Press Information Bureau

Government of India

Ministry of Finance

06-August-2012 19:21 IST

Repayment of 7.00% Oil Marketing Co’S Government of India Special Bonds, 2012 on September 09, 2012 and 9.40% Government of India Stock, 2012

The outstanding balance of 7.00% Government of India Special Bonds, 2012 and 9.40% Government Stock, 2012 are due for repayment on September 09, 2012 and September 11, 2012 respectively. No interest will accrue there on from the said dates. In the event of a holiday being declared on September 09, 2012 and/ or on September 11, 2012 by any State Government under the Negotiable Instruments Act, 1881, the loan will be repaid by the paying offices in that State on the previous working day.

As per sub-regulation 24(2) and 24(3) of Government Securities Regulations, 2007 payment of maturity proceeds to the registered holder of Government Security held in the form of Subsidiary General Ledger or Constituent Subsidiary General Ledger account or Stock Certificate shall be made by a pay order incorporating the relevant particulars of his bank account or by credit to the account of the holder in any bank having facility of receipt of funds through electronic means. For the purpose of making payment in respect of the securities, the original subscriber or the subsequent holders of such a Government Securities, shall submit the relevant particulars of their bank account well in advance.

However, in the absence of relevant particulars of bank account/mandate for receipt of funds through electronic means, to facilitate repayment of the Loan on the due date, holders may tender the securities, duly discharged, at the Public Debt Offices, Treasuries/Sub-Treasuries and branches of State Bank of India and its Associate Banks (at which they are enfaced /registered for payment of interest) 20 days in advance of the due date for repayment.

Full details of the procedure for receiving the discharge value may be obtained from any of the aforesaid paying offices.

DSM/RS/GN

Maturity repayment procedures for government securities require bank account mandates for electronic credit; alternative tendering at paying offices permitted. Maturity repayment of government securities stops interest from the specified due dates and must be effected on those dates, with repayment advanced to the previous working day if a state-declared holiday intervenes. Payment to registered holders in book-entry or certificate form is by pay order incorporating bank particulars or by electronic credit to a bank account capable of receiving funds; holders must submit such bank particulars or mandates in advance. Absent those particulars, holders may tender duly discharged securities at designated paying offices a stated number of days before maturity to obtain repayment.