All Primary Dealers
Dear Sir
Reporting of defaults in market transactions
As you are aware, all Primary Dealers (PDs)
are required to ensure that the transactions undertaken by them are settled
smoothly, by ensuring maintenance of sufficient balance in the current account
and SGL account. We reiterate our instructions to all the PDs that they should
strictly ensure that there are no defaults in maintaining sufficient
balances in the current and/or SGL accounts to meet their commitments arising
out of transactions with other market participants or with Reserve Bank of India.
2. All PDs are also advised to ensure that
whenever such defaults take place in their current accounts/SGL accounts, they
should immediately report the details of such defaults to the Chief General
Manager-in-Charge, Internal Debt Management Department, Reserve Bank of India,
Central Office, Mumbai–400001.
3. All PDs are also advised to place this
circular before the respective Board of Directors of their companies.
Yours faithfully
(B. Mahapatra)
Chief General Manager-in-Charge