They expected DBS to offer some form of 'blanket buy-back' of the product but instead were to lodge complaints if they felt misled into buying the notes.

Almost 400 people who bought the High Notes 2 product attended two separate dialogues that had been organised by DBS to enable concerned investors to ask questions about their investment.

High Notes 2 still has value, unlike High Notes 5, but it is hovering around 16 cents in the dollar so investors fear that they may also be left with nothing. About 1,000 people here have $70 million tied up in the product.

Yesterday's sessions, which followed similar forums held on Thursday for High Notes 5 investors, were closed to the media but the sound of angry voices could be clearly heard from the Suntec City meeting room.

Investors said later that most questions centred on whether DBS should offer an immediate 'blanket compensation' because they feel they were misled into buying the product.

'Most, if not all of the people in the room were like me, they feel that they have been misled into buying the notes,' said a computer engineer who declined to give her name.

'We demanded for 100 per cent compensation but DBS said, they will look at our complaints on a case-by-case.'

Many like the 38 year-old Singapore permanent resident, who spoke to The Straits Times, had invested between $25,000 and $500,000 in High Notes 2.

DBS told investors that reviews would be done on a case-by-case basis. This is also its approach to investors in High Notes 5.

High Notes 2 is similar to High Notes 5 except for one crucial detail - its eight 'Reference Entities' do not include the now bankrupt US bank Lehman Brothers.

It was the direct exposure to Lehman Brothers that triggered the collapse of High Notes 5.

But High Notes 2 still has an indirect exposure to Lehman as well as US mortgage giants Fannie Mae and Freddie Mac, both of which are now on life support.

DBS said this exposure led rating agency Standard & Poor's to downgrade the collateral of High Notes 2 on Sep 23.

The bank said the downgrade will not mean an early redemption of the notes - they are due to mature in 2011 - but the latest indicative valuation has fallen to 16 per cent. That means for every dollar invested is now worth just 16 cents.

Investors had been assured of a semi-annual payout of about 4 per cent for the first three and a half years and 5 per cent a year for the last 18 months.

Although DBS has periodically assured investors that if the five-year notes were 'held to maturity', they will receive the principal invested, barring any credit event and early redemption.

Meanwhile the 300-strong action body called DBS Hi Notes Investor Group fired another salvo at the bank yesterday, criticising Thursday's dialogue sessions over the High Notes 5 debacle .

'The immediate post-forum reaction of most attendees is that the sessions have not moved the complaint nor the compensation processes forward in any significant manner,' it said.

DBS held the Thursday dialogues in response to demands from the group but it initiated yesterday's event itself to listen to customers worried about their cash in High Notes 2.

Besides High Notes 2 and 5 - of which series 5 also included a US dollar tranche, DBS had sold five other similar credit linked notes between Dec 2005 and Sep 2008.