Nomination
128. (1) Every holder of Government securities may, at any time, nominate in the prescribed manner, any person in whom his securities shall vest, in the event of his death.
(2) Where any Government security is held by more than one person jointly, the joint holders may together nominate in the prescribed manner, any person in whom all the rights in such Government security shall vest, in the event of the death of all the joint holders.
(3) Notwithstanding anything contained in any other law for the time being in force or in any disposition, whether testamentary or otherwise, in respect of Government securities, where a nomination made in the prescribed manner purports to confer on any person the right to vest Government securities, the nominee shall, on the death of the holder of such Government securities or, as the case may be, on the death of the joint holders, become entitled to all the rights in the Government securities, of the holder or, as the case may be, of all the joint holders, in relation to such securities, to the exclusion of all other persons, unless the nomination is varied or cancelled, in such manner, as may be prescribed.
(4) Where the nominee is a minor, it shall be lawful for the holder of the Government securities making the nomination, to appoint in the prescribed manner, any person to become entitled to the Government securities, in the event of the death of the nominee during his minority.
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.
