MANU/IDMC/0004/2021

Ministry : Reserve Bank of India

Department/Board : Internal Debt Management Department

Circular No. : IDMD.CDD.No.S930/11.22.003/2021-2022
                   RBI/2021-2022/108

Date : 05.10.2021

All SGL/CSGL Account holders

Madam/Sir,

Guidelines for Value Free Transfer of Government Securities

A reference is invited to Notification No.78 dated November 16, 2018 on Value Free Transfer (VFT) of Government Securities - Guidelines under which separate guidelines for VFT were issued to enable more efficient operations in the Government securities market. On a review, it has been decided to issue revised Value Free Transfer Guidelines to further streamline VFT of government securities.

2. VFT of the government securities shall mean transfer of securities from one SGL/CSGL to another SGL/CSGL account, without corresponding payment leg in the books of RBI.

Eligible Transactions for VFT:

3. The following transactions shall be eligible for VFT of government securities:

i. Transfers on account of gifts and inheritance, between one CSGL account to another.

ii. Inter-depository transfers (between CSGL accounts of depositories) arising out of the following:

a) own account transfer of securities by investors/brokers holding accounts in more than one depository.

b) trades in exchanges between consti........