Stock Certificates or Inscribed Stock

The stock, where the name of the stock holder is inscribed or recorded in the register kept by the public Dept Office, is called inscribed stock. The stock certificate issued to the holder or the stock shows that he has been registered as the owner of a certain amount of government stock. The title of these stocks cannot be transferred by mere endorsement. A transfer deed will have to be executed for the purpose of transferring it. It is to be executed in a form available in the Public Debt Office. It does not involve any stamp duty. When the transfer deed is executed, the transferee’s name is substituted in the place of the transferor in the books of the Public Debt Office. The ownership of the securities is transferred only when the transfer is effected in the register maintained by the Public Debt Office. A stock certificate is, thus, completely secured against loss by fire, theft, and so on. The interest payments are done through interest warrants issued by the Public Debt Office.

Promissory Notes
The government promissory notes are negotiable securities issued by the Central or State Governments. These contain promise by the President of India, or the Governor of the State, for the payment of principal and interest. These are negotiable instruments payable to the order of specified persons and transferable by endorsement and delivery.