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

1140
1. Brokers on Undertaking’s approved list are contacted and quotes are invited for CGS
/ SGS on the case may be.
2. On receipt of quotes from the broker comparative statement giving details of
bonds/securities purchased price, YTM/YTP/C, rating, quantum available etc. is
prepared.
3. Proposal is initiated recommending the security and is routed through CAO & F.A.,
AGM(A) to G.M.
4. On approval by the G.M., (if security to be purchased is in secondary market, cost
memo is called from the concerned broker) bill is prepared and cheque is drawn in
the name of issuer or in the name of seller. After clearance of high value cheque
issued by us delivery of Bonds received or not in Demat Form in HDFC Bank is
required to be confirmed.
5. In case of bonds purchased in Primary Market, we have to confirm the interest on
application money at specified rates for the period from the date of submission of
application till the date of allotment of Bonds.
6. If the security to be purchased of Govt. of India Loan, State Development Loan or
Bonds, interest of which is paid by Reserve Bank of India, such securities can be
purchased through SGL Account. In such cases the following procedure is to be
adopted :-
i) The required amount of purchase cost to be transferred to the Undertakings SGL A/c
with Indian Bank/HDFC Bank from SBI (Commercial) Branch.
ii) A letter signed by any two authorised signatories to be sent to Indian Bank/HDFC
Bank informing them to pay to seller and arrange to collect the security in SGL form
and credit to our SGL A/c maintained with them under advice to us.