DBOD.NO. FID.FIC.3/01.02.00/2006-07 DATE : 01/07/2006 (PART-II)
Master Circular-Prudential norms for classification, valuation and operation of investment portfolio by FIs8. REPO ACCOUNTING
Market participants may undertake repos from any of the three categories of investments, viz., Held For Trading, Available For Sale and Held To Maturity.
The legal character of repo under the current law, viz. as outright purchase and outright sale transactions will be kept intact by ensuring that the securities sold under repo (the entity selling referred to as “seller”) are excluded from the Investment Account of the seller of securities and the securities bought under reverse repo (the entity buying referred to as “buyer”) are included in the Investment Account of the buyer of securities. Further, the buyer can reckon the approved securities acquired under reverse repo transaction for the purpose of Statutory Liquidity Ratio (SLR) during the period of the repo.
At present repo transactions are permitted in Central Government securities including Treasury Bills and dated State Government securities. Since the buyer of the securities will not hold it till maturity, the securities purchased under reverse repo by FIs should not be classified under Held to Maturity category. The first leg of the repo should be contracted at the prevailing market rates. Further, the accrued interest received / paid in a repo / reverse repo transaction and the clean price (i.e. total cash consideration less accrued interest) should be accounted for separately and distinctly.
The other accounting principles to be followed while accounting for repos / reverse repos will be as under:
8.1 Coupon
In case the interest payment date of the security offered under repo falls within the repo period, the coupons received by the buyer of the security should be passed on to the seller on the date of receipt as the cash consideration payable by the seller in the second leg does not include any intervening cash flows. While the buyer will book the coupon during the period of the repo , the seller will not accrue the coupon during the period of the repo. In the case of discounted instruments like Treasury Bills, since there is no coupon, the seller will continue to accrue the discount at the original discount rate during the period of the repo. The buyer will not therefore accrue the discount during the period of the repo.
8.2 Repo Interest Income / Expenditure
After the second leg of the repo / reverse repo transaction is over:
(a) the difference in the clean price of the security between the first leg and the second leg should be reckoned as Repo Interest Income / Expenditure in the books of the buyer / seller respectively ;
(b) the difference between the accrued interest paid between the two legs of the transaction should be shown as Repo Interest Income/ Expenditure account, as the case may be; and
(c) the balance outstanding in the Repo interest Income / Expenditure account should be transferred to the Profit and Loss account as an income or an expenditure .
As regards repo / reverse repo transactions outstanding on the balance sheet date, only the accrued income / expenditure till the balance sheet date should be taken to the Profit and Loss account. Any repo income / expenditure for the subsequent period in respect of the outstanding transactions should be reckoned for the next accounting period.
8.3 Marking to Market
The buyer will mark to market the securities acquired under reverse repo transactions as per the investment classification of the security. To illustrate, for banks , in case the securities acquired under reverse repo transactions have been classified under Available for Sale category, then the mark to market valuation for such securities should be done at least once a quarter. For entities, which do not follow any investment classification norms, the valuation for securities acquired under reverse repo transactions may be in accordance with the valuation norms followed by them in respect of securities of similar nature.
In respect of the repo transactions outstanding as on the balance sheet date
(a) The buyer will mark to market the securities on the balance sheet date and will account for the same as laid down in the extant valuation guidelines issued by the respective regulatory departments of RBI.
(b) The seller will provide for the price difference in the Profit & Loss account and show this difference under “Other Assets” in the balance sheet if the sale price of the security offered under repo is lower than the book value.
(c) The seller will ignore the price difference for the purpose of Profit & Loss account but show the difference under “Other Liabilities” in the balance sheet if the sale price of the security offered under repo is higher than the book value; and
(d) Similarly the accrued interest paid / received in the repo / reverse repo transactions outstanding on balance sheet dates should be shown as "Other Assets" or "Other Liabilities" in the balance sheet.
8.4 Book value on re-purchase
The seller shall debit the repo account with the original book value (as existing in the books on the date of the first leg) on buying back the securities in the second leg.
