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