There have been reports in a section of the press that some of the market participants may be engaging in unofficial badla through some form of private funding. It is understood that this mechanism is utilized to enable participants to carry forward their positions. In this connection it is advised that deferral or badla is banned by the Securities and Exchange Board of India, and any such transactions entered into would be illegal. Consequently all such transactions would be outside the regulations prescribed by Stock Exchanges and any market participants found to be engaging in such activities would invite disciplinary action. Investors are also hereby advised that in any case any disputes or problems arising out of such transactions, the guarantee mechanism of the stock exchange or the investor protection fund of the stock exchanges would not cover or entertain such disputes or defaults.

This press release is jointly issued by NSE and BSE in the interests of investors.

August 29, 2002