8.5 Disclosure
The following disclosures should be made by the FIs in the “Notes on Accounts’ to the Balance Sheet:
(Rs. In crore)
| | Minimum outstand-ing during the year | Maximum outstand-ing during the year | Daily Average outstanding during the year | Outstand-ing as on March 31 |
| Securities sold under repos | | | | |
| Securities purchased under reverse repos | | | | |
8.6 Accounting methodology
The accounting methodology to be followed, along with illustrations, is given in the Annexes III and IV. While market participants, having different accounting systems, may use accounting heads different from those used in the illustration, there should not be any deviation from the accounting principles enunciated above. Further, to obviate disputes arising out of repo transactions, the participants may consider entering into bilateral Master Repo Agreement as per the documentation finalized by FIMMDA .
ANNEX-I
(Cf. Para 2.3.3.4)
Scheme for Non-competitive Bidding Facility in the Auctions of Government SecuritiesI. 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 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), Urban Cooperative Banks (UCBs) and Non-banking Financial Companies (NBFCs) shall be covered under this Scheme in view of their statutory obligations.
2. make a single bid for an amount not more than rupees one crore (face value) per auction.
3. submit their bid indirectly through any one bank or PD offering this scheme.
Exceptions: Regional Rural Banks (RRBs), Urban Cooperative Banks (UCBs) and Non-banking Financial Companies (NBFCs) 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 Rs.10,000 (face value) and thereafter in multiples in Rs.10,000 as hitherto for dated stocks.
IV. Other Operational Guidelines:
1. It will not be mandatory for the retail investor to maintain a constituent subsidiary general ledger (CSGL) account with the bank or PD through whom they wish to participate. However, an investor can make only a single bid under this scheme. An undertaking to the effect that the investor is making only a single bid will have to be obtained and kept on record by the bank or PD.
2. Each bank or PD on the basis of firm orders submit a single customer bid for the aggregate amount on the day of the auction. Details of individual customers viz. name, amount, etc shall be provided as an Annexure to the bid.
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.
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 Rs.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.
ANNEX II
(cf para 2.5.9)
FORMAT FOR DISCLOSURE IN THE “NOTES ON ACCOUNTS” IN THE ANNUAL PUBLISHED REPORTSA. Issuer categories in respect of investments made
(As on the date of the balance sheet)(Amount in Rs. crore)
| Sr. No. | Issuer | Amount | Amount of |
| | | | Investment made through Pvt. Placement | "Below Investment" grade Securities Held | Unrated Securities Held | Unlisted Securities |
| (1) | (2) | (3) | (4) | (5) | (6) | (7) |
| 1 | PSUs | | | | | |
| 2 | FIs | | | | | |
| 3 | Banks | | | | | |
| 4 | Private Corporates | | | | | |
| 5 | Subsidiaries/ Joint Ventures | | | | | |
| 6 | Others | | | | | |
| 7 | # Provision held towards depreciation | | | | | |
| | Total* | | | | | |
# Only aggregate amount of provision held to be disclosed in column 3.
* NOTES:
1. Total under column 3 should tally with the total of investments included under the following categories in the balance sheet:
a. Shares
b. Debentures & Bonds
c. Subsidiaries/ joint ventures
d. Others
2. Amounts reported under columns 4, 5, 6 and 7 above might not be mutually exclusive.
B. Non performing investments
| Particulars | Amount (Rs. Crore) |
| Opening balance | |
| Additions during the year since 1st April | |
| Reductions during the above period | |
| Closing balance | |
| Total provisions held | |
ANNEX-III
(Cf. Para 8.6)
Recommended Accounting Methodology for Uniform Accounting of Repo / Reverse Repo transactions
a. The following accounts may be opened , viz. i) Repo Account, ii) Repo Price Adjustment Account, iii) Repo Interest Adjustment Account, iv) Repo Interest Expenditure Account, v) Repo Interest Income Account, vi) Reverse Repo Account, vii) Reverse Repo Price Adjustment Account, and viii) Reverse Repo Interest Adjustment Account.
b. The securities sold/ purchased under repo should be accounted for as an outright sale / purchase.
c. The securities should enter and exit the books at the same book value. For operational ease, the weighted average cost method, whereby the investment is carried in the books at their weighted average cost, may be adopted.
