In exercise of the
powers conferred by section 32 of the Government Securities Act, 2006 (38 of
2006), the Reserve Bank of India, with the previous approval of the Central
Government, makes the following regulations, namely (1)
These
regulations may be called the Government Securities Regulations, 2007. (2)
These
regulations shall come into force with effect from December 1,2007. (1)
In
these regulations, unless the context otherwise requires, (a)
"Act"
means the Government Securities Act, 2006 (38 of 2006); (b)
"Defaced
security" means a security which has become illegible or rendered
undecipherable in material parts thereof; and the material parts of such
security are those where- (i)
the
security number, loan to which it belongs to and the face value of the security
or payments of interest are recorded; or (ii)
the
endorsement or the name of the payee is written or the transfer is executed; or (iii)
the
renewal is recorded.; (c)
"Form"
means a form as set out in the Schedule to these regulations; (d)
"Lost
security" means a security which has been lost but does not include a
security which is in possession of some person adversely to the claimant; (e)
"Mutilated
security" means a security which has been destroyed, torn or damaged in
material parts thereof and the material parts of such security are those where
- (i)
the
security number, loan to which it belongs to and the face value of the security
or payments of interest are recorded; or (ii)
the
endorsement or the name of the payee is written or the transfer is executed; or (iii)
the
renewal is recorded. Explanation: For the purposes of this clause,
a security shall be deemed to have been damaged, if the security has been
treated or transformed in such a manner that it is impossible to touch and feel
the security or endorse it by writing and putting the seal or signature
thereon; (f)
"Officer
of the Bank" means the officer posted by the Bank to perform the duties
under the Act; (g)
"Public
Debt Office" means the office of the Bank in whose books the Government
security is registered or may be registered; (h)
"Scheduled
bank" means a bank included in the Second Schedule to the Reserve Bank of
India Act, 1934 (2 of 1934); (2)
Words
and expressions used in these regulations and not defined herein but defined in
the Act shall have the same meanings respectively assigned to them in the Act. CHAPTER II FORMS AND TRANSFER OF GOVERNMENT
SECURITIES AND RECOGNITION OF TITLE TO SECURITY OF DECEASED (1)
Subsidiary
general ledger account including a constituents' subsidiary general ledger
account and bond ledger account may be maintained in an electronic form or in a
dematerialized form in accordance with the provisions of the Depositories Act,
1996 (22 of 1996). (2)
Subsidiary
general ledger account including a constituents' subsidiary general ledger
account shall contain such particulars as provided in Form -1. (3)
Bond
ledger account shall contain such particulars as provided in Form - II. (1)
Government
securities in different forms shall be transferable in the following manner, namely: (a)
Government
promissory note. - It shall be transferable by endorsement and delivery and no
endorsement of a Government promissory note shall be valid unless such
endorsement is made by the signature of the holder or his duly constituted
attorney or representative, inscribed on the back of the security itself, for
negotiation of total amount denominated by the security; (b)
Bearer
bond. - It shall be transferable by delivery and the person in possession of
the bond shall be deemed to be the holder of the bond; (c)
Stock
certificate. - Stock for which stock certificate has been issued shall be
transferable before maturity either wholly or in part by execution of an
instrument of transfer in Form - III and the transferor shall continue to be
the holder thereof until the Bank registers the name of the transferee as the
holder of the stock; (d)
Subsidiary
general ledger account including a constituents' subsidiary general ledger
account - Stock held at the credit of the holder in a subsidiary general ledger
account including a constituents' subsidiary general ledger account with the
Bank shall be transferable before maturity either wholly or in part by
execution of an instrument of transfer in Form - IV and the transferor shall
continue to be the holder of such security to which the transfer relates until
the Bank registers the name of the transferee as the holder. (e)
Bond
ledger account. - A Government security held in a "bond ledger
account" with the Bank or its agent shall be transferable before maturity
either wholly or in part by execution of an instrument of transfer in Form-V by
the holder of the security and the transferor shall continue to be the holder
of such security until the Bank, or, as the case may be, its agent registers
the name of the transferee. (2)
Government
securities held in subsidiary general ledger account including a constituents'
subsidiary general ledger account or bond ledger account, shall also be
