Chandigarh, January 7 – The Haryana Government has notified the general terms and conditions for the sale and issuance of State Government Securities, superseding the earlier notification dated July 20, 2007. The notification has been issued by Chief Secretary Sh. Anurag Rastogi, who also holds the charge of Additional Chief Secretary, Finance Department.
As per the notification, the new framework titled “General Notification for Sale and Issuance of Government Securities by the Government of Haryana” lays down the objectives, types, features, eligible investors, and procedures for issuance of State Government Securities. These securities will be issued against the security of the Consolidated Fund of the State of Haryana in accordance with Article 293(1) of the Constitution of India.
The Government may issue various types of securities, including fixed coupon rate securities, which will carry a specific coupon rate determined through auction or other methods as notified separately. Such securities may be issued at par, discount, or premium, with a minimum original maturity of one year. Other types of securities with special features may also be issued through specific notifications.
The notification provides that eligible investors include residents of India such as individuals, firms, companies, institutions, provident and pension funds, trusts, Hindu Undivided Families, other State Governments and Union Territories with legislatures. Non-residents may also invest in accordance with the Foreign Exchange Management Act and related regulations.
The Reserve Bank of India (RBI) will announce the operational details such as date of issue, tenor, and method of issuance through press releases or other means. Securities will be issued in dematerialized form through Subsidiary General Ledger (SGL) or Constituents’ Subsidiary General Ledger (CSGL) accounts maintained with the RBI or in any other permitted form.
The minimum subscription amount has been fixed at Rs 10,000 (face value) and in multiples thereof. Coupon payments and repayments will be made by the Public Debt Offices of the RBI as per prescribed procedures. The notification also details provisions related to repayment, buyback before maturity, transferability, conversion, and consolidation of securities.
The Government may issue securities through auction, on-tap sale, switching of existing securities, or any other mode notified in consultation with the Reserve Bank of India. Auctions may be conducted on yield basis or price basis, using uniform price or multiple price methods, and both competitive and non-competitive bidding facilities will be available.
The notification further clarifies that the rights and obligations of investors will be governed by the Government Securities Act, 2006, Government Securities Regulations, 2007, and applicable tax laws. Any disputes relating to the securities will fall under the jurisdiction of Indian courts.