Repo
d. In a repo transaction, the securities should be sold in the first leg at market related prices and re-purchased in the second leg at the derived price. The sale and repurchase should be accounted in the Repo Account.
e. The balances in the Repo Account should be netted from the FI’s Investment Account for balance sheet purposes.
f. The difference between the market price and the book value in the first leg of the repo should be booked in Repo Price Adjustment Account. Similarly the difference between the derived price and the book value in the second leg of the repo should be booked in the Repo Price Adjustment Account.
Reverse repo
g. In a reverse repo transaction, the securities should be purchased in the first leg at prevailing market prices and sold in the second leg at the derived price. The purchase and sale should be accounted for in the Reverse Repo Account.
h. The balances in the Reverse Repo Account should be part of the Investment Account for balance sheet purposes and can be reckoned for SLR purposes (only for banks) if the securities acquired under reverse repo transactions are approved securities.
i. The security purchased in a reverse repo will enter the books at the market price (excluding broken period interest). The difference between the derived price and the book value in the second leg of the reverse repo should be booked in the Reverse Repo Price Adjustment Account.
Other aspects relating to Repo / Reverse Repo
j. In case the interest payment date of the security offered under repo falls within the repo period, the coupons received by the buyer of the security should be passed on to the seller on the date of receipt as the cash consideration payable by the seller in the second leg does not include any intervening cash flows.
k. The difference between the amounts booked in the first and second legs in the Repo / Reverse Repo Price Adjustment Account should be transferred to the Repo Interest Expenditure Account or Repo Interest Income Account, as the case may be.
l. The broken period interest accrued in the first and second legs will be booked in Repo Interest Adjustment Account or Reverse Repo Interest Adjustment Account, as the case may be. Consequently the difference between the amounts booked in this account in the first and second legs should be transferred to the Repo Interest Expenditure Account or Repo Interest Income Account, as the case may be.
m. At the end of the accounting period, for outstanding repos , the balances in the Repo / Reverse Repo Price Adjustment Account and Repo / Reverse repo Interest Adjustment Account should be reflected either under item VI - 'Others' under Schedule 11 - 'Other Assets' or under item IV 'Others (including Provisions)' under Schedule 5 - 'Other Liabilities and Provisions' in the Balance Sheet of banks, as the case may be. (The FIs may reflect the balances in the corresponding Heads of accounts in their balance sheet).
n. Since the debit balances in the Repo Price Adjustment Account at the end of the accounting period represent losses not provided for in respect of securities offered in outstanding repo transactions, it will be necessary to make a provision therefor in the Profit & Loss Account.
o. To reflect the accrual of interest in respect of the outstanding repo/ reverse repo transactions at the end of the accounting period, appropriate entries should be passed in the Profit and Loss account to reflect Repo Interest Income / Expenditure in the books of the buyer / seller, respectively, and the same should be debited / credited as an income / expenditure accrued but not due. Such entries passed should be reversed on the first working day of the next accounting period.
p. In respect of repos in interest bearing (coupon) instruments, the buyer would accrue interest during the period of repo. In respect of repos in discount instruments like Treasury Bills, the seller would accrue discount during the period of repo based on the original yield at the time of acquisition.
q. At the end of the accounting period the debit balances (excluding balances for repos which are still outstanding) in the Repo Interest Adjustment Account and Reverse Repo Interest Adjustment Account should be transferred to the Repo Interest Expenditure Account and the credit balances (excluding balances for repos which are still outstanding) in the Repo Interest Adjustment Account and Reverse Repo Interest Adjustment Account should be transferred to the Repo Interest Income Account.
r. Similarly, at the end of accounting period, the debit balances (excluding balances for repos which are still outstanding) in the Repo / Reverse Repo Price Adjustment Account should be transferred to the Repo Interest Expenditure Account and the credit balances (excluding balances for repos which are still outstanding) in the Repo / Reverse Repo Price Adjustment Account should be transferred to the Repo Interest Income Account.
s. Illustrative examples are given in Annex IV.
