**Policy Summary: Re-issuance of 6.57% Government Stock 2033**
The Government of India, through the Ministry of Finance's Department of Economic Affairs, announces the sale re-issuance of the 6.57 percent Government Stock 2033 for an aggregate nominal amount of ₹2,000 crore. The sale will be conducted via a price-based auction using a multiple price auction method, managed by the Reserve Bank of India (RBI) in Mumbai.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility. The auction is scheduled for June 23, 2017. Non-competitive bids are to be submitted between 10:30 a.m. and 11:30 a.m., while competitive bids should be submitted between 10:30 a.m. and 12:00 noon via the RBI's e-Kuber system.
The Government Stock has a tenure of 17 years, commencing from December 05, 2016, and will be repaid at par on December 05, 2033. The issue date and payment date for the stock is June 27, 2017, which will include accrued interest from June 5, 2017, to June 26, 2017.
Interest at a rate of 6.57% per annum will be paid semi-annually on December 5 and June 5. The results of the auction will be displayed by the RBI at its Mumbai office on June 23, 2017. The stock will be eligible for When Issued trading as per RBI guidelines.
This notification is issued under F. No.4 7 WM2017ii, and is also subject to the terms and conditions specified in the General Notification F. No. 4 13WM2008, dated October 8, 2008.
Key Entities Referenced
Ministry of Finance: The ministry responsible for financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
6.57 per cent Government Stock 2033: A specific government bond being reissued.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: The city where the Reserve Bank of India office is located and the auction is conducted.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A prior notification providing general terms and conditions related to government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to bid non-competitively in government security auctions.
Prashant Goyal: Joint Secretary to the Government of India, signatory of the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated June 19, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.57 per cent Government Stock 2033
F. No.4 (7) W&M/2017(ii): Government of India hereby notifies sale (re-issue) 6.57 percent
Government Stock 2033 of for an aggregate amount of ₹ 2,000 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 price 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 June 23, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank
of India Core Banking Solution (E-Kuber) system on June 23, 2017. 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 ’17 year’ tenure commencing from December 05, 2016. The
Stock will be repaid at par on December 05, 2033.
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 June 23, 2017. The payment by successful bidders will be on June 27, 2017 i.e. the date of re-
issue. The payment for the Stock will include accrued interest on the nominal value of the Stock
allotted in the auction from the date of the last coupon payment i.e. June 5, 2017 to June 26,
2017.
Interest
8. Interest at the rate of 6.57 per cent per annum will accrue on the nominal value of the Stock from
the date of last coupon payment and will be paid half-yearly on December 5 and June 5.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India