PART II
ESTABLISHMENT OF PUBLIC DEBT MANAGEMENT AGENCY
Establishment and incorporation of Public Debt Management Agency.
120. (1) With effect from such date as the Central Government may, by notification, appoint, there shall be established for the purposes of this Chapter, a body to be called the Public Debt Management Agency.
(2) The Agency shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Chapter, to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.
(3) The head office of the Agency shall be at such place as the Central Government may, by notification, specify.
(4) The Agency may, by notification, establish its offices or branches at any other place in or outside India.
Notes on Clauses:
Clauses 118 to 142 of the Bill seeks to insert a new Chapter VII in the Finance Bill, 2015 which deals with the Public Debt Management Agency.
The said Chapter proposes--
(a) to empower the Central Government to establish an Agency called Public Debt Management Agency with a view to minimising the cost of raising and servicing public debt over the long-term within an acceptable level of risk at all times under the general superintendence of the Central Government;
(b) to provide that the general superintendence, direction and management of the affairs and business of the Agency shall vest in the Board which shall consist of such number of executive and nominee Members as may be notified by the Central Government;
(c) to specify the functions of the Agency which shall include-
(i) collecting and publishing information about public debt, including borrowing by the Central Government otherwise than under this Chapter;
(ii) purchasing, re-issuing and trading in Government securities; and
(iii) carrying out such other transactions as may be required for management of public debt;
(d) to provide that the Central Government shall entrust the Agency with the issue of Government securities;
(e) to provide that the Agency shall be responsible for making the payment to holders of Government securities in accordance with the terms of such Government securities;
(f) to empower the Central Government to issue directions to the Agency from time to time; and
(g) to exempt the Agency from payment of taxes. Clauses 143 to 150 of the Bill seek to insert a new Chapter VIII relating to Senior Citizens’ Welfare Fund.
