Notification Detail :
RBI/2019-20/92
IDMD.No.1240/10.18.049/2019-20 November 07, 2019
All Scheduled Commercial Banks
All State Co-operative Banks / All Scheduled Primary
(Urban) Co-operative Banks / All Financial Institutions /
All Primary Dealers/All Stock Exchanges
Dear Madam/ Sir,
Auction of State Development Loans: Non-Competitive Bidding Facility to Retail
Investors
Please refer to our circular IDMD.No. 954/08.03.001/2009-10 dated August 24, 2009,
whereby the facility of non-competitive bidding in State Development Loans (SDLs)
was allowed to retail investors.
2. As part of the overall strategy of diversifying the investor base for SDLs, Reserve
Bank of India has been taking various measures to encourage participation of retail
investors in SDL market including introduction of non-competitive bidding in primary
auctions. In continuation of this endeavour, RBI had announced in the Statement on
Developmental and Regulatory Policies released with the Second Bi-monthly
Monetary Policy Statement 2019-20, on June 06, 2019, that Specified Stock
Exchanges will be permitted to act as Aggregators/ Facilitators to aggregate the bids
of their stockbrokers/ other retail participants and submit a single consolidated bid
under the non-competitive segment of the primary auctions of State Development
Loans (SDLs). In line with this announcement and as per the provisions on noncompetitive bidding included in the General Notification of States on ‘Issue of State
Government Securities’, it has been decided that, in addition to scheduled banks and
primary dealers,
a) Specified stock exchanges will be permitted to act as Aggregators/ Facilitators.
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