Annex-IV
(Cf. Para 8.6)
Illustrative examples for uniform accounting of Repo/Reverse repo transactions
A. Repo/ Reverse Repo of Coupon bearing security
1. Details of Repo in a coupon bearing security:
| Security offered under Repo | 11.43% 2015 | |
| Coupon payment dates | 7 August and 7 February | |
| Market Price of the security offered under Repo (i.e. price of the security in the first leg) | Rs.113.00 | (1) |
| Date of the Repo | 19 January, 2003 | |
| Repo interest rate | 7.75% | |
| Tenor of the repo | 3 days | |
| Broken period interest for the first leg* | 11.43%x162/360x100=5.1435 | (2) |
| Cash consideration for the first leg | (1) + (2) = 118.1435 | (3) |
| Repo interest** | 118.1435x3/365x7.75%=0.0753 | (4) |
| Broken period interest for the second leg | 11.43% x 165/360x100=5.2388 | (5) |
| Price for the second leg | (3)+(4)-(5) = 118.1435 + 0.0753 - 5.2388 = 112.98 | (6) |
| Cash consideration for the second leg | (5)+(6) = 112.98 + 5.2388 = 118.2188 | (7) |
* Computation of days based on 30/360 day count convention
** Computation of days based on Actual/365 day count convention applicable to money market instruments
2. Accounting for the seller of the security
We assume that the security was held by the seller at the book value (BV) of Rs.120.0000
First leg Accounting
| | Debit | Credit |
| Cash Repo Account | 118.1435 | 120.0000 (Book value) |
| Repo Price Adjustment account | 7.0000 (Difference between BV & repo price) | |
| Repo Interest Adjustment account | | 5.1435 |
Second Leg Accounting
| | Debit | Credit |
| Repo Account Repo Price Adjustment account | 120.0000 | 7.02(the difference between the BV and 2nd leg price) |
| Repo Interest Adjustment account Cash account | 5.2388 | 118.2188 |
The balances in respect of the Repo Price Adjustment Account and Repo Interest Adjustment Account at the end of the second leg of repo transaction are transferred to Repo Interest Expenditure Account. In order to analyse the balances in these accounts, the ledger entries are shown below:
Repo Price Adjustment account
| Debit | Credit |
| Difference in price for the 1st leg | 7.00 | Difference in price for the 2nd leg | 7.02 |
| Balance carried forward to Repo Interest Expenditure account | 0.02 | | |
| Total | 7.02 | Total | 7.02 |
Repo Interest Adjustment account
| Debit | Credit |
| Broken period interest for the 2nd leg | 5.2388 | Broken period interest for the 1st leg | 5.1435 |
| | | Balance carried forward to Repo Interest Expenditure account | 0.0953 |
| Total | 5.2388 | Total | 5.2388 |
Repo Interest Expenditure Account
| Debit | Credit |
| Balance from Repo Interest Adjustment account | 0.0953 | Balance from Repo Price Adjustment account | 0.0200 |
| | | Balance carried forward to P & L a/c. | 0.0753 |
| Total | 0.0953 | Total | 0.0953 |
3. Accounting for buyer of the security
When the security is bought, it will bring its book value with it. Hence market value is the book value of the security.