transferable by execution of a transfer deed in an electronic form under
digital signature as defined in clause (p) of sub-section (1) of section 2 of
the Information Technology Act, 2000 (21 of 2000). (1)
If
a person is unable to execute any document relating to a security, or to make
endorsement thereon, he may apply to the Executive Magistrate to execute the
document, or make endorsement on his behalf and subject to such person
producing sufficient documentary evidence about his identity, and satisfying
the Executive Magistrate that such person has understood the implications of
such execution or endorsement, as the case may be, the Executive Magistrate may
do so on his behalf in the manner as provided in sub-regulation (2). (2)
Where
any such document is to be executed or an endorsement is to be made by an
Executive Magistrate under this regulation on behalf of any person, the
Executive Magistrate shall execute the document or make the endorsement in the
presence of that person, and shall record below such document or endorsement, a
certificate to the effect that the document was executed or the endorsement was
made, as the case may be, at the request of that person, after explaining him
the implications of such execution or endorsement; and that he is satisfied
that such person has fully understood the explanation so made to him. (1)
In
addition to the documents referred to in sub-sections (1) and (2) of section 7
of the Act, where a decree, order or direction passed by any court declaring
the person as referred to therein, as having title to the Government security
or appointing a receiver to take possession of the security is produced or a
certificate issued or order passed by any other authority who might have been
empowered under any statute to declare any | person as having title to the
Government security, is produced by a claimant for ? recognition of his title
in respect of the security held by a deceased holder, the Bank, or, as the case
may be, its agent may recognize his claim on the basis of any of such
documents, subject to its satisfaction with respect to the legality,
genuineness, and finality thereof, and of the fact that there is no rival claim
in respect of such Government security. (2)
In
addition to the documents referred to in sub-regulation (1), and subject to the
provisions of sub-regulations (3) and (4), the Bank, or, as the case may be,
its agent, on its satisfaction of the fact that there is no rival claim in
respect of the Government security, may recognize the title of a person to a
Government security on the basis of following documents, namely: (a)
a
"will" executed by the deceased holder of the Government security
bequeathing thereby the security in favour of the person claiming title
thereto, provided the probate issued in respect of such will has been submitted
to the Bank by the claimant; or (b)
a
registered deed of family settlement, wherein the Government security claimed
has been included and given to the claimant; or (c)
a
gift deed executed in accordance with the law relating thereto, in respect of
the Government security claimed; or , (d)
a
deed of relinquishment executed by other legal heir or successor of the
deceased in accordance with law in favour of the claimant in respect of the
Government security claimed; or (e)
a
decree passed by a foreign court in respect of the Government security claimed,
the execution whereof is permissible in accordance with the provisions of
section 44A of the Civil Procedure Code, 1908 (5 of 1908); or (f)
a
deed of partition executed and acted upon in accordance with law, wherein the
Government security claimed has been included and given to the share allotted
to the claimant. [1]["(2A) While
considering the recognition of title to the Government security of a deceased
sole holder or all deceased joint holders under sub-section (3) of Section 7 of
the Act, the Bank, on its satisfaction of the fact that there is no rival claim
in respect of the Government security, and where the outstanding value of the
claim in respect of the Government securities in aggregate does not exceed an
amount of rupees ten lakh, may recognise the title of a person to such
Government security on the basis of the following documents, namely:-- (a)
Government
security in original duly discharged; (b)
death
certificate of the deceased holder of the Government security; (c)
document
in proof of identification of the claimant to the satisfaction of the Bank
authorities; (d)
affidavit
signed by the claimant describing his relationship with the deceased holder and
the right to succession to the Government security; (e)
bond
of indemnity executed by the claimant in favour of the Bank for such amount as
the Bank may think fit; and (f)
any
other document, as the Bank may consider necessary, for recognition of title of
the claimant in respect of the Government security: Provided that the outstanding value of a
Government security shall not exceed an amount of rupees five lakh.";] (3)
While
considering the recognition of title to the Government security, on the basis
