PART -II

RBI No. 2004-05/ 51 DBOD No. BP. BC. 11 / 21.04.141 / 2004-05 DT.17/07/2004

Master Circular-Prudential norms for classification,valuation and operation of investment portfolio by banks

3.6 Market value

The ‘market value’ for the purpose of periodical valuation of investments included in the Available forSale and the Held for Trading categories would be the market price of the scrip as available from thetrades/ quotes on the stock exchanges, SGL account transactions, price list of RBI, prices declared byPrimary Dealers Association of India (PDAI) jointly with the Fixed Income Money Market andDerivatives Association of India (FIMMDA) periodically. In respect of unquoted securities, theprocedure as detailed below should be adopted.

3.7 Unquoted SLR securities

3.7.1 Central Government Securities

i) The Reserve Bank of India will not announce the YTM rates for unquoted Government securities, ashitherto, for the purpose of valuation of investments by banks. The banks should value the unquotedCentral Government securities on the basis of the prices/ YTM rates put out by the PDAI/ FIMMDA atperiodical intervals.

ii) The 6.00 per cent Capital Indexed Bonds may be valued at “cost” as defined in circular DBOD.NO.BC.8/12.02.001 / 97-98 dated January 22, 1998 and BC.18/12.02.001/2000-2001 dated August16, 2000.

iii) Treasury Bills should be valued at carrying cost.

3.7.2 State Government Securities

State Government securities will be valued applying the YTM method by marking it up by 25 basispoints above the yields of the Central Government Securities of equivalent maturity put out by PDAI/FIMMDA periodically.

3.7.3 Other ‘approved’ Securities

Other approved securities will be valued applying the YTM method by marking it up by 25 basis pointsabove the yields of the Central Government Securities of equivalent maturity put out by PDAI/FIMMDA periodically.

3.8 Unquoted Non-SLR securities

3.8.1 Debentures/ Bonds

All debentures/ bonds other than debentures/ bonds which are in the nature of advance should bevalued on the YTM basis. Such debentures/ bonds may be of different companies having differentratings. These will be valued with appropriate mark-up over the YTM rates for Central Governmentsecurities as put out by PDAI/ FIMMDA periodically. The mark-up will be graded according to theratings assigned to the debentures/ bonds by the rating agencies subject to the following: -

(a) The rate used for the YTM for rated debentures/ bonds should be at least 50 basis points above the rate applicable to a Government of India loan of equivalent maturity.

(b) The rate used for the YTM for unrated debentures/ bonds should not be less than the rate applicable to rated debentures/ bonds of equivalent maturity. The mark-up for the unrated debentures/ bonds should appropriately reflect the credit risk borne by the bank.

(c) Where interest/ principal on the debenture/ bonds is in arrears, the provision should be made for the debentures as in the case of debentures/ bonds treated as advances. The depreciation/ provision requirement towards debentures where the interest is in arrears or principal is not paid as per due date, shall not be allowed to be set-off against appreciation against other debentures/ bonds.

Where the debenture/ bonds is quoted and there have been transactions within 15 days prior to the valuation date, the value adopted should not be higher than the rate at which the transaction is recorded on the stock exchange.

3.8.2 Preference Shares

The valuation of preference shares should be on YTM basis. The preference shares will be issued bycompanies with different ratings. These will be valued with appropriate mark-up over the YTM ratesfor Central Government securities put out by the PDAI/FIMMDA periodically. The mark-up will begraded according to the ratings assigned to the preference shares by the rating agencies subject tothe following:

a) The YTM rate should not be lower than the coupon rate/ YTM for a GOI loan of equivalent maturity.

b) The rate used for the YTM for unrated preference shares should not be less than the rate applicable to rated preference shares of equivalent maturity. The mark-up for the unrated preference shares should appropriately reflect the credit risk borne by the bank.

c) Investments in preference shares as part of the project finance may be valued at par for a period of two years after commencement of production or five years after subscription whichever is earlier.

d) Where investment in preference shares is as part of rehabilitation, the YTM rate should not be lower than 1.5% above the coupon rate/ YTM for GOI loan of equivalent maturity.

e) Where preference dividends are in arrears, no credit should be taken for accrued dividends and the value determined on YTM should be discounted by at least 15% if arrears are for one year, and more if arrears are for more than one year. The depreciation/ provision requirement arrived at in the above manner in respect of nonperforming shares where dividends are in arrears shall not be allowed to be set-off against appreciation on other performing preference shares.

f) The preference share should not be valued above its redemption value.

g) When a preference share has been traded on stock exchange within 15 days prior to the valuation date, the value should not be higher than the price at which the share was traded.

3.8.3 Equity Shares

Equity shares for which current quotations are not available or where the shares are not quoted on thestock exchanges, should be valued at break-up value (without considering ‘revaluation reserves’, ifany) which is to be ascertained from the company’s latest balance sheet (which should not be morethan one year prior to the date of valuation). In case the latest balance sheet is not available theshares are to be valued at Re.1 per company.

3.8.4 Mutual Funds Units

Investment in quoted Mutual Fund Units should be valued as per Stock Exchange quotations.

