RBI/2005-06/57
RPCD.CO.RF.BC.16/07.02.03/2005-06
July 13, 2005
All State and District Central Co-operative
Banks
Dear Sir
Sale of Securities allotted in Primary Issues
As per the extant instructions, the sale contract
in respect of securities allotted to successful bidders in primary issues on
the day of allotment, can be entered into, inter-alia, only between entities
having SGL Account and settled under the Reserve Bank’s DVP system.
2. It was proposed in the Annual
Policy Statement for the year 2005-06 dated April 28, 2005 (extract
of paragraph 76 enclosed) to permit sale of government
securities allotted in primary issues with and between CSGL account holders
also on the same day of allotment.
3. As proposed in the Annual Policy Statement,
in order to facilitate further deepening of the Government Securities market,
it has been decided with immediate effect, to permit, sale of Government Securities
allotted to successful bidders in primary issues on the day of allotment, with
and between CSGL constituent account holders.
4. All other instructions on sale of securities
allotted in primary issues on the same day remain unchanged.
5. Please acknowledge receipt to our concerned
Regional Office.
Yours faithfully,
(C.S.Murthy)
Chief General Manager In-Charge
Extract of Annual Policy Statement for the year
2005-06
76. At present, sale of government securities
allotted in primary issues can be entered into on the same day only between
entities maintaining SGL account with RBI. In order to facilitate further deepening
of the government securities market, it is proposed:
• To permit sale of government securities allotted
in primary issues with and between CSGL account holders also on the same day.
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