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In the year 1996 Reserve Bank of India introduced the system of Primary Dealers with a view to strengthen the institutional infrastructure of Government Securities market. Six entities were granted licenses of which PNB Gilts was one. The Company was established as a wholly owned subsidiary of Punjab National Bank with an initial paid up capital of Rs 50 crores which is also the minimum capital requirement for a Primary Dealer.

RBI, New Delhi, granted it certificate of registration vide its letter dated 10th February 1998, to carry on the business of a Non-Banking Finance Company. The Company decided to expand its capital base & came with an IPO of Rs 3.5 crore shares at an offer price of Rs 30/- per share aggregating Rs 105 crore in July 2000. This increased the paid up capital of the Company to Rs 135.01 crores and reduced the holding of Punjab National Bank to 74.07%.

Objectives

The objectives of the Company are in line with objectives laid down by RBI for the Primary Dealers:

	Strengthen the infrastructure in the government securities market in order to make it vibrant, liquid and broad based.
	Ensure the development of underwriting and market making capabilities for Government Securities.
	Improve secondary market trading system, which would contribute to price discovery, enhance liquidity and turnover and encourage voluntary holding of Government securities amongst a wider investor base.
	Become an effective conduit for conducting open market operations.

Besides the above, the Company has been a pioneer in retailing of Government Securities contributing to a deep and broad-based market. The Marketing Department specifically caters to select segments viz. Provident Funds, Trusts, Regional Rural Banks, Co-operative Banks, Corporates & Individuals to create awareness and encourage healthy investment practices.

	Treasury Bills
	Central Government Dated Securities
	State Government Securities
	PSU Bonds
	Inter-Corporate Deposits
	CSGL accounts
	Money market instruments
	Merchant Banking
	Mutual Fund Distribution
	Investment/ trading in Equity and Equity derivatives

In addition to the above, we also offer advisory services to our clients to manage the government securities portfolio.

The Company has well-defined systems and procedures. The Internal Control & Management systems are in place and are in accordance with the guidelines issued by the Regulatory Authorities.

The Company has a lean staff of 37 employees spread over the country with 30 employees in the Head Office in New Delhi & rest in our branches at Mumbai, Chennai, Kolkata, Ahmedabad and Bangalore.

During the years the Company has emerged as a leading Primary Dealer in the country. We have to our credits…

	The first stand alone Primary Dealer to come with an IPO & get listed
	The first PD to achieve ISO 9001:2000 certification.
	The first to obtain a P1+ rating from CRISIL for its short-term borrowing program. At present the rating from CRISIL is for borrowing up to Rs 250 crore.
	The company achieved a turnover of Rs.53,390 Crores during 2005-2006.

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