Investment in non-quoted Mutual Fund Units is to be valued on the basis of the latest re-purchaseprice declared by the Mutual Fund in respect of each particular Scheme. In case of funds with a lockinperiod, where repurchase price/ market quote is not available, Units could be valued at NAV. IfNAV is not available, then these could be valued at cost, till the end of the lock-in period. Whereverthe re-purchase price is not available the Units could be valued at the NAV of the respective scheme.

3.8.5 Commercial Paper

Commercial paper should be valued at the carrying cost.

3.8.6 Investments in RRBs

Investment in RRBs is to be valued at Carrying Cost (i.e. book value) on consistent basis.

3.9. Investment in securities issued by SC/RC

3.9.1 Provisioning / valuation norms

When banks / FIs invest in the security receipts / pass-through certificates issued by SecuritisationCompany (SC) / Reconstruction Company (RC) in respect of the financial assets sold by them to theSC / RC, the sale shall be recognised in books of the banks / FIs at the lower of:

1. the redemption value of the security receipts / pass-through certificates, and


2. the NBV of the financial asset.

The above investment should be carried in the books of the bank / FI at the price as determinedabove until its sale or realisation, and on such sale or realisation, the loss or gain must be dealt withas under:

(i) if the sale to SC /RC is at a price below the net book value (NBV) (ie. Book value less provisions held), the shortfall should be debited to the profit and loss account of that year.

(ii) If the sale is for a value higher than the NBV, the excess provision will not be reversed but will be utilised to meet the shortfall / loss on account of sale of other financial assets to SC / RC.

All instruments received by banks / FIs from SC / RC as sale consideration for financial assets sold to them and also other instruments issued by SC / RC in which banks / FIs invest will be in the nature ofnon-SLR securities. Accordingly, the valuation, classification and other norms applicable toinvestment in non-SLR instruments prescribed by RBI from time to time would be applicable to bank’s/ FI’s investment in debentures / bonds / security receipts / PTCs issued by SC / RC. However, if anyof the above instruments issued by SC / RC is limited to the actual realisation of the financial assetsassigned to the instruments in the concerned scheme the bank / FI shall reckon the Net Asset Value(NAV), obtained from SC / RC from time to time, for valuation of such investments.

4. Uniform accounting for Repo / Reverse Repo transactions.

4.1 In order to ensure uniform accounting treatment for accounting repo / reverse repo transactionsand to impart an element of transparency, uniform accounting principles, have been laid down for repo/ reverse repo transactions undertaken by all the regulated entities. However, for the present, thesenorms would not apply to repo / reverse repo transactions under the Liquidity Adjustment Facility(LAF) with RBI.

4.2 The uniform accounting principles will be applicable from the financial year 2003-04. Onimplementation, market participants may undertake repos from any of the three categories ofinvestments, viz., Held For Trading, Available For Sale and Held To Maturity.

4.3. The legal character of repo under the current law , viz. as outright purchase and outright saletransactions will be kept intact by ensuring that the securities sold under repo (the entity sellingreferred to as “seller”) are excluded from the Investment Account of the seller of securities and thesecurities bought under reverse repo (the entity buying referred to as “buyer” ) are included in theInvestment Account of the buyer of securities. Further, the buyer can reckon the approved securitiesacquired under reverse repo transaction for the purpose of Statutory Liquidity Ratio (SLR) during theperiod of the repo.

4. 4. At present repo transactions are permitted in Central Government securities includingTreasury Bills and dated State Government securities. Since the buyer of the securities will not hold ittill maturity, the securities purchased under reverse repo by banks should not be classified under Heldto Maturity category. The first leg of the repo should be contracted at 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.

4. 5. The other accounting principles to be followed while accounting for repos / reverse repos will be as under:

4.5.1 Coupon

In case the interest payment date of the security offered under repo falls within the repo period, thecoupons received by the buyer of the security should be passed on to the seller on the date of receiptas the cash consideration payable by the seller in the second leg does not include any interveningcash flows. While the buyer will book the coupon during the period of the repo , the seller will notaccrue the coupon during the period of the repo. In the case of discounted instruments like TreasuryBills, since there is no coupon, the seller will continue to accrue the discount at the original discountrate during the period of the repo. The buyer will not therefore accrue the discount during the period ofthe repo.

4.5.2 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 bereckoned 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 beshown 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 transferredto 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 accruedincome / expenditure till the balance sheet date should be taken to the Profit and Loss account. Anyrepo income / expenditure for the subsequent period in respect of the outstanding transactions shouldbe reckoned for the next accounting period.

4.5.3 Marking to Market

The buyer will mark to market the securities acquired under reverse repo transactions as per theinvestment classification of the security. To illustrate, for banks, in case the securities acquired underreverse repo transactions have been classified under Available for Sale category, then the mark tomarket valuation for such securities should be done at least once a quarter. For entities who do notfollow any investment classification norms, the valuation for securities acquired under reverse repotransactions may be in accordance with the valuation norms followed by them in respect of securitiesof 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 thesame as laid down in the extant valuation guidelines issued by the respective regulatory departmentsof RBI.

(b) the seller will provide for the price difference in the Profit & Loss account and show this differenceunder “Other Assets” in the balance sheet if the sale price of the security offered under repo is lowerthan the the book value.

