SMD Circular No 14 dated June 25, 2002

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....ment SecuritiesWe have received a letter dated May 20, 2002 from 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,....

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....eing non-banks, depositories (NSDL/CDSL) and organisations such as SHCIL have been provided an additional SGL 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. • Gui....

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....cent fraudulent transactions in the guise of Government securities transactions in physical format by a few co-operative banks with the help of some 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 ....

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....s indicated above , the particulars of the designated funds account (with a bank) should be intimated to that institution. • The entities maintaining the CSGL/designated funds accounts will 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. ....