| Date: |
10-10-2002
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| Notification No: |
RBI Notification No 7/2002
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| Issuing Authority: |
RBI
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| Type: |
Notification
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| File No: |
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| Subject: |
Access to Call/ Notice Money Market for Primary Dealers: Prudential Norm
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|
Access to Call/ Notice Money Market for Primary Dealers: Prudential Norm
MPD
No. 7 .01.279 � dated 10th October 2002
Please
refer to circular No. MPD.220/ 07.01.279/ 2002-03 dated July 31, 2002.
2.
As already advised under the above-mentioned circular, with effect from
October 5, 2002, Primary Dealers (PDs) are free to lend upto 25 per cent of
their net owned funds (NOF) in call/ notice money market. In response to
suggestions received from market participants, it is clarified that the above 25
per cent limit will be determined by PDs on an average basis (and not on a daily
basis) during a reporting fortnight. This would provide greater flexibility in
liquidity management by PDs, and will also be consistent with the computation of
limits as applicable to other participants in call/ notice money market,
including banks.
Kindly
acknowledge receipt.
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