Government Securities Act, 2006

The Government Securities Act, 2006 is a legislation of the Parliament of India, which aims to introduce various improvements in the government securities market and the management of government securities by the Reserve Bank of India (RBI).

[1] The Public Debt Act, 1944 was an act of the Parliament of India which provided a legal framework for the issuance and servicing of government securities in India.

It was considered outdated, and the Government Securities Act, 2006 was introduced to replace it.

[2] The Act oversees government securities and their management by the RBI.

[3] The second clause of Section 2 defines government securities as securities issued by the central or a state government for the purpose of raising a public loan.