Administration Manual - B.E.S.T. Undertaking.

1137
words, it should be ensured that on the day of settlement, clear balance to the extent
of Treasury Bill to be purchased is available in the SGL Account maintained with
Indian Bank/HDFC Bank.
iii) Steps involved in T Bill Investment :
1. To prepare bill & transfer ascertained surplus from SBI [C] or any other bank where
credit balance is available to Indian Bank, Fort Branch/ HDFC Bank, Fort Branch SGL
Account.
2. To contact our approved brokers on telephone & request them to submit the quotes
for T Bill . The Fax received are scrutinized in the presence of the committee
comprising of CAO & FA, AGM (A) and Supdt. Cash.
3. The best quote is decided and CAO & F.A. closes the deal on line with the broker who
offers higher YTM.( Yield to maturity) after discussing with committee members
present at that time.
4. The broker/seller is informed about the acceptance and cost memo is sent by the
broker/seller directly to BEST.
5. On receipt of Cost Memo, a letter is sent to broker/sellers for confirming the purchase
rate and other details. The copy of the said letter is sent to Indian Bank/HDFC Bank
as the case may be, informing them to release the payment to the seller of T Bill .
6. A proposal is submitted stating therein all details of investment in T Bill for post-facto
sanction of the G.M.
7. One day prior to the date of maturity of T Bill, a letter is faxed to the seller and also to
the concerned bank (Indian Bank/HDFC Bank) requesting them to receive the
redemption proceeds of T Bill and credit our SGL A/c with the said amount.
(B) STD with Banks : ( Short Term Deposit/Long Term Deposit)