"RESIDUARY NON-BANKING COMPANIES (RESERVE BANK) DIRECTIONS, 1987" WHICH ARE TOTALLY APPLICABLE ON SIFO.

THE DIRECTION : To invest and keep invested 100% of deposit liabilities along with interest accrued thereon in high quality securities as specified/approve d by Reserve Bank Of India (including Government Securities and/or Government Guaranteed Bonds and Fixed/Certificate of Deposit of Scheduled Commercial Banks and/or Government Financial Institutions).

SAFETY OF THE INVESTED SCRIPS : To keep scrips in safe custody with a nationalised bank. Not even a single paisa withdrawal from its investments for its expenses or other use. Withdrawals can only be possible for discharge of liabilities to the depositors.

SECURITY FOR DEPOSITORS : All these securities are to be valued at their current market price and should any point of time be 100% or more of the aggregate deposit liabilities alongwith interest accrued thereon. Thus there is a full cover for all the depositors.

AUTHENTICATION : The above pattern of investment is authenticated on a quarterly basis by the statutory auditors and the auditors' certificate issued at the end of every March, June, September & December, is submitted to the Reserve Bank of India within a specified time. Various other returns as per statutory requirements are also furnished regularly.