Dear Members and Participants,

Sub: Transaction in Government Securities

Reserve Bank of India (RBI) vide circular no. IDMD.PDRS/4783/10.02.02/2004-05 dated May 11, 2005 and Exchange vide circular no. 141 (Download Ref. No. NSE/WDM/6158) dated May 18, 2005, members had been advised that settlement of all outright secondary market transactions in government securities will be standardized to T+1. In case of repo transactions in government securities, first leg can be settled either on T+0 basis or T+1 basis. The above guidelines came into effect from May 24, 2005.

As accounting units of the Reserve Bank will remain closed for public transactions on account of annual closure of accounts, settlement of G-sec transactions will not take place on July 01, 2005. As per RBI’s notification on Negotiated Dealing System (NDS) the T+1 settlement of all G-Sec transactions done on June 30, 2005 would be July 02, 2005. Further there will be no T+0 transactions on July 01, 2005. The T+1 transactions contracted on July 01, 2005 will, as usual, settle on July 02, 2005.

Pursuant to above notification, the Exchange has decided settlement in Government securities on July 02, 2005 only for outright transaction done on June 30, 2005. Further there will be no T+0 settlements in Government securities transaction on July 01, 2005.

For National Stock Exchange of India Ltd.

-Sd/-

Suprabhat Lala

Manager CM & WDM

Note: For clarifications, please contact Mr. Sunil Gawde / Mr. Fabian Gonsalves / Ms. Prachi Bhat on 26598285.