All Primary Dealers/Banks,

Dear Sirs,

Rules Governing Primary Dealer System

Please refer to EDMD Circular No. 11 dated August 27, 2005. In this regard it is advised that existing Rules no. 10 and 11 of Section D of Rules Governing Primary Dealers System has been substituted as below.

Rule 10 of Section D

At any given day end, a PD’s holding in a particular issue will not exceed 30% of the total accepted amount whereas for non-PD bank, it should not exceed 15% of total accepted amount.

Rule 11 of Section D

The PD will not be allowed to short sell a particular issue more than 5% of the total target amount, during the “When issued” period. Short selling will be allowed only up to the time of auction and will be available only if the auction is accepted.

Other instructions on the subject remain unchanged.