of any of the documents referred to in [2][sub-regulations
(1), (2) and (2A)], the Bank, or, as the case may be, its agent may satisfy
itself about the legality, genuineness, and finality of the referred documents
and for that purpose may call for any other document or declaration, as it may
consider necessary. (4)
Without
prejudice to the provisions of this regulation, while recognizing title to the
Government security, the Bank, or, as the case may be, its agent may, if it
considers necessary, also require the claimant to furnish a bond of indemnity
for such amount as it may think fit. CHAPTER III NOMINATION The person making or cancelling the
nomination in respect of a stock certificate shall submit the Form - VI or the
Form - VII, as the case may be, along with the stock certificate, or the Form
-VI or the Form - VII, only, in respect of bond ledger account, as the case may
be, and on receipt of such forms, the Public Debt Office shall, register in its
books the nomination or the cancellation, as the case may be, and forward to
such person an endorsement on the stock certificate or an acknowledgement to
the effect that nomination, or cancellation, has been made in its books as per
the form submitted by the applicant. While making nomination in favour of a minor,
the sole holder of the Government security or all the joint holders together,
as the case may be, may appoint another individual not being a minor, to
receive the proceeds of the Government security on, behalf of the nominee in
the event of the death of the sole holder or all the joint holders during the
minority of the nominee, as the case may be. (1)
The
rights which a nominee or nominees have acquired in relation to a Government
security under a nomination duly made and registered under regulation 7 shall
not be affected by reason of the renewal or sub-division of the stock
certificate or the issue of the duplicate stock certificate on the ground that
the original has been lost, stolen, destroyed, mutilated or defaced, and the
nominee or nominees shall have the same rights in relation to the renewed stock
certificate or each of the stock certificates issued on sub-division or the
duplicate stock certificate: Provided that where a security is sub-divided
in pursuance of a transfer of a part of such stock certificate, nothing in this
sub-regulation shall apply to the new stock certificate issued to the
transferee. (2)
Notwithstanding
anything contained in regulation 16, a stock certificate which is subject to
nomination in favour of a person or persons shall not be consolidated with any
other stock certificate unless the latter is also subject to nomination in
favour of the same person or persons, and where two or more such stock
certificates are consolidated, the person or persons shall have the same rights
in relation to the consolidated security as he or they had in relation to each
of the stock certificates so consolidated. CHAPTER IV ISSUE OF DUPLICATE OR NEW
GOVERNMENT SECURITIES (1)
When
a Government security is lost, stolen, destroyed, mutilated or defaced, the
person entitled thereto shall apply for the issue of a duplicate security in
the manner laid down in regulations 11 and 13, to the Public Debt Office at
which the security is registered with a statement showing particulars, such as
security number, amount of security and nomenclature of the loan. * (2)
In
respect of Government securities which have matured or mature during the
process of the issue of duplicate Government security, the Public Debt Office,
after following the procedure laid down in regulations 11 and 13, shall pay the
maturity proceeds and accrued interest thereon instead of issuing the duplicate
Government security. (1)
The
application for the issue of a duplicate Government promissory note which is
stated to have been lost, stolen, destroyed, mutilated or defaced either wholly
or in part shall be accompanied by- (a)
a
statement containing the following particulars, namely:- (i)
the
last half-year for which interest has been paid; (ii)
the
person to whom such interest was paid; (iii)
the
person in whose name the note was issued (if known); (iv)
particulars
of coupons attached (if any); (v)
the
place for payment of interest at which the note was for the time being enfaced; (vi)
the
circumstances relating to the loss, theft, destruction, mutilation or
defacement; and (vii)
whether
the loss or theft was reported to the police, if so, a copy of police report
shall be enclosed; (b)
the
post office registration receipt for the letter containing the Government
promissory note, if the same was lost in transmission by registered post; (c)
where
the last payment of interest was not made by a warrant issued by the Public
Debt Office, a letter signed by the officer of the treasury, or, as the case
may be, sub-treasury, where interest was last paid, certifying the last payment
of interest on the Government promissory note and stating the name of the
holder to whom such payment was made; (d)
(i)
if the applicant is not the holder in whose name the Government promissory note
