Rule 23 - Manner in which security may be furnished (Section 25)

Security under DVAT Rules must be in specified instruments led by cash and meet prescribed transfer, valuation and registration conditions.

Rule prescribes that security must be tendered in Form DVAT-12 and is acceptable only in instruments listed in a statutory Table unless prescribed otherwise by the Commissioner; mixed forms are allowed but certain statutory situations require at least fifty percent cash security. Each listed form carries specific acceptance conditions (valuation discounts, transfers to the President of India, bank undertakings, registration and stamp duty requirements, enforceable surety liabilities and validity conditions for bank guarantees). The Commissioner must record all securities in a Securities Register, and instruments not meeting Table conditions are not recognised as security.