Please
refer to instructions contained in BPRD Circular Letter No.48
dated October 23, 1999 read with BPRD Circular No.34 dated
October 20, 1999 addressed to banks and BPRD Circular No.36
dated October 27, 1999 addressed to NBFIs, in terms of which
facilities against shares of listed companies were, interalia,
subject to minimum margin requirement of 30% of their average
market value of the preceding 12 months.
2.
Effective from September 15, 2001, it has been decided
to reduce the aforesaid margin requirement from 30% to 25%
of the average market value of preceding 12 months.
Banks / NBFIs are however, free to set a higher margin
requirement keeping in view other factors as hithertofore.
3.
All other instructions on the subject shall remain
unchanged.
Please acknowledge receipt.
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