All Bankers to the Issue

SECURITIES AND EXCHANGE BOARD OF INDIA
PRIMARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021

 
BTI CIRCULAR NO. 1 (98-99)
June 17, 1998

 
To:

ALL BANKERS TO ISSUES

Dear sir,

In terms of the powers conferred on it under Section 11 of SEBI Act , 1992, as also in implementation of the Securities and Exchange Board of India (Bankers to an Issue) Rules and Regulations, 1994, the following instructions are issued and all "Bankers to Issues" holding certificate of registration granted in accordance with aforesaid regulations are advised to ensure compliance with the following -

•   Entities which are registered as ‘Bankers to an Issue’ and are coming out with their own Public /Rights Issues may act only as Collecting Banker for their own issue and their principal account for the issue purpose shall be maintained with some other Bank. Even for the purpose of payment of Refund Warrants, Dividend Warrants, Interest Warrants etc. the principal account shall be maintained with other Bank.
  
  
• In such cases Collecting Branches of the Issuer Bank will transfer the balance in their issue accounts at the end of each working day to the Controlling Branch of the Bank, who in turn will transfer the balance in the collection account to the principal account (which will be maintained with other Bank) on daily basis.

 Please acknowledge receipt of the same.

Yours faithfully.

 
D. RAVIKUMAR
DIVISION CHIEF(PMD)