research has won Awards consistently, recent being:-

ET Now Starmine Analyst Awards 2010-2011 Award Winning Categories:

Category Sector Rank

Top Earnings Estimator Across Sectors 1

Top Earnings Estimator Financials 1

Top Stock Picker Energy 1

Top Stock Picker Real Estate 2


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Sample Research and Corporate Access

15

Recent Research Providing vivid and deep insights into Indian Equities 8th Annual Motilal Oswal Global Investor Conference


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Annual Wealth Creation Study

16

The study identified ITC, TTK Prestige and Kotak Mahindra Bank as the biggest, fastest, consistentwealth creators, respectively

It showed the contribution of the top-10 wealth creators declined from 76% in 2003 to 41% in 2012,indicating a more widespread wealth creation

Financials have emerged as the largest wealth creating sector, followed by the Consumer sector

Theme of this study was on Economic Moat Fountainhead of Wealth Creation

Economic Moat refers to how companies are able to build a sustainable competi tive advantage, to keep

competitors at bay for an extended period Extended competitive advantage period of Economic Moat companies leads to sustained superior

profitability, by protecting it from being attacked by multiple business forces. This may ensure stockreturns and eventually, wealth creation

Strength of a Economic Moat is determined by the industry structure and the corporate strategy

Over 2002-2012, Economic Moat companies have meaningfully outperformed the benchmarks

MOFSL conducted its 17 th Annual Wealth Creation Study in December, 2012. The presentation of the study was followed by a Panel Discussion onthe Role of Competitive Strategy in Wealth Creation . The discussion was covered live on CNBC TV18

The 17th Wealth Creation report can bedownloaded by clicking on this link

http://www.motilaloswal.com/Wealth_Creation_Study/Studies/

Mr Motilal Oswal CMD, MOFSL andMr Raamdeo Agrawal Jt MD, MOFSL withPanel Members: Mr Amit Chandra MD,Bain Capital, Mr Anil Singhvi Chairman,Ican Investors and Mr Sanjoy Bhattacharyya

Founder, Fortuna Capital


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Private Wealth Management

17

Mutual Funds PMS Alternative Invst. Funds

Professional Money Managers

Equity Fixed Income Commodity & Currency

Trading

Private Equity Real Estate Structured Products

Alternative Assets

IPO Financing, ESOP Funding LAS/LAP Institutional Credit Solutions

Credit Solutions

Estate Planning Trust services Wills

Wealth Transmission

Investment Bnkg. Services Offshore Advisory & Solutions Hedging & Insurance Advisory

Specialized Services

Tax Advisory Legal Advisory

Ancillary Services

Our Offerings: A comprehensive menu of Multi Asset Class Advisory Solutions

During Q4FY13, our private wealth management business launched the new and improved advisory proposition with the motto Responsible

Advisory under the brand Motilal Oswal Private Wealth Management (MOPWM)

The value proposition is based on what clients are really seeking Comprehensive risk profiling leading to portfolio advice which can be

objectively tracked for value addition basis which it can be rewarded MOPWM launched Indias first Advisory Index which will help clients track the value addition by an advisor objectively - an Industry First

These initiatives aim to set a precedent in the way this business is run today

Private wealth management business had an AUM of ` 20.2 billion, as of Mar 2013 The business has been strengthened with the joining of A.V. Srikanth as CEO. Prior to this, he was

with an Indian wealth management firm, where he played a significant role in growing the vertical.He was an integral part of the team that won several accolades for its product and advisory delivery


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18

Investment Banking

Select Transactions Deal making remained subdued across the industry, delaying transaction

closures. In this environment, companies continue to be cautious and playthe wait-and-watch game with respect to capital raising activities, impactingthe flow of new projects

Strong management team with substantial experience in investmentbanking, corporate banking and advisory

Won the Asia Pacific Cross-Border Deal and the India M&A InvestmentBanker awards in 2010 for the M&A transaction of Indias Shree RenukaSugars and Brazils Equipav SA

Given our strong expertise in cross border deals, Motilal Oswal InvestmentBanking was the Lead Sponsor for the Latin America India Investors Forum inNov 2011. This Forum was designed to connect corporates with institutionalinvestors for business relationships between India and Latin America.