was originally issued, an affidavit sworn before the Executive Magistrate
testifying that the applicant was the last legal holder of the Government
promissory note; (ii) all documentary evidence necessary to
trace back the title to the original holder; and (e)
any
portion or fragments of the lost, stolen, destroyed, mutilated or defaced of
the Government promissory note. (2)
A
copy of the letter to the Public Debt Office, excluding its enclosures, shall
also be sent to the treasury, or, as the case may be, sub-treasury, where
interest is payable. (3)
The
loss, theft, destruction, mutilation or defacement of a Government promissory
note or portion thereof, shall be notified by the applicant- (a)
in
the Gazette of India, in case of a Government promissory note of the Central
Government, and in the local Official Gazette, if any, of the place where the
loss, theft, destruction, mutilation or defacement occurred; (b)
in
the Official Gazette of the State concerned, in case of a Government promissory
note of the State Government and if the loss, theft, destruction, mutilation or
defacement occurred at a place outside that State, also in the Official Gazette
of that State; and such notification shall be in Form - VIII, or as nearly in
such form as circumstances permit. (4)
After
the publication of the notification under sub-regulation (3), the Bank shall,
if it is satisfied about the loss, theft, destruction, mutilation or defacement
of the Government promissory note and the justification of the claim of the
applicant, cause the particulars of the Government promissory note to be
included in a list such as is referred to in regulation 14 hereunder and
thereafter Public Debt Office may - (a)
pay
interest to the applicant and issue to him a duplicate thereof in place of such
Government promissory note of which a portion has been so lost, stolen,
destroyed, mutilated, defaced, or as the case may be, if the remaining portion
of such Government promissory note, sufficient for its identification, has been
produced; or (b)
pay
interest to the applicant and issue to him the duplicate thereof, three months
after the publication of the said list, if no portion of such Government
promissory note, sufficient for its identification, has been produced; or (c)
pay
interest to the applicant and issue to him the duplicate thereof immediately
after me date of the publication of the said list, if the Government promissory
note has been lost by enemy action. (5)
If
at any time before the issue of duplicate Government promissory note the original
thereof is discovered, the order passed under sub-regulation (4) shall be
rescinded and all action on the order shall be suspended. (6)
The
Bank may, at any time, before passing an order for the issuance of a duplicate
Government promissory note, on sufficient reason, alter or, as the case may be,
cancel any order made by it under this regulation and may also direct that the
interval before the issue of a duplicate Government promissory note shall be
extended by such period not exceeding three years as it may think fit. (7)
The
Public Debt Office may seize and cancel the original Government promissory note
where the original Government promissory note is presented after the issue of
the duplicate Government promissory note by the person to whom the duplicate Government
security was issued. (8)
The
Public Debt Office shall record stoppage of payment of interest and maturity
proceeds in respect of such Government promissory note where the original
Government promissory note is presented after the issue of the duplicate
Government promissory note by a person other than the one to whom the duplicate
was issued until an order of a Court of competent jurisdiction regarding the
payment of interest and maturity proceeds is produced. When a bearer bond or prize bond is lost,
stolen, mutilated, defaced or destroyed, the Bank shall not replace it. (1)
Where
the stock certificate is lost, stolen, destroyed, mutilated or defaced, either
wholly or in part, the legal holder of that stock certificate may apply for the
issuance of a duplicate stock certificate to the Public Debt Office and such
application shall be accompanied by - (a)
the
post office registration receipt for the letter containing the stock
certificate, if the same was lost in transmission by registered post; (b)
a
copy of the police report, if the loss or theft was reported to the police; (c)
an
affidavit sworn before the Executive Magistrate testifying that the applicant
is the legal holder thereof and it is neither in his possession nor has it been
transferred, pledged or otherwise dealt with by him; and (d)
any
portions or fragments which may remain of the lost, stolen, destroyed,
mutilated or defaced stock certificate. (2)
The
circumstances relating to the loss of the stock certificate shall be mentioned
in the application. (3)
The
Bank shall, if it is satisfied about the loss, theft, destruction, mutilation
or defacement of the stock certificate, issue a duplicate stock certificate. (1)
The