(c) the seller will ignore the price difference for the purpose of Profit & Loss account but show thedifference under “Other Liabilities” in in the Balance Sheet, if the sale price of the security offeredunder repo is higher than the book value; and

(d) similarly the accrued interest paid / received in the repo / reverse repo transactions outstanding onbalance sheet dates should be shown as "Other Assets" or "Other Liabilities" in the balance sheet.

4.5.4 Book value on re-purchase

The seller shall debit the repo account with the original book value (as existing in the books on thedate of the first leg) on buying back the securities in the second leg.

4.5.5 Disclosure

The disclosures to be made by banks in the “Notes on Accounts’ to the Balance Sheet is given inAnnexure. VII.

4.5.6 Accounting methodology

The accounting methodology to be followed are given below and illustrations are furnished inAnnexure VIII. While market participants, having different accounting systems, may use accountingheads different from those used in the illustration, there should not be any deviation from theaccounting principles enunciated above. Further, to obviate disputes arising out of repo transactions,the participants may consider entering into bilateral Master Repo Agreement as per thedocumentation finalized by FIMMDA.

4.5.7 Recommended Accounting Methodology for Uniform Accounting of Repo / ReverseRepo transactions

a. The following accounts may be opened, viz. i) Repo Account, ii) Repo Price AdjustmentAccount, iii) Repo Interest Adjustment Account, iv) Repo Interest Expenditure Account, v)Repo Interest Income Account, vi) Reverse Repo Account, vii) Reverse Repo PriceAdjustment 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 easethe weighted average cost method whereby the investment is carried in the books at theirweighted average cost may be adopted.

Repo

d. In a repo transaction, the securities should be sold in the first leg at market related prices andre-purchased in the second leg at the derived price. The sale and repurchase should beaccounted in the Repo Account.

e. The balances in the Repo Account should be netted from the bank's Investment Account forbalance sheet purposes.

f. The difference between the market price and the book value in the first leg of the repo shouldbe booked in Repo Price Adjustment Account. Similarly the difference between the derivedprice and the book value in the second leg of the repo should be booked in the Repo PriceAdjustment Account.

Reverse repo

g. In a reverse repo transaction, the securities should be purchased in the first leg at prevailingmarket prices and sold in the second leg at the derived price. The purchase and sale shouldbe accounted for in the Reverse Repo Account.

h. The balances in the Reverse Repo Account should be part of the Investment Account forbalance sheet purposes and can be reckoned for SLR purposes if the securities acquiredunder reverse repo transactions are approved securities.

i. The security purchased in a reverse repo will enter the books at the market price (excludingbroken period interest). The difference between the derived price and the book value in thesecond leg of the reverse repo should be booked in the Reverse Repo Price AdjustmentAccount.

Other aspects relating to Repo / Reverse Repo

j. In case the interest payment date of the security offered under repo falls within the repoperiod, the coupons received by the buyer of the security should be passed on to the seller onthe date of receipt as the cash consideration payable by the seller in the second leg does notinclude 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 InterestExpenditure 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 RepoInterest Adjustment Account or Reverse Repo Interest Adjustment Account, as the case maybe. Consequently the difference between the amounts booked in this account in the first andsecond legs should be transferred to the Repo Interest Expenditure Account or Repo InterestIncome Account, as the case may be.

m. At the end of the accounting period the, for outstanding repos , the balances in the Repo /Reverse Repo Price Adjustment Account and Repo / Reverse repo Interest Adjustmentaccount should be reflected either under item VI - 'Others' under Schedule 11 - 'OtherAssets' or under item IV 'Others (including Provisions)' under Schedule 5 - 'Other Liabilitiesand Provisions' in the Balance Sheet , as the case may be .

n. Since the debit balances in the Repo Price Adjustment Account at the end of the accountingperiod represent losses not provided for in respect of securities offered in outstanding repotransactions, 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 transactionsat the end of the accounting period, appropriate entries should be passed in the Profit andLoss account to reflect Repo Interest Income / Expenditure in the books of the buyer / sellerrespectively and the same should be debited / credited as an income / expenditure accruedbut not due. Such entries passed should be reversed on the first working day of the nextaccounting period.

p. In respect of repos in interest bearing (coupon) instruments, the buyer would accrue interestduring the period of repo. In respect of repos in discount instruments like Treasury Bills, theseller would accrue discount during the period of repo based on the original yield at the timeof acquisition.

q. At the end of the accounting period the debit balances (excluding balances for repos whichare still outstanding) in the Repo Interest Adjustment Account and Reverse Repo InterestAdjustment Account should be transferred to the Repo Interest Expenditure Account and thecredit balances (excluding balances for repos which are still outstanding) in the Repo InterestAdjustment Account and Reverse Repo Interest Adjustment Account should be transferred tothe Repo Interest Income Account.

r. Similarly, at the end of accounting period, the debit balances (excluding balances for reposwhich are still outstanding) in the Repo / Reverse Repo Price Adjustment Account should betransferred to the Repo Interest Expenditure Account and the credit balances (excludingbalances for repos which are still outstanding) in the Repo / Reverse Repo Price AdjustmentAccount should be transferred to the Repo Interest Income Account.