However, the business is well aligned to arising market opportunities and theexecution pipeline remains strong

Latin America India Investors Forum 2011, Mumbai


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19

Asset Management

Portfolio Management Services business (PMS)

MOSL transferred the PMS business to Motilal Oswal AMC viaslump sale with effect from Oct 2010

As on Mar 2013, PMS AUM was ` 12.6 billion

As per SEBI data, our PMS had a market share of 8% in terms ofdiscretionary-listed equity PMS assets, as of Aug 2011

The AMC business has been strengthened with the appointmentof Aashish Somaiyaa as CEO. He was earlier with a leading AMC asHead of Retail Business, where he played a significant role ingrowing the sales & distribution of its offerings through retail,banking and wealth channels across India & UAE

Mutual Funds business (MF)

Mutual funds AUM across the 5 funds was ` 4.6 billion, as of Mar 2013

o MOSt Shares M50 ETF (M50) is Indias 1st Fundamentally Weighted

ETF based on the S&P CNX Nifty Indexo MOSt Shares Midcap 100 ETF (M100) is Indias 1st Midcap ETF

based on the CNX Midcap Index

o MOSt Shares Nasdaq 100 ETF (N100) is Indias 1st US equitiesbased ETF, denominated in Indian Rupees

o MOSt 10 Year Gilt Fund (10 Yr Gilt) is Indias 1st fund providing

access to 10 Year benchmark Government Bond

o MOSt Shares Gold ETF is Indias 1st Gold ETF which enablesinvestment as well as consumption of pure gold for retail investors

o MOSt Focused 25 Fund is investing in cos. with sustainablecompetitive advantages, quality, longevity & high growth potential

PMS AUM ( Mn)

Mutual Funds AUM ( Mn)


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Motilal Oswal MOSt Shares

20

Conducted the 2nd MOSt Shares ETF Conclave in June 2012. The

objective was to demystify ETFs for Indian investors by discussing their

advantages, building portfolios with ETFs and Vanguards success

James Norris, MD, Vanguard International gave the keynote speech

Motilal Oswal MOSt Shares ETF Conclave

MOAMC became the first Indian AMC to ring the opening bell

at NASDAQ in USA during the launch of the Nasdaq 100 ETF

Launch of MOSt Shares Nasdaq 100 ETF

Nasdaq 100 ETF won the Most Innovative ETF Asia Pacific 2011

award at the 8th Annual Global ETF Awards 2012 in USA

The M50 ETF bagged the Most Innovative Fund of the Yearaward at the CNBC TV18-CRISIL Mutual Fund Awards 2011

Most Innovative Fund Awards

MOAMC hosted the 2nd edition of Value Investing Forum in Oct 2012. The

topic was Sources of Margin of Safety & its Importance in Value Investing

Motilal Oswal 2nd Value Investing Forum

i i


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21

Private Equity

MOPE is an investment manager and advisor to private equity funds, acts as an advisor and mentor to the investee companies and leveragesthe relationships of the Motilal Oswal group for the benefit of these companies

Investment Process Nurturing Process

India Business Excellence Fund (IBEF) is a growth capital fund with AUM of US$ 125 million fully

committed in 13 companies. During a challenging year, it partially exited two companies viasecondary sales at healthy multiples. It has returned approx 38% of capital to its investors so far

India Realty Excellence Fund (IREF) is a domestic real estate fund with AuA of ` 2 billion. IREF hasmade investments in 7 deals, committing about 92% of funds under management as of Mar 2013.Following partial exits from three projects, it has returned approx 19% of capital to investors so far

The 2nd growth capital PE fund, India Business Excellence Fund-II achieved its third closing thisquarter, with commitments of ` 5.6 billion from both domestic and foreign investors. It is currentlyevaluating several investment opportunities and has made two investments so far

Motilal Oswal Private Equity won BestGrowth Capital Investor- 2012 award at theAwards for Private Equity Excellence 2013


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Size of opportunity

Our Strategic Focus

Progress Against Strategy

CorporateOverview


Size of Opportunity


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32

24380

454

FY 2010 FY 2020E

Institutional (Rs Bn) Retail (Rs Bn)

697

112

6.2xGrowth

Size of Opportunity

23

Methodology:

