Securities Trading Corporation of India Ltd. (STCI), a leading market maker of Government of India securities, was set up by Reserve Bank of India in May 1994, jointly with public sector banks and all-India financial institutions with the main objective of fostering the development of an active secondary market for Government securities and bonds issued by public sector undertakings. The Company was incorporated in May 1994 under the Companies Act, 1956 with an authorised and paid up capital of Rs. 500 crore of which RBI contributed 50.18 per cent. Subsequently, being a regulator, RBI divested its equity in STCI in a gradual manner; and completed full divestment in March 2002.

1. Underwriting of GOI Securities and Treasury

2. Participation in the auctions of GOI Securities and Treasury Bills

3. Market-making and Trading in GOI Securities and Treasury Bills - Known for very fine and firm two way quotes

4. Trading in PSU Bonds and other Corporate Debt Instruments

5. Participation in Repo Market of GOI Securities and Treasury Bills

6. Participation in the Inter-Bank Call / Notice / Term money market, both as a borrower and as a leader

Currently STCI has an asset portfolio of over Rs. 3000 crore comprising Government of India dated securities, State Government Development Loans and Treasury Bills. Its net owned funds (paid up capital plus free reserves) are of the order of Rs. 801 crore as on year ended March 2002. The Company made a gross profit of Rs. 321 crore for the financial year 2001-2002 and paid a dividend of 16% to its shareholders as against Rs.132 crores and 10% respectively during the previous year.

STCI's core activities comprise participation, underwriting, market making and trading in Government Securities. In February 1996, STCI was one of the fist two institutions to be accredited by RBI as a Primary Dealer in Government securities. Government of India have notified STCI as an "Approved Financial Institution" for the purpose of Sections 18 and 24 of the Banking Regulations Act, 1949 and Section 42(1) of the Reserve Bank of India Act, 1934. RBI provides conditional liquidity support to STCI at Bank Rate to enable it to fulfil its obligations in regard to participation in and underwriting of primary issuances and market making of Government securities.

STCI has diversified its activities into the PSU/Corporate Bond Market. It has already commenced participating in the primary issues of bonds of Development Finance Institutions (DFIs), PSUs and corporates; and dealing in these bonds in the secondary market in order to provide liquidity to it.

Having achieved the status of the Largest Primary Dealer in Government securities, STCI now gears itself to become the future 'Debt House' of India.