TaxTMI 
TaxTMI 
Sale of Government of India Securities
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....n issued from time to time in respect of each security issue, will supplement the General Notification and cover additional specific features pertaining to the particular security issue. 2. General Terms and conditions applicable to Government Securities The general terms and conditions applicable to all issues of Government Securities will be as under: 2.1 Eligibility for Investment Investment in the Government Securities may be made by any person resident in India, including firms, companies, corporate bodies, institutions, State Governments, Provident Funds and Trusts, Non-Resident Indians, Overseas Citizens of India Foreign Portfolio Investors (FPIs) registered with the Securities and Exchange Board of India (SEBI)and approved by Reserve Bank of India (RBI) and other person not resident in India, as specified by the RBI with the prior approval of the Government of India, in this regard. Foreign Central Banks (FCBs) will also be eligible to invest in the Government securities subject to the terms and conditions stipulated by the RBI, in consultation with the Government of India, in the Scheme for Rupee Investments by FCBs. Inve....
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.... with RBI or by credit to their Bond Ledger Account maintained with RBI or with any institution authorised by the RBI in this behalf as per the Government Securities Act, 2006, or in the form of Stock Certificate or in such other form as may be prescribed under the provisions of the Government Securities Act, 2006. The other Form of G-Secs will be notified separately, if and where necessary. 2.6 Payment of Interest (i) Interest on Government Securities will be paid at the Public Debt Offices of the RBI or any other office of Reserve Bank of India notified for this purpose from time to time, or at branches of the State Bank of India or at any Treasury or Sub-Treasury served by Public Debt Office where there is no office of Reserve Bank of India or branch of the State Bank of India, except Sikkim, where tie-up is with State Bank of Sikkim. Interest on securities held in Bond Ledger Account with any of the offices of RBI/ Agency, as specified by Reserve Bank of India in this behalf, will be paid at such Office/Agency. (ii) Interest will be paid after rounding off the amount to the nearest whole rupee. For this purpose, amount of&nb....
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....ment Securities Act, 2006 and the Government Securities Regulations, 2007, framed there under, read with the terms of this Notification and such other Notification as may be issued from time to time or by the terms of Press Releases, as may be issued in future by Reserve Bank of India, in consultation with Government of India, in this regard. (ii) The provisions of the tax laws for the time being in force in India will be applicable for the purposes of assessing and determining the liability of the investor or holder of the Government Securities. (iii) Any dispute in relation to the Government Securities shall be subject to the jurisdiction of the Courts in India. 3. Participation by Reserve Bank of India The Reserve Bank of India may also, under exceptional circumstances brought out in the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, as amended from time to time, and the Rules framed there under, participate in the auction as a non-competitor or subscribe to the Government Securities in other issues. Allotment of Securities to Reserve Bank of India will be at the cut off price/yield emerging in the auction ....
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.... maximum rate of yield determined at the auction will be the per annum coupon rate on the Securities sold at the auction. (v) The auctions for issue of securities (yield basis or price basis) can be held as per 'Uniform price' method or on 'Multiple price' method or any other method as decided by the Reserve Bank of India, in consultation with the Government of India. (a) Where an auction is held as per 'Uniform price' method, competitive bids offered with rates up to and including the maximum rate of yield or the prices up to and including the minimum offer price, as determined by the Reserve Bank of India, will be accepted at the maximum rate of yield or minimum offer price so determined. Bids quoted higher than the maximum rate of yield or lower than the minimum price, as determined by the Reserve Bank of India, in consultation with the Government of India, will be rejected. (b) Where an auction is held on 'Multiple price' method, competitive bids offered up to the maximum rate of yield or the minimum offer price, as determined by the Reserve Bank of India, in consultation with the Government of India, will b....
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....of India, to accept or reject any or all bids either wholly or partially, without assigning any reason. 5.2 Issue of Securities at pre-announced coupon rates (i) The coupon on such Securities will be announced before the date of floatation and the Securities may be issued at par/premium/discount as per the Specific Notification. (ii) In case the total subscription exceeds the aggregate amount offered for sale in respect of affixed coupon Security, the Reserve Bank of India, in consultation with the Government of India, may make partial allotment to some or all the applicants. (iii)The Reserve Bank of India, in consultation with the Government of India, will have the discretion to go for Green Shoe Option i.e. accept excess subscriptions to the extent as may be specified in the 'Specific Notification' pertaining to the issue of the Security and make allotment of the security accordingly. (iv) The Reserve Bank of India, in consultation with the Government of India, will have the discretion to accept or reject any or all applications, either wholly or partially, without assigning any reason. 5.3 Issue of Securities through tap sale ....
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.... Zero Coupon Bonds (ZCBs) (i) ZCBs are issued at a discount and redeemed at par. No interest is paid on such bonds. (ii) In respect of ZCBs issued through auction, the price at which the ZCBs are proposed to be purchased per Rs. 100 of nominal value, expressed up to four decimal places should be specifically stated in the application. Applications which do not contain details, such as the nominal value of the Bonds, the price per Rs. 100 at which Bonds are proposed to be purchased or which contain any other incomplete details are liable to be rejected, without any reference to the applicant. (iii) On the basis of the bids received through tenders, the cut-off price at which tenders for purchase of Zero Coupon Bonds will be accepted at the auction would be determined by RBI, in consultation with the Government of India, to accept or reject any or all bids either wholly or partially, without assigning any reason. All such bids, which are found to be up to the cut-off price, will be accepted and all other bids, which are found to be lower than the accepted cut-off price, will be rejected. 7.4 Securities issued through the method wher....