list referred to in sub-regulation (4) of regulation 11 shall, as soon as
possible, be published in the Gazette of India or in the Official Gazette of
the State concerned, as the case may be. (2)
The
list referred to in sub-regulation (1) may contain the following particulars,
namely - (a)
the
nomenclature of the loan; (b)
the
security number; (c)
the
value of the security; (d)
the
person to whom the security was issued; (e)
the
date from which the security bears interest; (f)
the
interest warrant number and coupon details; (g)
the
date of coupon; (h)
the
name of the applicant for a duplicate; (i)
the
number and the date of the order passed by the Bank for payment of the interest
or issue of a duplicate; and (j)
date
and particulars of the Official Gazette in which it was notified by the
applicant. It shall be at the option of the Bank to
treat a security which has been mutilated or defaced as a security requiring
issuance of a duplicate thereof under the regulations 11 or 13 or for renewal
under regulation 16. Subject to any general or special
instructions of the Bank, the Public Debt Office may, by its order, on the
application of the holder of the Government Promissory Note - (a)
convert
the Government promissory note into stock certificate provided that the
promissory note has not matured and all un-encashed interest warrants are
surrendered and has been endorsed, (i)
in
the case of Government promissory note of the Central Government, "Pay to
the President of India" and (ii)
in
the case of Government promissory note of a State Government "Pay to the Governor
of............. (the name of the State concerned)"; (b)
renew,
sub-divide, consolidate a stock certificate provided that the stock certificate
has not matured and has been receipted in Form - IX, X, or XI, as the case may
be; (c)
convert
Government securities of one loan into another loan if- (i)
the
inter-loan conversion is permissible; and (ii)
the
conditions governing such conversion are complied with; (d)
convert
the Government promissory note (s) or stock certificate (s), as the case may be
into stock to be held at the credit of the account of the holder in the
subsidiary general ledger account including a constituents' subsidiary general
ledger account or bond ledger account and such Government promissory note (s)
or stock certificate (s) is to be discharged in the form as under: - "Tendered for cancellation and credit to
.................... (name of the holder) 's subsidiary general ledger account
or constituents' subsidiary general ledger account or bond ledger account
Signature of the holder"; (e)
convert
stock held at the credit of the holder's account in the subsidiary general
ledger account including a constituents' subsidiary general ledger account or
bond ledger account into stock certificate (s) subject to compliance with such
formalities as the Public Debt Office may require. CHAPTER V SUMMARY DETERMINATION AND VESTING
ORDER (1)
The
person claiming to be entitled to a Government security or the payment of
interest thereon shall apply to the Bank and adduce documentary evidence in
support of his claim. (2)
On
receipt of the application under sub-regulation (1), if the Bank contemplates
making a vesting order under the Act, the Bank may suspend the payment of
interest or the maturity proceeds of the security or postpone the passing of
any order under section 11 of the Act or the registration of any transfer of
the security until the vesting order has been made. (3)
The
Bank shall give notice, in writing to each claimant of whom it has knowledge,
stating the names of all other claimants and the time when the officer of the
Bank by whom the determination of title shall be made. (4)
On
the date and time fixed in the notice, the officer, as directed by the Bank
under sub-section (3) of section 12 of the Act, shall examine the evidence
adduced by the parties and hear the parties affected and record such evidence
as they may adduce: Provided that no further evidence shall be
recorded or entertained in cases where the District Magistrate has recorded the
evidence or has been requested to have the evidence recorded. (5)
After
determination of the issue by the officer, as directed by the Bank under
subsection (3) of section 12 of the Act, the Bank shall give notice in writing
to each claimant of the determination so made. (6)
The
notices laid down in sub-regulation (4) and (5) shall be published in: (a)
the
Gazette of India and the local Official Gazette where they relate to a security
pf the Central Government, and (b)
the
Official Gazette of the State concerned, where they relate to security of a State
Government, as soon as possible after the date on which they are respectively
issued, (7)
The
Bank may direct the person who is entitled to the security or payment of
interest or both, to execute a bond in Form-XII. (8)
On
the expiry of one month from the date of publication of the notices referred to
in sub-regulation (6), subject to the provisions of section 17 of the Act, the
Bank may make a vesting order in respect of the security in favour of such
