RESERVE BANK OF INDIA
CENTRAL OFFICE
INTERNAL DEBT MANAGEMENT CELL
MUMBAI 400 001.
RBI /2004-05/ 67
IDMD.PDRS. 02 /03.64.00/2004-05
July 23, 2004
To All Primary Dealers in Government
Securities Market
Dear Sirs,
Success Ratio in Treasury Bill
auctions for Primary Dealers
Please refer to the instructions
contained in Bank’s circular no. IDMC.PDRS.4881/03.64.00/ 2001-02 dated May
8, 2002 under which the method of computation of success ratio of 40% in respect
of Treasury bills and dated securities auctions was indicated.
2. In the context of the increased
quantum of issuance of Treasury bills under the ‘Market Stabilisation Scheme’,
we have since reviewed the guidelines relating to success ratio requirement
in consultation with the Primary Dealers Association of India. It has now been
decided that success ratio requirement of 40% of bidding commitment in respect
of Treasury bills auctions will be monitored on a half yearly basis. Each PD
will have to achieve the required level of success ratio in each half year (April
to September and October to March) separately. This will be effective from the
current year, i.e., 2004-05.
3. In respect of dated securities,
the existing guidelines will continue to apply.
4. Please acknowledge receipt.
Yours faithfully,
Sd/
H.R.Khan
Chief General Manager-In-Charge
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