RBI / 2004-05/148
REF. DBS. FID. No.C-6/ 01.02.00 / 2004-05
August 30, 2004
The CEOs of the all-India Term
Lending and Refinancing Institutions
(Exim Bank, IDBI, IDFC Ltd., IFCI Ltd., IIBI Ltd., NABARD, NHB, SIDBI, and
TFCI Ltd.)
Dear Sir,
Holding of Instruments in Dematerialised Form
In terms of the circular DBS.FID.No.C-4/01.02.00/2001-02
dated August 28, 2001 (copy enclosed), the FIs were directed to make fresh
investments and hold bonds, debentures, privately placed or otherwise, only
in dematerialised form with effect from October 31, 2001, and convert their
outstanding investments in scrip form into dematerialised form by June 30, 2002.
2. As a corollary, with a view
to extending the dematerialised form of holding to equity instruments, it has
been decided to permit FIs to make fresh investments in equity instruments and
hold them in dematerialised form with immediate effect. All outstanding investments
in equity in scrip form should be converted into dematerialised form by the
end of December 2004.
3. Please acknowledge the receipt.
Yours faithfully
(Dr. K. Jayanthi Anand)
Director
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