person who is entitled. (9)
The
Bank, subject to production of documentary evidence, may make vesting order,
with- (a)
a
title limited to drawal of interest, in guardian of a minor or a manager of the
property of an insane person; and (b)
full,
title, in the minor or the insane person to take effect on the minor attaining
the age of majority or on the insane person becoming sane. CHAPTER VI GRANT OF INFORMATION AND
INSPECTION OF DOCUMENTS (1)
A
person may submit an application to the Bank or its agent for information
regarding Government security or inspection thereof subject to the provisions
of this regulation. (2)
An
application under sub-regulation (1) shall contain the following, namely:- (a)
security
number; (b)
nomenclature
of the loan; (c)
face
value of security; and (d)
a
statement of the purpose for which the information is required as well as the
interest of the applicant in the security. (3)
If
any of the particulars referred to in sub-regulation (2) are not known to the
applicant, the Bank or its agent may supply the required particulars, if
available, to the applicant subject to provisions of this regulation and
regulations 19 and 20. (1)
If
the applicant asks for any information in respect of Government security which
has been renewed, converted, consolidated, sub-divided otherwise than in the
name of the person who has renewed, converted, consolidated or sub-divided, or
asks for inspection of such security, or any register or book kept or
maintained by the Bank or its agent in respect thereof or of any entry of such
Government security in such register or book, the application shall be refused. (2)
In
other cases, other than the cases referred to in sub-regulation (1), the Bank
or its agent may, subject to the provisions hereinafter mentioned, grant a
certified copy of an endorsement on a Government security or an entry in any
register or book maintained or kept by that office relating to any Government
security, on being satisfied that the security in question has stood in the
name of the applicant, or of a person in whom the applicant has a
representative interest, and further that the applicant has a bona fide
interest in the security in respect of which the application is made: Provided that if the Government security has
been cancelled on payment of the due thereof, no copy of endorsement thereon
shall be granted which purports to give a title subsequent to the termination
of the applicant's interest in the Government security. (3)
If
the application relates to the grant of permission for inspection of an
interest warrant or information relating to payment of interest for a specific
half-year or half-years, the information may be granted by the Bank, provided
that the applicant was the person to whom interest was paid or has a bonafide
interest in the same. Before furnishing any information or granting
permission for inspection, the Bank, or, as the case may be, its agent may, if
it considers necessary, require the applicant to execute a bond of indemnity in
Form - XIII for an amount twice the face value of Government security or
securities involved and the interest paid thereon from the date of issue. CHAPTER VII PLEDGE, HYPOTHECATION OR LIEN OF
GOVERNMENT SECURITY (1)
The
holder of a Government security may create a pledge, hypothecation or lien in
respect of a Government security by- (a)
issuing
a notice of pledge, hypothecation or lien to the Bank, or, as the case may be,
its agent, in triplicate in Form - XIV; and (b)
submitting
the stock certificate and the duly executed Form - III in relation thereto; or
the duly executed Forms - III, IV or V, as may be applicable to the Government
security, where a pledge, hypothecation, or lien is to be created for the
Government security held in subsidiary general ledger account or constituents'
subsidiary general ledger account or bond ledger account, as the case may be. (2)
The
Bank, or, as the case may be, its agent may on receipt of the notice as
referred to in clause (a) of sub-regulation (1), - (a)
record
the pledge, hypothecation or lien in its records and confirm the same on the
duplicate and triplicate of the Form - XIV and such confirmation shall be
conclusive proof of the creation of pledge, hypothecation or lien; and (b)
where
any discrepancy is found in the Form - XIV, issue a return memo on the
duplicate and triplicate of the notice in Form - XIV, stating the reasons for
not recording the pledge, hypothecation or lien. (3)
The
pledged or creditor, at any time, when wants to invoke the pledge,
hypothecation or lien may file an application in Form - XV in duplicate, to the
Bank, or, as the case may be, its agent for transferring the Government
securities in his favour along with the following documents, namely, - (a)
the
stock certificate, if any; (b)
Form
- XIV wherein the Bank, or, as the case may be, its agent has confirmed the
recording of pledge; and (c)
Forms
- III, IV or V which may be applicable to the Government security and was
executed at the time of creation of pledge, hypothecation or lien by the holder