5. General

5.1 Income recognition

i) Banks may book income on accrual basis on securities of corporate bodies/ public sectorundertakings in respect of which the payment of interest and repayment of principal have beenguaranteed by the Central Government or a State Government, provided interest is serviced regularlyand as such is not in arrears.

ii) Banks may book income from dividend on shares of corporate bodies on accrual basis provideddividend on the shares has been declared by the corporate body in its Annual General Meeting andthe owner's right to receive payment is established.

iii) Banks may book income from Government securities and bonds and debentures of corporatebodies on accrual basis, where interest rates on these instruments are pre-determined and providedinterest is serviced regularly and is not in arrears.

iv) Banks should book income from units of mutual funds on cash basis.

5.2 Broken Period Interest

Banks should not capitalise the Broken Period Interest paid to seller as part of cost, but treat it as an item of expenditure under Profit and Loss Account in respect of investments in Government and other approved securities. It is to be noted that the above accounting treatment does not take into account taxation implications and hence the banks should comply with the requirements of Income Tax Authorities in the manner prescribed by them.

5.3 Dematerialised Holding

Banks have been advised to settle the transactions in securities as notified by Securities and Exchange Board of India (SEBI) only through depositories. Banks were also advised that after the commencement of mandatory trading in demat form, they would not be able to sell the shares of listed companies if they were held in physical form. In order to extend the demat form of holding to other instruments like bond, debentures and equities, it was decided that, with effect from October 31, 2001, banks, FIs, PDs and SDs will be permitted to make fresh investments and hold bonds and debentures, privately placed or otherwise, only in dematerialized form. Outstanding investments in scrip forms shall have to be converted into dematerialized form by June 30, 2002. As regards equity instruments, they will be permitted to be held by the above-mentioned institutions only in dematerialized form, from a date to be notified in consultation with SEBI.

Annexure-I

Para 1.2 (i) (b)

Investment portfolio of banks-Transactions in securities-Conditions subject to which securities allotted in the auctions for primary issues can be sold

(i) The contract for sale can be entered into only once by the allottee bank on the basis of an authenticated allotment advice issued by Reserve Bank of India. The selling bank should make suitable noting/stamping on the allotment advice indicating the sale contract number etc., the details of which should be intimated to the buying entity. The buying entity should not enter into a contract to further resell the securities until it actually holds the securities in its investment account. Any sale of securities should be only on a T+0 or T+1 settlement basis.

(ii) The contract for sale of allotted securities can be entered into by banks only with entities maintaining SGL Account with Reserve Bank of India for delivery and settlement on the next working day through the Delivery versus Payment(DVP) system.

(iii) The face value of securities sold should not exceed the face value of securities indicated in the allotment advice.

(iv) The sale deal should be entered into directly without the involvement of broker/s.

(v) Separate record of such sale deals should be maintained containing details such as number and date of allotment advice, description and the face value of securities allotted, the purchase consideration, the number, date of delivery and face value of securities sold, sale consideration, the date and details of actual delivery i.e. SGL Form No., etc. This record should be made available to Reserve Bank of India for verification. Banks should immediately report any cases of failure to maintain such records.

(vi) Such type of sale transactions of Government securities allotted in the auctions for primary issueson the same day and based on authenticated allotment advice should be subjected to concurrentaudit and the relative audit report should be placed before the Executive Director or the Chairman andManaging Director of the Bank once every month. A copy thereof should also be sent to theDepartment of Banking Supervision, Reserve Bank of India, Central Office, Mumbai.

(vii) Banks will be solely responsible for any failure of the contracts due to the securities not beingcredited to their SGL account on account of non-payment / bouncing of cheque etc.

Annexure-II

Para 1.2.6 (i) (g)

Investment port-folio of banks-Transactions in securities-Aggregatecontract limit for individual brokers - clarifications

Sr.No	Issue Raised	Response
1.	financial year?	The year should be calendar year or Since banks close their accounts at the end of March, it may be more convenient to follow the financial year. However, the banks may follow calendar year or any other period of 12 months provided, it is consistently followed in future.
2.	Whether the limit is to be observed with reference to total transactions of the previous year as the total transactions of the current year would be known only at the end of the year?	The limit has to be observed with reference to the year under review. While operating the limit the bank should keep in view the expected turnover of the current year which may be based on turnover of the previous year and anticipated rise or fall in the volume of business in the current year.
3.	Whether to arrive at the total transactions of the year, transa-ctions entered into directly with counter parties i.e. where no bro-kers are involved would also be taken into account?	Not necessary. However, if there are any direct deals with the brokers as purchasers or sellers the same would have to be included in the total transactions to arrive at the limit of transactions to be done through an individual broker.
4.	Whether in case of ready forward deals both the legs of the deals i.e. purchase as well as sale will be included to arrive at the volume of total transactions?	Yes. This is, however, only theoretical as R/F transactions in Govt. securities are now prohibited except in Treasury Bills and specified Govt. Securities
5.	Whether central loan/state loan/ treasury bills etc. purchased through direct subscriptions/auction will be included in the volume of total transactions?	No, as brokers are not involved as intermidiaries.
6.	It is possible that even though bank considers that a particular broker has touched the prescribed limit of 5% he may come with an offer during the remaining period of the year which the bank may find it to be to its advantage as compared to offers received from the other brokers who have not yet done business upto the prescribed limit.	If the offer received is more advantageous the limit for the broker may be exceeded, the reasons therefor and approval of the competent authority/Board obtained postfacto.
7.	Whether the transaction conducted on behalf of the clients would also be included in the total transactions of the year?	Yes. If they are conducted through the brokers.
8.	For a bank which rarely deals through brokers and consequently the volume of business is small maintaining the brokerwise limit of 5% may mean splitting the orders in small values amongst different brokers and there may also arise price differential.	There may be no need to split an order. If any deal causes the particular broker's share to exceed 5% limit, our circular provides the necessary flexibility inasmuch as Board's post facto approval can be obtained
9.	During the course of the year it may not be possible to reasonably predict what will be the total quantum of transactions through brokers as a result of which there could be deviation in complying with the norm of 5%	The bank may get post facto approval from the Board after explaining to it the circumstances in which the limit was exceeded.
10.	Some of the small private sector banks have mentioned that where the volume of business particularly the transactions done through brokers is small the observance of 5% limit may be difficult. A suggestion has therefore been made that the limit may be required to be observed if the business done through a broker exceeds a cut-off point of, say Rs. 10 crore.	As already observed, the limit of 5% can be exceeded subject to reporting the transactions to the competent authority post facto. Hence, no change in our instructions are considered necessary.

