Partnering with Brand India For Leadership in Global Financial & Commodity Markets Miten Mehta Financial Technologies Group EU-India Relations – Vision 2020 Nov 8-9, Brussels

A brief history of time 15 years of India’s reforms and liberalization ‘The next generation of India Inc are the children of reforms, not necessarily children of businessmen …...No force in the world can stop an idea whose time has come’ - Prime Minister Mr. Manmohan Singh Original Sultans of Reforms – The Dream Team ‘These are the best of times and the worst of times. While it is a good time to take credit for the growth story, more reforms are needed (in Financial, Energy and Agricultural sector) to sustain this growth…...Look at the opportunities we are missing, the growth and wealth we are denying (to ourselves)’ - Finance Minister Mr. P. Chidambaram ‘In the long run, India will win…..’ - Dy. Chairman of Planning Commission Mr. Montek Singh Ahluwalia

India 1.0 (Pre Liberalization) Value PropCost + Labor Arbitrage Servicese.g.- IT / ITES / BPO / KPO ModelEnable other Brands Target Markets Export led Top of the Pyramid Economic Benefit 1% of (tech) population - classes LeadersTCS, Wipro, Infosys ‘Brand India’ Evolution From Cost Arbitrage - To IP Centric Model India 2.0 (Post Liberalization) IP centric + Vertical Market Domain e.g. - Financial Markets & Transactions driven services Be a global Indian Brand Domestic first (global next) Middle and Bottom of Pyramid 70% of (agri) population - masses FT, MCX, NSEL, SNX

Financial Technologies will leverage its leadership position in global technology markets to re-define ‘Brand India’ from a cost arbitrage value proposition to an Intellectual Property centric business model Jignesh Shah Chairman & Managing Director Financial Technology Group

MCX Integrating Rural India with Global Markets India 2.0 Case Study

Saluting Mother Earth Source of All Commodities

MCX Overview Integrating Rural India with Global Markets  MCX set-up and live in Nov 2003 (product of financial reforms in 2002)  Regulated by FMC (Forward Market Commission)  No. 1 Commodity Exchange of India with around 60% market share  USD $3.5 B daily average trading volume (3 times of BSE) in over 70 commodities  Operations for 600 cities with over 1500 members & 10,000+ Trading stations  Among top 10 commodity exchanges globally in less than three years  No. 2 in Silver & Natural Gas futures trading globally  No. 3 in Gold futures trading globally  10 International Strategic Alliances  CCE, NYMEX, NYBOT, LME (UK), EURONEXT LIFFE (Europe), Baltic (Scandinavia), Bursa (Malaysia), DMCC (Middle East), TOCOM (Japan), Zengzhou (China)  MCX is an unique and successful example of public-private partnership  SBI, NSE, NABARD, HDFC and several other National banks are strategic investors.  First Indian Exchange to file for public IPO with SEBI  Fidelity invested USD $49 mil at USD $560 mil valuation in Feb 2006.

Commodities Offering Global Leader in 5 out of top 10 commodities Total 72 Commodities offered

Global Strategic Alliances 11 out of top 15 Exchanges

Production Commodity Exchanges Unlocking Value at Bottom of Pyramid From hereTo here

Distribution Commodity Exchanges Farm to Retail enabler From hereTo here

Logistics From hereTo here Commodity Exchanges Efficient supply chain driver

Infrastructure Commodity Exchanges Catalyst for change From hereTo here

Markets, credit facilities Agriculture price & arrivals Markets & Seasons Demand, supply, crop forecast & news Rural employment & government schemes All are E-Networked Agro inputs Crop insurance Agro practices & diseases Weather advisory Procurement Information Warehousing & Quality Certifying information The Network Effect… Creating New Efficient Markets & Ecosystems

India Post Tie-up Commodity Price Information dissemination

US-India Award for MCX Leadership Mr. Jignesh Shah Sen Hillary Clinton

Financial Technologies Technology Engine powering MCX, DGCX, NSEL, IBS Forex, SNX & other financial markets India 2.0 Case Study

Financial Technologies Group Leading ‘Brand India 2.0’ in Global Technology Markets  Listed on BSE and NSE with USD $2.5B group market value.  # 8 th among list of NASSCOM top 10 Indian public software companies  #1 ranking by Business World among top 500 Indian companies in terms of shareholder returns and value creation.  ‘Super Specialization’ in niche of providing Technology + Domain knowledge for financial markets  Over 80% market share in Exchange and Brokerage Technology Solutions offered as services.  Exchanges are to FT what Search is to Google – Platform for disruptive innovation to create new markets and ecosystems!  Create eBay’s for all ‘non eBay’ – 90% of things!  Scale each venture from 0 to USD $1B in 1000 days. e.g. MCX & DGCX

Financial Technologies Group Leading ‘Brand India 2.0’ in Global Technology Markets MCXIBS Forex ATOM Technologies IT services for transactions on wireless devices NBHC 64.3% 40%99% e 55 % 100% 10% 76% 40% 100%

‘Our goal is to create globally competitive financial market infrastructure with MCX, NSEL, NBHC, SNX and others that will help bridge economic divide by integrating rural India with global markets’ Jignesh Shah Managing Director and CEO, MCX

EU – India Opportunities In Financial & Commodity Markets  Joint Ventures to establish and develop Financial and Commodity Markets in Africa, Middle East, Asia, Central and Eastern Europe  Markets enable countries unlock value from Commodities, Natural Resources and Agriculture – prudently  Markets help nations to bridge rural – urban economic and development divide.  Markets empower people with ‘information’ that allow people to compete and grow in finance, commodities and agriculture mkts.  Wall street data at cable TV prices to remotest region of country  Markets are platform of mass - change, disruptive innovation, disintermediation and more equal distribution of wealth  EU + India = Opportunities Unlimited

No force in the world can stop an idea whose time has come - Victor Hugo Miten Mehta Financial Technology Group Thank You EU - India Partnership

India Post Tie-up Commodity Price Information dissemination