diff --git a/README.md b/README.md
index d12711b8..3e282f18 100644
--- a/README.md
+++ b/README.md
@@ -37,7 +37,14 @@ npm install -g grunt-cli
 ```
  grunt serve
 ```
-   or open the 'index.html' file in FIREFOX browser.
+   or open the 'index.html' file in FIREFOX browser
+
+Note: If you see a warning similar to the one shown below on running `grunt serve` , try increasing the number of open files limit as per the suggestions at http://stackoverflow.com/questions/34588/how-do-i-change-the-number-of-open-files-limit-in-linux/ 
+
+```
+Waiting...Warning: EMFILE, too many open files
+
+```
 
 6. Default username/password: mifos/password. This application will hit the demo server by default.