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Sale of Government of India Securities

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....l 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. Investment by a person resident outside India or a Company which is incorporated outside India or any branch of such ....

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.... 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 interest less than fifty paise will be ignored and fifty paise or more will be rounded off to the next rupee. 2.7 Repayment of Government Securities (i) The Government Securities will be repaid at Public Debt Offices of the Reserve Bank of India or any other institutio....

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....e 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 or at a negotiated price/yield decided by the Government of India. 4. Modes of issue of Government Securities The Government of India may issue Government Securities, from time to time, through following modes: i. Auction, either yield based or price based. ii. At pre-announced fixed coupon rates with bidding limited to participants, as notified by GoI. iii. On-tap sale. iv. By conversion of treasury bills/dated sec....

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....ces 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 be accepted at the respective bid rate, subject to a ceiling of notified amount, including the green shoe option. In yield-based auctions, successful bidders, whose quotes are lower than the maximum rate of yield accepted, are required to pay the price differential in the form of a premium. All other bids, viz bids quoted higher than the cut-off rate of yield or lower than the cut-off price, as determined by the Reserve Bank of India, in consultation with the Government of India, will be rejected. (c) Where the auction is held on any other method, the method of acceptance of the bids ....

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....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 No aggregate amount is indicated in the notification in respect of the Securities sold on tap. Sale of such Securities may be extended to whole or part of the year and the sale may be closed at any time on any day. 5.4 Switching/ Issue of new Government Securities in conversion of maturing Treasury Bills/dated securities The holders of Treasury Bills of certain specified maturities and holders of specified dated securities are provided an option to convert the respective Treasury Bills/dated security at specified prices into new Securities offered for sale. The new Securities could be issued on an auction/pre-announced coupon/ price basis. 6.Types of Government Securities. The Government of India may issue from time to time the foll....