First leg Accounting:
| | Debit | Credit |
| Reverse Repo Account | 113.0000 | |
| Reverse Repo Interest Adjustment account | 5.1435 | |
| Cash account | | 118.1435 |
Second Leg Accounting
| | Debit | Credit |
| Cash account | 118.2188 | |
| Reverse Repo Price Adjustment account(Difference between the 1st and 2nd leg prices) | 0.0200 | |
| Reverse Repo account | | 113.0000 |
| Reverse Repo Interest Adjustment account | | 5.2388 |
The balances in respect of the Reverse Repo Interest Adjustment Account and Reverse Repo Price adjustment account at the end of the second leg of reverse repo in these accounts are transferred to Repo Interest Income Account. In order to analyse the balances in these two accounts, the ledger entries are shown below:
Reverse Repo Price Adjustment Account
| Debit | Credit |
| Difference in price of 1st & 2nd leg | 0.0200 | Balance to Repo Interest Income a/c. | 0.0200 |
| Total | 0.0200 | Total | 0.0200 |
Reverse Repo Interest Adjustment Account
| Debit | Credit |
| Broken period interest for the 1st leg | 5.1435 | Broken period interest for the 2nd leg | 5.2388 |
| Balance carried forward to Repo Interest Income Account | 0.0953 | | |
| Total | 5.2388 | Total | 5.2388 |
Reverse Repo Interest Income Account
| Debit | Credit |
| Difference between the 1st & 2nd leg prices | 0.0200 | Balance from Reverse Repo Interest Adjustment account | 0.0953 |
| Balance carried forward to P & L account | 0.0753 | | |
| Total | 0.0953 | Total | 0.0953 |
4. Additional accounting entries to be passed on a Repo / Reverse Repo transaction on a coupon bearing security, when the accounting period is ending on an intervening day.
| Transaction Leg à | 1st leg | End of accounting period | 2nd leg |
| Dates à | 19 Jan 03 | 21 Jan 03* | 22 Jan 03 |
The difference in the clean price of the security between the first leg and the second leg should be apportioned upto the Balance Sheet date and should be shown as Repo Interest Income / Expenditure in the books of the seller / buyer respectively and should be debited / credited as an income / expenditure accrued but not due. The balances under Income / expenditure accrued but not due should be taken to the balance sheet.
The coupon accrued by the buyer should also be credited to the Repo Interest Income account. No entries need to be passed on " Repo / Reverse Repo price adjustment account and Repo / Reverse repo interest adjustment account". The illustrative accounting entries are shown below:
a) Entries in Seller’s books on January 21, 2003
| Account Head | Debit | Credit |
| Repo Interest Income account [ Balances under the account to be transferred to P & L] | | 0.0133 ( Notional credit balance 0.0133 in the Repo Price Adjustment Account by way of apportionment of price difference for two days i.e. upto the balance sheet day) |
| Repo interest Income accrued but not due | 0.0133 | |
*21 January, 2003 is assumed to be the balance sheet date
b) Entries in Seller’s books on January 21, 2003
| Account Head | Debit | Credit |
| Repo interest income | 0.0133 | |
| P & L a/c | | 0.0133 |
c) Entries in Buyer's Books on January 21, 2003
| Account Head | Debit | Credit |
| Repo interest income accrued but not due | 0.0502 | |
| Repo Interest Income account [Balances under the account to be transferred to P & L] | | 0.0502 (Interest accrued for 3 days of Rs. 0.0635* - Apportionment of the difference in the clean price of Rs. 0.0133) |
*For the sake of simplicity the interest accrual has been considered for 2 days.
d) Entries in Buyer's Books on January 21, 2003
| Account Head | Debit | Credit |
| Repo interest income account | 0.0502 | |
| P& L a/c | | 0.0502 |
The difference between the repo interest accrued by the seller and the buyer is on account of the accrued interest forgone by the seller on the security offered for repo.
