**Policy Summary: Re-issuance of Government Stock**
The Government of India, Ministry of Finance, Department of Economic Affairs, announces the sale re-issuance of the 6.57 per cent Government Stock 2033 for an aggregate amount of ₹2,000 crore nominal. The sale will be conducted through the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using a multiple price auction method, as per General Notification F. No. 4/13/WM/2008, dated October 8, 2008.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility. The auction will be held on April 21, 2017, by the RBI in Mumbai. Electronic bids must be submitted through the RBI's e-Kuber system on the same day, with non-competitive bids accepted between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon.
The stock is eligible for When Issued trading as per RBI guidelines. It has a tenure of 17 years, commencing from December 05, 2016, and will be repaid at par on December 05, 2033. The auction results will be displayed by the RBI on April 21, 2017, and payment by successful bidders is due on April 24, 2017, which includes accrued interest from December 05, 2016, to April 23, 2017.
Interest at 6.57 per cent per annum will accrue from the original issue date and will be paid semi-annually on June 5 and December 5.
For further information, contact:
Reserve Bank of India, Mumbai Office, Fort, Mumbai 400 001
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.
6.57 per cent Government Stock 2033: A specific government security being reissued.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai Office, Fort, Mumbai: The specific branch office of Reserve Bank of India in Mumbai responsible for the auction.
General Notification F. No. 4 13WM2008: A general notification providing the 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 non-competitively in government security auctions.
Prashant Goyal: Joint Secretary to the Government of India.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 17, 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 April 21, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank
of India Core Banking Solution (E-Kuber) system on April 21, 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 April 21, 2017. The payment by successful bidders will be on April 24, 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 original issue i.e. December 05, 2016 to April 23, 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 original issue and will be paid half-yearly on June 5, and December 5.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India