Holding in Company

3i Smaller Quoted Co's Trust PLC
29 September 2000



LETTER TO: 3i Smaller Quoted Companies Trust PLC



                     SECTION 198 COMPANIES ACT 1985


We, The Royal Bank of Scotland Group plc, write to advise you pursuant to
Section 198 of the Companies Act 1985 (the Act) that:

1. This notification relates to the ordinary 25p share capital of 3i Smaller
Quoted Companies Trust Plc.

2. The number of shares of the person(s) with an interest, for the  purposes  of
sections  208 and 209 of the Act, immediately after the time when the obligation
arose, are shown on the attached schedule (below).

3.  The identities of the registered holders of these shares and the number of
shares  held  by  each  holder, so far as is known to us at  the  date  of  this
notification, are shown on the schedule below.

4.  The percentage quoted on the attached schedule is based on your issued
ordinary share capital of 57,718,523, as advised to us by FT Information.

5. None of the shares on the schedule below relates to interests as mentioned in
Section 208 (5) of the Act.

6.  NatWest Pension Trustees Ltd are interested in 2,170,339 shares but have not
come under a further obligation to make a disclosure as defined under  Section
199 of the Act. The above interest is included on the attached schedule.

LETTER FROM: The Royal Bank Scotland Group plc



Schedule of registered holders for notification S198-LO1/RJH/253

           Registered Holder                 Number of Shares      Percentage

           ADAM & COMPANY (NOMINEES) LTD                 6,000
           BNY GIL Client A/C Nominees Ltd           2,170,339
           NatWest FIS Nominees Ltd                      5,500
           National Westminster Bank Plc                91,000
           Nutraco Nominees Ltd                          7,200

           Total interest of
             The Royal Bank of Scotland Group plc    2,280,039          3.95