RBI/2004-05/474
IDMD.PDRS.No. 4907/03.64.00/2004-05
May 19, 2005
All Primary Dealers in Government Securities Market
Dear Sirs
Conduct of Dated Government Securities Auction
under Primary Market Operations (PMO) module of PDO-NDS – Payment of Underwriting
Commission
The procedure for underwriting of primary issues
of the Dated Government Securities by the Primary Dealers (PDs) has been laid
down in paragraph 2.1 of our Master
Circular IDMD.PDRS.05/03.64.00/2004-2005 dated October 1, 2004. In view
of the operationalisation of PMO module in PDO-NDS, it is advised that PDs instead
of submitting underwriting bids in physical form, should electronically bid
for underwriting in the PMO module, for which provision has been made. As the
system prohibits ‘0’ amount entry, PDs which do not choose to bid for underwriting
should not submit ‘Nil’ bids.
2. Further, it may be noted that the underwriting
commission hitherto credited to the current account of the PDs on the date of
the relative auction, will now be credited on the date of settlement of auction
payment.
3. Kindly acknowledge receipt.
Yours faithfully
(B. Mahapatra)
Chief General Manager-in-Charge
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