Section 16   [ View Judgements ]

Procedure for issue of new securities on conversion, consolidation, sub division and renewal


Subject to any general or special instructions of the Bank, the Public Debt Office may, by its order, on the application of the holder of the Government Promissory Note:-



(a) convert the Government promissory note into stock certificate provided that the promissory note has not matured and all un-encashed interest warrants are surrendered and has been endorsed,



(i) in the case of Government promissory note of the Central Government, "Pay to the President of India" and



(ii) in the case of Government promissory note of a State Government "Pay to the Governor of.............(the name of the State concerned)";



(b) renew, sub-divide, consolidate a stock certificate provided that the stock certificate has not matured and has been receipted in Form - IX, X, or XI, as the case may be;



(c) convert Government securities of one loan into another loan if-



(i) the inter-loan conversion is permissible; and



(ii) the conditions governing such conversion are complied with;



(d) convert the Government promissory note (s) or stock certificate (s), as the case may he into stock to be held at the credit of the account of the holder in the subsidiary general ledger account including a constituents' subsidiary general ledger account or bond ledger account and such Government promissory note (s) or stock certificate (s) is to be discharged in the form as under:-



"Tendered for cancellation and credit to....................(name of the holder)'s subsidiary general ledger account or constituents' subsidiary general ledger account or bond ledger account Signature of the holder";



(e) convert stock held at the credit of the holder's account in the subsidiary general ledger account including a constituents' subsidiary general ledger account or bond ledger account into stock certificate (s) subject to compliance with such formalities as the Public Debt Office may require.

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