SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
June 17, 1999
To,
The President/Managing Directors/Executive Directors
of all the Stock Exchanges
Dear Sir,
Bank Guarantees from Scheduled Co-operative Banks
Please refer to our circular Nos. SMD/POLICY/CA/CIR 17/1997, and SMDRP/POLICY/CIR-33/98 dated July 31,1997 and November 12, 1998 respectively regarding acceptance of bank guarantee from the members of the Exchange.
The above-referred circulars provided for the conditions to be fulfilled for the acceptance of bank guarantees towards the base minimum and the incremental capital requirements of the brokers. In this respect, it was inter-alia mentioned that the bank guarantees should be from a specified scheduled commercial banks.
It has been represented to SEBI that Scheduled Co-operative Banks, which are being treated at par with the Scheduled Commercial Banks by the Reserve Bank of India, are also eligible to issue Bank Guarantee subject to the conditions specified by RBI from time to time. In view of this, in partial amendment to our circular dated July 31, 1997, it has been decided that the exchanges may also accept the bank guarantees from such Scheduled Co-operative Banks. The other provisions of the circulars mentioned above remain the same.
Yours faithfully
P. K. BINDLISH
DIVISION CHIEF
Secondary Market, Depository,
Research & Publications Department
EMAIL : pkb@sebi.gov.in
