Home India Ministry of Finance Government of India hereby notifies sale re issue of the fol...
Date: 2018-11-16 Category: Extra Ordinary State: Union Government Country: India

Government of India hereby notifies sale re issue of the following Government Stocks

Issued by Ministry of Finance · Department of Economic Affairs

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Executive Summary & Key Takeaways

**Executive Summary:** This document from the Indian Ministry of Finance announces the sale/reissue of Government Stocks. It details the terms and conditions for the sale, including auction dates, notified amounts, and eligibility for non-competitive bidding. The auction will be conducted by the Reserve Bank of India (RBI) on November 22, 2018, with payment due on November 26, 2018. **Key Points / Main Content:** * **Government Stock Sale/Reissue:** * The Government of India is selling/reissuing several Government Stocks (GS). * Stocks include 8.24 GS 2027, 7.17 GS 2028, 7.50 GS 2034, and 8.13 GS 2045. * **Auction Details:** * Auction Date: November 22, 2018, conducted by RBI Mumbai. * Bidding: Electronic format via RBI's e-Kuber system. * Bid Timings: Non-competitive bids: 11:00 a.m. - 12:00 noon; Competitive bids: 11:00 a.m. - 12:30 p.m. * Payment Date: November 26, 2018. * RBI will display auction results at its Mumbai office on November 22, 2018. * **Stock Details:** * Accrued interest is included in the payment for the stocks from the date of original issue/last coupon payment date up to the date mentioned in the table. * Interest accrues on the nominal value and is paid half-yearly. * Stocks are repaid at par on the maturity date. * **Non-Competitive Bidding Facility:** * Up to 5% of the notified amount is reserved for non-competitive bids. * Eligibility: Open to investors without current/SGL accounts with RBI (exceptions for RRBs and Cooperative Banks). * Bid Limit: Single bid, not exceeding ₹2 crore face value. * Submission: Indirectly through a bank or PD offering the scheme (exceptions for RRBs and Cooperative Banks with SGL accounts). * Minimum bid amount: ₹10,000 face value and multiples thereof. * Allotment is at the weighted average rate of yield/price from the competitive bidding. * **Operational Guidelines for Non-Competitive Bidding:** * Retail investors must maintain a CSGL account with the bank/PD. * Banks/PDs submit a single consolidated non-competitive bid. * Pro-rata allotment if bids exceed the reserved amount. * Securities issued in SGL form only. * Banks/PDs responsible for transferring securities to clients within five working days. * Brokerage/service charges are capped at six paise per ₹100. **Impact Analysis:** * **Investors:** * Impact: Opportunity to invest in government securities. Non-competitive bidding allows smaller investors to participate. * Action Required: Submit bids through eligible banks/PDs, adhere to bidding limits, and ensure CSGL account is maintained (if participating in non-competitive bidding). * **Banks and Primary Dealers (PDs):** * Impact: Required to facilitate non-competitive bidding for their clients. * Action Required: Offer the non-competitive bidding scheme, submit consolidated bids on behalf of clients, manage CSGL accounts, and ensure timely transfer of securities. * **Reserve Bank of India (RBI):** * Impact: Responsible for conducting the auction and managing the allotment of securities. * Action Required: Conduct the auction on November 22, 2018, display auction results, and credit securities to SGL/CSGL accounts. * **Government of India:** * Impact: Raises funds through the sale/reissue of government stocks. * Action Required: Monitor the auction process.

Key Entities Referenced

Government of India: The issuer of the government stocks and the overarching authority for the policy. Ministry of Finance: The ministry under which the Department of Economic Affairs and Budget Division operate, responsible for the notification. Department of Economic Affairs: A department within the Ministry of Finance. Budget Division: The division within the Department of Economic Affairs responsible for the budget notification. Reserve Bank of India: The central bank responsible for conducting the auction and managing the government stocks. Mumbai Office, Fort, Mumbai, Maharashtra: Location where the auction will be conducted and results displayed by the Reserve Bank of India. Government Stock: The financial instrument being auctioned, also referred to as 'GS'. EKuber System: The Reserve Bank of India's Core Banking Solution used for submitting bids electronically.
