Date:12/05/2005 URL: http://www.thehindubusinessline.com/2005/05/12/stories/2005051201980600.htm

Back T+1 settlement in G-Secs from May 24

Our Bureau

Mumbai , May 11

THE Reserve Bank of India announced that a standardised settlement on T+1 basis of all outright secondary market transactions in Government Securities will be allowed from May 24, 2005, said a press release from RBI.

However, in the case of repo transactions in G-Secs, market participants will have the choice of settling the first leg on either T+0 basis or T+1 basis, as per their requirements.

The Technical Advisory Committee on Money, Government Securities and Forex Markets had advised the migration to this standardised system. Accordingly, this was also proposed in the annual Credit Policy for 2005-06.

Standardising the settlement period to T+1 will provide participants more processing time for transactions, and hence will help efficient funds management as well as risk management, the release said.