B. Repo/ Reverse Repo of Treasury Bill
1. Details of Repo on a Treasury Bill
| Security offered under Repo | GOI 91 day Treasury Bill maturing on 28 February, 2003 | |
| Price of the security offered under Repo | Rs.96.0000 | (1) |
| Date of the Repo | 19 January, 2003 | |
| Repo interest rate | 7.75% | |
| Tenor of the repo | 3 days | |
| Total cash consideration for the first leg | 96.0000 | (2) |
| Repo interest | 0.0612 | (3) |
| Price for the second leg | (2)+(3) = 96.0000 + 0.0612 = 96.0612 | |
| Cash consideration for the 2nd leg | 96.0612 | |
2. Accounting for seller of the security
We assume that the security was held by the seller at the book value (BV) of Rs.95.0000
First leg Accounting:
| | Debit | Credit |
| Cash Repo Account | 96.0000 | 95.0000 (Book value) |
| Repo Price adjustment account | | 1.0000 (Difference between BV & repo price ) |
Second Leg Accounting
| Repo AccountRepo Price adjustment account | 95.00001.0612(the difference between the BV and 2nd leg price) | |
| Cash account | | 96.0612 |
The balances in respect of the Repo Price Adjustment Account at the end of the second leg of repo transaction are transferred to Repo Interest Expenditure Account. In order to analyse the balances in this account, the ledger entries are shown:
Repo Price Adjustment account
| Debit | Credit |
| Difference in price for the 2nd leg | 1.0612 | Difference in price for the 1st leg | 1.0000 |
| | | Balance carried forward to Repo Interest Expenditure account | 0.0612 |
| Total | 1.0612 | Total | 1.0612 |
Repo Interest Expenditure Account
| Debit | Credit |
| Balance from Repo Price Adjustment account | 0.0612 | Balance carried forward to P & L a/c. | 0.0612 |
| Total | 0.0612 | Total | 0.0612 |
The Seller will continue to accrue the discount at the original discount rate during the period of the repo.
3. Accounting for buyer of the security
When the security is bought, it will bring its book value with it. Hence market value is the book value of the security.
First leg Accounting:
| | Debit | Credit |
| Reverse Repo Account | 96.0000 | |
| Cash account | | 96.0000 |
Second Leg Accounting
| | Debit | Credit |
| Cash account | 96.0612 | |
| Repo Interest Income account(Difference between the 1st and 2nd leg prices) | | 0.0612 |
| Reverse Repo account | | 96.0000 |
The Buyer will not accrue for the discount during the period of the repo.
4. Additional accounting entries to be passed on a Repo / Reverse Repo transaction on a Treasury Bill, when the accounting period is ending on an intervening day.
| Transaction Leg à | 1st leg | B/S date | 2nd leg |
| Date à | 19 Jan.03 | 21 Jan.03* | 22 Jan.03 |
*21 January, 2003 is assumed to be the balance sheet date
a. Entries in Seller’s books on January 21, 2003
| Account Head | Debit | Credit |
| Repo Interest Expenditure account (after apportionment of repo interest for two days) [ Balances under the account to be transferred to P & L] | 0.0408 | |
| Repo interest expenditure accrued but not due | | 0.0408 |
b. Entries in Seller’s books on January 21, 2003
| Account Head | Debit | Credit |
| Repo interest expenditure account | | 0.0408 |
| P & L a/c | 0.0408 | |
c. Entries in Buyer's Books on January 21, 2003
| Account Head | Debit | Credit |
| Repo interest income accrued but not due | 0.0408 | |
| Repo Interest Income account [ Balances under the account to be transferred to P & L] | | 0.0408 |
d. Entries in Buyer's Books on January 21, 2003
| Account Head | Debit | Credit |
| Repo interest income account | 0.0408 | |
| P & L a/c | | 0.0408 |
APPENDIX
Part A: List of circulars consolidated by the Master Circular
