Whether banks can purchase letter of allotment in respect of PSU Bonds?
Banks can purchase letter of allotment in respect of PSU bonds subject to the following conditions. (i) The transactions (other than interbank transactions) should be undertaken only through recognized Stock Exchanges and registered brokers. (ii) While purchasing the bonds, the bank should ensure that it gets a clear title to the security and the security is tradable in the secondary market. (iii) The bank should prescribe its internal guidelines with the approval of the Board for undertaking such transaction.
Related Questions
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