RBI through its press release dated October 1, 2002 announced that non-banking financial companies (NBFC's) should necessarily hold their investments in Government Securities only in dematerialised form either in a constituent's Subsidiary General Ledger account (CSGL) with a scheduled commercial bank/Stock Holding Corporation of India Ltd. or with a depository. The NBFC's have been permitted as a special case, time up to October 31, 2002 to dematerialise the securities/ bonds held by them in the physical form.
