Section 4   [ View Judgements ]

Transfer of Government securities


(1) Government securities in different forms shall be transferable in the following manner, namely:-



(a) Government promissory note:- It shall be transferable by endorsement and delivery and no endorsement of a Government promissory note shall be valid unless such endorsement is made by the signature of the holder or his duly constituted attorney or representative, inscribed on the back of the security itself, for negotiation of total amount denominated by the security;



(b) Bearer bond:- It shall be transferable by delivery and the person in possession of the bond shall be deemed to be the holder of the bond;



(c) Stock certificate:- Stock for which stock certificate has been issued shall be transferable before maturity either wholly or in part by execution of an instrument of transfer in Form - III and the transferor shall continue to be the holder thereof until the Bank registers the name of the transferee as the holder of the stock;



(d) Subsidiary general ledger account including a constituents' subsidiary general ledger account:- Stock held at the credit of the holder in a subsidiary general ledger account including a constituents' subsidiary general ledger account with the Bank shall be transferable before maturity either wholly or in part by execution of an instrument of transfer in Form - IV and the transferor shall continue to be the holder of such security to which the transfer relates until the Bank registers the name of the transferee as the holder.



(e) Bond ledger account:- A Government security held in a "bond ledger account" with the Bank or its agent shall be transferable before maturity either wholly or in part by execution of an instrument of transfer in Form - V by the holder of the security and the transferor shall continue to be the holder of such security until the Bank, or, as the case may be, its agent registers the name of the transferee.



(2) Government securities held in subsidiary general ledger account including a constituents' subsidiary general ledger account or bond ledger account, shall also be transferable by execution of a transfer deed in an electronic form under digital signature as defined in clause (p) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000).

#LawyerServices #Section #Act #Law #Statute #IndianLaw #Kanoon