Section 3
Transfer of Government securities.
About this Act
An Act to consolidate and amend the law relating to Government securities and to the management by the Reserve Bank of India of the public debt of the Government.
(1)
1[Subject to the provisions of section 5, a
transfer of a Government security shall be made only in the manner prescribed for the making
of transfers of securities of the class to which it belongs, and no transfer of a Government
security which--
(i) is made after the 30th April, 1946, in the case of a security issued by the Central Government,
(ii) is made after the 31st March, 1949, in the case of a security issued by the Government of a Part A State,
(iii) is made after the 14th October, 1956, in the case of a security issued by the Government of a Part B State other than Jammu and Kashmir, 2***
(iv) is made on or after the 1st day of November, 1956, in the case of a security issued on or after that day by the Government of any State other than Jammu and Kashmir*, 3[and]
4[(v) is made on or after the 1st day of September, 1972, in the case of a securit y issued on or after that day by the Government of the State of Jammu and Kashmir,]
shall be valid if--]
(a) it does not purport to convey the full title to the security, or
(b) it is of such a nature as to affect the manner in which the security was expressed by 5[the Government] to be held.
(2) Nothing in this section shall affect any order made by the Bank under this Act, or any order made by a Court upon the Bank.
(i) is made after the 30th April, 1946, in the case of a security issued by the Central Government,
(ii) is made after the 31st March, 1949, in the case of a security issued by the Government of a Part A State,
(iii) is made after the 14th October, 1956, in the case of a security issued by the Government of a Part B State other than Jammu and Kashmir, 2***
(iv) is made on or after the 1st day of November, 1956, in the case of a security issued on or after that day by the Government of any State other than Jammu and Kashmir*, 3[and]
4[(v) is made on or after the 1st day of September, 1972, in the case of a securit y issued on or after that day by the Government of the State of Jammu and Kashmir,]
shall be valid if--]
(a) it does not purport to convey the full title to the security, or
(b) it is of such a nature as to affect the manner in which the security was expressed by 5[the Government] to be held.
(2) Nothing in this section shall affect any order made by the Bank under this Act, or any order made by a Court upon the Bank.
Notes
1. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for the opening paragraph.
2. The word "and" omitted by Act 44 of 1972, s. 3 (w.e.f. 1-9-1972).
3. Added by s. 3, ibid. (w.e.f. 1-9-1972).
4. Ins. by s. 3, ibid. (w.e.f. 1-9-1972).
5. Subs. by Act 6 of 1949, s. 6, for "the Central Government" (w.e.f. 1-4-1949).
*. Vide Notification No. S.O. 3912 (E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh.
2. The word "and" omitted by Act 44 of 1972, s. 3 (w.e.f. 1-9-1972).
3. Added by s. 3, ibid. (w.e.f. 1-9-1972).
4. Ins. by s. 3, ibid. (w.e.f. 1-9-1972).
5. Subs. by Act 6 of 1949, s. 6, for "the Central Government" (w.e.f. 1-4-1949).
*. Vide Notification No. S.O. 3912 (E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh.