Home India Ministry of Finance Issue of Notification in respect of 7.33 percent PLI GoI Spl...
Date: 31-Mar-2023 Category: Extra Ordinary State: Union Government Country: India

Issue of Notification in respect of 7.33 percent PLI GoI Spl Security 2033 dated 31 March 2023

Issued by Ministry of Finance · Department of Economic Affairs

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Executive Summary & Key Takeaways

What it means

  • The Gazette notification announces the issuance of 7.33 percent Postal Life Insurance Government of India Special Security, 2033, for an aggregate amount of ₹3000 crore (nominal) on March 31, 2023.

Key Changes

  • The Government of India is issuing a special security with a face value of ₹3000 crore.
  • The security, named '7.33 per cent Postal Life Insurance Government of India Special Security, 2033', will mature on March 31, 2033.
  • The Directorate of Postal Life Insurance is the only entity eligible to subscribe to the Special Security, with subscription limited to the security's amount.
  • The special security will be issued at par value, with a minimum investment of ₹10,000 and multiples thereof.
  • The tenure of the special security commences on March 31, 2023, with interest accruing from this date.
  • The security bears an interest rate of 7.33 percent per annum, payable semi-annually on September 30 and March 31.
  • While banks and insurance companies cannot consider this investment as eligible for statutory requirements, insurance companies can classify it under 'other Approved Securities' as per IRDAI regulations.
  • Provident Funds, Gratuity Funds, and Superannuation Funds' investments in these securities will be treated as eligible investments under the Ministry of Finance's administrative order.
  • The special security is transferable and eligible for market ready forward transactions (Repo).

Impact Analysis

Directorate of Postal Life Insurance

  • Action: The Directorate should assess the investment opportunity and apply as per the proforma in Annexure I.

Banks and Insurance Companies

  • Action: Banks should note that investments in this security will not count towards statutory reserve requirements. Insurance companies should evaluate if this investment aligns with their 'other Approved Securities' investment strategy.

Provident Funds, Gratuity Funds, Superannuation Funds

  • Action: These funds can consider this security as part of their eligible investment portfolio, subject to the Ministry of Finance's guidelines.

Financial Market

  • Action: Market participants can include this security in their repo transactions, potentially improving portfolio returns and liquidity management.

Government

  • Action: The government should monitor the subscription and trading activity of the security to gauge market response and inform future issuances.

