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CSGL holders can now sell G-secs on allotment day

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2005-06/57 · issued 13 Jul 2005 · ~1 min read
Quick answerRBI now permits CSGL account holders to sell government securities allotted in primary issues on the same day of allotment, a facility earlier limited to SGL account holders. This deepens the government securities market.

What changed

Earlier, same-day sale of government securities allotted in primary issues was allowed only between entities with SGL accounts settled under RBI's DVP system. Now, RBI has extended this facility to CSGL constituent account holders as well, with immediate effect from the date of this circular (July 13, 2005).

What it means for you

Co-operative banks holding CSGL accounts can now trade government securities on the allotment day itself, improving liquidity and enabling faster portfolio adjustments. This move deepens the government securities market by including more participants, potentially increasing trading volumes and market efficiency.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All State and District Central Co-operative Banks, CSGL constituent account holders

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Can we sell G-secs on allotment day if we only have a CSGL account?

Yes, as per this circular, CSGL account holders are now permitted to sell government securities allotted in primary issues on the same day of allotment, both with and between other CSGL holders.

Does this change affect any other rules for primary issue securities?

No, all other instructions on sale of securities allotted in primary issues on the same day remain unchanged. Only the eligibility for same-day sale has been extended to CSGL holders.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2802: RPCD.CO.RF.BC.16/07.02.03/2005-06 — "Sale of Securities Allotted in Primary Issues" dated July 13, 2005”
📜 Read the original circular — full text as issued by RBI
RBI/2005-06/57 RPCD.CO.RF.BC.16/07.02.03/2005-06 July 13, 2005 All State and District Central Co-operative Banks Dear Sir Sale of Securities allotted in Primary Issues As per the extant instructions, the sale contract in respect of securities allotted to successful bidders in primary issues on the day of allotment, can be entered into, inter-alia, only between entities having SGL Account and settled under the Reserve Bank’s DVP system. 2. It was proposed in the Annual Policy Statement for the year 2005-06 dated April 28, 2005 ( extract of paragraph 76 enclosed ) to permit sale of government securities allotted in primary issues with and between CSGL account holders also on the same day of allotment. 3. As proposed in the Annual Policy Statement, in order to facilitate further deepening of the Government Securities market, it has been decided with immediate effect, to permit, sale of Government Securities allotted to successful bidders in primary issues on the day of allotment, with and between CSGL constituent account holders. 4. All other instructions on sale of securities allotted in primary issues on the same day remain unchanged. 5. Please acknowledge receipt to our concerned Regional Office. Yours faithfully, (C.S.Murthy) Chief General Manager In-Charge Extract of Annual Policy Statement for the year 2005-06 76. At present, sale of government securities allotted in primary issues can be entered into on the same day only between entities maintaining SGL account with RBI. In order to facilitate further deepening of the government securities market, it is proposed: • To permit sale of government securities allotted in primary issues with and between CSGL account holders also on the same day.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/57 · issued 13 Jul 2005. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2362&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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