DBOD.No. FSC. BC. 67/24.76.002/97-98

July 3, 1998

Aashadha 12, 1920 (Saka)

reverse ready forward transactions

The Government of India, in terms of Notification No. S.O. 2561 dated June 27, 1969, as amended vide Notification No. S.O. 764(E) dated November 6, 1997 (hereinafter referred to as "the Notification") and issued in exercise of the powers conferred by sub-section (1) of Section 16 of the Securities Contracts (Regulation) Act 1956 has permitted 5 non-bank entities (listed in the Government of India Notification S.O. 345(E) dated April 24, 1998 annexed) to enter into reverse ready forward contracts in Treasury Bills of all maturities issued by Government of India and in such dated securities of Government of India as are approved by the Reserve Bank of India, in consultation with the Central Government. The Reserve Bank of India in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 and being satisfied that it is necessary in the public interest so to do, hereby permits the banks to accept reverse ready forward deals by the aforesaid entities subject to the condition that

i) reverse ready forward deals in Treasury Bills of all maturities issued by Government of India and in such dated securities of Government of India as are approved by Reserve Bank of India in consultation with the Central Government are undertaken only at Mumbai.

ii) such transactions shall be put through Subsidiary General Ledger (SGL) Accounts with Reserve Bank of India.

(S. Gurumurthy)

Executive Director

THE GAZETTE OF INDIA

PART II - Section 3 - Sub-section (ii)

Published by Authority

MINISTRY OF FINANCE

(Department of Economic Affairs)

(CM & ECB Division)

NOTIFICATION

New Delhi, the 24th April, 1998

S.O. 345 (E). _ In exercise of the powers conferred by sub-section (1) of section 16 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Central Government hereby further amends the notification of the Government of India in the Ministry of Finance (Department of Economic Affairs) number S.O. 2561, dated the 27th June, 1969, namely : _

In the said notification :_

(a) in the third proviso, after serial number(s), the following serial numbers shall be inserted, namely :_

''(t) LIC Mutual Fund;

(u) J.M. Mutual Fund;

(v) Birla Mutual Fund;

(w) Kothari Pioneer Mutual Fund;

(x) Jardine Fleming Mutual Fund;"

(b) in the Explanation occurring below fourth proviso after serial number (xxvii-i), the following serial numbers

shall be inserted, namely :_

"(xxvii j) "LIC Mutual Fund" means a trust sponsored by Life Insurance Corporation of India, a corporation managed by Jeevan Bima Sahayog Asset Management Company Limited, a company incorporated under the Companies Act, 1956 (No. 1 of 1956) and having its registered office at Industrial Assurance Building, 4th Floor, Mumbai - 400020;

(xxvii k) "J.M. Mutual Fund" means a trust sponsored by J.M. Financial and Investment Consultancy Services Limited and managed by J.M. Capital Management Ltd., registered under the Companies Act, 1956 (No. 1 of 1956), and having its registered office at 141, Maker Chambers III, Nariman Point, Mumbai - 400025;

(xxvii l) "Birla Mutual Fund" means a trust sponsored by Birla Global Finance Limited, and managed by Birla Capital International AMC Limited, a company registered under the Companies Act, 1956 (No. 1 of 1956), and having its registered office at Voltas International House, 3rd floor, 28, NGN Vaidya Marg (Bank Street), Fort, Mumbai;

(xxvii m) "Kothari Pioneer Mutual Fund" means a trust sponsored by Investment Trust of India Limited, and managed by Kothari Pioneer AMC Limited, a company registered under the Companies Act, 1956 (No. 1 of 1956), and having its registered office at Eldorado Basement, Nungambakkam High Road, Chennai - 600034

(xxvii n) "Jardine Fleming Mutual Fund" means a trust sponsored by Jardine Fleming India Securities Limited, and managed by Jardine Fleming India AM Limited, and having its registered office at Amerchand Mansion, 16, Madame Cama Road, Mumbai - 400001."

[F. No. 1/32/SE/97]

DR. U. SARAT CHANDRAN, Jt. Secy.

Note : The principal notification was published under S.O. No. 2561 dated 27-6-1969 published in the Gazette of India Part II, Section 3, page 839 dated 27-6-1969 and subsequent notification S.O. 425(E), S.O. No. 750(E), S.O. 434 (E), S.O. 754(E) and S.O. 225(E) were published in the Gazette of India, Part II, Section 3, Sub-section (ii) on 1-6-94, 18-10-1994, 13-6-1996, 6-11-1997 and 18-3-1998 respectively.