Which of the following are characteristics of a government promissory note? (A) It is a promise of the…
A government promissory note embodies a promise by the President of India or the Governor of a State and is regulated under the Indian Securities Act, 1886, so the answer is…
Choose your answer
Which of the following are characteristics of a government promissory note?
(A) It is a promise of the President of India or Governor of a state
(B) It is regulated by the Indian Securities Act, 1886
(C) They are not negotiable instruments
(D) They can be assigned without endorsement
Answer and explanation
Correct answer A
A government promissory note embodies a promise by the President of India or the Governor of a State and is regulated under the Indian Securities Act, 1886, so the answer is "(A), (B) Only". Such notes are negotiable instruments transferable by endorsement, so the statements denying negotiability and endorsement are incorrect.
Practice for these exams
-
UGC NET Law
See pack details on LawMint.net -
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
CUET PG Law (LL.M.)
Subject revision