RBI circular on Stand-alone Primary Dealers – Increase in Call/Notice Money Borrowing Limit

Reserve Bank of India

RBI/2009-10/143
IDMD.PDRD.No. 1096/ 03.64.00/2009-10

Dated: September 2, 2009

All Stand-alone Primary Dealers

Dear Sir,

Stand-alone Primary Dealers – Increase in Call/Notice Money Borrowing Limit

Please refer to our Master Circular RBI/2009-10/56 IDMD.PDRS. 01/03.64.00/2009-10 dated July 1, 2009 on Operational Guidelines to Primary Dealers, in terms of which, Primary Dealers (PDs) are allowed to borrow from call/notice money market, on an average in a reporting fortnight, up to 200 percent of their Net Owned Funds (NOF) as at the end March of the preceding financial year.

2. On a review, it has been decided to increase the limit on borrowing by the PDs from the call / notice money market, on an average in a reporting fortnight, from the existing ceiling of 200 percent of their NOF to 225 percent of NOF, as at the end March of the preceding financial year.

3. The above guidelines are effective from the date of this circular.

Yours faithfully

(R.N.Kar)

General Manager