NSE Overview Then amp Now Particulars 1994 Present Transparency Low High Reach Regional exchanges Nationwide Exchange Trading Open Outcry Electronic Technology Minimal State of art scalability latency architecture ID: 1028019
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1. Private & ConfidentialNSE Overview
2. Then & NowParticulars1994PresentTransparency LowHighReachRegional exchangesNationwide ExchangeTradingOpen OutcryElectronicTechnologyMinimalState of art- scalability, latency, architectureSettlement riskNo guarantee of settlementEstablished CCP for settlement guaranteeRisk management measuresNo risk managementWorld-class risk management practicesSecurities settlementPhysical share certificatesDematerialization, Book entry Settlement cyclesLong up to 15 daysT+2, rolling settlementExchange membershipLimited On tap, Deposit based Stock exchange setupBroker run exchangesDemutualizationBusiness continuity-BCP – Near DR site, Far DR siteComplianceNo standardizationHigh level across industryPrivate & Confidential
3. 3EMERGE symbolises the aspirations of a large number of entrepreneurs participating in the “India growth Story” and having potential to unlock value and emerge on a bigger stage.
4. 14 July 20174Need for capital
5. Start-upsPromoter ownedOwner’s capitalFrom friends and familyEarly stageDebt and Venture investor stakeGovt. Seed capital schemesLong term debtAngel funding ( Angel Networks) / Venture Capital fundsLarge companyNew investors – widely distributedMain board: Retail, institutionsGrowing phaseMore external investors(VC may exit)14 July 20175EMERGE ready companiesPrivate Equity
6. Value proposition for IssuersEfficient raising of capitalHigher visibilityCredibilityAppropriate valuationCorporate governanceMigration to main boardAn exclusive platform for growing SMEs to approach capital markets as a new and viable alternative for raising capital in an efficient manner. 14 July 20176
7. Value proposition for IssuersLiquidityBorrowing termsAccess to wider capitalHigh calibre employees14 July 20177Opportunity for M&AShare as collateral
8. Value proposition for IntermediariesIPO consultation servicesHigher visibilityCorporate governance ServicesOpportunity for investor portfolioGrow with your clientsUnique advantage : - In depth understanding of equity financing & deep insight into transaction ready companies 14 July 20178
9. Regulatory framework14 July 20179
10. 14 July 201710Regulatory framework
11. Advantages over conventional ExchangeLower issue expensesNo draft document to be filed with SEBI for their observations Minimum no. of allottees Market makers Reduced filing requirements – half yearly financial resultsNo need to publish financial results14 July 201711
12. 14 July 201712Listing on EMERGECapital market awarenessAppointment of intermediariesCorporate restructurePreparation of offer documentDue DiligenceIPO marketingListingStep 1Step 2Step 3Step 4Step 5Step 6Step 7Support from NSE
13. 14-07-2017Private & Confidential13Disclaimer “The National Stock Exchange of India Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offer of its equity shares and has filed a Draft Red Herring Prospectus dated December 28, 2016 (“DRHP”) with the Securities and Exchange Board of India (“SEBI”). The DRHP is available on the websites of SEBI and the BSE Limited at www.sebi.gov.in and www.bseindia.com, respectively and of the Managers, Citigroup Global Markets India Private Limited at http://www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm, JM Financial Institutional Securities Limited at www.jmfl.com, Kotak Mahindra Capital Company Limited at http://www.investmentbank.kotak.com, Morgan Stanley India Company Private Limited at http://www.morganstanley.com/about-us/global-offices/india/, HDFC Bank Limited at www.hdfcbank.com, ICICI Securities Limited at www.icicisecurities.com, IDFC Bank Limited at www.idfcbank.com and IIFL Holdings Limited at www.iiflcap.com. Investors should not rely on the DRHP for making any investment decision, and should note that investment in equity shares involves a high degree of risk, and for details see the section titled “Risk Factors” in the red herring prospectus, when available. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in the United States.”
14. Thank You14
15. Capital market awarenessDevelop an understanding of the capital marketsRaising funds through an IPOMarket makingUnderwritingRaising of fundTrading platform for these securities14 July 201715
16. 14 July 201716Appointment of intermediariesAdvisors: To guide company in IPO process. Merchant Bankers: For preparation of offer document.Registrar: Processing of dematerialisation, allotment, transfer of the shares etcMarket maker: Two way eligible buy and sell quote for liquidityLegal advisor: Due diligence of offer document
17. 14 July 201717Corporate RestructuringConversion of private limited company into a public limited companyAlteration of Articles of associationMinimum number of shareholders 7Raise the paid up capital to minimum Rs. 5 LacsIncrease the number of directors to minimum 3
18. Industry and businessObjects and pricingRisk factorsFinancial informationRegulatory compliancesOperationsHuman resourcesLegal and statutory information14 July 201718Preparation of offer document
19. 14 July 201719Due DiligenceDue Diligence on the various approvals required from regulatory bodiesDue diligence on the applicability of various regulationsRisk factors associated with the companyExternal environment effecting the companyMagnitude and listing out of litigationsBusiness activityPast performance and financial resultsMaterial contracts and agreementsDetailed report on promoters & management
20. 14 July 201720IPO marketingRoad shows for creating awareness about the issue to the investorsEffective issuer story backed by third party researchCreating sustainable valuation Effective communication for better results
21. 14 July 201721Listing