How and in what form can Government Securities be held?
7.1 The Public Debt Offi ce (PDO) of the Reserve Bank of India, Mumbai acts as the registry and central depository for the Government securities. Government securities may be held by investors either as physical stock or in dematerialized form. From May 20, 2002, it is mandatory for all the RBI regulated entities to hold and transact in Government securities only in dematerialized (SGL) form. Accordingly, UCBs are required to hold all Government securities in demat form. a. Physical form: Government securities may be held in the form of stock certifi cates. A stock certifi cate is registered in the books of PDO. Ownership in stock certifi cates can not be transferred by way of endorsement and delivery. They are transferred by executing a transfer form as the ownership and transfer details are recorded in the books of PDO. The transfer of a stock certifi cate is fi nal and valid only when the same is registered in the books of PDO. b. Demat form: Holding government securities in the dem
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