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NBFCs asked to hold G-Secs in demat

By Our Special Correspondent

MUMBAI OCT. 1 . The Reserve Bank of India today announced that non-banking financial companies (NBFCs) should necessarily hold their investments in Government securities only in dematerialised form, either in a Constituents Subsidiary General Ledger Account (CSGL) with a scheduled commercial bank, Stock Holding Corporation of India, or with a depository, according to an RBI release.

The NBFCs, as a special case, have been given time up to October 31 to dematerialise the securities and bonds held by them in physical form.

``No further transaction should be undertaken by them in physical form with any broker,'' the release said.

NBFCs have further been directed to include in their advertisements the fact that deposits solicited by them are not insured to avoid any possible misunderstanding by the prospective depositors.

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