DBOD.No. FSC.BC. 1/24.76.002/97-98

January 5, 1998
Pausha 15, 1919(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 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