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1] ननननीीीीललललााााममममीीीी ककककाााा (cid:22)(cid:22)(cid:22)(cid:22)थथथथाााानननन एएएएवववव ंं ंंततततााााररररीीीीखखखख 3. यह नीलामी भारतीय -रजव( ब9क, मुंबई काया(लय, फोट,( मुंबई-400001 (cid:13)ारा 22 नव(cid:8) बर, 2018 को संचािलत क(cid:26) जाएगी। नीलामी हते ु बोिलयां भारतीय -रजव( ब9क कोर ब9Jकंग सो(cid:3)यूशन (ई-कुबेर) *णाली संबंधी इले)Lॉिनक *पE म/ 22 नव(cid:8) बर, 2018 को *(cid:23)तुत क(cid:26) जानी चािहए। अ*ित(cid:23)पधC बोिलयां पूवा(Mन 11.00 बजे से दोपहर 12.00 बजे के बीच और *ित(cid:23)पधC बोिलयां पूवा(Mन 11.00 बजे से म याMन 12.30 बजे के बीच *(cid:23)तुत क(cid:26) जानी चािहए। ककककबबबब ििििननननगगगगिि(cid:13)(cid:13)िि(cid:13)(cid:13)ममममतततत ककककााााररररोोोोबबबबाााारररर 4. यह (cid:23)टॉक, भारतीय -रजव( ब9क (cid:13)ारा जारी (cid:1)दशािनदNश, के अनुसार, 'कब िनग(िमत’ कारोबार के िलए पाE होगा। ििििननननगगगग(cid:13)म(cid:13)म(cid:13)म(cid:13)म कककक(cid:25)(cid:25)(cid:25)(cid:25) ततततााााररररीीीीखखखख औऔऔऔरररर (cid:22)(cid:22)(cid:22)(cid:22)टटटटॉॉॉॉकककक ककककेेेे ििििललललएएएए भभभभगगुुगगुु 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2018 10 फरवरी और 10 अग(cid:30)त 8.13% सरकारी (cid:1)ितभूित 2045 8.13 22 जून, 2018 25 नव(cid:31) बर, 2018 22 (cid:17)दसबं र और 22 जून भारत के राXपित के आदेश से, अरYवंद Zीवा(cid:23)तव, संयु1 सिचव अअअअननननबबुुबबुु धधंंधधंं ससससररररककककााााररररीीीी (cid:15)(cid:15)(cid:15)(cid:15)ििििततततभभभभििूूििूूततततयययय---- कककक(cid:25)(cid:25)(cid:25)(cid:25) ननननीीीीललललााााममममीीीी मममम .. ..अअअअ(cid:15)(cid:15)(cid:15)(cid:15)िििितततत(cid:22)(cid:22)(cid:22)(cid:22)पपपपधधधध&&&& बबबबोोोोललललीीीी ससससुिुिुिुिववववधधधधाााा (cid:22)(cid:22)(cid:22)(cid:22)कककक(cid:25)(cid:25)(cid:25)(cid:25)मममम IIII.... ककककाााायययय//(cid:13)(cid:13)//(cid:13)(cid:13) (cid:6)(cid:6)ेे(cid:6)(cid:6)ेे :::: सरकारी *ितभूितय, क(cid:26) [ापक भागीदारी और खुदरा धा-रता को *ो0साहन दने े क(cid:26) दिृB से भारत सरकार क(cid:26) (cid:1)दना(cid:1)ंकत *ितभूितय, क(cid:26) चयिनत नीलािमय, म/ "अ*ित(cid:23)पधC" आधार पर भागीदारी क(cid:26) अनुमित दने े का *(cid:23)ताव (cid:1)कया गया ह।ै तRनुसार, (cid:1)दना(cid:1)ं कत *ितभूितय, क(cid:26) नीलािमय, म/ अिधसूिचत रािश के 5 *ितशत तक क(cid:26) अ*ित(cid:23)पधC बोिलयां (cid:23)वीकार क(cid:26) जाएंगी। *ारि]त रािश अिधसूिचत रािश के अअअअ1111ततततगगगग(cid:13)त(cid:13)त(cid:13)त(cid:13)त होगी। IIIIIIII.... पपपपाााा(cid:6)(cid:6)(cid:6)(cid:6)तततताााा :::: भारत सरकार क(cid:26) (cid:1)दना(cid:1)ं कत *ितभूितय, क(cid:26) नीलािमय, म/ अ*ित(cid:23)पधC आधार पर ऐसे िनवेशक, के िलए भागीदारी खुली होगी जो िन^िलिखत शत5 को पूरा करते ह:9 1. जो भारतीय -रजव( ब9क के पास चालू खाता (सीए) अथवा सहायक सामा;य बही (एसजीएल) खाता नह_ रखते ह;9 अअअअपपपपववववाााादददद:::: ]ेEीय ‘ामीण ब9क, (आरआरबी) और सहकारी ब9क, को उनके सांिविधक दािय0व, के दिृBगत इस (cid:23)क(cid:26)म के अधीन शािमल (cid:1)कया जाएगा। 2. जो *ित नीलामी दो करोड़ $पए (अं(cid:1)कत मू(cid:3)य) से अनिधक रािश के िलए एक ही बोली लगाते ह;9¹Hkkx Iµ[k.M 1º Hkkjr dk jkti=k % vlk/kj.k 3 3. जो यह (cid:23)क(cid:26)म *दान करने वाले (cid:1)कसी एक ब9क अथवा *ाथिमक डीलर के मा यम से अपनी बोली अ(cid:2)(cid:3)य(cid:5) (cid:6)प स े*(cid:23)तुत करते ह।9 अअअअपपपपववववाााादददद:::: ऐसे ]ेEीय ‘ामीण ब9क (आरआरबी) तथा सहकारी ब9क जो भारतीय -रजव( ब9क म/ एस.जी.एल.