REGD. NO. D. L.-33004/99

The Gazette of India

EXTRAORDINARY

PART III—Section 4

PUBLISHED BY AUTHORITY

No.

26]

NEW DELHI, WEDNESDAY, FEBRUARY 20, 2002/PHALGUNA 1, 1923

567 GI/2002

(1)

, 8

THE GAZETTE OFPMDIA: EXTRAORDINARY

[PARTIH—SEC, 4]

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

(ISSUE ANDMANAGEMENT OFBONDS)

AMENDMENT REGULATIONS, 2001

NOTIFICATION

New Delhi, the 20th February, 2002

F. No. 3306/RMD Bonds.—In exercise of the powers conferred by Sub-section (1) and 2 of Section 52 of the

Small Industries Development Bank of India Act, 1989 (39 pf 1989), the Board, makes the following amendments to the

Small Industries Development Bank of India (Issue and Management of Bonds) Regulations, 1990, namely :—

(1)

These Regulations may be called Small Industries Development

Bank of India (Issue and Management of Bonds) Amendment

Regulations, 2001.

(2)

They shall come into force on the date of their publication in the

official gazette.

in Regulation 3 of the Small Industries Development Bank of India (Issue

and Management of Bonds) Regulations, 1990, (hereinafter referred to as "tte

Principal Regulations") after sub-regulation (1), the following shall be inserted as

sub-regulation (1A) namely:-

•(1A) Notwithstanding anything contained in sub-regulation (1) and subject

to the provisions of Depositories Act, 1996, every person subscribing to or

holding the Bond shall have the option to hold the same with a depository";

Sub-regulation 4 (a) of regulation 3 shall be substituted with the following

sub-regulation 4 (a) :-

"4 (a) A Bond shall be issued over the signature of the chairman and managing

director or in his absence by deputy managing director and in absence of both by

an executive director and/or an officer not below the rank of chief general

manager of the Small Industries Development Bank of India which may be

printed, engraved, lithographed or impressed by such mechanical or electronic

process as the Small Industries Bank may direct."

In Regulation 4 of the Principal Regulations, after sub-regulation (1), the

following proviso and explanation shall be inserted namely :-

"Provided that nothing in this Regulation shall apply to a depository in

respect of Bonds held by it as a registered owner on behalf of the beneficial

owner.

Explanation :

For the purpose of Regulation 3,4,8 and 24 of the Principal

Regulations and Form No. XIV set out in the Schedule thereto, the expression

"beneficial owner", "depository" and "registered owner" shall have the same

meaning respectively assigned to them in Clauses (a), (e) and (j) of sub-clause

(1) of Section 2 of the Depositories Act, 1996."

For Regulation 8 of the Principal Regulations, the following Regulation

shall be substituted namely :-

"8.

Payment of Interest :-

Interest on a Bond shall be paid by the Small Industries Bank by means of

interest warrant crossed account payee, credit to the bank account by electronic

THE GAZETTEOF INDIA: EXTRAORDINARY

[PART III—SEC. 4]

clearing service or such other manner as may be specified in the offer document

or such other manner as may be decided by the Small Industries Bank."

For Regulation 10 of the Principal Regulations, the following Regulation

shall be substituted namely :-

"10.

Publication of notice of loss,theft,etc. in newspaper :-

(1) The loss, theft, destruction, (mutilation or defacement) of a Bond, either

wholly or in part, in the form of a promissory note shall be published on behalf of

the applicant in a leading newspaper of the area.

Explanation - The Small Industries Bank shall decide from time to time as to

which of the newspaper shall be deemed to be 'leading' newspaper for the area,

under jurisdiction of the Office of Issue.

(2) The publication referred to in sub-regulation (1) shall be in the following

form or nearly in such form as circumstances permit, namely :-

The Small Industries Development Bank of India Bond No

of the

percent Bond

for Rs

originally standing in the name of

last endorsed to

the proprietor, by whom it was never

endorsed to any other person having been Lost/ Stolen/ Destroyed/( Mutilated/

Defaced), notice is hereby given that payment of the above Bond and the Interest

thereupon has been stopped at the Office of Issue, and that application is about

to be made or has been made for the issue of a duplicate in favour of the

proprietor. The public are cautioned against purchasing or otherwise dealing with

the above-mentioned Bond";

For Regulation 11 of the Principal Regulations, the following Regulation

shall be substituted namely :-

"11.

