Section 6 of The Government Securities Act, 2006
- (1)In the case of any public office to which the Government may, by notification in the Official Gazette, declare this sub-section to apply, a Government security may be held in the name of the office.
- (2)When a Government security is so held, it shall be deemed to be transferred without any or further endorsement or transfer deed from each holder of the office to the succeeding holder of the office on and from the date on which the latter takes charge of the office.
- (3)When the holder of the office transfers to a party not being his successor in office where a Government security so held, the transfer shall be made by the signature of the holder of the office and the name of the office in the manner laid down in section 5.
- (4)Where the holder of the office is temporarily absent for more than a fortnight from his office for any reason, he may authorise in writing such other person, who would be incharge of this office during the period of such absence, to effect transfer of the Government securities.
- (5)This section applies as well to an office of which there are two or more joint holders as to an office of which there is a single holder.
Summary
- The Government can declare that certain public offices can hold securities in the name of the office itself, rather than the individual officer's name.
- When an officer leaves, the security automatically transfers to the new officer taking charge, without needing new signatures or transfer deeds.
- If the public officer wants to transfer the security to someone who is not their successor, they must sign their own name and the office's name, following the strict transfer rules laid down in Section 5.
- If the officer is temporarily absent for more than a fortnight, they can give written permission to the person temporarily in charge to transfer securities.
- These rules apply whether the office is held by one person or jointly by two or more people.
Practical examples
FAQ
1. If a public officer changes, do they need to sign over the office's government securities to the new officer?
No, the transfer happens automatically when the new officer takes charge.
2. How long does an officer have to be away before they can authorise a temporary replacement to transfer securities?
They must be temporarily absent for more than a fortnight.
3. Can a public office with two joint holders use these rules?
Yes, the section applies equally to offices with single holders and offices with two or more joint holders.
Test yourself
Q1.Under Section 6 of The Government Securities Act, 2006, what happens to a security held in the name of a public office when the current holder is succeeded by a new official?
Q2.Under Section 6 of The Government Securities Act, 2006, when an officer transfers an office's security to an outside party (not a successor), they must follow the manner laid down in Section 5. Based on Section 5, what must this specific transfer do to be valid?
Q3.Under Section 6 of The Government Securities Act, 2006, how long must the holder of a public office be temporarily absent before they can authorise someone else to transfer securities?
Q4.Under Section 6 of The Government Securities Act, 2006, how must a public officer authorise the temporary in-charge person to effect a transfer during a long absence?
Q5.Under Section 6 of The Government Securities Act, 2006, who holds the authority to declare by notification that a public office can hold a Government security in the office's name?