The Exchange vide Press Release dated August 29, 2002 had, inter alia, warned investors that some market participants may be engaging in unofficial badla through some form of private funding to enable participants to carry forward their positions. Investors were further advised that deferral or badla has been banned by the Securities and Exchange Board of India (SEBI) and any such transactions entered into would be illegal.

It is once again brought to the attention of the investors that there are reports of unofficial /illegal trading activities by some market participants outside the trading system of the stock exchanges. The investors are advised not to participate in such activities, as it is illegal and void. The participants in such activities are also liable for prosecution. Further, in case of any disputes or defaults arising out of such unofficial transactions, the guarantee mechanism of the stock exchange or the investors' protection fund of the stock exchange would not cover or entertain such disputes or defaults.

The investors are, therefore, advised to deal only through the registered stock brokers of the recognised stock exchange or through the registered sub-brokers of such registered stock brokers. Investors are further advised to seek a contract note/confirmation memo issued by such stock-brokers/sub-brokers respectively, which should contain all details of the trade. To enable the investors to verify their transactions done at BSE, the Exchange has launched a "Trade Confirmation System" on the Exchange through its website www.bseindia.com. Investors can verify their transactions done on BSE by simply filling the details of their transactions from the contract note on the designated form provided at the website, and the system will instantly generate a confirmation reply. Alternatively, those investors who do not have Internet access can also get their transactions confirmed through the Investors' Service Cell of the Exchange.

Investors may please note that any disputes or defaults arising out of genuine transactions executed through the trading system of the stock exchange are covered by the guarantee mechanism of the stock exchange or the investors' protection fund of the stock exchange.

This press release is issued in the interest of the investors.

October 4, 2002