NSDL News
Operational Guidelines for Commercial Paper released
FIMMDA (Fixed Income Money Market and Derivatives Association of India) has released the operational guidelines for smooth functioning of the Commercial Paper market in line with international best practices. These guidelines are approved by Reserve Bank of India vide circular number IECD.2/08.15.01/2001-02 dated July 23, 2001. The guidelines are available at FIMMDA's website at www.fimmda.org. RBI had announced in the Monetary and Credit Policy for the year 2001-2002 that banks, financial institutions and primary dealers (as also satellite dealers) shall invest in Commercial Paper only in demat form with effect from June 30, 2001.
Dividend only in the bank accounts given in the depository accounts
SEBI has recently announced a decision in regard to the distribution of dividend in its press release. (Ref. PR 107/2001 dated July 04, 2001). The release states : "Presently, some companies are using the bank account details of the investors for distributing dividends etc. however, there are some companies which are not doing so. There have also been some complaints about wrong encashment of such dividends. To avoid the latter kind of situation it was agreed that SEBI would issue a direction to the companies and the stock exchanges to require companies to use the bank account details furnished by the depositories for the distributing of dividends etc."
Rolling settlements for shorter duration
SEBI's sub-group of the Group on Risk Management in Equity Markets had considered the issue of rolling settlement of a shorter duration. It was of the opinion (Ref. SMDRP/Policy/Cir-40/2001 dated July 25, 2001) that to begin with, the stock exchanges should introduce rolling settlements only on T+5 basis. Rolling settlements of a shorter duration would be considered at a later date.
