Issue of Postal Life Insurance Government of India Special Security
By RBIThursday, March 31, 2011
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The Government of India have announced the issue of 8.01 per cent ‘Postal Life Insurance Government of India Special Security 2021’ for ` 4,000 crore (nominal) and 8.08 per cent ‘Postal Life Insurance Government of India Special Security 2023’ for ` 3,000 crore (nominal). The Special Securities are being issued at par to Directorate of Postal Life Insurance on March 31, 2011 (Thursday) to convert part of the frozen corpus of Post Office Life Insurance Fund (POLIF) and Rural Post Life Insurance Fund (RPOLIF).
The investment in the Special Security by the banks and Insurance Companies will not be reckoned as an eligible investment in Government securities 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 Securities will be treated as an eligible investment under the administrative order of the Ministry of Finance. The Special Securities will be transferable and eligible for market ready forward transactions (Repo). Ajit Prasad Press Release : 2010-2011/1418 |
