Issue of 6.82 per cent Postal Life Insurance Government of India Special Security, 2032
F. No. 5(1)-B(PD)/2021.—Government of India hereby notifies the issue of 6.82 per cent Postal Life Insurance Government of India Special Security, 2032, (hereinafter briefly described as “Special Security”) for an aggregate amount of Rs. 7,000 crore (nominal) on March 30, 2022.
- Eligibility for making subscription to the Special Security and limits of subscription.
The Directorate of Postal Life Insurance shall be eligible to subscribe to the Special Security and its
subscription shall be limited to the extent of the amount of security. No other person including any bank, company, corporation or any other body, except the Directorate of Postal Life Insurance, shall be eligible to subscribe to the Special Security. - Price
The Special Security shall be issued on application at par for the amount as per the application made by the Directorate of Postal Life Insurance. The Special Security will be issued for a minimum amount of Rs. 10,000 (Nominal) and in multiples of Rs. 10,000 thereafter. - Application
The Special Security shall be issued on application as per proforma in Annexure I, to the Directorate of Postal Life Insurance. - Form of Security
The Special Security will be issued in the form of stock i.e. ‘Stock Certificates’ or by credit to Constituent Subsidiary General Ledger account or Subsidiary General Ledger account maintained with the Reserve Bank of India. - Commencement of tenure and date of repayment
The tenure of Special Security will commence from March 30, 2022. Interest on the Special Security will accrue from the date of commencement of tenure. The Special Security will be repaid at par on March 30, 2032 at Public Debt Office, Reserve Bank of India, Mumbai. - Interest
The Special Security will bear interest at the rate of 6.82 per cent per annum. Interest will be reckoned from the date of commencement of tenure of the Special Securities and will be payable half yearly on September 30 and March 30 till maturity.
Interest on the Special Security will be payable at Public Debt Office, Reserve Bank of India, Fort, Mumbai. Interest will be paid after rounding off the amount of interest to the nearest rupee. - Transferability
(i) Subject to the provisions of paragraph 4 of the notification, the Special Security can be renewed, subdivided, consolidated, converted and transferred by the holder in accordance with the provisions of the Government Securities Act, 2006 and the Government Securities Regulations, 2007 framed there under.
(ii) Notwithstanding what is stated in paragraph 1 hereinabove, there will be no restriction on the transfer of the Special Security by the subscriber in favour of any other person including banks, corporation or any other body and the transferee of such security would also be entitled to hold and transfer the same in such manner. - Statutory Provisions
With respect to any such matter which has not been provided under this Notification, the Special Security shall be governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007 framed thereunder. - Applicability of Tax Law
The value of the investment in the Special Security and the interest payable thereon will be governed by the provisions of tax laws as applicable from time-to-time. - Eligibility of Securities
The investment in the Special Security by the banks and insurance companies will not be reckoned as an eligible investment in Government securities for their statutory requirements. However, such investment by the insurance companies will be eligible to be reckoned as investment under “other Approved Securities” category as defined under Insurance Regulatory and Development Authority (Investment) Regulations, 2000 as amended from time to time. Further, the investment by the Provident Funds, Gratuity Funds, Superannuation Funds, etc. in the Special Securities will be treated as an eligible investment under the administrative order of the Ministry of Finance. - Eligibility for Repo
The Special Security will be transferable and eligible for market ready forward transactions (Repo).
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