Section 31 of GSA : Section 31: Certain Laws Not To Apply To Government Securities

Explanation using Example

Imagine an investor, Mr. Sharma, who bought Government securities under the Public Debt Act, 1944. After the implementation of The Government Securities Act, 2006, Mr. Sharma is concerned about the legal status of his investment. Section 31 of the new Act clarifies that the Public Debt Act, 1944 no longer applies to Government securities. However, all the actions taken under the old Act are still valid as if they were done under the new Act. So, Mr. Sharma's securities are still legally sound.

Furthermore, Mr. Sharma is curious about the applicability of the Depositories Act, 1996 to his Government securities. Section 31 reassures him that the Depositories Act, 1996 does not apply to his Government securities unless there is a specific agreement stating otherwise. This means Mr. Sharma's securities are governed solely by The Government Securities Act, 2006, providing him with a clear regulatory framework for his investment.