खाता और चालू खाता रखते ह,9 अपनी अ*ित(cid:23)पधC बोिलय, को *0य] aप से *(cid:23)तुत करने के िलए पाE ह,गे। IIIIIIIIIIII.... 2222ाााापपपपककककतततताााा:::: उपयु(1 शत5 के अधीन "अ*ित(cid:23)पधC" आधार पर फम5, कंपिनय,, िनगिमत िनकाय,, सं(cid:23)थाH, भिव4 य िनिधय,, ;यास, और भारतीय -रजव( ब9क (cid:13)ारा यथा-िनधा-(रत (cid:1)कसी अ;य कंपनी सिहत (cid:1)कसी भी [ि1 के िलए भागीदारी खुली है। बोली दने े क(cid:26) ;यूनतम रािश 10,000 $पए (अं(cid:1)कत मू(cid:3)य) और उसके बाद 10,000 $पए के गुणज, म/ होगी जैसा अब तक (cid:1)दना(cid:1)ं कत (cid:23)टॉक के िलए ह।ै IIIIVVVV.... अअअअ1111यययय (cid:15)(cid:15)(cid:15)(cid:15)चचचचााााललललननननाााा4444ममममकककक 5555ददददशशशशााााििििननननददददशश77शश77 :::: 1111.... खुदरा िनवेशक के िलए उस ब9क अथवा *ाथिमक डीलर, िजनके मा यम से वे भाग लेना चाहत े ह,9 के पास एक संघटक सहायक सामा;य बही (सीएसजीएल) खाता रखना अिनवाय (होगा। कोई भी िनवेशक इस (cid:23)क(cid:26)म के अधीन (cid:1)दना(cid:1)ंकत *ितभूित क(cid:26) (cid:1)कसी नीलामी म/ केवल एक बोली म/ भाग ले सकता ह।ै इस आशय का वचन (cid:1)क िनवेशक केवल एक बोली द ेरहा ह,ै ब9क अथवा *ाथिमक डीलर (cid:13)ारा *ाb (cid:1)कया जाना और -रकाड (म/ रखा जाना होगा। 2. अपने ‘ाहक, से *ाb पcे आड(र के आधार पर *0येक ब9क अथवा *ाथिमक डीलर भारतीय -रजव (ब9क कोर ब9Jकंग सो(cid:3)यूशन (ई-कुबेर) *णाली संबंधी इले)Lॉिनक *पE म/ अपने ‘ाहक, क(cid:26) ओर से एक एकल समे(cid:1)कत अ*ित(cid:23)पधC बोली *(cid:23)तुत करेगा। असाधारण प-रि(cid:23)थितय,, जैसे भारतीय -रजव( ब9क कोर ब9Jकंग सो(cid:3)यूशन (ई-कुबेर) *णाली म/ सामा;य गड़बड़ी को छोड़कर, भौितक aप म/ अ*ित(cid:23)पधC बोली (cid:23)वीकार नह_ क(cid:26) जाएगी। 3. ब9क अथवा *ाथिमक डीलर को अ*ित(cid:23)पधC खंड के अधीन आबंटन *ितलाभ/क(cid:26)मत क(cid:26) उस भारांिशत औसत दर पर होगा, जो *ित(cid:23)पधC बोली देन ेके आधार पर नीलामी म/ सामने आएगी। इस बात पर यान (cid:1)दए िबना (cid:1)क ब9क अथवा *ाथिमक डीलर न े अपने ‘ाहक, से भुगतान *ाb कर िलया ह ै या नह_, िनग(म क(cid:26) तारीख को भुगतान *ाb करके ब9क या *ाथिमक डीलर को *ितभूितया ंजारी क(cid:26) जाएंगी। 4. ऐसे मामले म/, जहा ंबोली क(cid:26) रािश *ारि]त रािश (अिधसूिचत रािश के 5 *ितशत) से अिधक ह ैयथानुपात आबंटन (cid:1)कया जाएगा। आंिशक आबंटन, के मामले म/, यह ब9क अथवा *ाथिमक डीलर, का दािय0व होगा (cid:1)क वह अपने ‘ाहक, को *ितभूितय, का उिचत आबंटन एक पारदशC तरीके से कर/। 5. ऐसे मामले म/ जहां बोली रािश *ारि]त रािश से कम हो, कमी को *ित(cid:23)पधC भाग म/ शािमल (cid:1)कया जाएगा। 6. *ितभूित को भारतीय -रजव( ब9क (cid:13)ारा केवल एसजीएल aप म/ जारी (cid:1)कया जाएगा। भारतीय -रजव( ब9क इसे या तो ब9क अथवा *ाथिमक डीलर के मु=य एसजीएल खाते अथवा सीएसजीएल खात ेम/ जमा करेगा,जैसा(cid:1)क उनके (cid:13)ारा िनदNश (cid:1)दया गया है। मु=य एसजीएल खाते म/ जमा करने क(cid:26) सुिवधा एकमाE उन िनवेशक, क(cid:26) सेवा के *योजनाथ( ह ैजो उनके घटक नह_ ह।9 अतः ब9क अथवा *ाथिमक डीलर, को अ*ित(cid:23)पधC बोिलय, क(cid:26) िनिवदा दते ेसमय उनके एसजीएल खात ेऔर सीएसजीएल खात ेम/ जमा होन े वाली रािशय, (अं(cid:9)कत मू(cid:14)य) को (cid:23)प4 ट aप से दशा(ना होगा। बाद म/ िनवेशक के अनुरोध पर मु=य एसजीएल खात े से वा(cid:23)तिवक aप म/ क(cid:26) गई सुपुदग( ी (cid:23)वीकाय( ह।ै 7. यह ब9क अथवा *ाथिमक डीलर का दािय0व है (cid:1)क वह ‘ाहक को *ितभूितया ं ह(cid:23)तातं -रत करे। असाधारण प-रि(cid:23)थितय, को छोड़कर, ‘ाहक, को *ितभूितय, का अंतरण िनग(म क(cid:26) ितिथ से पांच काय ((cid:1)दवस, के भीतर पूरा (cid:1)कया जाएगा। 