RBI/2004-05/404
IDMD .CLS. No 10/08.01.02/2004-05
March 29, 2005
To All NDS Members
Dear Sirs,
Conduct of Dated Government Securities Auction
under PMO module of PDO-NDS- Preparedness
As you are aware that auction of Treasury Bills
has already been operationlised in the Primary Market Operations (PMO) of PDO-NDS
system. With a view to further enhancing the system, it has been decided to
operationalize the Dated Securities auction in PDO-NDS from the first week of
April 2005. The live operation of the module will be notified separately. Accordingly,
the PMO module has been suitably modified to facilitate auctions of Dated Securities
with various features.
2. The salient features of the module and the
various functions to be carried out by participants of the PDO-NDS are as follows:
a. All competitive bids to be submitted
by participants in the new module during the specified time period as mentioned
in the Notifications.
b. Non-competitive bids are to
be submitted from the member Terminal for the CSGL account holders. In case
of non-CSGL account holders, the consolidated bids must be submitted to PDO,
Mumbai along with details of bids i.e name of the client and the amount, as
an annexure, before the cutoff time notified in the Notification. Members
have to ensure the eligibility criteria for non-competitive bids as notified
by RBI.
c. Primary Dealers (PDs) have to
submit underwriting bids in PDO-NDS during the Underwriting auction period
as per the Notifications issued by RBI in regard to auctions of dated securities
from time to time.
d. Members facing connectivity
problems may submit physical bids by communicating the intention to do so
by sending a fax request to PDO, Mumbai before close of bid submission time
and submit the physical bid within half an hour of close of the bid submission
time as provided in NDS regulations. Same procedure will apply as in the case
of underwriting bids by PDs.
e. The new system provides online
declaration of auction results; accordingly no physical allotment advice would
be provided to the successful bidders.
3. For smooth implementation of the enhanced
PMO module, presentation-cum demonstration sessions have been arranged for the
market participants at RBI, Central Office, Mumbai. The detailed schedule has
been communicated from NDS, Help Desk. All members are urged to follow the detailed
guidelines for installation of new software including the various operational
guidelines issued by NDS, Help Desk in this regard.
4. In order to familiarize the NDS members with
the new-functions and to assess the members preparedness and running of new
software, it has also been decided to conduct mock auction on Sunday, April
3, 2005 in PDO-NDS. Accordingly, all members are requested to participate in
the proposed mock auctions. The detailed guidelines and checkpoints to be observed
by the participants at the time of mock run will be made available in the presentation
sessions.
5. We request all the eligible participants
to extend their co-operation for the successful implementation of Dated Securities
Auction module under PDO-NDS and participate, without fail, in the mock auction
to be conducted by RBI on the scheduled date. This is the opportunity for the
users to familiarize themselves with the new functionalities.
Yours faithfully,
(Jasbir Singh)
Chief General Manager