Government of India have announced the issue of '8.35 per cent SBI Rights Issue Government of India Special Bonds, 2024' for Rs.9996.012 crore (nominal). The Special Bonds are being issued at par to State Bank of India on March 27, 2008 (Thursday) as subscription towards Rights Issue of equity shares of State Bank of India.
The investment in the Special Bonds 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. Further, the investment by the Provident Funds, Gratuity Funds, Superannuation Funds, etc. in the Special Bonds will be treated as an eligible investment under the administrative order of the Ministry of Finance.
The Special Bonds will be transferable and eligible for market ready forward transactions (Repo). The bonds, however, will not be an eligible underlying security for ready forward transactions (Repo/Reverse Repo) with the Reserve Bank of India.
Government of India
Ministry of Finance
Department of Economic Affairs
New Delhi
Dated March 27, 2008
