Thank you for choosing to invest in Government securities with Asit C Mehta Investment Interrmediates. Please read and acknowledge this document before investing in Government securities:
To,
Asit C Mehta Investment Interrmediates
Member - National Stock Exchange (NSE) & Bombay Stock Exchange (BSE)
Madam/Sir,
Sub: Participation on Non-Competitive Bidding/e-Gsec platform for Government Securities
I/We am/are desirous of participating in the non competitive bidding platform (NCB-GSec)/e-Gsec platform of the BSE/NSE through Asit C Mehta Investment Interrmediates (trading member) for the purpose of bidding in the non-competitive auction of Government of India Dated Securities and Treasury Bills and any other securities as specified from time to time.
I/We shall abide by the Terms and Conditions of the Non-Competitive Bidding/e-Gsec platform and authorize the trading member to put the bid on behalf of me/us.
I/We am/are willing to abide by the operating guidelines, terms and conditions as mentioned in NSE circular no. NSE/IPO/37593 dated April 23, 2018 and any circular/notices as prescribed/issued by BSE/NSE from time to time in this regards.
I/We shall ensure strict compliance at all times with the notifications, requirements specified by the Government of India (GoI), Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and such other requirements as may be specified by any other relevant regulatory / statutory authority by way of directions, notifications, guidelines, circulars, regulations etc. in this regard.
I/We hereby confirm that I/We are eligible to participate in non-competitive auction of Government of India Dated Securities and Treasury Bills as notified by RBI / GoI from time to time.
I/We hereby confirm that Know Your Client (KYC) details / documents submitted by me /us for stock broking may be considered for the purpose of participating on NCB-GSec/e-Gsec.
I/We am/are aware that an investor can make only one bid in an auction and therefore I/we undertake to abide by the same.
I/We shall execute, sign, and subscribe to such documents, papers, agreements, covenants, bonds and/or undertakings as may be required by BSE and/or Trading Member from time to time for the purpose of my/our participation on the Platform.
As an experienced financial professional with a deep understanding of investment instruments, particularly government securities, I can provide comprehensive insights into the concepts and terminologies mentioned in the document you provided.
Government securities are fixed-income debt instruments issued by a government to raise capital. These securities include Government of India Dated Securities and Treasury Bills. The document refers to participating in non-competitive bidding (NCB-GSec)/e-Gsec platforms through Asit C Mehta Investment Intermediates, authorized to bid on behalf of investors in the auction of these securities.
Let's break down the key concepts mentioned:
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Non-Competitive Bidding (NCB): This refers to a method of bidding in government securities auctions where investors place bids at a yield determined at the auction. The bid is guaranteed to be filled up to a certain amount, usually smaller than what competitive bidders (banks and primary dealers) bid for.
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e-Gsec Platform: This term denotes an electronic platform provided by stock exchanges like BSE and NSE, facilitating the online bidding process for government securities.
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Government of India Dated Securities: These are long-term debt instruments issued by the Indian government with fixed maturity dates and periodic interest payments.
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Treasury Bills (T-Bills): These are short-term debt instruments issued by governments to raise funds for short durations, usually up to one year, with no periodic interest payments but sold at a discount and redeemed at face value.
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Terms and Conditions: Refers to the rules and obligations one must adhere to while participating in the NCB-GSec/e-Gsec platform. It includes compliance with regulatory authorities' guidelines like RBI, SEBI, and the government.
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Know Your Client (KYC): This process involves verifying the identity of clients to ensure they are legitimate and to prevent illegal activities like money laundering.
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Regulatory Compliance: Refers to following rules, regulations, and guidelines set by the Government of India, RBI, SEBI, and other relevant authorities while participating in these auctions.
The document emphasizes the need to adhere to regulations, confirm eligibility to participate in auctions, use KYC details submitted for stockbroking, and acknowledges that an investor can make only one bid in an auction.
Overall, the document outlines the procedures, responsibilities, and compliance measures required for investors engaging in government securities through Asit C Mehta Investment Intermediates' NCB-GSec/e-Gsec platforms.
