REGISTERED NO. PT.-40
EXTRA ORDINARY
PUBLISHED BY AUTHORITY
19 AGRAHAYANA1947(S)
(NO.PATNA 1761) PATNA, WEDNESDAY, 10TH DECEMBER 2025
FINANCE DEPARTMENT
———
NOTIFICATION
The 9th December 2025
Sale and Issuance of State Government Securities
No. WM-74/2025-941.—Government of Bihar, in supersession of its Notification
No.B.T-111/92- 492/B dated 20/07/2007 hereby notifies the terms and conditions for sale
and issuance of Government Securities issued by the Government of Bihar (hereinafter
referred to as “Securities”),
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 Bihar
(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 Bihar in accordance with
Article 293(1) of the Constitution of India.
2
BIHAR GAZETTE (EXTRA) 10TH DECEMBER 2025
4. Types of Securities.—
Government of Bihar may issue, from time to time, the following types of
Securities:
i. Fixed Coupon Rate Securities.—
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.
ii. 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 State 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
1 (SGL) account or to Constituents’ Subsidiary
Ledger2(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 State
Government.
1 A subsidiary General Ledger (SGL) Account shall mean an account opened and held with the Reserve Bank
for holding or/and transacting in Government Securities.
2 CSGL is the SGL account opened and maintained with the Reserve Bank by an agent on behalf of the
constituent of such agent.
3
BIHAR GAZETTE (EXTRA) 10TH DECEMBER 2025
v. Payment.—
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.—
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.
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.—
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 State Government / 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 State
Government.
viii. Transferability.—
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 there under and the terms of this notification and any
other notification which may be issued 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 there under.
ix. Applicable Laws.—
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
there under, 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.
4
BIHAR GAZETTE (EXTRA) 10TH DECEMBER 2025
6. Modes of issue of Securities.—
Government of Bihar may issue Securities 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 stated 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.
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 State Government, 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
State Government 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.
5
BIHAR GAZETTE (EXTRA) 10TH DECEMBER 2025
h) The Reserve Bank, in consultation with State Government, 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 State Government.
d) The Reserve Bank, in consultation with the State Government, 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 State Government, 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 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 State Government, in
consultation with the Reserve Bank.
By Order of the Governor of Bihar,
ANAND KISHOR,
Principal Secretary.
———
PUBLISHED AND PRINTED BY THE SUPERINTENDENT,
BIHAR SECRETARIAT PRESS, PATNA,
BIHAR GAZETTE (EXTRA) 1761-571+10
Website:https://egazette.bihar.gov.in