Panaji: The state government has issued a fresh notification laying down a comprehensive framework for the sale and issuance of state government securities, replacing the earlier guidelines notified in April 2017.
The new ‘General Notification for Sale and Issuance of Government Securities’ was published in the Official Gazette on April 16.
As per the notification, the objective is to standardise the issuance process and detail the features of various debt instruments raised by the state. The securities will be backed by the Consolidated Fund of Goa in accordance with Article 293(1) of the Constitution of India.
The government has retained flexibility in the types of instruments it may issue. These include fixed coupon rate securities, where the interest rate remains constant throughout the tenure, and other instruments with features to be specified separately. Such securities will have a minimum maturity of one year and may be issued at par, discount or premium.
The notification widens the investor base, allowing participation from individuals, firms, companies, provident and pension funds, and other institutional investors. Non-resident investors may also participate, subject to regulations under the Foreign Exchange Management Act, 1999.
A minimum investment of Rs 10,000 has been prescribed, with further investments in multiples of the same amount. Interest payments will be handled by the RBI’s Public Debt Offices, while repayment will be made on maturity or earlier in cases such as buybacks or exercise of embedded options.
The notification also elaborates on multiple modes of issuance, with auctions remaining the primary route. Both yield-based and price-based auctions will be conducted, with options for competitive and non-competitive bidding.
Retail investors can participate through the non-competitive bidding facility.
Additionally, the government has provided for on-tap sales, allowing securities to be available for subscription over a period, and for switching or conversion of existing securities into new instruments as part of debt management operations.
