It has been brought to the knowledge of the Exchange that some companies have dematerialised securities, which are traded on the Exchanges without obtaining listing permission from the Exchange. The Listing Committee of the Exchange at its meeting held on 9th January, 2003 has rejected the Listing Applications of 17 such companies. Further, the Exchange has also suspended trading in those companies to prevent any further rights being created.

The Governing Board of the Exchange at its meeting held on 11th February, 2003 has taken a serious view of the matter and noted that the conduct of the companies that have dematerialised the unlisted securities without getting in-principle approval from the Exchange is blameworthy, unprofessional and fraudulent and the same would attract severe action including delisting of securities as the Exchange may deem fit.

Therefore, Companies are hereby warned not to dematerialise securities until they receive in-principle approvals from all Exchanges where they are listed besides meeting all other regulatory requirements.

The ISO 9001:2000 requirements are that the organization determines what it needs to do to satisfy its customers, establish a system to accomplish its objectives and measure, review and continually improve its performance.

February 20, 2003