<PAGE> PAGE 1
000 A000000 03/31/99
000 C000000 0000771879
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 SG COWEN STANDBY TAX-EXEMPT RESERVE FUND, INC
001 B000000 811-4344
001 C000000 2124956000
002 A000000 FINANCIAL SQUARE
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10005
002 D020000 3597
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
008 A000001 SG COWEN SECURITIES CORPORATION
008 B000001 A
008 C000001 801-55764
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10005
008 D040001 3597
011 A000001 FUNDS DISTRIBUTOR, INC.
<PAGE> PAGE 2
011 B000001 8-20518
011 C010001 BOSTON
011 C020001 MA
011 C030001 02109
011 C040001 1803
012 A000001 DST, INC.
012 B000001 84-0448
012 C010001 KANSAS CITY
012 C020001 MO
012 C030001 64105
013 A000001 ERNST & YOUNG
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10019
014 A000001 SG COWEN SECURITIES CORPORATION
014 B000001 8-22522
015 A000001 INVESTORS FIDUCIARY TRUST CO.
015 B000001 C
015 C010001 KANSAS CITY
015 C020001 MO
015 C030001 64105
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 18
019 C000000 S G COWEN
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 LEHMAN BROTHERS
022 B000001 13-2518466
022 C000001 73517
022 D000001 25000
022 A000002 MERRILL LYNCH PIERCE FENNER & SMITH, INC.
022 B000002 13-5674085
022 C000002 68771
022 D000002 13125
022 A000003 SALOMON, SMITH BARNEY, INC.
022 B000003 13-1912900
022 C000003 37420
022 D000003 18500
022 A000004 J.P. MORGAN, INC.
022 B000004 13-3224016
<PAGE> PAGE 3
022 C000004 28200
022 D000004 14200
022 A000005 PIPER, JAFRAY & HOPWOOD, INC.
022 B000005 41-1422918
022 C000005 5000
022 D000005 4000
022 A000006 COMMERCE CAPITAL MARKETS
022 B000006 23-2177819
022 C000006 6617
022 D000006 0
022 A000007 ZIONS NATIONAL BANK
022 B000007 43-1179553
022 C000007 3317
022 D000007 0
022 A000008 OPPENHEIMER & CO.,INC.
022 B000008 13-2798343
022 C000008 3119
022 D000008 0
022 A000009 PAINE WEBBER, INC.
022 B000009 13-2638166
022 C000009 1400
022 D000009 1400
022 A000010 DAIN, RAUSCHER PIERCE REFESNE
022 B000010 41-1416330
022 C000010 1060
022 D000010 0
023 C000000 228421
023 D000000 76625
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 48120
028 A020000 632
028 A030000 0
028 A040000 52582
<PAGE> PAGE 4
028 B010000 58198
028 B020000 438
028 B030000 0
028 B040000 55294
028 C010000 61887
028 C020000 0
028 C030000 0
028 C040000 87714
028 D010000 82714
028 D020000 949
028 D030000 0
028 D040000 69457
028 E010000 56534
028 E020000 347
028 E030000 0
028 E040000 61301
028 F010000 57885
028 F020000 351
028 F030000 0
028 F040000 71006
028 G010000 365338
028 G020000 2717
028 G030000 0
028 G040000 397354
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 Y
035 000000 0
036 A000000 N
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 N
041 000000 N
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
<PAGE> PAGE 5
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.500
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 Y
055 B000000 N
<PAGE> PAGE 6
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 100
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 98.6
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 37
063 B000000 0.0
064 A000000 Y
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
<PAGE> PAGE 7
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 0
071 B000000 0
071 C000000 0
071 D000000 0
072 A000000 6
072 B000000 3185
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 517
072 G000000 0
072 H000000 0
072 I000000 48
072 J000000 13
072 K000000 0
072 L000000 22
072 M000000 12
072 N000000 23
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 19
072 S000000 4
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 5
072 X000000 664
072 Y000000 103
072 Z000000 2625
072AA000000 0
072BB000000 0
<PAGE> PAGE 8
072CC010000 0
072CC020000 0
072DD010000 2625
072DD020000 0
072EE000000 0
073 A010000 0.0126
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 1803
074 B000000 0
074 C000000 186137
074 D000000 0
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 1090
074 M000000 37
074 N000000 189067
074 O000000 0
074 P000000 70
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 232
074 S000000 0
074 T000000 188765
074 U010000 188783
074 U020000 0
074 V010000 1.00
074 V020000 0.00
074 W000000 1.0002
074 X000000 3590
074 Y000000 0
075 A000000 207557
075 B000000 0
076 000000 0.00
077 A000000 Y
077 K000000 Y
077 Q010000 Y
078 000000 N
080 A000000 VIGILANT INSURANCE CO.
080 C000000 3575
081 A000000 Y
081 B000000 6
082 A000000 N
<PAGE> PAGE 9
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE RODD M. BAXTER
TITLE SECRETARY
EXHIBIT 77K
SG COWEN STANDBY TAX EXEMPT RESERVE FUND, INC.
CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
.
1. On May 5, 1999, based upon the recommendation of the Audit
Committee of the Registrant's Board of Directors, and in accordance
with Section 32 of the Investment Company Act of 1940, as amended,
and the rules thereunder, the Board of Directors determined not to
retain Ernst & Young LLP, as the Registrant's independent accountants
and voted to appoint KPMG LLP as the Registrant's independent
accountants for the fiscal year ending September 30, 1999.
2. During the Registrant's two most recent fiscal years ending
September 30, 1998, Ernst & Young reports on the Registrant's financial
statements contained no adverse opinion or disclaimer of opinion,
nor were they qualified or modified as to uncertainty, audit scope, or
accounting principles.
3. During the Registrant's two most recent fiscal years ended
September 30, 1998 there were no disagreements with Ernst & Young
LLP on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which
disagreements if not resolved to the satisfaction of Ernst & Young
LLP, would have caused it to make reference to the subject matter
of the disagreement in connection with its report.
4. During the Registrant's two most recent fiscal years, there
have been no "reportable events" as such term is described in Item
304(a)(1)(v) of Regulation S-K with respect to Ernst & Young LLP.
5. On May 5, 1999, the Registrant engaged KPMG LLP as its
principal accountants to audit the Registrant's financial statements.
During the Registrant's two most recent years through May 5, 1999,
the Registrant has not consulted with KPMG LLP on items which (i)
concerned the application of accounting principles to a specified
transaction, wither completed or proposed, or the type of audit
opinion that might be rendered on the Registrant's financial
statements or (ii) concerned the subject matter of a disagreement
or reportable event with Ernst & Young LLP.
6. The Registrant has requested Ernst & Young LLP to furnish it
with a lettr addressed to the Securities and Exchange Commission
stating whether Ernst & Young LLP agrees with the statements
contained in the second, third and fourth paragraphs above. A
copy of the letter from Ernst & Young LLP to the Securities
and Exchange Commission is filed as Annex I hereto.
EXHIBIT 77K
SG COWEN STANDBY TAX EXEMPT RESERVE FUND, INC.
CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
.
1. On May 5, 1999, based upon the recommendation of the Audit
Committee of the Registrant's Board of Directors, and in accordance
with Section 32 of the Investment Company Act of 1940, as amended,
and the rules thereunder, the Board of Directors determined not to
retain Ernst & Young LLP, as the Registrant's independent accountants
and voted to appoint KPMG LLP as the Registrant's independent
accountants for the fiscal year ending September 30, 1999.
2. During the Registrant's two most recent fiscal years ending
September 30, 1998, Ernst & Young reports on the Registrant's financial
statements contained no adverse opinion or disclaimer of opinion,
nor were they qualified or modified as to uncertainty, audit scope, or
accounting principles.
3. During the Registrant's two most recent fiscal years ended
September 30, 1998 there were no disagreements with Ernst & Young LLP
on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which
disagreements if not resolved to the satisfaction of Ernst & Young
LLP, would have caused it to make reference to the subject matter
of the disagreement in connection with its report.
4. During the Registrant's two most recent fiscal years, there
have been no "reportable events" as such term is described in Item
304(a)(1)(v) of Regulation S-K with respect to Ernst & Young LLP.
5. On May 5, 1999, the Registrant engaged KPMG LLP as its
principal accountants to audit the Registrant's financial statements.
During the Registrant's two most recent years through May 5, 1999,
the Registrant has not consulted with KPMG LLP on items which (i)
concerned the application of accounting principles to a specified
transaction, wither completed or proposed, or the type of audit
opinion that might be rendered on the Registrant's financial
statements or (ii) concerned the subject matter of a disagreement
or reportable event with Ernst & Young LLP.
6. The Registrant has requested Ernst & Young LLP to furnish it
with a lettr addressed to the Securities and Exchange Commission
stating whether Ernst & Young LLP agrees with the statements
contained in the second, third and fourth paragraphs above. A
copy of the letter from Ernst & Young LLP to the Securities
and Exchange Commission is filed as Annex I hereto.
(On Ernst & Young LLP letterhead)
May 12, 1999
Securities and Exchange Commission
450 5th Street, N.W.
Washington, D.C. 20549
Gentlemen:
We have read statements numbered two, three and four in the attached letter
from the SG Cowen Standby Reserve Fund, Inc. and the SG Cowen Standby Tax
Exempt Reserve Fund, Inc. which we understand will be filed with the
Commission, pursuant to Item 77K of Form N-SARs, as an annex to the Funds'
Form N-Sar report for the six months ended March 31, 1999. We agree with
the statements referenced above concerning our Firm in such form N-SAR.
Very truly yours,
/s/Ernst & Young LLP
_____________________
Ernst & Young LLP
