India Infoline Securities P. Ltd. — LOSS DUE TO FAULT OF ONLINE TRADING SYSTEM PROVIDED BY IISPL

Dear Sir,

I am a client of India Infoline Securities P.Ltd., Mumbai for last 4-5 years. I use to trade in capital market & derivatives market through the Trading Terminal (software) provided by them. Many a times their system fails in executing the orders placed by the clients in a correct and efficient way. The incidence I wish to report is as under :

On 29th of Mar.2009 I placed after hour orders for short sell of 180 nos. of Eq.Shares of J&KBANK (the facility of placing after hour - offline orders is provided by IISPL). This orders were to be executed on the next trading session on 30th of Mar.09. Eventually these orders remained unexecuted upto 12.30 pm on 30th of Mar.09. When I found my decision of placing these orders for short sale wrong, I tried to put orders for cancellation of these orders, which is a general process in stock trading. But the system erroneously did not accepted the orders for cancellation and thus said order for sell of 180 Nos. of J&KBANK got executed without my willingness. Further I tried to square off my positions by placing a purchase order for 180 Nos. of J&KBANK but again the system erroneously did not accepted the orders and ultimately the trading session ended with a short sell of 180 Nos. of J&KBANK on my part. As per the rules of SEBI and the stock exchange, the bad delivery was corrected through auction on 6th of Apr.09, which resulted in a loss of more than Rs.11000/- to me. This loss was not on any mistake or wrong act from my side but was purely due to the technical failure of the trading system of India Infoline P. Limited. But they are not listening to me and have debited my account with the said amount of Rs.11000/- (odd).

This is what I have to report.

Thank You.