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From October 8, 2005, there will be no outright transactions in Government securities on Saturdays. Government securities traded on Fridays on T+1 basis will be settled on Mondays or the next working day in case Monday is a holiday. The announcement meets a long standing demand of market participants as well as their representative bodies.

Market participants and their representative bodies, such as, the Fixed Income Money Market and Derivatives Association of India (FIMMDA) and the Primary Dealers Association of India (PDAI) had a long standing demand for closure of the Government securities market on Saturdays. This was placed before the Technical Advisory Committee on Money, Foreign Exchange and Government Securities (TAC) at its meeting held today. The TAC discussed various operational aspects and recommended the discontinuation of outright transactions in Government securities on Saturdays.

Accordingly, starting October 8, 2005, there will be no outright transactions in Government securities on Saturdays. Government securities traded on Fridays on T+1 basis will be settled on Mondays or the next working day in case Monday is a holiday.

Transactions in call/notice/term money, Collateralised Borrowing and Lending Obligations (CBLO) and repos among market participants will continue to be undertaken on Saturdays as at present. Negotiated Dealing System (NDS), clearing and Real Time Gross Settlement (RTGS) system would also operate as usual.

It may be mentioned that the stock markets and foreign exchange markets do not function on Saturdays. With discontinuation of outright transactions in government securities on Saturday, there will now be closer alignment of the various market segments in terms of business days.


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