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DBOD.No. FSC.BC. 2/24.76.002/97-98 January 5, 1998 The Chairmen/Chief
Executives of all Commercial Banks Dear Sir, Ready Forward Transactions Please refer to our
circular DBOD. No. FSC. BC. 114/24.76.002/97 dated October 20, 1997 on the
above subject. 2. Reserve Bank of India
in consultation with the Government of India has now approved 6 per cent
Government of India Capital Indexed Bonds 2002 for the purpose of ready
forward contracts, in addition to the dated securities approved earlier,
provided the transactions are effected at Mumbai and the deals are put
through the Subsidiary General Ledger (SGL) Accounts. 2. A directive DBOD. No.
FSC.BC.1/24.76.002/97-98 dated January 5, 1998 issued in this regard is
enclosed. Yours faithfully, (A. Ghosh) Chief General Manager |
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DBOD.No. FSC.BC. 1/24.76.002/97-98
January 5, 1998 Ready Forward Transactions As the Reserve Bank of
India. (hereinafter referred to as 'the Bank') has in terms of Notification
No. S.O. 2561 dated June 27, 1969, as amended vide Notification No. S.O. 425
(E) dated June 1, 1994 and issued by the Central Government in exercise of
the powers conferred by sub-section (1) of Section 16 of the Securities
Contracts (Regulation) Act, 1956, approved 6 per cent Government of India
Capital Indexed Bonds 2002 for the purpose of ready forward contracts, the
Bank in exercise of its 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 undertake ready forward deals
in 6 per cent Government of India Capital Indexed Bonds 2002 subject to the
condition that : 1. the banks would
undertake all transactions of ready forward in 6 per cent Government of India
Capital Indexed Bonds 2002 only at Mumbai. 2. such transactions shall
be put through the Subsidiary General Ledger (SGL) Accounts. (S. Gurumurthy) Executive Director |