Government Securities Regulations, 2007 (2024)

Arrangement of Rule

PREAMBLE

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

Chapter I:

Preliminary

1 . Short title and commencement

(1) These regulations may be called the Government Securities Regulations, 2007.

(2) These regulations shall come into force with effect from December 1,2007.

2 . Definitions

(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 endorsem*nt 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 endorsem*nt 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;

(hi) "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

3 . Subsidiary general ledger account including a constituents' subsidiary general ledger account and bond ledger account

(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.

4 . Transfer of Government securities

(1) Government securities in different forms shall be transferable in the following manner, namely:-

(a) Government promissory note. - It shall be transferable by endorsem*nt and delivery and no endorsem*nt of a Government promissory note shall be valid unless such endorsem*nt 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).

5 . Execution of a document or endorsem*nt by a person unable to write

(1) If a person is unable to execute any document relating to a security, or to make endorsem*nt thereon, he may apply to the Executive Magistrate to execute the document, or make endorsem*nt 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 endorsem*nt, 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 endorsem*nt 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 endorsem*nt in the presence of that person, and shall record below such document or endorsem*nt, a certificate to the effect that the document was executed or the endorsem*nt was made, as the case may be, at the request of that person, after explaining him the implications of such execution or endorsem*nt; and that he is satisfied that such person has fully understood the explanation so made to him.

6 . Recognition of title to Government security of a deceased holder

(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...