DBOD.No. FSC. BC. 40/24.76.002/97-98

May 18, 1998

Vaishakha 28, 1920 (Saka)

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 the 12.00 per cent Government Stock 2008 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 12.00 per cent Government Stock 2008 subject to the condition that

i) the banks would undertake all transactions of ready forward in 12.00 per cent Government Stock 2008 only at Mumbai.

ii) such transactions shall be put through the Subsidiary General Ledger (SGL) Accounts.

(S. Gurumurthy)

Executive Director