Govt issues Rs 6,200 cr bonds to FCI

New Delhi, Feb 12 (UNI) The Government today issued bonds to the tune of Rs 6,200 crore to Food Corporation of India (FCI) as part of settlement of the outstanding dues of FCI in respect of food grains supplied by it to the Rural Development Ministry.

The investment in 8.23 per cent Government of India FCI Special Bonds, 2027, by the banks will not be reckoned as an eligible investment in government securities by banks and insurance companies 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 and Superannuation Funds in the special bonds will be treated as an eligible investment under the administrative order of Finance Ministry.

The special bonds will be transferable and eligible for market ready forward transactions (repo). The bonds, however, will not be an eligible underlying security for ready forward transactions (repo/reverse repo) with the Reserve Bank of India.

UNI