| No. | Circular No. | Date | Subject |
| 1. | DBS.FID.No.C-6 / 01.02.00 /2004-05 | August 30, 2004 | Holding of Investments in Dematerialised Form |
| 2. | DBS.FID.No.C-11 / 01.02.00 /2003-04 | January 8, 2004 | Final guidelines on investment by the FIs in debt securities |
| 3. | DBS.FID.No.C-1/01.02.00/2003-04 | July 1, 2003 | Trading in Government of India Securities on Stock exchanges |
| 4. | DBS.FID No.C-16 /01.02.00/2002-03 | June 20, 2003 | Investment Portfolio - Transactions in Securities - Audit Review and Reporting System - Modifications |
| 5. | IDMC.MSRD.4801/ 06.01.03/2002-03 | June 3, 2003 | Guidelines on Exchange Traded Interest Rate Derivatives |
| 6. | IDMC.3810 / 11.08.10 / 2002-03 | March 24, 2003 | Guidelines for uniform accounting for Repo / Reverse repo transactions |
| 7. | IDMC/PDRS/ 3432 / 10.02.01/2002-03 | February 21, 2003 | Ready Forward Contracts |
| 8. | DBS.FID No. C-3 / 01.02.00/2002-03 | July 22, 2002 | Guidelines for classification and valuation of investments - Clarifications |
| 9. | DBS.FID.No. C-2 / 01.02.00/ 2002-03 | July 18, 2002 | Transactions in Government Securities |
| 10. | DBS.FID.No. C-10 / 01.02.00/ 2001-02 | February 1, 2002 | Treatment of Restructured accounts- Clarifications |
| 11. | DBS.FID.No. C-6 / 01.02.00/ 2001-02 | October 16, 2001 | Guidelines for Classification and Valuation of Investments- Clarifications/ Modifications |
| 12. | DBS.FID.No. C-4 / 01.02.00/ 2001-02 | August 28, 2001 | Holding of Instruments in Dematerialised Form |
| 13. | DBS.FID.No. C-10 / 01.02.00/ 2000-01 | November 22, 2000 | Investment Portfolio- Transactions in Securities- Role of Brokers |
| 14. | DBS.FID.No.C-9 / 01.02.00/ 2000-01 | November 9, 2000 | Guidelines for Classification and Valuation of Investments |
| 15. | DBS.FID.No.40 / 01.08.00/ 98-99 | April 28, 1999 | Issue of Sub-Ordinated Debt for Raising Tier II Capital |
| 16. | DBS.FID.No.23 / 01.08.00/ 97-98 | January 20, 1998 | Investment Portfolio- Transactions in Securities- Role of Brokers |
| 17. | FIC. No. 7 / 01.08.00/ 96-97 | February 19, 1997 | Investment Portfolio- Transactions in Securities |
| 18. | FIC. No. 198 / 01.08.00/ 96-97 | September 2, 1996 | Investment Portfolio- Transactions in Securities |
| 19. | FIC. No. 551 / 01.08.00/ 95-96 | January 24, 1996 | Investment Portfolio- Transactions in Securities- Role of Brokers |
| 20. | FIC.No. 937-947/ 01.02.00/93-94 | April 22, 1994 | Monitoring the Activities of Subsidiaries / Mutual Funds |
| 21. | FIC No. 493-503/ 01.02.00 / 92-93 | January 4, 1993 | Investment Portfolio- Transactions in Securities |
| 22. | FIC No. 984-994/ 01.02.00 / 91-92 | June 23, 1992 | Investment Portfolio- Transactions in Securities |
Part B: List of other circulars containing instructions related / relevant to Investments now superceded
| No. | Circular No. | Date | Subject | | 1. | DBS.FID.No. C-16 / 01.02.00/ 2001-02 | May 14, 2002 | Ready Forward Contracts- through CCI Ltd. | | 2. | IECD. 15/08.15.01/ 2000-01 | April 30, 2001 | Investment in Commercial paper | | 3. | DBS.FID. No. C-15 / 01.02.00/ 99-00 | April 8, 2000 | Ready Forward Transactions | | 4. | DBS.FID. No. 3 / 01.02.00/ 99-00 | August 10, 1999 | Permission to Undertake Ready Forward Transactions | | 5. | DBS.FID. No. 22 / 01.02.00/ 97-98 | January 15, 1998 | Settlement of Institutional Transactions in the Depository | | 6. | FIC. No. 338 / 01.08.00/ 95-96 | November 3, 1995 | Investment Portfolio- Classification of Investments Under ' Permanent and Current' Category |
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