The Government Securities Act, 2006

The Government Securities Act, 2006 is a comprehensive legislation that regulates government securities and their management by the Reserve Bank of India. The act consolidates and amends various laws relating to government securities and provides for the transfer, holding, and recognition of title to such securities. Key provisions include:

• Short title, application, and commencement


• Definitions and forms of government securities


• Subsidiary general ledger account and its requirements


• Transfer of government securities


• Holding of government securities by holders of public offices


• Recognition of title to government security of deceased sole holder or joint holders


• Right of survivors of joint holders or several payees


• Nomination by holders of government securities


• Government securities belonging to minor or insane person


• Issue of duplicate securities and new securities on conversion, consolidation, sub-division, renewal, stripping, or reconstruction


• Summary determination by Bank of title to government security in case of dispute


• Law applicable in regard to government securities


• Postponement of payments and registration of transfers pending the making of vesting order


• Power of Bank to require bonds


• Publication of notices in Official Gazette


• Procedure and scope of vesting order


• Legal effect of orders made by Bank


• Stay of proceedings on order of Court


• Cancellation by Bank of vesting proceedings


• Discharge in respect of interest on government securities


• Discharge in respect of bearer bonds


• Period of limitation of Government’s liability in respect of interest


• Inspection of documents


• Micro films, facsimile copies of documents, magnetic tapes, and computer print outs as documents of evidence


• Power to make regulations

The act aims to provide a framework for the management of government securities, ensuring their safety, security, and smooth functioning.