Date:08/12/2007 URL: http://www.thehindubusinessline.com/2007/12/08/stories/2007120853051000.htm

Back 22 fertiliser cos to get bonds for Rs 3,890 cr

Our Bureau

New Delhi, Dec. 7 The Government has announced the issue of 8.30 per cent fertiliser companies’ ‘Government of India Special Bonds, 2023’ for Rs 3,890 crore (nominal).

The first tranche of the special bonds are being issued at par to 22 fertiliser companies as compensation towards fertiliser subsidy during the current financial year on December 7.

The investment in the special bonds by the banks will not be reckoned as an eligible investment in Government securities by banks and insurance companies 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 Finance Ministry.

The special bonds will be transferable and eligible for market ready forward transactions (Repo).