Annexure - III
Para 1.2.8 (ii)

Recommendations of the Group on Non-SLR investments of banks

Pro-forma of minimum disclosure requirements in respect of private placement issues - Model Offer Document

All issuers must issue an offer document with terms of issue, authorised by Board Resolution notolder than 6 months from the date of issue. The offer document should specifically mention the BoardResolution authorising the issue and designations of the officials who are authorised to issue the offerdocument. The offer document may be printed or typed “For Private Circulation Only”. The OfferDocument should be signed by the authorised signatory. The offer document should contain thefollowing minimum information :

I. General Information

1. Name and address of registered office of the company

2. Full names (expanded initials), addresses of Directors and the names of companies where they are Directors.

3. Listing of the issue (If listed, name of the Exchange)

4. Date of opening of the issue

Date of closing of the issue

Date of earliest closing of the issue.

5. Name and addresses of auditors and Lead Managers/arrangers

6. Name address of the trustee-consent letter to be produced (in case of debenture issue)

7. Rating from any Rating Agency and / or copy of the rationale of latest rating.

II. Particulars of the issue

a) Objects

b) Project cost and means of financing (including contribution of promoters) in case of new projects.

III. The model offer document should also contain the following information :

(1) Interest rate payable on application money till the date of allotment.

(2) Security : If it is a secured issue, the issue is to be secured, the offer documents should mention description of security, type of security, type of charge, Trustees, private charge-holders, if any, and likely date of creation of security, minimum security cover, revaluation, if any.

(3) If the security is collateralised by a guarantee, a copy of the guarantee or principal terms of the guarantee are to be included in the offer document.

(4) Interim Accounts, if any.

(5) Summary of last audited Balance Sheet and Profit & Loss Account with qualifications by Auditors, if any.

(6) Last two published Balance Sheet may be enclosed.

(7) Any conditions relating to tax exemption, capital adequacy etc. are to be brought out fully in the documents.

(8) The following details in case of companies undertaking major expansion or new projects :- (copy of project appraisal may be made available on request)

a) Cost of the project, with sources and uses of funds

b) Date of commencement with projected cash flows

c) Date of financial closure (details of commitments by other institutions to be provided)

d) Profile of the project (technology, market etc)

e) Risk factors

(9) If the instrument is of tenor of 5 years or more, projected cash flows.

IV . Banks may agree to insist upon the following conditionalities for issues under private placements

All the issuers in particular private sector corporates, should be willing to execute a subscription agreement in case of all secured debt issues, pending the execution of Trust Deed and charge documents. A standardised subscription agreement may be used by the banks, inter-alia, with the following important provisions.

(a) Letter of Allotment should be made within 30 days of allotment. Execution of Trust Deed and charge documents will be completed and debentures certificates will be despatched within the time limit laid down in the Companies Act but not exceeding in any case, 6 months from the date of the subscription agreement.

(b) In case of delay in complying with the above, the company will refund the amount of subscription with agreed rate of interest, or, will pay penal interest of 2% over the coupon rate till the above conditions are complied with, at the option of the bank.

(c) Pending creation of security, during the period of 6 months (or extended period), the principal Directors of the company should agree to indemnify the bank for any loss that may be suffered by the bank on account of the subscription to their debt issue. (This condition will not apply to PSUs).

(d) It will be the company’s responsibility to obtain consent of the prior charge-holders for creation of security within the stipulated period. Individual banks may insist upon execution of subscription agreement or a suitable letter to comply with the terms of offer such as appointment of trustee, creation of security etc. on the above lines.

(e) Rating : The Group recommends that the extant regulations of SEBI in regard to rating of all debt instruments in public offers would be made applicable to private placement also. This stipulation will also apply to preference shares which are redeemable after 18 months.

(f) Listing : Currently, there is a lot of flexibility regarding listing required by banks in private placement issues. However, the Group recommends that listing of companies should be insisted upon, ( exceptions, if any, to this rule shall be provided in the Investment Policy of the banks) which would in due course help develop secondary market. The advantage of listing would be that the listed companies would be required to disclose information periodically to the Stock Exchanges which would also help develop the secondary markets by way of investor information. In fact, SEBI has advised all the Stock Exchanges that all listed companies should publish unaudited financial results on a quarterly basis and that they should inform the Stock Exchanges immediately of all events which would have a bearing on the performance/operations of the company as well as price sensitive information.

