BSE Chairman Speech

Dear Shareholders,



The year April 2006 - March 2007 has been a landmark year for the

Bombay Stock Exchange Limited. Under the BSE (Corporatisation and

Demutualisation) Scheme, 2005 notified by Securities and Exchange Board

of India (SEBI) on May 20, 2005, the Exchange completed the

demutualisation exerercise in the month of May 2007, bringing about

separation of ownership and management. This was a watershed event in

the long history of the Exchange.



I wish to personally congratulate all stakeholders on this

transformation, which is in line with what various stock exchanges have

done internationally.



I am happy to report that there was overwhelming interest shown by

overseas investors as also by domestic investors in acquiring a stake

in the Exchange. The robust valuation that the Exchange received is an

expression of confidence by the investors in the capabilities of the

Exchange and a recognition of its potential.



Going forward, we remain committed to delivering superior returns to

all our stakeholders.



The year 2006-07 has also been a landmark year in terms of the

performance of the Indian capital markets. India continues to attract

significant capital inflows resulting in ever higher levels of Sensex

and most other BSE indices. The Sensex closed above the milestone mark

of 15,000 points for the first time in its history on 9th July 2007,

our Foundation Day. The strong performance of the markets is

underpinned by robust performance of the economy and impressive

corporate results.



Last year, I had mentioned the need to revive the F&O segment. During

the year under review, a strategy for increasing volumes in this

critical segment was devised and initial indications are that some

increase has been achieved in volumes under this segment. I am sure the

year ahead will enable us to garner a higher market share in this

critical area.



I take this opportunity to express my gratitude to all stakeholders for

their whole-hearted co-operation and guidance in this critical phase of

transformation that the Exchange is going through and look forward to

your continued support to the Exchange in the future.



Warm regards,



Jagdish Capoor

Chairman

8th August, 2007