Current size of broking revenue pool estimated at ` 112Bn

Market Cap to touch US$5Tn by 2020 based on GDP:Market Cap ratio of 1:1

Assume trading velocity to double from current 37% to ~80% by 2020

This gives a expected market size of ~ ` 697Bn by 2020, comprising ` 243Bnin institutional and ` 454Bn in retail segment

Source: MOSL estimates

Factors that will help achieve this growth What Motilal Oswal is doing to create scale

Indias equity broking opportunity: Market size in terms of revenue pool expected to grow 6 times over the next 10 years

Although certain external risks remain

Sustained economic, savings anddiscretionary income growth

Increase in retail participation

Increased ability of DIIs to mobilizesavings

Higher India allocation by global funds Increase in fund raising by corporates

Higher issues of fairly priced IPO/FPOs

Tech-based tools for clients convenience

Increasing distribution reach across India

Using simplified research products

Client focused advisory services

Investor education for client engagement

Tap the allocation of India focused funds

Launched AMC to mobilize investments

Develop relationships with corporatesembarking on the next phase of growth

Technology for better client experience

High inflation and interest rates

Regulatory changes required DIIs torealign their marketing strategy tobe able to channelize higher savings

Global recovery reducing Indias

relative attractiveness among globalfunds

Poor performance of IPOs postlisting

Our Strategic Focus


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Risk-Free Balance Sheet andFlexible Cost Structure

IncreaseInstitutionalmarket share

Increase Retail /

Wealth Mgmt share

Our Strategic Focus

24

Leverage research and advisory capabilities

Investor education and knowledge dissemination

Good quality Pan-India distribution network

Strengthening Wealth Mgts product

bouquet and customized advisory

Leveraging on technology

Distribution of 3 rd party products

Develop innovative, market-access products

for the AMC platform

Grow the Investment Banking business

Ensure quality deal flow for Private Equity

Increase Research support

Build strong institutional relationships

through wider and quality research

Grow institutional derivatives business

Use Principal Strategies Group to maximise

returns using risk free arbitrage strategies

Grow the Capital Markets Lending book

across client segments to complement our

strong cash equities business

Judicious use of Capital to ensure high Return on Equity and low Leverage

Flexible Cost structure to maintain Profitability across market cycles

KNOWLEDGE FIRST

Solid Research

Solid Advice GrowFund basedrevenues

Grow

Fee based

revenues



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25

Research

Consistently won awards for earnings estimation and bestrecommendations, thus showcasing our strong researchcapabilities

Investor Awareness on Equity Investing

Continued its investor education initiatives and use of simplified versions of institutional research for the retailinvestors, in line with the Knowledge First philosophy

Retail Distribution Reach

Grew the Pan-India distribution presence further, currentlystands at 1,484 locations across 527 cities

Empanelment of Institutions

Added to the number of domestic and foreign institutionsempanelled

Corporate Access

The Annual Motilal Oswal Investor Conference isreckoned as one of the best-in-class conferences in Indiafor institutional investors

Technology Tools and Platforms

Successfully developed and implemented a number of tech-based initiatives, including in-house developments

Private Equity businesses

Strong on-ground relationships helped achieve a healthyportfolio for existing funds and ensure good mobilization forthe new fund

Consistent Margins and Low-Risk Balance Sheet

Flexible cost structure and negligible debt levels helpeddeliver consistent profit margins and strong RoE, despitemarket cycles

Wealth Management Product Bouquet

Strengthened Wealth Managements product portfolio tooffer multiple investment options and a holistic assetallocation for clients

Asset Management business

Launched innovative mutual funds, most of which wereIndias Firsts in terms of the market access provided by theinvestment products strategies


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Financial Performance

Recent Awards

CorporateOverview


Annual Financial Performance at a Glance


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Annual Financial Performance at a Glance

Consolidated revenues ( million) EBIDTA ( million, margin %) Reported PAT ( million, margin %)

Net worth ( million); ROE % (based onAvg NW and Reported PAT)

Net Cash ( million) Revenue Composition (%)

