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SIGNATURE EUGENE S. STARK
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000822337
<NAME> PRUDENTIAL INSTITUTIONAL LIQUIDITY PORTFOLIO, INC.
<SERIES>
<NUMBER> 001
<NAME> PRUDENTIAL INSTITUTIONAL LIQUIDITY PORTFOLIO, INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 0
<INVESTMENTS-AT-VALUE> 440,378,095
<RECEIVABLES> 2,837,611
<ASSETS-OTHER> 8,038
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 443,223,744
<PAYABLE-FOR-SECURITIES> 2,382,019
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 2,382,019
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 440,841,725
<SHARES-COMMON-STOCK> 440,841,725
<SHARES-COMMON-PRIOR> 476,228,507
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
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<NET-ASSETS> 440,841,725
<DIVIDEND-INCOME> 0
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<APPREC-INCREASE-CURRENT> 0
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<EQUALIZATION> 0
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</TABLE>
May 23, 1996
SEC Operations Center (OFCIS)
6432 General Green Way
Mail Stop 0-7
Alexandria, VA 22312
Attention: File Support Unit
Re: Prudential Institutional Liquidity
Portfolio, Inc.
File No. 811-5336
Ladies and Gentlemen:
Enclosed is one (1) copy of the of the Annual Report on Form
N-SAR for Prudential Institutional Liquidity Portfolio, Inc. for
the period ended March 31, 1996.
The Form N-SAR was filed using the Edgar system. The filing
fee in the amount of $125 was forwarded by wire transfer.
Very truly yours,
/s/ Marguerite E. H. Morrison
Marguerite E.H. Morrison
Assistant Secretary
MEHM/ln
Enc.
<PAGE>
This report is signed on behalf of the Registrant in the City of
New York and State of New York on the 23rd day of May, 1996.
Prudential Institutional Liquidity Portfolio, Inc.
Witness:/s/ Marguerite E. H. Morrison By:/s/ Eugene S. Stark
Marguerite E.H. Morrison Eugene S. Stark
Assistant Secretary Treasurer
N-SAR:pilpltr.wpd
For the annual period ended (a) March 31, 1996
File number (c) 811-5336
SUB-ITEM 77 D
Policies With Respect to Security Investments
On January 9, 1996 the Board of Directors
approved the following modifications of
investment policies and restrictions for the Fund:
i) amendment of the Fund's industry concentration
policy, as reflected in Investment Restriction
number 4, to permit investment of more than 25% of
the Fund's assets in the securities of domestic
banks, (ii) deletion of Investment Restriction
number 5 which restricts the Fund's investment in
securities of companies (including predecessors)
less than three years old, (iii) deletion of
Investment Restriction number 6 which limits
investment in securities where officers and
Directors of the Fund or the Manager or Subadviser
own in the aggregate more than 5% of the
outstanding securities of an issuer and
replacement of such restriction with a non-
fundamental policy which can be changed by the
Board of Directors, (iv) deletion of Investment
Restriction number 10
regarding restricted and illiquid securities and
replacement of the restriction with a non-
fundamental policy which can be changed by the
Board of Directors and (v) modification of
Investment Restriction Number 11 to permit the
Fund to invest up to 10% of its total assets in
the securities of other registered investment
companies. These proposals will be submitted to
shareholders at a special meeting to be held in or
about October 1996.
N-SAR:pilp\396.77d