(g) Security / documentation : To ensure that the documentation is completed and security is created in time, the Group has made recommendations which is contained in this model offer document. It may be noted that in case of delay in execution of Trust Deed and Charge documents, the company will refund the subscription with agreed rate of interest or will pay penal interest of 2% over the coupon rate till these conditions are complied with at the option of the bank. Moreover, Principal Directors of the company will have to agree to indemnify thebank for any loss that may be suffered by the bank on account of the subscription to the debt issue during the period of 6 months (or extended period) pending creation of security.

Annexure IV
Para 1.2.11

Guidelines on investments by banks in non-SLRinvestment portfolio by banks- definitions

1. With a view to imparting clarity and to ensure that there is no divergence in the implementation of the guidelines, some of the terms the guidelines are defined below.

2. A security will be treated as rated if it is subjected to a detailed rating exercise by an external rating agency in India which is registered with SEBI and is carrying a current or valid rating. The rating relied upon will be deemed to be current or valid if

i) The credit rating letter relied upon is not more than one month old on the date of opening of the issue, and

ii) The rating rationale from the rating agency is not more than one year old on the date of opening of the issue, and

iii) The rating letter and the rating rationale is a part of the offer document.

iv) In the case of secondary market acquisition, the credit rating of the issue should be in force and confirmed from the monthly bulletin published by the respective rating agency.

Securities which do not have a current or valid rating by an external rating agency would be deemed as unrated securities.

3. The investment grade ratings awarded by each of the external rating agencies operating in India would be identified by the IBA/ FIMMDA. These would also be reviewed by IBA/ FIMMDA at least once a year.

4. A ‘listed’ security is a security which is listed in a stock exchange. If not so, it is an ‘unlisted’ security.

5. A non performing investment (NPI), similar to a non performing advance (NPA), is one where

i) Interest/ instalment (including maturity proceeds) is due and remains unpaid for more than 180 days. The delinquency period would become 90 days with effect from 31st March 2004.

ii) The above would apply mutatis-mutandis to preference shares where the fixed dividend is not paid.

iii) In the case of equity shares, in the event the investment in the shares of any company is valued at Re.1 per company on account of the non availability of the latest balance sheet in accordance with the instructions contained in para 28 of the Annexure to circular DBOD.BP.BC.32/ 21.04.048/ 2000-01 dated October 16, 2000, those equity shares would also be reckoned as NPI.

iv) If any credit facility availed by the issuer is NPA in the books of the bank, investment in any of the securities issued by the same issuer would also be treated as NPI.

Annexure V
Para 1.2.26

Prudential guidelines on management of the non-SLR investment portfolio by banks-Disclosures requirements

Banks should make the following disclosures in the ‘Notes on Accounts’ of the balance sheet inrespect of their non-SLR investment portfolio, with effect from the financial year ending 31 March2004.

i) Issuer composition of Non SLR investments

(Rs. in crore)

Sl.No 1	Issuer 2	Amount 3	Extent of private placement 4	Extent of 'below investment grade' securities 5	Extent of 'unrated' securities 6	Extent of 'unlisted' securities 7
1	PSUs
2	FIs
3	Banks
4	Private Corporates
5	Subsidiaries / Joint ventures
6	Others
7	Provision held towards depreciation		XXX	XXX	XXX	XXX
	Total *

NOTE: 1. * Total under column 3 should tally with the total of investments included under thefollowing categories in Schedule 8 to 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 may not be mutually exclusive.

ii) Non performing Non-SLR investments

Particulars	Amount (Rs. Crore)
Opening balance
Additions during the year since 1st April
Reductions during the above period
Closing balance
Total provisions held

Annexure VI
Para 1.3.1
RETURN/STATEMENT NO. 9
Proforma
Statement showing the position of Reconciliation of Investment
Account as on 31st March

Name of the bank/ Institution : _____________________________________
(Face value Rs. in crore)

Particulars of securities	General Ledger Balance	SGL Balance		BRs held	SGL forms held	Actual scrips held	Outstanding deliveries
		As per PDO books	As per bank’s/ institution’s books
1.	2.	3.	4.	5.	6.	7.	8.
I. Central Government
II. State Government
III. Other approved securities
IV. Public Sector bonds
V. Units of UTI (1964)
VI. Others (Shares & debentures etc.)
TOTAL :

Note : Similar statements may be furnished in respect of PMS client’s Accounts and otherconstituents’ Accounts (including Brokers). In the case of PMS/other constituents’ accounts,the face value and book value of securities appearing in the relevant registers of the bankshould be mentioned under Column 2.

Signature of the Authorised Official
with the Name and Designation.

