RBI/2012-13/494
IDMD.PDRD.No. 3089/03.64.027/2012-13
May 08, 2013
All the Primary Dealers
Dear Sir/Madam,
Submission of Undertaking: Renewal of Authorisation
In terms of Para 1.4 of Section I (for standalone PDs) / Para 2.3 of Section II (for Bank-PDs) of the Operational Guidelines to Primary Dealers dated July 02, 2012; the PDs are required to have a standing arrangement with RBI based on the execution of an undertaking in the prescribed format and an authorization letter issued by RBI each year. On a review, it has been decided that PDs will henceforth be required to execute the undertaking once in three years and consequently authorisation will also be renewed for three years. The undertaking executed by the PD will be based on the passing of fresh Board resolution every three years.
2. PDs are advised to submit first such undertaking in the revised format (Annex) for the period 2013-16 (July-June) and at the same periodicity thereafter. It may, however, be noted that RBI reserves the right to suspend or terminate a PD™s authorisation, as it may deem fit, in any of the circumstances mentioned under para 17.1 of Master Circular on Operational Guidelines to Primary Dealers dated July 02, 2012.
Yours faithfully
(K K Vohra)
Principal Chief General Manager
Encl : 2 sheets
*****
