Special oil bonds due for redemption on 7 and 23 March

The outstanding balances of 7.47 per cent special bonds issued to oil marketing companies by the Government of India in 2012 and the 7.44 per cent special bonds 2012 are redeemable at par on 7 March 2012 and 23 March 2012, respectively, an official release said today.

Government will cease paying any interest on these bonds from the said dates. In the event of a holiday being declared on 7 March 2012 and/on 23 March 2012 by any state government under the Negotiable Instruments Act, 1881, the bonds may be encashed at the paying offices in that state on the previous working day, it said.

Payment of maturity proceeds to the registered holder of government securities will be made by a pay order incorporating the relevant particulars of his bank account or by credit to the account of the holder in any bank having facility of receipt of funds through electronic means, the release said.

Government has asked holders of such securities to submit relevant particulars of their bank account well in advance.

In the absence of relevant particulars of bank accounts or mandate for receipt of funds through electronic means, holders should tender the securities, duly discharged, at the Public Debt Offices, Treasuries/Sub-Treasuries and branches of the State Bank of India or its associate banks 20 days in advance of the due date for redemption, to facilitate repayment of the loan on the due date.