General instructions for compiling reconciliation statement

a) Column - 2 (GL balances)
It is not necessary to give complete details of securities in the format. Only aggregate amount of face value against each category may be mentioned. The corresponding book value of securities may be indicated in bracket under the amount of face value of securities under each category.

b) Column - 3 and 4 (SGL balances)
In the normal course balances indicated against item three and four should agree with each other. In case of any difference on account of any transaction not being recorded either in PDO or in the books of the bank this should be explained giving full details of each transaction.

c) Column - 5 (BRs held)
If the bank is holding any BRs for purchases for more than 30 days from the date of its issue, particulars of such BRs should be given in a separate statement.

d) Column - 6 (SGL forms held)
Aggregate amount of SGL forms received for purchases which have not been tendered with Public Debt Office should be given here.

e) Column - 7
Aggregate amount of all scrips held in the form of bonds, letters of allotments, subscription receipts as also certificates of entries in the books of accounts of the issuer (for other than government securities), etc. including securities which have been sold but physical delivery has not been given should be mentioned.

f) Column - 8 (outstanding deliveries)
This relates to BRs issued by the bank, where the physicals/scrips have not been delivered but the balance in General Ledger has been reduced. If any BR issued is outstanding for more than thirty days the particulars of such BRs may be given in a separate list indicating reasons for not affecting the delivery of scrips.

g) General
Face value of securities indicated against each item in column two should be accounted for under any one of the columns from four to seven. Similarly, amount of outstanding deliveries (BRs issued) which has been indicated in column eight will have to be accounted for under one of the columns four to seven. Thus the total of columns two and eight should tally with total of columns four to seven.

Annexure VII
Para 4.5.5

Disclosures
The following disclosures should be made by banks in the “Notes on Accounts’ to the Balance Sheet.

(Rs. In crore)

	Minimum outstanding during the year	Maximum outstanding during the year	Daily Average outstanding during the year	As on March 31
Securities sold under repos
Securities purchased under reverse repos

Annexure VIII
Para 4.5.6

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 marketinstruments

2. Accounting for 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 AdjustmentAccount at the end of the second leg of repo transaction are transferred to Repo Interest ExpenditureAccount. 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 valueof 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 Priceadjustment account at the end of the second leg of reverse repo in these accounts are transferred toRepo Interest Income Account. In order to analyse the balances in these two accounts, the ledgerentries 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 acoupon bearing security, when the accounting period is ending on an intervening day.

Transaction Leg	1st leg	End of accounting period	2nd leg
Dates	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 beapportioned 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 anincome / expenditure accrued but not due. The balances under Income / expenditure accrued but notdue should be taken to the balance sheet

The coupon accrued by the buyer should also be credited to the Repo Interest Income account. Noentries need to be passed on " Repo / Reverse Repo price adjustment account and Repo / Reverserepo 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 theaccrued 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 Account Repo Price adjustment account	95.0000 1.0612 (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 repotransaction are transferred to Repo Interest Expenditure Account. In order to analyse the balances inthis 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 therepo.

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 valueof 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 aTreasury Bill, when the accounting period is ending on an intervening day.

Transaction Leg	1st leg	B/S date	2nd leg
Date	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
Master Circular
Classification, valuation and operation of investments