Issue of duplicate Bond and taking of indemnity :-

(1) If the Prescribed Officer is satisfied of the loss, theft, destruction or

defacement of the Bond in the form of a promissory note, he may order issue of a

duplicate Bond in the form of a promissory note on applicant's furnishing an

indemnity bond with one or more sureties:

Provided that if at any time before the issue of the duplicate Bond in the form of a

promissory note, the original Bond is discovered or it appears to the Office of the

Issue for other reasons that the order should be rescinded, the matter shall be

referred to the Prescribed Officer for further consideration, and in the meantime,

all action on the order shall be suspended.An order passed under this

sub-regulation shall, on expiry of the three months referred to therein, become

final unless it is in the meantime rescinded or otherwise modified; and

Provided that where a Bond in the form of a promissory note lost, stolen,

destroyed, mutilated or defaced is of denomination not exceeding rupees fifty

thousand, a duplicate Bond in the form of promissory note may be issued on

applicant furnishing an indemnity Bond without any such surety;

Provided further that where such application is made with respect to a Bond in the

form of a promissory note mutilated or defaced, of whatever face value, a

duplicate Bond In the form of promissory note may be issued without any such

indemnity with or without surety, if the Bond in the form of promissory note is

capable of being identified as the one originally issued;

THE GAZETTE Of INDIA: EXTRAORDINARY

(PART ID—SEC. 4]

(2) the Small Industries Bank shall not incur any liability for issuing such

Bond in good faith under this regulation.

(3) A duplicate certificate issued under sub-regulation (1) shall be treated

as equivalent to the original certificate for all the purposes of these regulations

except that it shall not be encashable at an office of issue other than the office of

issue at which such certificate is registered without previous verification.

For Regulation 13 of the Principal Regulations, the following Regulation

shall be substituted namely :-

"13. Publication of list of duplicate Bonds :-

(1) The Small Industries Bank shall publish half-yearly in the two leading

newspapers or in one leading newspaper and in the Gazette of India in the

months of January and July a list of duplicate Bonds issued by the Small

Industries Bank.

(2) The list shall contain the following particulars regarding the duplicate

Bonds by the Small Industries Bank > (a) the name of the issue, (b) the number of

the Bond, its value, (c) the name of the person to whom it was issued, (d) the

date from which it bears interest, (e) the name of the applicant for a duplicate, (f)

the number and date of order passed by the Prescribed Officer for payment of

interest or issue of a duplicate.

For Sub-Regulation (3) of Regulation 17 of the Principal Regulations, the

following Sub-Regulation (3) shall be substituted namely :-

"(3) The Office of Issue shall not be bound to recognise such executors or

administrators unless they shall

have obtained probate or letters of

administration, as the case may be, from a competent court or office in India,

having effect at the place of situation of the Office of Issue, provided that in any

case where the Prescribed Officer in his absolute discretion thinks fit, it shall be

lawful for him to dispense with the production of probate or letters of

administration or other legal representation upon such terms as to indemnity or

otherwise, as he may think fit.

10.

In Regulation 24 of the Principal Regulations, for sub-regulation (b), the

following sub-regulation shall be substituted namely :-

"(b)

When a Bond in the form of an entry in the account or held with a

depository becomes due for payment of principal, a duly signed receipt in Form

XIV shall be furnished by the holder or beneficial owner, as the case may be, to ;

the Office of Issue."

Explanation : For the purpose of this Regulation, the expression "beneficial

owner", "depository" and "registered owner" shall have the same meaning

respectively assigned to them in clauses (a), (e) and (j) of sub-clause (1) section

2 of the Depositories Act, 1996.

11.

For Regulation 25 of the Principal Regulations, the following Regulation

shall be substituted namely :-

"25. Exercise of Powers on behalf of the Small Industries Bank :-

The Powers exercisable by the Small Industries Bank under Regulations

4(2), 5(2), 5(7), 6 (6) and 8(1) may be exercised on behalf of the Small Industries

Bank by the Chairman and Managing Director and in his absence a Deputy

Managing Director and /or an Executive Director

and /or a Chief General

Manager of the Small Industries Bank.

12.

In the Schedule to the Principal Regulations, Form No. XIV shall be

substituted by the following Form, namely :-

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART III—SEC. 4]

"FORM XIV [See regulation 24(b)]

Form of discharge for the Bonds held in the form of entry in the account

with the Small Industries Bank or with Depository.

To:

Manager

Bonds Section

Small Industries Development Bank of India

Mumbai.

Dear Sir,

Re:

% Small Industries Development Bank

of India Bond(s);

(

Series)

Received the principal amount with accrued interest on the date of maturity

on Captioned Bond(s) of the nominal face value of Rs.

(Rupees

only) held in the form of an entry in the books of Small Industries

Development

Bank of India or with a Depository to the Credit of

(Bond holder). *lt is certified that the nominal amount of

the Bond(s) and the accrued interest as on the date of maturity agree with my/our

books.

Yours faithfully,

Signature(s) of the registered holders) beneficial

owner(s)/his/their duly authorised representative

Name(s) of registered holder(s)//

beneficial owner(s)

** Certified that the name of the beneficial owner(s) is recorded in the register of

beneficial owner maintained by us and his signature tallies with the specimen

signature available with us.

Name of the authorised official

of the depository

Date:

Place:

* Applicable in the case of Bond held in the form of an entry in the books of the Small Industries

Development Bank of India.

** Applicable in the case of Bond held with a depository.

P. B. NIMB A1JCAR, Chairman and Managing Director

[ADVT IMV/Exty.A39/011

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and Publl»hed by the Controller of Publications, Delhi-110034.