All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
MOBILISATION
OF FOREIGN CURRENCY
DEPOSITS BY THE INVESTMENT BANKS
Attention of
the Authorized Dealers is invited to F.E.
Circular No.36 of 1992 in terms of which the Investment
Banks were allowed to raise foreign currency funds from
abroad through issue of Certificates of Investment of at
least 3 months maturity. The certificates so issued were
not encashable before maturity.
2. It has now
been decided to permit premature encashment of Certificates
of Investment subject to the condition that no interest
will be paid on the certificates so encashed. Accordingly,
the following amendments may please be made in F.E. Circular
No.36 of 1992:-
- Condition (I) may
be substituted as under:-
"(I)
The certificates will be registered."
-
A new
condition (vii) may be added as under:-
"(vii)
In the case of premature encashment, no interest shall
be paid."
