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NEST* RELEASE

Central Depository Services (India) Limited (CDS) and National Securities Depository Limited (NSDL) have signed a Memorandum of Understanding (MOU) for inter-depository connectivity. The MOU covers the understanding between the depositories for inter-depository transfers arising out of transactions not settled through the Clearing House / Clearing Corporation.

Regulation 31 of the SEBI (Depositories and Participants) Regulations, 1996 requires that every depository shall maintain continuous electronic means of communication with all its participants, issuers or issuers' agents, as the case may be, clearing houses and clearing corporations of the stock exchanges and with other depositories.

CDS has received approval from DOT for establishing connectivity with NSDL through I-Net. Based on this approval, both depositories have applied to MTNL for the connection.

The procedures for inter-depository transfers between CDS and NSDL arising out of transactions settled through a Clearing House/ Clearing Corporation are expected to be finalised separately.

Mumbai
April 26, 1999

NEST = * National Electronic Settlement and Transfer