SMD Circular No 14 dated June 25, 2002

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....rom Reserve Bank of India (RBI) with the details of steps taken by them to eliminate the scope for trading in government securities in physical form. RBI has made a request to SEBI to disseminate the same to all Stock Exchanges. In view of the above, the letter dated May 20, 2002 of RBI is enclosed for your information and compliance, if any. You may like to bring the above to the notice of your ....

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.... account to open CSGL accounts on behalf of their clients. * The cost of postage incurred by the depositories on remitting interest and redemption proceeds is being reimbursed by RBI so as to encourage dematerialised holding and retail participation in Gilts. * Guidelines have been issued to the banks prescribing the safeguards to be adopted for maintenance of CSGL accounts. * To impart tran....

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....me broker entities, it is now proposed to accelerate the measures under contemplation for further reducing the scope for trading in physical form. The measures are as follows * All entities regulated by RBI [including financial institutions (FIs), primary dealers (PDs), cooperative banks, RRBs, local area banks (LABs), non banking financial companies (NBFCs)] should necessarily hold their invest....

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....l be required to ensure availability of clear funds in the designated funds accounts for purchases and of sufficient securities in the CSGL account for sales before putting through the transactions. * No further transactions by a regulated entity should be undertaken in physical form with any broker with immediate effect. 4.A specific time table is being separately indicated for each category o....