Key Entities Referenced

Government of India: Issuer of the Special Security, providing a guarantee for the investment. Directorate of Postal Life Insurance: The sole entity eligible to subscribe to the Special Security. Reserve Bank of India (RBI): The RBI, specifically the Public Debt Office in Mumbai, is responsible for repayment and interest payments on the security. Insurance Regulatory and Development Authority of India (IRDAI): The regulatory body whose investment regulations (specifically the (Investment) Regulations, 2000) determine the eligibility of this security for insurance companies. Government Securities Act, 2006: Legislation governing the issuance, transfer, and management of government securities. Government Securities Regulations, 2007: Regulations framed under the Government Securities Act, 2006, providing detailed rules for government securities.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-31032023-244820 xxxGIDHxxx CG-DL-E-31032023-244820 xxxGIDExxx असाधारण EXTRAORDINARY भाग I—खण्ड 1 PART I—Section 1 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 72] नई दिल्ली, िुक्रिार, माचि 31, 2023/चत्रै 10, 1945 No. 72] NEW DELHI, FRIDAY, MARCH 31, 2023/CHAITRA 10, 1945 जित्त मत्रं ालय (आर्थकि काय ि जिभाग) (बिट प्रभाग) अजधसचू ना नई दिल्ली 31 माच,ि 2023 7.33 प्रजतित डाक िीिन बीमा भारत सरकार जििषे प्रजतभजू त, 2033 का जनगमि फा.स.ं 5(1)- बी(पीडी)/2021.—भारत सरकार एतद्वारा 31 माच,ि 2023 को कुल 3000 करोड़ रुपए (अंदकत) की राजि के जलए 7.33 प्रजतित डाक िीिन बीमा भारत सरकार जििेष प्रजतभूजत, 2033 (जिसे इसके बाि संजिप्त रूप म ें "जििेष प्रजतभूजत" के रूप म ें जनर्िष्टि दकया गया ह)ै का जनगिम अजधसूजचत करती ह।ै 1. जििषे प्रजतभजू त म ेंअजभिान की पात्रता और अजभिान की सीमा डाक िीिन बीमा जनिेिालय जििेष प्रजतभूजत के संबंध म ें अजभिान के जलए पात्र होगा और इसका अजभिान प्रजतभूजत की राजि की सीमा तक सीजमत होगा। डाक िीिन बीमा जनिेिालय को छोड़कर कोई बैंक, कंपनी, जनगम अथिा अन्य कोई जनकाय सजहत कोई अन्य व्यजि जििेष प्रजतभूजत के संबंध म ें अजभिान के जलए पात्र नहीं होगा। 2. मल्ू य जििेष प्रजतभूजत डाक िीिन बीमा जनिेिालय द्वारा दकए गए आिेिन के अनुसार राजि के जलए सममूल्य पर दकए गए आिेिन पर िारी दकए िाएंगे। जििेष प्रजतभूजत न्यनू तम 10,000 रुपए (अंदकत) की राजि और उसके बाि 10,000 रुपए के गणु िों म ें िारी की िाएगी। 2154 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1] 3. आििे न पत्र जििेष प्रजतभूजत डाक िीिन बीमा जनिेिालय को अनुबंध-I म ें दिए गए प्रपत्र के अनुसार आिेिन पर िारी की िाएगी। 4. प्रजतभजू त का स्ट्िरूप यह जििेष प्रजतभूजत स्ट्टॉक के रूप म ें अथाित् 'स्ट्टॉक प्रमाणपत्रों' के रूप म ें अथिा भारतीय ररििि बैंक के साथ धाररत संघटक सहायक सामान्य बही खाता अथिा सहायक सामान्य बही खाता म ें क्रेजडट द्वारा िारी की िाएगी। 5. कायकि ाल का प्रारंभ और िापसी अिायगी की तारीख जििेष प्रजतभूजत का कायिकाल 31 माच,ि 2023 स े िुरू होगा। जििेष प्रजतभूजत पर ब्याि उनकी अिजध प्रारंभ होने की तारीख स े उपजचत होगा। जििेष प्रजतभूजत की िापसी अिायगी सममूल्य पर 31 माचि, 2033 को भारतीय ररििि बैंक, मुंबई के लोक ऋण कायािलय म ेंकी िाएगी। 6. ब्याि जििेष प्रजतभूजत पर 7.33 प्रजतित िार्षिक की िर पर ब्याि प्राप्त होगा। ब्याि का जहसाब जििेष प्रजतभूजत की अिजध प्रारंभ होने की तारीख स े लगाया िाएगा और यह भगु तान जििेष प्रजतभूजत की पररपक्वता तक अर्द्िि ार्षिक आधार पर 30 जसतम्बर और 31 माच ि को िये होगा। जििेष प्रजतभूजत पर ब्याि का भुगतान भारतीय ररिि ि बैंक के फोट,ि मुंबई के लोक ऋण कायािलय म ें दकया िाएगा। ब्याि का भुगतान ब्याि की राजि को जनकटतम रुपए तक पूणाांदकत करन े के बाि दकया िाएगा। 7. हस्ट्तातं रणीयता (i) इस अजधसूचना के परै ा 4 के प्रािधानों के अधीन भारतीय प्रजतभूजत अजधजनयम, 2006 तथा उसके अंतगति बनाए गए सरकारी प्रजतभूजत जिजनयम, 2007 के उपबंधों के अंतगित जििेष प्रजतभूजत का निीकरण, उप-जिभािन, समेकन, रूपान्तरण अथिा अंतरण दकया िा सकता ह।