Clarification

The media has been reporting about developments with trading on the NSE on 5th October 2012.

On October 5, 2012, while executing an order to transact a Nifty cash basket, in Nifty-50, a dealer committed a bona fide error. The error was in entering the value of the order as the quantity of Nifty-50 basket to be transacted. The order got transmitted to the NSE trading server as a single large Nifty basket order comprising of nifty 50 stocks. Immediately on realizing the error, we promptly got in touch with the NSE and kept in touch with them to co-ordinate all future course of action until the entire erroneous outstanding position was closed out.

All our remaining clients' outstanding positions are intact and we will continue to service all obligations. We are hopeful that this obvious and apparent error would justify the annulment of these trades, and believe in the NSE's professional management to see the merits for annulment, which is the practice worldwide. The NSE has disabled trading for us to facilitate investigations and primarily to prevent any further exposure until this settlement is completed. We are actively working with the NSE to facilitate this process and to bring it to an expeditious closure. We wish to clarify and confirm that our membership has not been suspended as has been inaccurately reported in some sections of the media. . We are adequately capitalized to meet all our financial obligations.

We trust that this unfortunate, although bona fide, error will be put behind us expeditiously and remain committed to serving our stakeholders, shareholders and clients.

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