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Ready Forward Contracts - Through CCI Ltd
DBS.
FID. No. C-16 - 01.02.00 dated 14th May 2002
Please
refer to our Circular DBS. FID No C- 15/ 01.02.00/ 99-2000 dated April 8, 2000
in terms of which the terms and conditions for Ready Forward Contracts were
specified by the Reserve Bank of India.
2.
In supersession of the instructions contained in the above referred
circular dated April 8, 2000 it is advised that the terms and conditions subject
to which ready forward contracts (including the reverse ready forward contracts)
may be entered into, will stand modified as under:
(a)
Ready forward contracts may be undertaken only in (i) Dated Securities
and Treasury Bills issued by Government of India and ii) Dated Securities issued
by the State Governments.
(b)
Ready forward contracts in the securities specified at (a) above may be
entered into by a banking company, a cooperative bank or any person maintaining
a Subsidiary General Ledger (SGL) Account with the Reserve Bank of India,
Mumbai.
(c)
Such ready forward contracts shall be settled through the SGL Account of
the participants with Reserve Bank of India or through the SGL Account of the
Clearing Corporation of India Ltd. (CCIL) with the Reserve Bank of India, and
(d)
No sale transaction shall be put through without actually holding the
securities in the portfolio.
3.
These terms and conditions will be the relevant terms and conditions
specified by Reserve Bank of India under the notification No. SO 185 (E) dated
1/3/2000 issued under Section 29A of Securities Contracts (Regulation) Act,
1956.
Please
acknowledge receipt.
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