Due Diligence in dealings by intermediaries and clients.

The market has been witnessing increased activity both in terms of volatility and volumes which may be due to various underlying factors. It is, however, essential for the members to exercise caution in executing orders on their own behalf and also on behalf of their clients. Members are advised to be vigilant about the activities of their sub-brokers and clients and monitor the dealings of sub-brokers/clients closely including correlation of their trading activity with the financial and other information provided by them at the time of registration or in view of their past trading record, excessive concentration in one or few securities, etc. Members are also advised to put in place appropriate systems and procedures for the above purpose and alert the Exchange in case any unusual activity comes to their notice. Members may also advise their clients to exercise necessary caution in their dealings and not to get carried away by unfounded rumors, tips etc.

The investors in general are also requested to exercise necessary caution in this regard.

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