Mumbai, August 6, 2002: The first ever Two way fungibility trade in India took place today on The Stock Exchange, Mumbai, for India Cements Limited. DSP Merrill Lynch were brokers to the landmark trade. Citibank were the local cum global depository of India Cements Limited.

This was the first stock trade that benefited from the two way fungibility guidelines that were announced in the Union Budget 2001.

Commenting on this landmark transaction, Mr Shitin Desai, Vice Chairman and Managing Director, DSP Merrill Lynch Limited said, "This is yet another step in India's movement towards achieving global standards in financial practices and we are very happy to have facilitated the first ever transaction in India."

The long awaited two way fungibility will help in developing two way business and should also step up interest among international investors. Additionally, along with FIIs, this mechanism will enable Non Residents to access the local bourses. A direct fall out of the two way fungibility process is that it will limit arbitrage difference that prevail in share prices of Companies that are listed on the international as well as Indian bourses.

The two-way fungibility guidelines of RBI issued in February 2002 enable a non-resident investor to buy local shares of an Indian company through an Indian stock broker and convert them into ADRs/GDRs eligible to be traded on the international stock exchanges.

DSP Merrill Lynch Limited (DSPML) is one of India's leading investment bank and securities firm and is an affiliate of Merrill Lynch & Co. (ML), one of the world's leading capital raising, financial management and advisory companies. Among the top institutional brokers in India, DSP Merrill Lynch has been rated highly for its investment banking, broking, and research capabilities by leading international publications such as Institutional Investor, Asiamoney and Financeasia. For more information, please visit www.dspml.co.in.