Fake debt instruments in circulation, says govt
The government has admitted that circulation of fake debt instruments has come to its notice and said the move toward dematerialisation is likely to curb counterfeiting.
By Agencies |
NEW DELHI: The government has admitted that circulation of fake debt instruments has come to its notice and said the move toward dematerialisation is likely to curb counterfeiting.
“There have been some instances of circulation of non-genuine government debt instruments that have come to the notice of the government,” minister of state in the Ministry of Finance PK Bansal told the Rajya Sabha in a written reply. However, he said, it was difficult to quantify the amount of losses on this count.
The progress toward dematerialisation, which is proposed to be completed after the enactment of Government Securities Bill, is expected to curb the possibility of counterfeiting in government securities, Mr Bansal said.
The Parliament recently gave approval to the Bill, which enables trading of government securities in dematerialised form. At present, buying and selling is done through physical papers.
To check counterfeiting, the government has taken various steps like surprise checks of agencies concerned, greater awareness of security features, requesting public to transact through post offices and more stringent procedure for verification before encashment.
“There have been some instances of circulation of non-genuine government debt instruments that have come to the notice of the government,” minister of state in the Ministry of Finance PK Bansal told the Rajya Sabha in a written reply. However, he said, it was difficult to quantify the amount of losses on this count.
The progress toward dematerialisation, which is proposed to be completed after the enactment of Government Securities Bill, is expected to curb the possibility of counterfeiting in government securities, Mr Bansal said.
The Parliament recently gave approval to the Bill, which enables trading of government securities in dematerialised form. At present, buying and selling is done through physical papers.
To check counterfeiting, the government has taken various steps like surprise checks of agencies concerned, greater awareness of security features, requesting public to transact through post offices and more stringent procedure for verification before encashment.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
