Valuable security
A document which is, or purports to be, one by which a legal right is created, extended, transferred, restricted, extinguished or released, or by which a person acknowledges legal liability. Section 2(31) of the BNS.
Explained
Section 2(31) of the Bharatiya Nyaya Sanhita, 2023 defines a valuable security as a document which is, or purports to be, a document whereby any legal right is created, extended, transferred, restricted, extinguished or released, or whereby any person acknowledges that he lies under legal liability, or has not a certain legal right. The definition reproduces Section 30 of the Indian Penal Code, 1860.
Two features matter. First, it must be a 'document' within the BNS, so it is a species of document. Second, it is enough that the document purports to have the legal effect; a forged or invalid instrument can still be a valuable security. The illustration explains that when A writes his name on the back of a bill of exchange, the endorsement transfers the right to the bill and is a valuable security. Bonds, cheques, promissory notes, receipts and sale deeds are common examples.
The expression carries weight in several offences. Extortion (Section 308) covers inducing delivery of property or a valuable security. Cheating under Section 318(4) includes inducing a person to make, alter or destroy a valuable security. Forgery of a valuable security or will is aggravated under Section 338, and Section 343 punishes fraudulent cancellation or destruction of such documents. Cruelty under Section 86(b) and the definition of dowry under Section 2 of the Dowry Prohibition Act, 1961 both refer to an unlawful demand for property or valuable security; the Dowry Act adopts the IPC meaning.
Examiners test the definition in match-the-following questions alongside 'dishonestly' and 'fraudulently', the endorsement illustration, and the extortion illustration in which a signature on blank paper is extorted because it may be converted into a valuable security.
What the law says
(31) “valuable security” means a document which is, or purports to be, a document whereby any legal right is created, extended, transferred, restricted, extinguished or released, or whereby any person acknowledges that he lies under legal liability, or has not a certain legal right.
Illustration.
Defines valuable security in Section 2(31) with illustration
Earlier law: IPC 33. “Act”. “Omission”; 47. “Animal”.; New Sub-Section; 28. “Counterfeit”.; 20. “Court of Justice”.; 46. “Death”.; 24. “Dishonestly”.; 29. “Document”.; 25. “Fraudulently”; 8. Gender.; 52. “Good faith”; 17. “Government”.; 52A. “Harbour“.; 44. “Injury”.; 43. “Illegal”. “Legally bound to do”.; 19. “Judge”.; 45. “Life”.; 42. “Local law”.; 10. “Man”. “Woman”.; 49. “Year”. “Month”.; 22. “Movable property”; 9. Number.; 51. “Oath”.; 40. “Offence”.; 33. “Act”. “Omission”; 11. “Person”.; 12. “Public”.; 21. “Public servant”.; 26. “Reason to believe”
(1) Whoever intentionally puts any person in fear of any injury to that person, or to any other, and thereby dishonestly induces the person so put in fear to deliver to any person any property, or valuable security or anything signed or sealed which may be converted into a valuable security, commits extortion.
Illustrations.
(a) A threatens to publish a defamatory libel concerning Z unless Z gives him money. He thus induces Z to give him money. A has committed extortion.
Extortion of property or valuable security
Earlier law: IPC 383. Extortion.
Whoever forges a document which purports to be a valuable security or a will, or an authority to adopt a son, or which purports to give authority to any person to make or transfer any valuable security, or to receive the principal, interest or dividends thereon, or to receive or deliver any money, movable property, or valuable security, or any document purporting to be an acquittance or receipt acknowledging the payment of money, or an acquittance or receipt for the delivery of any movable property or valuable security, shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
Forgery of valuable security, will, etc.
Earlier law: IPC 467. Forgery of valuable security, will, etc.
(4) Whoever cheats and thereby dishonestly induces the person deceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Cheating that induces making or destroying a valuable security
Earlier law: IPC 415. Cheating.
Earlier law: Section 30, IPC
Example
Illustration to Section 2(31) of the BNS: A writes his name on the back of a bill of exchange. As the endorsement transfers the right to the bill to any lawful holder, the endorsement is a valuable security.
For the exam
- Defined in Section 2(31) BNS; earlier Section 30 IPC.
- It need only purport to create, transfer or extinguish a right or acknowledge liability.
- Endorsement on a bill of exchange is a valuable security (illustration to Section 2(31)).
- Relevant to extortion (308), cheating (318(4)), forgery (338) and cruelty (86) under the BNS.
- The Dowry Prohibition Act adopts this meaning for 'property or valuable security'.
43 questions in the Law Maker question bank use this term. Practise Bharatiya Nyaya Sanhita questions
Related terms
- DocumentAny matter expressed, described or recorded on any substance by letters, figures, marks or other means, intended or usable to record or prove that matter, and including electronic and digital records.
- DishonestlyDoing anything with the intention of causing wrongful gain to one person or wrongful loss to another person (Section 2(7) of the BNS).
- FraudulentlyDoing anything with the intention to defraud, but not otherwise (Section 2(9) of the BNS). The intention involves deceit and an intended injury to the person deceived.
- DowryProperty or valuable security given or agreed to be given, directly or indirectly, by or for a party to a marriage, at, before or after it, in connection with the marriage. Section 2, Dowry Prohibition Act.
- CounterfeitTo counterfeit is to cause one thing to resemble another, intending by that resemblance to practise deception or knowing deception to be likely (Section 2(4) of the BNS). The imitation need not be exact.
Further reading
Checked 6 November 2026. Statutory text is quoted from the Bare Acts library, taken from India Code. See the full glossary.