List of Circulars consolidated by the Master Circular

No	Circular No.	Date	Relevant para no. of the circular	Subject	Para no. of the master circular
1	DBOD.No.Dir.BC.42/C.347-87	15 April 1987	2.B(ii), (iii) and 3,4	Buy-back arrangements in Government & Other Approved Securities entered into by commercial banks	1.2.1 (i) (e) (f) (g)
2	DBOD.No.Dir.BC.127/C.347(PSB)-88	11 April 1988	1,3	Buy-back arrangements in Government & Other Approved Securities entered into by commercial banks	1.2 .1 (i) (f),(iii) (a) & (b)
3	DBOD.No.FSC.BC.69/C.469-90/91	18 Jan 1991	1,2,4	Portfolio Management on behalf of clients	1.3. 3
4	DO.DBOD.No.FSC.46/C.469-91/92	26 July 1991	4(i),(ii),(iii),(iv),(v),(iv)	Investment portfolio of banks-Transaction in securities	1.2 (i)
5	DBOD.No.FSC.BC.143A/24.48.001/91-92	20 June 1992	3(I), 3(I)-(ii)-(iii)- (iv)-(v)-(xi)-(xii)-(xvi)-(xvii), 3(II),3(III),3(V)-(i)-(ii)-(iii),(3) & (4)	Investment portfolio of banks-Transaction in securities	1.2 (ii),(iii) & (iv), 1.2.2,1.2.3,1.2.5, 1.2.6 1.2.7
6	DBOD.No.FSC.BC.11/24.01.009/92-93	30 July 1992	3,4,5,6	Portfolio Management on behalf of clients	1.3.3
7	DBOD.No.FMC/BC/17/24.48.001.92/93	19 Aug 1992	2	Investment portfolio of banks-Transaction in securities	1.3.2
8	DBOD.FMC.BC.62/27.02.001/92-93	31 Dec 1992	1	Investment portfolio of banks-Transaction in securities	1.2.6
9	DBOD.No.FMC.1095/27.01.002/93	15 April 1993	1 & enclosed format	Investment portfolio of banks-Reconciliation of holdings	1.3.1 & Annexure-VI
10	DBOD.No.FMC.BC.141/27.02.006/93/94	19 July 1993	Annexure	Investment portfolio of banks- Transaction in securities- Aggregate contract limit for individual brokers-Clarifications	Annexure-II
11	DBOD.No.FMC.BC.1/27.02.001/93-94	10 Jan 1994	1	Investment portfolio of banks- Transaction in securities- Bouncing of SGL transfer forms- Penalties to be imposed.	1.2.2
12	DBOD.No.FMC.73/27.07.001/94-95	7 June 1994	1,2	Acceptance of deposits under Portfolio Management Scheme	1.3.3
13	DBOD.No.FSC.BC.130/24.76.002/94-95	15 Nov 1994	1	Investment portfolio of banks-Transaction in securities-Bank Receipts(BRs)	1.2.3
14	DBOD.No.FSC.BC.129/24.76.002/94-95	16 Nov 1994	2 & 3	Investment portfolio of banks- Transaction in securities-Role of brokers	1.2.6
15	DBOD.No.FSC.BC.142/24.76.002/94-95	9 Dec 1994	1& 2	Investment portfolio of banks- Transaction in securities-Role of brokers	1.2.6
16	DBOD.No.FSC.BC.70/24.76.002/95-96	8 June 1996	2	Retailing of Government Securities	1.2.4
17	DBOD.No.FSC.BC.71/24.76.001/96	11 June 1996	1	Investment portfolio of banks- Transaction in securities	1.2.2
18	DBOD.No.BC.153/24.76.002/96	29 Nov 1996	1	Investment portfolio of banks- Transaction in securities	1.2.6
19	BP. BC. 9/21.04.048/98	29 Jan 1997	3	Prudential norms - capital adequacy, income recognition, asset classification and provisioning.	5.1 (iii) & (iv)
20	BP. BC. 32/21.04.048/ 97	12 April 1997	1&2	Prudential norms - capital adequacy, income recognition, asset classification and provisioning	5.1 (i) &(ii)
21	DBOD.FSC.BC.129/24.76.002-97	22 Oct 1997	1	Retailing of Government Securities	1.2.4
22	DBOD.No.BC.112/24.76.002/1997	14 Oct 1997	1	Investment portfolio of banks- Transaction in securities-Role of brokers	1.2.6
23	BP. BC. 75/21.04.048/ 98	4 Aug 1998	All	Acquisition of Government and other approved securities - Broken Period Interest, - Accounting Procedure	5.2
24	DBS.CO.FMC.BC.18/22.53.014/99-2000	28 Oct 1999	2,3,4 &5	Investment portfolio of banks- Transaction in securities	1.2.2
25	DBOD.No.FSC.BC.26/24.76.002/2000	6 Oct 2000	2	Sale of Government securities allotted in the auctions for Primary issues	1.2(i)(b)
26	BP. BC. 32/21.04.048/2000- 01	16 Oct 2000	All	Guidelines on classification and valuation of investments.	2 & 3
27	DBOD.FSC.BC.No.39/24.76.002/2000	25 Oct 2000	1	Investment portfolio of banks- Transaction in securities-Role of brokers	1.2.6
28	Dir.BC.107/13.03.00/2000-01	19 April 2001	6	Monetary and Credit Policy for the year 2000-2002-Interest Rate Policy	5.3
29	BP. BC. 119/21.04.137/ 2000-2001	11 May 2001	Annex - 5&12	Bank financing of equities and investments in shares - Revised guidelines	1.2, 1.2.5 1.3, 1.3.1
30	BP. BC. 127/21.04.048/2000- 01	7 June 2001	All	Non- SLR Investments of Banks	1.2.8 Annexure- III
31	BP.BC.57/21.04.048/2001-02	10, Jan 2002	Para 2	Valuation of investment by banks	3.4
32	BP.BC.61/21.04.048/2001-02	Jan 25,2002	All	Guidelines for investments by banks/Fis and Guidelines for financing of restructured accounts by banks/FIs	1.2.8 (iv)
33	BP.BC.99/21.01.002/2001-02	May 3 2002	Para 2	Monetary & Credit Policy 2002-03- IFR	3.4
34	DBOD.No.FSC.BC.113/24.76.002/2001-02	June 7 2002	All	On Investment Portfolio of Banks Transaction in Govt. Securities	1.3.4
35	DBS.CO.FMC.BC.7/22.53.014/ 2002-03	Nov 7,2002	Para 2	Operation of investment portfolio by banks- submission of concurrent audit reports by banks	1.2.7(c)
36	DBOD.No.FSC.BC.90/24.76.002/2002-03	March 31 2003	All	Ready Forward Contracts	1.2.1(i), (ii) and (iii)
37	IDMC.3810/11.08.10/2002-03	March 24 2003	All	Guidelines for uniform accounting for Repo / Reverse Repo transactions	4, Annexure VII & Annexure VIII
38	DBOD.BP.BC. 4/21.04.141/03-04	Nov 12 2003	All	Prudential guidelines on banks’ investment in non-SLR securities	1.2.8 Annexure IV, V
39	DBOD.BP.BC. 4/21.04.141/03-04	Dec 10 2003	All	Prudential guidelines on banks’ investment in non-SLR securities	1.2.8
40	DBOD.FSC.BC. 59/24.76.002 /03-04	Dec 26 2003	All	Sale of Government securities allotted in the auctions for primary issues on the same day	Annexure I
41	IDMD.PDRS.05/10.02.01/ 2003-04	Mar 29 2004	3,4,6 & 7	Transactions in Government Securities	1.2(i)(a)

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