Nse Net Profit Dips 77%, Dividend-Cut Declared

The net profit of the National Stock Exchange (NSE) has dipped 76.87 per cent to Rs 5.37 crore in the year ended March 31, 1998.

The board of directors of NSE, which met in Mumbai yesterday, has recommended a cut in the dividend to 10 per cent from 15 per cent in the previous year.

According to a release by the exchange, income of the exchange has gone up by Rs 5.06 crores and the expenditure by Rs 26.59 crores.

The increase in expenditure is primarily due to increase in depreciation on additions and upgradations to the computer and telecommunication systems, increase in repairs and maintenance expenses for computer and telecomunications systems and VSAT shifting charges necessiated by drifting and wobbling of the satellite from the normal orbit.

During the year, the NSE-50 recorded a high of 1297.10 on August 6,1997 and a low of 929.05 on January 29,1998 closing for the year at 1116.90.

The junior nifty index recorded a high of 1395.25 on August 7,1997 and a low of 1016.65 on April 1 1997, closing the year at 1339.40 points. A new index, Defty(Dollar Denominated Nifty) index was launched on November 26,1997 which expresses returns on NSE in dollar terms.

The Defty recorded a high of Rs 1014.20 on March 26,1998 and a low of 827.95 on January 29,1998. On the Capital Markets segment, 72 more companies were listed during the year. At the end of the year, the number of companies listed and permitted to trade were 612 and 745 respectively.

The traded volume for the year under review on this segment was Rs 3,70,193 crores with an average daily volume of Rs 1517 crores.

The turnover on the demat segment was Rs 350 crore..

The National Securities Clearing Corporation Limited(NSCCL), the wholly owned subsidiary of NSE has completed tow years of operations.

The settlement fund of the NSCCL stood at Rs 424 crores as on March 31,1998. The total value of deliveries handled by the clearing corporation during the year 1997-98 was Rs 58421.44 crores or an average of nearly Rs 1145.52 crores per settlement.

The average number of shares processed by the Clearing Corporation increased from 321.75 lakh shares during April 1997 to 476.57 lakh shares during March 1998.