RESERVE BANK OF INDIA
CENTRAL OFFICE
URBAN BANKS DEPARTMENT
1ST FLOOR, GARMENT
HOUSE
WORLI, MUMBAI- 400 018
RBI/2004/144
BPD.PCB.Cir. 44 / 09.29.00/2003-04
April 12, 2004
The Chief Executive Officers of All
Primary (Urban) Co-operative Banks
Dear Sir/Madam,
Sale of Government securities allotted
in the auctions for primary issues on the same day
Please refer to our circular UBD
No. POT.Cir.PCB. 39/09.29.00/2000-01 dated April 18, 2001, permitting the banks
successful in auctions of Government securities to enter into contracts for
sale of allotted securities on the same day, in accordance with the terms and
conditions stipulated therein.
2. Currently, as you are aware,
Government Securities and Treasury Bills are permitted to be traded only on
T+0 or T+1 settlement basis, unless they are traded on the Stock Exchanges.
Therefore it is clarified that, any sale of securities allotted in primary auctions,
in terms of the above circular, should be only on a T+0 or T+1 settlement basis.
3. Please acknowledge receipt of this circular
to our Regional Office.
Yours faithfully,
Sd/-
(S. Karuppasamy)
Chief General Manager-in-Charge
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