Investment Portfolio of banks - Transactions in Government Securities - ربی - Reserve Bank of India
Investment Portfolio of banks -
Transactions in Government Securities
DBOD.No.FSC.BC.113/24.76.002/2001-02
June 7, 2002
The Chairmen/Chief Executives of all
Dear Sir,
Investment Portfolio of banks -
Please refer to our circular DBOD.No.FSC.BC.143A/24.48.001/91-92 dated June 20, 1992 and the subsequent circulars issued from time to time on the captioned subject. In the light of recent fraudulent transactions in the guise of Government securities transactions in physical format by a few co-operative banks with the help of some broker entities, it has now been decided to accelerate the measures for further reducing the scope for trading in physical forms. These measures are as under:
2. A circular IDMC.PDRS.No.5039/03.64.00/2001-02 dated 20th May 2002 issued to all the RBI regulated entities (Commercial banks, Co-operative banks, Primary Dealers, FIs, Local Area Banks, RRBs and NBFCs) in this regard is enclosed for your information. Banks should ensure that the above instructions are complied with by June 30, 2002.
3. Please acknowledge receipt.
Yours faithfully,
(D.Mishra)
Encl: As above
IDMC .PDRS No.5039/03.64.00/2001-02
20 May, 2002 To All RBI regulated entities
Dear Sir, Transaction in Government Securities
Reserve Bank of India, has been, over a period of time, encouraging holding of government securities in the dematerialised mode in the following ways:
2. At present, as a result of above measures , 99% of the trading in government securities takes place through SGL accounts with RBI for which the Delivery versus Payment (DVP) system ensures simultaneous transfer of securities against funds. Of the new issuances in 2001-02 of government securities, 99.9% was in SGL form. 3. In the light of recent fraudulent transactions in the guise of Government securities transactions in physical format by a few co-operative banks with the help of some broker entities, it is now proposed to accelerate the measures under contemplation for further reducing the scope for trading in physical form. The measures are as follows
4.A specific time table is being separately indicated for each category of regulated entities to comply with these guidelines . Those who have genuine difficulties in meeting the time table may approach the concerned regulatory department in RBI for considering extension of dates for compliance. 5. Any regulated entity which requires help in this regard may approach Self Regulatory Organisations who are equipped to tender advice in this regard. These are Primary Dealers Association of India (PDAI) { telephone nos. (022)- 261-1094 / 261-0852 - extn 127 (helpdesk@ pdaindia.org)} or the Fixed Income and Money Market Derivatives Association of India (FIMMDA) {telephone nos.(022)- 202-5729. (email: helpline@fimmda.org)} 6. Detailed instructions are being issued in regard to the above by the concerned regulatory departments. Yours faithfully,
( Mohd. Tahir) The guidelines have been repealed. Please refer to the Reserve Bank of India (Classification, Valuation and Operation of Investment Portfolio of Commercial Banks) Directions, 2021. |