Composition of Board
123. (1) The Board shall consist of such number of executive and nominee members, as may be appointed and notified by the Central Government in the Official Gazette.
(2) The executive members shall include the Chief Executive Officer of the Agency.
(3) The nominee members shall consist of--
(a) a nominee of the Central Government; and
(b) a nominee of the Reserve Bank.
(4) The duration of office and other conditions of service of the Chairperson and other Members of the Board shall be such, as may be prescribed.
(5) Notwithstanding anything contained in sub-section (4), the Central Government shall have the right to terminate the services of a Member of the Board, at any time before the expiry of the period prescribed under sub-section (4), by giving him notice of not less than three months in writing or three months salary and allowances in lieu thereof, and the Member shall also have the right to relinquish his office, at any time before the expiry of the period prescribed under sub-section (4), by giving to the Central Government a notice of not less than three months in writing.
(6) The Central Government shall remove a Member of the Board from office, if he--
(a) is, or at any time has been, adjudicated as insolvent; or
(b) is of unsound mind and stands so declared by a competent court; or
(c) has been convicted of an offence which, in the opinion of the Central Government, involves a moral turpitude; or
(d) has, in the opinion of the Central Government, so abused his position as to render his continuation in office detrimental to the public interest: Provided that no Member shall be removed, unless he has been given a reasonable opportunity of being heard in the matter.
(7) The Board may, by order in writing, allocate functions of the Agency under this Chapter to the Chairperson or any other Member or employee of the Agency, subject to any conditions that may be specified in the order.
(8) The Agency shall make bye-laws to govern its internal functioning.
(9) No act or proceeding of the Agency shall be invalid merely by reason of--
(a) any vacancy or any defect, in the establishment of the Agency; or
(b) any defect in the appointment of a Member of the Agency; or
(c) any irregularity in the procedure of the Agency not affecting the merits of the case.
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.
