**Summary:**
The Government of India, through the Ministry of Finance's Department of Economic Affairs, announces the sale of new Government Stock Securities with a 10-year tenure, for an aggregate amount of ₹8,000 crore (Nominal). This sale will be conducted via a yield-based auction using a multiple price auction method, facilitated by the Reserve Bank of India (RBI), Mumbai Office. The auction is scheduled for January 8, 2016.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility. Non-competitive bids must be submitted electronically via the RBI's e-Kuber system between 10:30 a.m. and 11:30 a.m. on January 8, 2016, while competitive bids must be submitted between 10:30 a.m. and 12:00 noon on the same day.
The Government Stock will have a tenure of 10 years, commencing from January 11, 2016, and will be repaid at par on January 11, 2026. The stock will be eligible for When Issued trading as per RBI guidelines. The coupon rate will be determined by the cutoff yield to maturity rate decided in the auction. Interest will be payable semi-annually on July 11 and January 11. The payment date for successful bidders is January 11, 2016. The auction results will be displayed by the RBI at its Mumbai Office on January 8, 2016. This notification is further subject to the terms and conditions specified in the General Notification F. No. 4(13)/WM/2008, dated October 8, 2008.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy and financial regulation of the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy formulation and monitoring.
New Government Stock: A type of government security being offered for sale.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city where the Reserve Bank of India's office, which conducts the auction, is located.
General Notification F. No. 4 13WM2008: A previously issued notification by the Government of India providing general terms and conditions for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to bid for a portion of the government stock without competing in the auction.
Prashant Goyal: Joint Secretary to the Government of India, signing the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated January 4, 2015
NOTIFICATION
Auction for Sale of New Government Stock of 10 Year
F. No.4 (2) W&M/2015(i): Government of India hereby notifies sale of New Government
Stock (Securities) of ’10 year tenure’ for an aggregate amount of ₹ 8,000 crore (nominal).
The sale will be subject to the terms and conditions spelt out in this notification (called
‘Specific Notification’) as also the terms and conditions specified in the General Notification
F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.
Method of Issue
2. The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400
001 in the manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–
W&M/2008, dated October 8, 2008 by a yield based auction using multiple price auction
method.
Allotment to Non-competitive Bidders
3. The Government Stock up to 5% of the notified amount of the sale will be allotted to
eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding
Facility in the Auctions of Government Securities (Annex).
Place and date of auction
4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-
400 001 on January 8, 2016. Bids for the auction should be submitted in electronic format
on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 8, 2016.
The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the
competitive bids should be submitted between 10.30 a.m. and 12.00 noon.
When Issued Trading
5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines
issued by the Reserve Bank of India.
Tenure
6. The Government Stock will be of ’10 year’ tenure commencing from January 11, 2016.
The Stock will be repaid at par on January 11, 2026.
Date of issue and payment for the stock
7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort,
Mumbai Office on January 8, 2026. The payment by successful bidders will be on January
11, 2016 i.e. the date of issue.
Interest
8. The coupon rate for the securities will be set at the cut-off yield to maturity rate decided in
the auction. The interest will be payable half-yearly on July 11, and January 11.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India