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Retail Direct Scheme

Nomination related queries

25. What happens if one of the joint nominees to a Government security dies? +

In such cases where a nomination in respect of a Government security has been made in favour of two and either or any of the nominees is dead, the surviving nominee will be entitled to the Government security and payment thereon.

Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024

Money Transfer through UPI/ IMPS

25. Can I transfer my money into my Paytm Payments Bank account through UPI/ IMPS after March 15, 2024? +

No. You cannot transfer the money into your Paytm Payments Bank account after March 15, 2024

Government Securities Market in India – A Primer

25. What are the day count conventions used in calculating bond yields? +

Day count convention refers to the method used for arriving at the holding period (number of days) of a bond to calculate the accrued interest. As the use of different day count conventions can result in different accrued interest amounts, it is appropriate that all the participants in the market follow a uniform day count convention.

For example, the conventions followed in Indian market are given below.

Bond market: The day count convention followed is 30/360, which means that irrespective of the actual number of days in a month, the number of days in a month is taken as 30 and the number of days in a year is taken as 360.

Money market: The day count convention followed is actual/365, which means that the actual number of days in a month is taken for number of days (numerator) whereas the number of days in a year is taken as 365 days. Hence, in the case of T-Bills, which are essentially money market instruments, money market convention is followed.

In some countries, participants use actual/actual, some countries use actual/360 while some use 30/actual. Hence the convention changes in different countries and in different markets within the same country (eg. Money market convention is different than the bond market convention in India).

Foreign Investment in India

Q.25: Within how many days from the date of receipt of the consideration should the capital instrument be issued ? +

Answer: The capital instrument has to be issued by the Indian company within sixty days from the date of receipt of the consideration.

Indian Currency

C) Different Types of Bank Notes and Security Features of banknotes

5. What is the need for printing different series of banknotes? +

Central banks the world over change the design of their banknotes and introduce new security features primarily to make counterfeiting difficult and to stay ahead of counterfeiters. India also follows the same policy.

Core Investment Companies

D. Miscellaneous:

25. While instruments that are compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue are excluded from Outside Liabilities, in terms of the Companies Act such instruments are excluded from the definition of ‘public deposit’ if they are convertible with a period of 20 years?

Ans: The period of 10 years was specified as a prudential measure not necessarily in alignment with a provision of the Companies Act. Moreover, the issue here is not public deposits but Outside Liabilities.

Portfolio Investment Positions (PIP) by Counterpart Economy (formerly CPIS) – India

Updated: ଡିସେମ୍ବର 01, 2023

Special instructions for banks

Q25. Should portfolio investments assets made by branches of the banks outside India be included in PIP?

Ans: No, investments made by branches of your bank located outside India should not be included in PIP.

All you wanted to know about NBFCs

D. Depositor Protection Issues

25. What is the role of Company Law Board (CLB), now National Company Law Board (NCLT), in protecting the interest of depositors? How can one approach it?

When an NBFC fails to repay any deposit or part thereof in accordance with the terms and conditions of such deposit, the CLB/NCLT either on its own motion or on an application from the depositor, direct by order, the NBFC to make repayment of such deposit or part thereof forthwith or within such time and subject to such conditions as may be specified in the order. After making the payment, the company will need to file the compliance with the local office of the Reserve Bank of India.

As explained above, the depositor can approach CLB/NCLT by mailing an application in prescribed form to the appropriate bench of the CLB/NCLT according to its territorial jurisdiction.

FAQs on Non-Banking Financial Companies

Classification of NBFCs into sub-groups

26. Whether the classification of NBFCs into sub-groups as equipment leasing/hire purchase finance/loan/investment companies is still relevant when the overall ceiling on borrowing have been abolished? +

The NBFCs in the category of equipment leasing and hire purchase finance companies are allowed higher leveraging of their NOF for accepting public deposits as compared to the loan and investment companies. As a result, the classification into sub-groups of the NBFCs is relevant only for the purpose of ceiling on public deposits.

Retail Direct Scheme

Investment and Account holdings related queries

26. What is the periodicity of Primary market auctions? +

While the primary auctions are conducted generally on specified days of the week as given in the table below, these days may differ due to holidays or other considerations. Half yearly indicative calendars are published on RBI website for Government of India’s dated securities and Sovereign Gold Bonds whereas quarterly indicative calendars are published for Treasury Bills and State Development loans. For details visit /en/web/rbi

S. No.	Government security	Primary auction usually held on
1	Government of India Treasury Bills (T-Bills)	Wednesdays
2	Government of India dated securities (dated G-Sec)	Fridays
3	State Development Loans (SDLs)	Tuesdays
4	Sovereign Gold Bonds (SGB)	Weekly windows announced by RBI in its press release