RBI/2005/461
IDMD/PDRS /4777/10.02.01/2004-05
May 11, 2005
All RBI Regulated Entities
Dear Sirs
Sale of securities allotted in Primary issues
It was proposed in the ‘Annual
Policy Statement for the year 2005-06’ dated April 28, 2005 (paragraph 76)
to permit sale of Government Securities allotted in primary issues with and
between CGSL account holders also on the same day of allotment.
2. As per the extant instructions of the Reserve
Bank of India (RBI), (cf. IDMD.PDRS.No.PDS1/03.64.00/2000-01
dated October 6, 2000) the sale contract in respect of securities allotted
to successful bidders in primary issues on the day of allotment, can be entered
into, inter-alia, only between entities having SGL Account and settled under
the RBI’s DVP system.
3. As proposed in the ‘Annual Policy Statement’,
in order to facilitate further deepening of the Government Securities market,
it has been decided with immediate effect, to permit, sale of Government Securities
allotted to successful bidders in primary issues on the day of allotment, with
and between CSGL constituent account holders.
4. All other instructions on sale of securities
allotted in primary issues on the same day remain unchanged.
5. Please acknowledge receipt.
Yours faithfully
(B. Mahapatra)
Chief General Manager-in-Charge
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