REF.No.MPD. /07.01.279/2002-03 October 10, 2002
Ashwin 18, 1924 (S) All Primary Dealers Dear Sirs, Access to Call/Notice Money Market for
Primary Dealers : Prudential Norm Please refer to circular No.MPD.220/07.01.279/2002-03 dated July 31, 2002. 2. As already advised under the above-mentioned circular, with effect from October 5, 2002, Primary Dealers (PDs) are free to lend upto 25 per cent of their net owned funds (NOF) in call/notice money market. In response to suggestions received from market participants, it is clarified that the above 25 per cent limit will be determined by PDs on an average basis (and not on a daily basis) during a reporting fortnight. This would provide greater flexibility in liquidity management by PDs, and will also be consistent with the computation of limits as applicable to other participants in call/notice money market, including banks. Kindly acknowledge receipt. Yours faithfully, (D. Anjaneyulu)
Adviser-in-Charge |