Sale and Issue of Government of India Securities (including Treasury Bills and Cash Management Bills)
Government of India, in supersession of earlier two Notifications has notified the terms and conditions for sale and issuance of Government of India Securities, including Government of India Treasury Bills and Cash Management Bills (“Securities”).
The Notification is called as the ‘General Notification for Sale and Issue of Government of India Securities’ and sale and issuance of Securities shall be subject to the terms and conditions contained in the Notification w.e.f. 26.03.2025.
The Government of India may issue, from time to time, the following types of Securities, i.e. Treasury Bills up to 364 days, Cash Management Bills up to 90 days, Fixed coupon rate Securities, Floating coupon rate Securities, Zero Coupon Bonds, Securities where either the subscription and/or repayment is received/paid in instalments and Securities with Embedded Options etc.
The general terms and conditions applicable to sale and issuance of all Securities will be as under:
Eligible Investors
1. Any person resident in India, including but not limited to firms, companies, corporate bodies, institutions, State Governments, Union Territories with legislature, provident funds, pension funds, trusts, Hindu Undivided Family and individuals.
2. Any person resident outside India permitted to invest in Securities in terms of the Foreign Exchange Management (Debt Instruments) Regulations, 2019 issued under Foreign Exchange Management Act, 1999.
Minimum Subscription
Securities will be issued for a minimum amount of ₹ 10,000 (Face Value) and in multiples of ₹ 10,000 thereafter, or any other amount as specified by the Reserve Bank of India (RBI), in consultation with Government of India.
Payment
Payment shall be made by the successful Subsidiary General Ledger1 (SGL)/ Constituents’ Subsidiary General Ledger2 (CSGL) account holders on such dates as mentioned in the Specific Notification or as specified by RBI, by means of an authority to debit their current account with RBI or by Electronic Fund Transfer or any other means as stipulated by RBI.
Form
Securities shall be issued to the investors by credit to their SGL account or to CSGL account, maintained with RBI or in such other form as may be permitted under the provisions of the Government Securities Act, 2006.
Repayment
Securities will be repaid at Public Debt Offices of RBI or any other institution at which they are registered at the time of repayment.
Securities will be repaid on the date of redemption as specified in the Specific Notification or before their specified redemption dates in case of exercise of option by option holder in Securities with embedded options, as the case may be.
Securities may be bought back before their specified redemption date, at a price determined through a buyback auction on any date determined by RBI in consultation with Government of India.
Transferability
Securities can be renewed, sub-divided, consolidated, converted or transferred in accordance with the provisions of the Government Securities Act, 2006 and the Government Securities Regulations, 2007 framed thereunder, and the terms of this notification and any other notification which may be issued in this regard.
The conversion of security from one form to another will be subject to the conditions as per the Specific Notification.
The transfer of Securities by person resident outside India shall be subject to Regulations framed under FEMA, 1999 and the Directions issued thereunder, as amended from time to time.
Applicable Laws
The rights of all persons subscribing to or holding the Securities shall be determined in accordance with the Government Securities Act, 2006 and the Government Securities Regulations, 2007, framed thereunder, read with the terms of this Notification and such other Notification as may be issued from time to time by RBI, in consultation with the Government of India.
The provisions of the tax laws for the time being in force in India will be applicable for the purpose of assessing and determining the tax liability of the investor or holder of the Securities.
Any dispute in relation to the Securities shall be subject to the jurisdiction of the Courts in India.
Procedure of Sale and Issue of Securities
The operational procedure and other details such as date and place of auction, tenor, auction method, etc. for sale and issue of securities shall be announced by RBI by issue of a press release or through such other means as may be considered necessary.
Modes of issue of Securities
Government of India may issue Securities through auction or through tap sale.
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