The SEM Young Investor Award Competition

Prizes

Aims of the Competition

The competition seeks to

a)  introduce students to the functions and operations of the Stock Exchange,

b) promote an investment culture among the young, as they prepare to enter the labour market,

c)  increase awareness of Stock Exchange activities.

Rules of the Competition

• The competition is open to all secondary schools offering HSC courses and is limited to 2 teams per school.

• Each school team shall consist of 5 members, who must all be Lower VI students.

• Each team will be required to invest by March 20th, 2008 an investment fund of Rs 100,000 of token money over a 3-month period and submit their initial portfolios to the Stock Exchange at latest on that date. The initial portfolio will be calculated using the closing price of the 21st March 2008.

• In the event that a participant is transferred from one secondary institution to another, the latter will have to be replaced by another participant of the same institution.

• All correspondance other than invesment swaps, investment plans and reports sent to the Stock Exchange should bear the signature of the Rector.

• The price used to evaluate portfolios will be the closing price of the trading session, i.e. on 20th June 2008.

• In the event of any right issues on the Ex-Rights (ER) date, the Rights will be deemed to have been sold at [Ex-Rights (ER) Reference price - Issue Price].

• In the event where a company is merged or taken over by another company, the value of the shareholding will automatically be used to purchase shares in the new company to the equivalent value.

• Each team will first select among the existing listed companies 5 shares which in their view represent the best investment opportunities over the next three months, and then allocate an amount of the investment fund of Rs 100,000 to each of these 5 shares so as to achieve the best total return, i.e dividends and capital appreciation, at the end of the three-month period.

• At the beginning of the competition, each team will be required to present an investment plan in the form of an essay and an investment report at the end of the competition. These reports will carry 30% of the marks, the remaining 70% will be alloted to the profits realised on the portfolio.

• The winner of the competition will receive a prize of Rs 50,000. The winning team's school will receive the challenge trophy of the SEM YOUNG INVESTOR AWARD to be held for one year.

• The Stock Exchange shall have the right to make a pre-selection of the participating teams at the final marking stage and take any other decisions for the good conduct of the competition.  All participating teams shall abide by its decisions which shall be final.

February 27, 2008