8. ब9क अथवा *ाथिमक डीलर अपने ‘ाहक, को यह सेवा दने े के िलए छह पैसे *ित सौ $पए तक दलाली/कमीशन/सेवा *भार के aप म/ वसूल कर सकते ह।9 ऐसी क(cid:26)मत िब(cid:28)(cid:26) मू(cid:3)य म/ शािमल क(cid:26) जा सकती ह ैया ‘ाहक, से अलग से वसूल क(cid:26) जा सकती ह।ै ऐसे मामले म/ जहा ं*ितभूितय, का अंतरण *ितभूित क(cid:26) िनग(म ितिथ के बाद *भावी होता हो, ब9क या *ाथिमक डीलर को ‘ाहक (cid:13)ारा दये *ितफल रािश म/ िनग(म ितिथ से उपिचत ?याज शािमल होगा। 9. *ितभूितय, क(cid:26) लागत, उपिचत ?याज जहा ं भी लागू हो, तथा दलाली/कमीशन/सेवा *भार, के िलए ‘ाहक, से भुगतान *ाb करने क(cid:26) काय(-*णाली,ब9क या *ाथिमक डीलर (cid:13)ारा ‘ाहक के साथ क(cid:26) गई सहमित के अनुसार तैयार क(cid:26) जाएगी। यह4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] उ(cid:3)लेखनीय ह ै(cid:1)क (cid:1)कसी अ;य लागत, जैसे िनिधकरण लागत को मू(cid:3)य म/ शािमल नह_ (cid:1)कया जाना चािहए या ‘ाहक, से वसूल नह_ (cid:1)कया जाना चािहए। VVVV.... ब9क, और *ाथिमक डीलर, को भारतीय -रजव( ब9क (ब9क) (cid:13)ारा समय-समय पर मांगी गई योजना के तहत संचालन, से संबंिधत सूचना िनधा(-रत समय सीमा के अंतग(त ब9क को *(cid:23)तुत करनी होगी। VVVVIIII.... ऊपर उि(cid:3)लिखत (cid:1)दशािनदशN ब9क (cid:13)ारा समी]ा के अधीन ह ैऔर तRनुसार, जब भी आवdयकता होगी, योजना को संशोिधत (cid:1)कया जाएगा। MINISTRY OF FINANCE (Department of Economic Affairs) (BUDGET DIVISION) NOTIFICATION New Delhi, the 16th November, 2018 Auction for Sale (Re-issue) of Government Stock (GS) F.No.4(6)W&M/2018.—Government of India hereby notifies sale (re-issue) of the following Government Stocks: Name of the Date of Original Original Tenure Date of Auction Auction Notified Amount Security Issue Maturity Basis Method (yy-mm-dd) (in ` Crore) 8.24% GS 2027 Feb. 15, 2007 20-00-00 Feb. 15, 2027 Price Multiple 3,000 7.17% GS 2028 Jan. 08, 2018 10-00-00 Jan. 08, 2028 Price Multiple 4,000 7.50% GS 2034 Aug.10, 2004 30-00-00 Aug. 10, 2034 Price Multiple 2,000 8.13% GS 2045 Jun. 22, 2015 30-00-00 Jun. 22, 2045 Price Multiple 3,000 Subject to the limit of ` 12,000 crore, being total notified amount, GoI will have the option to retain additional subscription up to ` 1,000 crore each against any one or more of the above securities. The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’). The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 as per the terms and conditions specified in the General Notification F.No.4(2)–W&M/ 2018, dated March 27, 2018 issued by Government of India. Allotment to Non-competitive Bidders 2. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex). Place and date of auction 3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai - 400 001 on November 22, 2018. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on November 22, 2018. The non-competitive bids should be submitted between 11.00 a.m. and 12.00 noon and the competitive bids should be submitted between 11.00 a.m. and 12.30 p.m. When Issued Trading 4. The Stocks will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India. Date of issue and payment for the stock 5. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on November 22, 2018. The payment by successful bidders will be on November 26, 2018 i.e. the date of¹Hkkx Iµ[k.M 1º Hkkjr dk jkti=k % vlk/kj.k 5 re-issue. The payment for the Stocks will include accrued interest on the nominal value of the Stock allotted in the auction from the date of original issue/last coupon payment date to the date upto which accrued interest is due as mentioned in the table in para 6. Payment of Interest and Re-payment of Stock 6. Interest will accrue on the nominal value of the Stock from the date of original issue/last coupon payment and will be paid half yearly. The Stocks will be repaid at par on date of maturity. Name of the Coupon rate Date of Last Date upto which Date of Coupon payments Security (%) Coupon payment (month/date) accrued interest is due 8.24% GS 2027 8.24 Aug. 15, 2018 Nov. 25, 2018 Feb. 15 and Aug. 15 7.17% GS 2028 7.17 Jul. 08, 2018 Nov. 25, 2018 Jan. 08 and Jul. 08 7.50% GS 2034 7.50 Aug. 10, 2018 Nov. 25, 2018 Feb. 10 and Aug. 10 8.13% GS 2045 8.13 Jun. 22, 2018 Nov. 25, 2018 Dec. 22 and Jun. 22 By Order of the President of India, ARVIND SHRIVASTAVA, Jt. Secy. Annex Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities I. Scope : With a view to encouraging wider participation and retail holding of Government securities, it is proposed to allow participation on “non-competitive” basis in select auctions of dated Government of India (GoI)securities. Accordingly, non-competitive bids up to 5 percent of the notified amount will be accepted in the auctions of dated securities. The reserved amount will be within the notified amount. II. Eligibility: Participation on a non-competitive basis in the auctions of dated GOI securities will be open to investors who satisfy the following: 1. do not maintain current account (CA) or Subsidiary General Ledger (SGL) account with the Reserve Bank of India. Exceptions: Regional Rural Banks (RRBs) and Cooperative Banks shall be covered under this Scheme in view of their statutory obligations. 2. make a single bid for an amount not more than ` two crore (face value) per auction. 3. submit their bid indirectly through any one bank or PD offering this scheme. Exceptions: Regional Rural Banks (RRBs) and Cooperative Banks that maintain SGL account and current account with the Reserve Bank of India shall be eligible to submit their non competitive bids directly. III. Coverage: Subject to the conditions mentioned above, participation on “non-competitive” basis is open to any person including firms, companies, corporate bodies, institutions, provident funds, trusts, and any other entity as may be prescribed by RBI. The minimum amount for bidding will be ` 10,000 (face value) and thereafter in multiples in ` 10,000 as hitherto for dated stocks. IV. Other Operational Guidelines: 1. The retail investor desirous of participating in the auction under the Scheme would be required to maintain a constituent subsidiary general ledger (CSGL) account with the bank or PD through whom they wish to participate. Under the Scheme, an investor can make only a single bid in an auction of a dated security. An undertaking to the effect that the investor is making only a single bid will have to obtained and kept on record by the bank or PD. 2. Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents for each security in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) System. Except in extraordinary6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] circumstances such as general failure of the Reserve Bank of India Core Banking Solution (E-Kuber) System, non-competitive bid in physical form will not be accepted. 3. Allotment under the non-competitive segment to the bank or PD will be at the weighted average rate of yield/price that will emerge in the auction on the basis of the competitive bidding. The securities will be issued to the bank or PD against payment on the date of issue irrespective of whether the bank or PD has received payment from their clients or not. 4. In case the aggregate amount of bid is more than the reserved amount (5% of notified amount), pro rata allotment would be made. In case of partial allotments, it will be the responsibility of the bank or PD to appropriately allocate securities to their clients in a transparent manner. 5. In case the aggregate amount of bids is less than the reserved amount, the shortfall will be taken to competitive portion. 6. Security would be issued only in SGL form by RBI. RBI would credit either the main SGL account or the CSGL account of the bank or PD as indicated by them. The facility for affording credit to the main SGL account is for the sole purpose of servicing investors who are not their constituents. Therefore, the bank or PD would have to indicate clearly at the time of tendering the non-competitive bids the amounts (face value) to be credited to their SGL account and the CSGL account. Delivery in physical form from the main SGL account is permissible at the instance of the investor subsequently. 7. It will be the responsibility of the bank or the PD to pass on the securities to their clients. Except in extraordinary circumstances, the transfer of securities to the clients shall be completed within five working days from the date of issue. 8. The bank or PD can recover upto six paise per ` 100 as brokerage/commission/service charges for rendering this service to their clients. Such costs may be built into the sale price or recovered separately from the clients. In case the transfer of securities is effected subsequent to the issue date of the security, the consideration amount payable by the client to the bank or PD would also include accrued interest from the date of issue. 9. Modalities for obtaining payment from clients towards cost of the securities, accrued interest wherever applicable and brokerage/commission/service charges may be worked out by the bank or PD as per agreement with the client. It may be noted that no other costs such as funding costs should be built into the price or recovered from the client. V. Banks and PDs will be required to furnish information relating to operations under the Scheme to the Reserve Bank of India (Bank) as may be called for from time to time within the time frame prescribed by the Bank. VI. The aforesaid guidelines are subject to review by the Bank and accordingly, if and when considered necessary, the Scheme will be modified. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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