Banks’ Exposure to Capital Market – Issue of Irrevocable Payment Commitments (IPCs) – Circular No. DBOD.Dir.BC. 43 /13.03.00/2011-12

RBI/2011-12/239
DBOD.Dir.BC. 43 /13.03.00/2011-12

October 31, 2011

All Scheduled Commercial Banks  (excluding RRBs)

Dear Sir / Madam

Banks’ Exposure to Capital Market – Issue of Irrevocable Payment Commitments (IPCs)

Please refer to our circular No. DBOD.Dir.BC. 46 /13.03.00/2010-11 dated September 30, 2010 in terms of which certain risk mitigation measures were prescribed in the context of banks issuing IPCs to various Stock Exchanges on behalf of Mutual Funds and FIIs, as a transitionary arrangement till October 31, 2011.

2.  We advise that the above mentioned guidelines will continue to be in force for a further period of two months i.e. till December 31, 2011.

Yours faithfully,

(Vivek Deep)
General Manager