It has been brought to the notice of the Exchange that some unscrupulous person/s are misusing the trading system by luring members of the Exchange to deal in certain B2 and Z Group scrips or illiquid scrips by placing buy orders. Thereafter, these person/s do not make the payment for their obligations or issue dud cheques. The person/s are believed to be in concert with the selling member's clients. The selling members clients collect the sale proceeds from the selling members of the Exchange while the buying members are stuck with the illiquid scrips and have to honour their market obligations.

The exchange has advised the members and their sub brokers to exercise adequate caution and to do due diligence before accepting any person as their client.. A sizeable business in B2, Z or illiquid scrips should not be done for newly registered clients unless members/sub brokers know their clients very well and/or are sure about the quality of the scrip.

The investing public is requested to note the quality of companies especially the group in which the company is placed at the Exchange before investing in any scrip. If a sudden spurt in such scrip's volume is noticed, they should exercise caution when dealing in such scrips.

The Exchange will take appropriate action including suspension of trading in the scrips if the companies are found to be involved in such activities and acting in collusion with any person to defraud investors.

This is being issued in the interest of the investing public in general.

December 3, 2002