DBOD.No. FSC. BC. 41/24.76.002/97-98

May 18, 1998

Vaishakha 28, 1920 (Saka)

The Chairmen/Chief Executives of all Commercial Banks

Dear Sir,

Ready Forward Transactions

Please refer to our circular DBOD. No. FSC. BC. 31/24.76.002/97-98 dated April 29, 1998 on the above subject.

2. Reserve Bank of India in consultation with the Government of India has now approved 12 per cent Government Stock 2008 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.

3. A directive DBOD. No. FSC. BC. 40/24.76.002/97-98 dated May 18, 1998 issued in this regard is enclosed.

Yours faithfully

(Shyamala Gopinath)

Additional Chief General Manager