Currently, SGL Account holders (banks, financial institutions, Primary Dealers. etc.) are provided the facility to maintain a second SGL account called Constituents’ SGL Account in the books of the Reserve Bank of India to enable them to hold Government securities on behalf of their constituents. In the mid-term review of Monetary and Credit Policy for the year 2000-01, the Governor had announced that the Reserve Bank will frame a set of guidelines governing the maintenance of the Constituents’ SGL accounts, with a view to encouraging investors to hold securities in scripless form and to ensuring that entities holding securities in custody, employ practices and procedures so that the constituents’ securities are appropriately accounted for and kept safe.

The detailed guidelines are available on the RBI website at www.rbi.org.in