No. 739]

CHENNAI, MONDAY, NOVEMBER 17,  2025

Karthigai 1, Visuvaavasu, Thiruvalluvar Aandu-2056

Part II—Section 1

Notifications or Orders of specific character or of particular interest to the public

issued by Secretariat Departments.

NOTIFICATIONS BY GOVERNMENT

TAMIL NADU

GOVERNMENT GAZETTE

EXTRAORDINARY PUBLISHED BY AUTHORITY

[ 1 ]

Ex-II-1—(739)

FINANCE DEPARTMENT

GENERAL NOTIFICATION ON THE MARKET BORROWING PROGRAMME OF TAMIL NADU

Secretariat, November 17, 2025

No. II(1)/FIN/29(i)/2025.

The following Notification is Published:-

NOTIFICATION

[No.860 (L)/W&M-II/2025]

1. Government of Tamil Nadu in supersession of Notification No.644(L) / W&M-II / 2023, dated 22nd

February 2023 issued by Government of Tamil Nadu, hereby notifies that issue of Government of Tamil Nadu

Securities (hereinafter referred to as “the Securities”) hereafter will be subject to terms and conditions spelt out in

this notification (called the ‘General Notification’) as also terms and conditions notified separately in the Specific

Notification issued in respect of each security issue until further notice.

2.

Name and Applicability

i. This Notification shall be called as the ‘General Notification for Sale and Issuance of Government Securities

by the Government of Tamil Nadu.’ (hereinafter referred to as ‘General Notification’).

ii. Sale and issuance of Securities shall be subject to the general terms and conditions contained in this

Notification and any other notification that may be issued with respect to creation and issuance of any specific

Security (hereinafter referred to as “Specific Notification”).

3.

Objective

The objective of this Notification is to list out the terms and conditions applicable to issuance of Securities

and certain features and methods of issue of different types of Securities. The Securities will be issued upon the

security of the Consolidated Fund of the State of Tamil Nadu in accordance with Article 293(1) of the Constitution

of India.

©

[Regd. No. TN/CCN/467/2012-14.

GOVERNMENT OF TAMIL NADU

[R. Dis. No. 197/2009.

2025

[Price: Rs. 1.60 Paise.

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TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

4.

Types of Securities

Government of Tamil Nadu may issue, from time to time, the following types of Securities:

i. Fixed Coupon Rate Securities

ii.

a)

Securities carry a specific coupon rate, applied to the face value, determined at auction or

otherwise, as specified in relevant Specific Notification, and remain fixed during the tenor of the

Securities.

b)

Securities may be issued at a discount, at par or at a premium to the face value.

c)

Securities may be issued with original maturity of not less than one year.

d)

Securities may be redeemed at face value or as specified in the Specific Notification.

iii. Securities with other features as notified in the relevant Specific Notification

5.

General Terms and Conditions

The general terms and conditions applicable to sale and issuance of all Securities will be as under:

i.Eligible Investors

a) Any person resident in India, including but not limited to firms, companies, corporate bodies,

institutions, other Governments, Union Territories with legislature, provident funds, pension funds,

trusts, Hindu Undivided Family and individuals.

b) Any person resident outside India permitted to invest in Securities in terms of the Foreign

Exchange Management (Debt Instruments) Regulations, 2019 issued under Foreign Exchange

Management Act, 1999.

ii. Procedure of Sale and Issue of Securities

The operational procedure and other details such as date and place of issuance, tenor, issuance

method, etc., for sale and issue of securities, shall be announced by the Reserve Bank of India

(the Reserve Bank) through a press release or such other means as may be considered necessary.

iii. Form

Securities shall be issued to the investors by credit to their Subsidiary General Ledger (SGL) account

or to Constituents’ Subsidiary Ledger (CSGL) account, maintained with the Reserve Bank or in such

other form as may be permitted under the provisions of the Government Securities Act, 2006.

iv. Minimum Subscription

Securities will be issued for a minimum amount of ₹10,000 (Face Value) and in multiples of ₹10,000/-

thereafter, or any other amount as specified by the Reserve Bank of India (RBI), in consultation

with the Government of Tamil Nadu.

v. Payment for the Securities

Payment shall be made by the successful SGL/CSGL account holders on such dates as mentioned

in the Specific Notification or as specified by the Reserve Bank, by means of an authority to debit

their current account with the Reserve Bank or by Electronic Fund Transfer or any other means as

stipulated by the Reserve Bank.

vi. Coupon on Securities

a) Coupon on Securities will be paid by the Public Debt Offices (PDOs) of the Reserve Bank.

Coupon on Securities held in Bond Ledger Account with any of the offices of the Reserve Bank/

Agency, as specified by the Reserve Bank in this behalf, will be paid at such Office/Agency.

TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

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b)

Coupon will be paid after rounding off the amount to the nearest whole rupee. For this purpose,

amount of coupon less than fifty paise will be ignored and fifty paise or more will be rounded off

to the next rupee, unless specified otherwise.

vii. Repayment of Securities

a)

Securities will be repaid at PDO of the Reserve Bank or at any other institution at which they

are registered at the time of repayment.

b)

Securities will be repaid on the date of redemption as specified in the Specific Notification or

before their specified redemption dates in case of exercise of option by the Government of Tamil

Nadu / option holder in Securities with embedded options, as the case may be.

c)

Securities may be bought back before their specified redemption date, at a price determined

through a buyback auction, on any date determined by the Reserve Bank, in consultation with the

Government of Tamil Nadu.

viii. Transferability of Securities

a)

Securities can be renewed, sub-divided, consolidated, converted or transferred in accordance with

the provisions of the Government Securities Act, 2006 and the Government Securities Regulations,

2007 framed thereunder and the terms of this notification and any other notification which may be

issued by the Government of Tamil Nadu from time to time in this regard.

b)

The conversion of security from one form to another will be subject to the conditions as per the

Specific Notification.

c)

The transfer of Securities by person resident outside India shall be subject to Regulations framed

under the Foreign Exchange Management Act, 1999 and the Directions issued thereunder.

ix. Laws Applicable in regard to the Securities

a)

The rights of all persons subscribing to or holding the Securities shall be determined in accordance

with the Government Securities Act, 2006 and the Government Securities Regulations, 2007 framed

thereunder, read with the terms of this Notification and any other Notification as may be issued

from time to time.

b)

The provisions of the tax laws, for the time being in force in India, will be applicable for the

purpose of assessing and determining the tax liability of the investor or holder of the Securities.

c)

Any dispute in relation to the Securities shall be subject to the jurisdiction of the Courts in India.

6.

Modes of issue of Securities

Government of Tamil Nadu may issue Securities from time to time through following modes:

i.

Issue of Securities through auction

a)

Securities will be issued through auction, either on yield basis or price basis. Where the issue

of the Securities paying periodic coupon is on yield basis, the coupon is decided in an auction

conducted by the Reserve Bank in the manner as provided hereinafter or as d in the Specific

Notification. Where the issue of the Securities paying periodic coupon is on price basis, the coupon

will be pre- determined.

b)

Both competitive and non-competitive bids for the auction should be submitted in electronic format

on the Reserve Bank’s Core Banking Solution or any other platform/ system as decided by the

Reserve Bank. The Reserve Bank may permit submission of physical bids under exceptional

circumstances.

c)

Competitive bidder may submit multiple bids at same/different rates of yield or prices, as the case

may be. The aggregate amount of bids submitted by an applicant in an auction should not exceed

the notified amount.

d)

On the basis of the bids received, the Reserve Bank will determine the maximum rate of yield or

the minimum price, as the case may be, at which bids for purchase of Securities will be accepted

in the auction. Maximum rate of yield determined in a yield-based auction for the Securities paying

periodic coupon will be the per annum coupon rate for those Securities.

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TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY

e)

Retail Investors can participate in an auction on ‘non-competitive’ basis as per the extant Scheme

of Non-competitive Bidding Facility announced by the Reserve Bank.

f)

The Reserve Bank, in consultation with the Government of Tamil Nadu, may retain additional

subscription up to an amount as may be specified in the ‘Specific Notification’.

g)

The auction for issue of Securities (yield basis or price basis) can be held as per ‘Uniform price’

method or ‘Multiple price’ method or any other method as decided by the Reserve Bank, in

consultation with Government of Tamil Nadu from time to time.

(A) Where an auction is held as per ‘Uniform price’ method, competitive bids with rates up to and

including the maximum rate of yield or the prices up to and including the minimum bid price, as

determined by the Reserve Bank, will be accepted at the maximum rate of yield or minimum bid

price. Bids quoted higher than the maximum rate of yield or lower than the minimum price, so

determined, will be rejected.

(B) Where an auction is held on ‘Multiple price’ method, competitive bids up to the maximum rate

of yield or the minimum bid price, as determined by the Reserve Bank will be accepted at the

respective bid rate. In yield-based auction, successful bidders, whose quotes are lower than the

maximum rate of yield accepted, are required to pay the price differential. Bids quoted higher than

the maximum rate of yield or lower than the minimum price, so determined, will be rejected.

h)

The Reserve Bank, in consultation with Government of Tamil Nadu, may reject any or all bids

either wholly or partially, without assigning any reason thereof.

ii.

Issue of Securities through On-tap sale

a)

The amount of issuance may be/may not be indicated in the notification in respect of the Securities

sold on tap.

b)

Applications, duly filled in and complete in all respect, should be submitted to the office of the

Reserve Bank or any other office notified for the purpose, before the close of specified time/banking

hours notified by the Reserve Bank on the specified date(s).

c)

Sale of such Securities may be extended to whole, or part of the year and the sale may be closed

at any time on any day or as specified by the Reserve Bank, in consultation with the Government

of Tamil Nadu.

d)

The Reserve Bank, in consultation with the Government of Tamil Nadu, may reject any or all bids

either wholly or partially, without assigning any reason thereof.

iii. Switching/ Issue of new Securities in conversion of existing Securities

a)

The Reserve Bank, in consultation with the Government of Tamil Nadu, may provide the holders

of Securities an option to convert certain existing Securities into other Securities at specified price

or at a price as determined in auction.

b)

The Reserve Bank, in consultation with the Government of Tamil Nadu, may accept or reject any

or all bids either wholly or partially, without assigning any reason thereof.

iv. Any other mode, as may be notified by the Government of Tamil Nadu, in consultation with the

Reserve Bank.

(By Order and in the name of the Governor of Tamil Nadu)

T. UDHAYACHANDRAN,

Principal Secretary to Government of Tamil Nadu,

Finance Department.

PRINTED  AND  PUBLISHED  BY  THE COMMISSIONER  OF  STATIONERY  AND  PRINTING, CHENNAI

ON  BEHALF  OF  THE  GOVERNMENT  OF  TAMIL  NADU