**Policy Summary: Re-issuance of Government Stock**
This notification, issued by the Government of India's Ministry of Finance on August 28, 2017, announces the sale (re-issuance) of the 6.57% Government Stock 2033 for an aggregate amount of ₹3,000 crore (Nominal). The sale will be conducted via a price-based auction using the multiple price auction method, facilitated by the Reserve Bank of India (RBI) at its Mumbai Office.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility. The auction was held on September 01, 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 on 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 payment date for successful bidders was September 04, 2017, which included accrued interest from June 5, 2017, to September 03, 2017. Interest at 6.57% per annum will be paid semi-annually on December 5 and June 5. The stock was eligible for When Issued trading as per RBI guidelines.
This sale is governed by the terms and conditions outlined in this specific notification and the general notification F. No. 4(13)WM2008, dated October 8, 2008, issued by the Government of India.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for conducting the auction and displaying the results.
Mumbai Office, Fort, Mumbai: The specific branch of the Reserve Bank of India located in Mumbai, Maharashtra where the auction will be conducted and results displayed.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A previously issued notification by the Government of India that contains general terms and conditions related to government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities Annex: An enclosed scheme detailing the rules for non-competitive bidding in government security auctions.
EKuber: The Reserve Bank of India Core Banking Solution system used for submitting bids in electronic format.
Prashant Goyal: Joint Secretary to the Government of India, signing the notification.
Department of Economic Affairs: A department under the Ministry of Finance, Government of India
6.57 Government Stock 2033: Government of India stock being reissued with a maturity date of 2033 and an interest rate of 6.57 percent.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated August 28, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.57% 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 ` 3,000 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 September 01, 2017. Bids for the auction should be submitted in electronic format on the Reserve
Bank of India Core Banking Solution (E-Kuber) system on September 01, 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 September 01, 2017. The payment by successful bidders will be on September 04, 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 September
03, 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 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