**Policy Summary: Re-issuance of Government Stock**
This notification, issued by the Government of India's Ministry of Finance, Department of Economic Affairs, announces the re-issuance of the 6.57% 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 the general notification F. No. 4(13)WM2008, dated October 8, 2008.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility. The auction will be held on April 7, 2017, with non-competitive bids submitted between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon, via the RBI's e-Kuber system.
The re-issued stock has a tenure of 17 years, commencing from December 5, 2016, and will be repaid at par on December 5, 2033. The payment date for successful bidders is April 10, 2017, which includes accrued interest from the original issue date of December 5, 2016, to April 9, 2017. Interest will accrue at a rate of 6.57% per annum, payable semi-annually on June 5 and December 5. The stock is eligible for When Issued trading as per RBI guidelines.
The result of the auction will be displayed by the Reserve Bank of India at its Mumbai Office on April 7, 2017. For further information, contact the Joint Secretary to the Government of India, Prashant Goyal.
Key Entities Referenced
6.57 Government Stock 2033: Government security being reissued through an auction.
Reserve Bank of India: Central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: City in India where the Reserve Bank of India office is located and where the auction results will be displayed.
F. No. 4 13WM2008: General Notification providing the terms and conditions for the stock sale.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: Scheme outlining the rules for non-competitive bidding in the auction.
EKuber: Reserve Bank of India Core Banking Solution system used for submitting bids.
Prashant Goyal: Joint Secretary to the Government of India.
Ministry of Finance: The ministry under which the Department of Economic Affairs and Budget Division operate.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 03, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.57% Government Stock 2033
F. No.4 (3) 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 07, 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 07, 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 07, 2017. The payment by successful bidders will be on April 10, 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 09, 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