4,661

6,4536,008

4,711 4,729


1,807

2,770

2,295

1,585 1,744

39%43%

38%34%

37%


926

1,7041,371

1,039 1,091

20%26%

23% 22% 23%


70% 71% 72% 69%63%

10% 10% 7% 2%2%

14% 10% 13%17%

21%

5%6% 7% 11% 13%

2% 3% 2% 1% 2%

FY09 FY10 FY11 FY12 FY13Others Asset management feesFunds based business Investment bank ing feesBroking & operating income

*Prior figures have been regrouped wherever necessary

7,9399,460

10,59511,409 12,179

12%

20%

14% 9%9%


5,428

3,2502,772 2,710

2,144


27

Consistently increasing dividends


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Consistently increasing dividends

# For FY13; ` 1 is paid as interim dividend + ` 1 is proposed dividend; Buyback has been proposed

* Payout is calculated on Adjusted PAT for the respective years

0.80 0.801.20

1.40

1.50

2.00

7%

13%10%

17%

26%

35%

FY08 FY09 FY10 FY11 FY12 FY13 #

DPS Payout*


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Recent Awards


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Recent Awards

30

Best Equity BrokingHouse award forFY11 at the Dun &Bradstreet Equity

Broking Awards 2011

Best Capital Markets andRelated NBFC award at

the CNBC TV18 India BestBanks and Financial

Institutions Awards 2011

Excellence in HR throughTech and Excellence inHealthcare awards atAsias Best Employer

Brand Awards 2011 inSingapore

Most Innovative Fund ofthe Year award at the

CNBC TV18-CRISIL MutualFund Awards 2011 for the

M-50 ETF

'Best Performing NationalFinancial Advisor Equity

Broker' award at CNBC TV18

Financial Advisor Awards2012, for the 2nd year

Investment Banking baggedAsia Pacific Cross -Border

Deal of the Year and IndiaM&A Investment Banker

awards

Ranked as No. 1 Brokerin India at the ET-Starmine Analyst

Awards, 2009

Felicitated by BSE forbeing Amongst the TopFive Performers in BSEStar Mutual Fund andAmongst the Top TenPerformers in Equity

Segment for the periodNov 2010 Sept 2011

Best Equity Brokeraward at Bloomberg

UTV Financial

Leadership Awards2012

Private Equity wonBest Growth CapitalInvestor- 2012 awardat the Awards for PE

Excellence 2013

Retailer of the Year(Banking & Financial

Services) award at theRetail Excellence

Awards 2012

Existing Businesses: Retail Broking and Distribution, Institutional Equities

New Businesses: NBFC, Asset Management, Private Equity and Investment Banking Others

Nasdaq 100 ETF won theMost Innovative ETF AsiaPacific 2011 award at the

8th Annual Global ETFAwards 2012 in USA

Quality Excellencefor Best Customer

Service Resultaward at NationalQuality Excellence

Awards 2013

Adjudged amongst Top20 innovators in BFSIspace at the BankingFrontiers Finnovity

Awards 2012


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Equity Participation

Investment Banking &Private Equity

Mutual Funds

Wealth Management

CorporateOverview


Options boost market ADTO yet again, Delivery up within cash


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p y g y p

Source:NSE, BSE Source:

NSE, BSE

32Source: NSE, BSE Source: NSE, BSE

Options continued their dominance and comprised 76% ofmarket ADTO; Proportion of cash to overall volumes dips

further, reaches 8% of total volumes in the year

Market ADTO hit a high this year, led by the continuedgrowth in options, Absolute volumes of cash dipped,largely due to the decline in intraday segment ( Bn)

On a YoY basis, proportion of options withinF&O volumes continued to grow

On a YoY basis, the proportion of delivery within marketcash volumes picked up this year

28%

72%FY12

30%

70%FY13

Delivery to Cash Volumes Intraday to Cash Volumes

24%

76%FY12

18%

82%

FY13

Futures to F&O Volumes Options to F&O Volumes

35 50 50 39 39124 176 133 101 92291

374 388315 275

163

350

764977

1,274

FY9 FY10 FY11 FY12 FY13Options Futures Intraday Delivery

1,3351,431

1,679

950

612

27%37%

57%68%

76%

47%39%

29%22% 16%20%

19%10% 7%

5%6%5% 4% 3% 2%

FY9 FY10 FY11 FY12 FY13Delivery Intraday Futures Options

Retails proportion dips; FII inflows and DII outflows continue


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600

242

-187 -53 -691


-479

1,102 1,101

437

1,400


14.2 15.2 17.219.0 20.0

1.02.0

1.80.9 1.0


Exist ing Accounts (Mn) New Accounts (Mn)

