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DBOD.No.BP.BC. 13/21.01.023/98 February 12, 1998 Magha 23, 1919 (Saka)
(excluding Regional Rural
Banks) Dear Sir, Custody of securities of NBFCs
with designated banks towards maintenance of liquid assets Please refer to para 2 of our
circular DBOD. No. BP.BC. 103/21.01.023/97 dated September 9, 1997 on the
above subject. It is clarified that the Government securities/guaranteed
bonds required to be held by NBFCs under Section 45IB of the Reserve Bank of India
Act, 1934 in the custody of a branch of a scheduled commercial bank should be
valued at a price not exceeding the current market price of such securities.
If, however, market quotations for such securities are not available (i.e.
securities are not quoted), these securities should be valued at their
carrying cost. Yours faithfully (Smt. Chitra
Chandramouliswaran) General Manager |
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