of the Government security. (4)
The
Bank, or, as the case may be, its agent may on receipt of the application under
sub- regulation (3) - (a)
record
in its books, the invocation of pledge, hypothecation or lien and transfer of
the securities in favour of the pledgee or the creditor and confirm the same on
the duplicate of the application in Form - XV; or (b)
issue
a return memo to the pledgee or creditor on the duplicate of the application in
Form - XV, if any discrepancy is found, stating the reasons for not
transferring the securities in the name of the pledgee or the creditor. (5)
The
pledgee or the creditor may, at any time, before the registration of transfer
of the Government securities in the books of the Bank or its agent in his
favour, apply to the Bank, or, as the case may be, its agent in Form - XVI in
triplicate for cancellation of such pledge, hypothecation or lien application
registration. (6)
The
Bank, or, as the case may be, its agent may on receipt of the application under
sub-regulation (5) - (a)
record
the cancellation of pledge, hypothecation or lien registered in its books and
confirm the cancellation on the duplicate and triplicate of the application in
Form - XVI; and (b)
issue
a return memo on the duplicate and triplicate of the application in Form - XVI
to the pledgee or the creditor, stating therein the reasons for not cancelling
the pledge, hypothecation or lien. (7)
The
Forms - III, IV or V executed at the time of creation of pledge, hypothecation
or lien, shall be valid during the currency of the pledge, hypothecation or
lien created in respect of the Government security. (8)
Subject
to the forms prescribed in this regulation, the transfer form, notice of
pledge, hypothecation or lien, confirmation of pledge, hypothecation or lien,
application for cancellation or invocation of pledge, hypothecation or lien, or
return memo, may be executed in electronic form under digital signature, as
defined in clause (p) of section 2 of the Information Technology Act, 2000 (21
of 2000). (1)
The
Bank or, as the case may be, the Government shall not be responsible to any
person creating pledge, hypothecation or lien or party to thereof for any loss
caused to him on account of the invocation of the pledge, hypothecation or lien
by the pledgee or the creditor in violation of the terms of pledge,
hypothecation or lien or the provisions of any other law for the time being in
force. (2)
The
Bank or, as the case may be, its agent shall (a)
not
take cognizance of any notice or claim of any person that may be received by it
before it has taken the steps required to be taken under regulation 21 on
receipt of Forms - XIV, XV or XVI; (b)
take
the steps required under regulation 21 as if it had not received such notice or
claim. (3)
No
transfer by the holder of any Government security in respect of which pledge,
hypothecation or lien is in force shall be effected by the Bank or its agent
without the prior concurrence of the pledgee or the creditor, as the case may
be. (4)
The
Government security in respect of which pledge, hypothecation or lien has been
recorded in the books of the Bank or its agent, as the case may be, matures for
repayment, the maturity proceeds shall not be payable to the holder of the
security, without the written concurrence of the pledgee or creditor along with
duly executed Form-XVI. Explanation; For the purpose of regulation 21
and this regulation, - (a)
"pledgee"
means a person in whose favour the Government security has been pledged; (b)
"creditor"
means a person in whose favour the Government security has been hypothecated or
a lien in respect thereof has been created. CHAPTER VIII PAYMENT OF INTEREST AND MATURITY
PROCEEDS Payment of interest on Government security
shall be made and acknowledged in the following manner, namely,- (1)
Government
promissory note - Where post dated interest warrants have not been issued,
interest shall be paid by interest warrants issued by the Bank or if the holder
so desires, by credit to his bank account through electronic means, on
presentment of the Government promissory note. (2)
Stock
or bond - Interest on stock or a bond held in a bond ledger account shall be
paid by interest warrants issued by the Bank or its agent, as the case may be,
or if the holder so desires, by credit to his bank account through electronic
means, (3)
Bearer
bond - Interest on a bearer bond, where applicable, shall be paid to any person
who presents the coupon entitling him to such, interest at the Public Debt
Office or the treasury or sub-treasury, as the case may be, at which the bond
is registered or enfaced for payment of interest. (4)
Notwithstanding
anything contained in the provisions of this regulation, the Bank may arrange
for payment of interest on a Government security at any place not provided
herein or through any mode not provided herein, (1)
For
obtaining maturity proceeds due on a Government security, held in any of the
following forms i.e.; (a)
a
Government promissory note; or (b)
a
bearer bond; or (c)
a