8% CAGR

Strong inflows from FIIs this year was a major catalyst toparticipation, Net inflows were highest in the months of

Sep, Oct, Dec, Jan and Feb ( Bn)

Source: NSE

DIIs saw net outflows in each of the three quarters sinceQ2 FY13 in this year, Mutual funds saw redemptions as

equity investors pulled out ( Bn)

33

Source: SEBI

Proportion of retail to cash volumes dipped as retail cashADTO declined; Proportion of FII to cash volume picked up

Growth in new demat accounts (Mn) at its slowestsince the last five years, as primary market activities

largely dried up

Source: CDSL, NSDL

Source: NSE, BSE

53% 57% 56% 51% 49%

26% 25% 22%23% 23%

15% 12% 15% 18% 19%

6% 6% 7% 8% 9%

FY09 FY10 FY11 FY12 FY13DII FII Prop Retail

ECM sluggish, DCM flat, PE and M&A faced challenges


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56%37%

19%28%

12% 45%

27%

27%

32%18%

52%35%

CY09 CY10 CY11 CY12Domestic Outbound Inbound

43.438.849.812.0

14% 21%41%

13% 9%

78%

7%

7%

14%10%

8%

72%52%

73% 82%


Additional (FPO) Rights IPO

740156 1,156 809 468

314258

456421

4280.81 0.84

1.10

0.85

1.09


Deal Va lue (Rs Bn) Average Dea l Si ze (Rs Bn)

34

Source:Bloomberg

League TablesSource:Bloomberg LeagueTables

Source:: Venture Intelligence

DCM volumes still saw some activity as compared to earlieryears, But the last couple of quarters saw a number of

companies deferring debt raising plans ( Bn)

ECM remained sluggish, IPOs and Rights largely dried up,Additional saw an increase due to higher activity levels in

Offer for Sale issues ( Bn)

PE investments were impacted this year by limited qualitydeployment opportunities, uncertain economic outlook

and slower exits of existing holdings

Source: News article onThomson Reuters report

M&As faced challenges due to high interest rates and uncertaineconomic outlook; Inbound deals saw major growth (US$ Bn)

40% 34% 31% 38% 44%

34% 51% 55% 39%39%

26%15% 14%

22% 16%


Loans Mandated (For) Loans Mandated Dom Bonds

5,9672,883 4,829 5,568 5,278

Equity funds AUM down, while Income/Gilt/Gold AUM rise


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28% 35% 36% 34% 27%

47%51% 49% 50% 56%

22%13% 12% 14% 13%

3% 1% 2% 3% 3%


Gilt, Gold & Others Liquid / Money Market Income Equi ty

4,173 6,140 5,923 5,872 7,014

0.5 1.2

1.7

2.5 2.4

0.05%

0.08%

0.11%0.13%

0.12%

2009 2010 2011 2012 Mar-13

India ETF AUM ($Bn) India ETF % to Global ETF AUM

31%

25%

3%

3%

30%

25%

5%

6%

0.3%

0.3%

6%

6%

18%

20%

7%

14%

FY 11

FY 12

FDs/Bonds MFEquity PFAlternate Assets Small SavingsInsurance Savings Dep

86

92

Source: AMFI

35

MF AUM saw a dip in equity assets as equity funds sawredemptions, Gilt, gold and income fund assets saw an uptick ( Bn)

ETFs continued to grow in CY2012, led by Gold ETFs, whileequity ETFs declined in line with market movements

Source: Karvy Wealthreport Source: Karvy Wealth

report

Asset-wise wealth classification (as of 2011) shows Equity currentlycomprises a much lesser proportion in India than the Global average

Individual wealth in India is estimated at 92.3Tn in FY12, led bythe fixed deposit/bonds, equity and insurance sectors

Source: AMFI/Blackrock report

36%

62%

2.8%

Global

Equity Debt Alternate assets

32%

68%

0.3%

India


36/36

report write 2

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