ै (ii) इस अजधसूचना म ें ऊपर परै ा 1 म ें दिए गए कथन के बाििूि, अजभिानकताओंि द्वारा जििषे प्रजतभूजत को बैंकों, जनगम अथिा दकसी अन्य जनकाय सजहत दकसी अन्य व्यजि के पि म ें अंतरण करन े पर कोई प्रजतबंध नहीं होगा और ऐसी प्रजतभूजत का अतं ररती भी उन्ह ेंउसी तरीके स े धारण तथा अंतरण करने का पात्र होगा। 8. साजं िजधक प्रािधान ऐस े दकसी भी मामले के संबंध म ें जिसकी व्यिस्ट्था इस अजधसूचना के तहत नहीं की गई ह,ै जििेष प्रजतभूजत सरकारी प्रजतभूजत अजधजनयम, 2006 तथा उसके अतं गति बनाए गए सरकारी प्रजतभूजत जिजनयम, 2007 के उपबंधों के अंतगति जनयंजत्रत की िाएगी। 9. कर काननू की प्रयोज्यता जििेष प्रजतभूजत म ें जनिेि का मूल्य और उस पर िये ब्याि समय-समय पर लागू कर काननू ों के उपबंधों द्वारा िाजसत दकया िाएगा। 10. प्रजतभजू तयों की पात्रता बैंकों द्वारा जििेष प्रजतभूजत म ें जनिेि को बैंकों और बीमा कंपजनयों द्वारा उनकी सांजिजधक अपेिाओं के अनुसार सरकारी प्रजतभूजतयों म ें पात्र जनिेि नहीं माना िाएगा। लेदकन, बीमा कंपजनयों द्वारा ऐस े जनिेि को समय-समय पर यथा संिोजधत बीमा जिजनयामक एिं जिकास प्राजधकरण (जनिेि) जिजनयम, 2000 के तहत यथा पररभाजषत "अन्य अनुमोदित प्रजतभूजतयों" की श्रेणी के तहत जनिेि माना िाएगा। इसके अलािा, भजिष्य जनजधयों, उपिान जनजधयों, अजधिर्षिता जनजधयों आदि द्वारा जििेष प्रजतभूजतयों म ें जनिेि को जित्त मंत्रालय के प्रिासजनक आििे के अधीन पात्र जनिेि के रूप म ें माना िाएगा।[भाग I—खण् ड 1] भारत का रािपत्र : असाधारण 3 11. रेपो के जलए पात्रता जििेष प्रजतभूजत हस्ट्तान्तरणीय होंगी और बािार के तत्काल िायिा लेन-िने (रेपो) के जलए पात्र होगी। भारत के राष्ट्रपजत के आिेि से, आिीष िच्छानी, अपर सजचि MINISTRY OF FINANCE (Department of Economic Affairs) (BUDGET DIVISION) NOTIFICATION New Delhi, the 31st March, 2023 Issue of 7.33 per cent Postal Life Insurance Government of India Special Security, 2033 F.No.5 (1)-B(PD)/2021:—Government of India hereby notifies the issue of 7.33 per cent Postal Life Insurance Government of India Special Security, 2033, (hereinafter briefly described as “Special Security”) for an aggregate amount of ₹3000 crore (nominal) on March 31, 2023. 1. 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. 2. 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 ₹10,000 (Nominal) and in multiples of ₹10,000 thereafter. 3. Application The Special Securities shall be issued on application as per proforma in Annexure I, to the Directorate of Postal Life Insurance. 4. 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. 5. Commencement of tenure and date of repayment The tenure of Special Securities will commence from March 31, 2023. Interest on the Special Security will accrue from the date of commencement of tenure. The Special Security will be repaid at par on March 31, 2033 at Public Debt Office, Reserve Bank of India, Mumbai. 6. Interest The Special Security will bear interest at the rate of 7.33 percent 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 31 till maturity.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1] 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. 7. Transferability (i) Subject to the provisions of paragraph 4 of the notification, the Special Security can be renewed, sub- divided, 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. 8. 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. 9. 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. 10. 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. 11. Eligibility for Repo The Special Security will be transferable and eligible for market ready forward transactions (Repo). By Order of the President of India ASHISH VACHHANI, Addl. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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