Sharekhan Receives Investment to Fund Growth from Global Private Equity Firm General Atlantic

MUMBAI, April 12, 2006 - Sharekhan, a leading online brokerage in India, today announced an investment from General Atlantic LLC (GA). GA is investing about Rs. 144 Crs (USD 32.5 Mln) through a combination of primary investment in the company and secondary investment to buy the entire shareholding of First Carlyle Ventures (The Carlyle Group), one of the early investors in the company. The other two early investors, Intel Capital and a group of funds advised by HSBC Pvt Equity India Fund continue to remain invested in the company with significant shareholding. General Atlantic is a leading global private equity firm providing capital for growth companies. Sharekhan will use the proceeds to fund the Company’s strategic initiatives. Abhay Havaldar, Managing Director, and Sunish Sharma, Vice President, based out of General Atlantic’s Mumbai office will be joining Sharekhan’s board of directors.

Sharekhan is one of the top retail brokerage houses in India with a strong online trading platform. The company provides equity based products (research, equities, derivatives, depository, margin funding, etc.) through its pan India presence of 100 branches and 310 franchises across 150 cities. Sharekhan was established by Morakhia family -in 1999-2000 and Morakhia family, continues to remain the largest shareholder.

Mr. Shripal Morakhia, Chairman, Sharekhan, commented, “General Atlantic has been very active in this field globally and the firm brings a wealth of knowledge through its investments in E*Trade, NYSE and NYMEX to name a few. Their global network and extensive contacts will help Sharekhan to continue its growth in a very robust market.”

Mr. Shripal Morakhia further added that he was appreciative of the contribution of The Carlyle Group and commented, “The Carlyle Group and its team have been extremely co-operative and supportive of the various strategic initiatives at Sharekhan. We appreciate the significant positive contribution and commitment of The Carlyle Group, and Mr. Shankar Narayanan (managing director with the Carlyle Group) for his value added inputs, support to the management team, and the various services rendered during his tenure as a Board member of Sharekhan.

Mr. Tarun Shah, CEO of Sharekhan, commented, “We are very excited to have General Atlantic as a partner. GA brings a wealth of experience including a deep understanding of the financial services and consumer sectors. They also have a unique capability to help companies leverage technology as a source of competitive advantage.”

Mr. Abhay Havaldar, Managing Director with General Atlantic and head of its Mumbai office said, “We firmly believe in the growth of the financial services sector in India and are eager to invest behind strong management teams and retail financial services brands. Sharekhan’s management team is one of the strongest in the sector and has positioned Sharekhan to take advantage of the growing consumer demand for financial services products in India through investments in research, pan-Indian branch network and an outstanding technology platform. Further, Sharekhan’s lineage and relationship with SSKI Group provide it a unique position to understand and leverage the growth of the financial services sector. We look forward to providing strategic counsel to Sharekhan’s management as they continue their expansion for the benefit of all shareholders.”

GA invests in both public and private companies with a long-term investment horizon and a value added approach. GA has been active in India since 2002 when it established its office in Mumbai and made its first investment in Patni, a global IT services company. Since then, GA has made several additional investments, including Genpact, a leading global provider of outsourced services which was spun off from GE in December 2004; Jubilant; and NDTV. GA is active in the global financial services sector with U.S. investments including the NYSE Group, NYMEX, Riskmetrics and formerly E*Trade; and European investments including Saxo Bank.

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