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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. 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%. 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.
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