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BNP = Birmingham Nitro Proof. This stamp came into use after 1925. Birmingham Nitro Proof [or London Proof, depending on which was handier] was a stamp applied , and was common to ALL firearms made and sold in the UK. Up to 1954, guns of foreign make, like your Colt pistol, would also have been stamped 'NOT ENGLISH MAKE'. British proof in mandatory in law for ALL ex-military arms so that they could be sold to the public in yUK.
So, IOW, your pistol was bought and sold at some time in yUK, AFTER 1954. Whether that was to your grandfather or not we'll never know.
So, IOW, your pistol was bought and sold at some time in yUK, AFTER 1954. Whether that was to your grandfather or not we'll never know.