The following are to be noted with regard to transactions through SGL Account:
• It is necessary for both the selling bank and the buying bank to maintain current account with the RBI.
• All transactions in Govt. securities for which SGL facility is available should be put through SGL A/c only.• A SGL transfer form issued by a bank in favour of another bank should not bounce for want of sufficient balance of securities in the SGL A/c of seller or for want of sufficient balance of funds in the current A/c of the buyer. If a SGL transfer form bounces for want of sufficient balance in the SGL A/c, the (selling) bank which has issued the form will be liable to the penal action against it.
• If the bouncing of the SGL form occurs thrice, the bank will be debarred from trading with the use of the SGL facility for a period of 6 months from the occurrence of the third bouncing.
• The SGL transfer form received by purchasing banks should be deposited in their SGL A/c Immediately, i.e., the date of lodgment of the SGL Form with the RBI shall be within one working day after the date of signing of the Transfer Form.
• No sale should be effected by way of return of SGL form held by the bank.
• Participants must indicate the deal/trade/contract date in Part C of the SGL Form under Sale date. Where this is not completed the SGL Form will not be accepted by the RBI.
• SGL transfer forms should be signed by two authorised officials of the bank whose signatures should be recorded with the respective PDOs of the Reserve Bank and other banks.