treasury savings deposit certificate; or (d)
a
defence deposit certificate; the security shall be presented at the office
at which the interest on the security is payable or at the Public Debt Office
of domicile and signed, except in the case of a bearer bond by the holder, on
its reverse, and in the case of bearer bond, coupon or coupons, if any, for the
half-year preceding the date of payment of the principal shall be surrendered
with the bond or bonds. (2)
(a)
In the case of stock held in the subsidiary general ledger account or
constituents' subsidiary general ledger account, payment of the maturity
proceeds shall be made by a pay order issued by the Public Debt Office at which
the stock is registered or by credit to the current account maintained with the
Bank or any other account of the holder in any bank having facility of receipt
of funds through electronic means; (b) in the case of a Government security held
in a bond ledger account, with me Bank or its agent, payment of the maturity
proceeds shall be made by a pay order issued by the Public Debt Office or the
agent, as the case may be, or by credit to the account of the holder in any
bank having facility of receipt of funds through electronic means; (c) in the case of a stock for which a stock
certificate has been issued, payment of maturity proceeds shall be made by a
pay order issued by the Public Debt Office at which the stock certificate is
registered or by credit to the account of the holder in any bank having
facility of receipt of funds through electronic means; (d) for the purposes of making payment in
respect of the securities, the original subscriber or the subsequent holders of
such Government securities, as the case may be, shall submit to the Bank or its
agent, as the case may be, in whose books such Government securities are
registered, the relevant particulars of their bank account. (3)
Payment
of maturity proceeds to the registered holder of a Government security on
maturity date, in accordance with the provisions of sub-regulation (2), shall
be a valid discharge for payment due thereon. (4)
A
prize bond shall be presented for payment on maturity at the Public Debt Office
or at any office authorised by the Government as an office of issue at the time
when the loan to which the prize bond belongs was open to subscription. (5)
A
defence deposit certificate shall be duly discharged by the holder on maturity
and presented for payment at the Public Debt Office, New Delhi. (6)
If
the Public Debt Office is of the opinion that a doubt exists relating to the
title to a Government security, it may require the claimant to execute a bond
in Form - XII with one or more sureties approved by the Public Debt Office, or
to furnish an indemnity bond not exceeding twice the value of the security, in
favour of the Bank with a right to assign the bond or security to any person. (7)
The
payment in respect of the securities referred to in sub-regulation (1) shall be
made by Public Debt Office in good faith and without negligence to the person
who purports to be the last holder of the same and such payment shall discharge
the Bank and the Government of its liability under the said security. A Government security in respect of which a
duplicate or a new Government security has been issued or which has been
discharged by payment may be perforated, punched, cut or otherwise disposed of
by the Bank in such manner as the Bank may consider necessary to ensure that
the original security is not misused. CHAPTER IX FEES (1)
A
fee of rupees twenty shall be payable for renewal, conversion or subdivision of
the Government security and a fee of rupees hundred shall be payable for issue
of a duplicate Government security: Provided that no fee shall be payable - (a)
in
respect of the conversion of a Government promissory note into stock certificate
or credit thereof to subsidiary general ledger account including a
constituents' subsidiary general ledger account or conversion credit of stock
certificates to subsidiary general ledger account including a constituents'
subsidiary general ledger account; or (b)
in
respect of consolidation of Government securities; or (c)
in
respect of the renewals due to filling up of interest cages at the back of
Government promissory note (s) or filling up of transfer endorsement cages at
the back of stock certificate (s). (2)
A
fee of rupees ten shall be payable for obtaining information regarding
Government security under regulations 18 or 19 and a fee of rupees two shall be
payable for each page of certified copy granted under regulation 19 by way of
cash against proper receipt or by demand draft or bankers cheque payable to the
Bank. [1] Inserted by the Government Securities (Amendment)
Regulations, 2014 vide Notification No. DGBA.CDD.5434/11.22.001/2013-2014 Dated
25.03.2014. [2] Substituted by the Government Securities (Amendment)
Regulations, 2014 vide Notification No. DGBA.CDD.5434/11.22.001/2013-2014 Dated
25.03.2014 for the following : - "sub-regulations (1) and
(2)"GOVERNMENT SECURITIES REGULATIONS, 2007
PREAMBLE