**Policy Summary: Re-issuance of 6.57% Government Stock 2033**
The Government of India, Ministry of Finance, Department of Economic Affairs, announces the sale re-issuance of the 6.57% Government Stock 2033 for an aggregate amount of ₹2,000 crore (Nominal). This notification, dated January 30, 2017, outlines the terms and conditions for the sale, referencing both this Specific Notification and the General Notification F. No. 4(13)WM2008, dated October 8, 2008.
The sale will be conducted by the Reserve Bank of India (RBI) in Mumbai through a price-based auction using a multiple price auction method, as detailed in paragraph 5.1 of the General Notification. Up to 5% of the notified amount will be allotted to eligible individuals and institutions via a non-competitive bidding facility, as per the enclosed Scheme.
The auction is scheduled for February 03, 2017, with non-competitive bids accepted between 10:30 AM and 11:30 AM, and competitive bids between 10:30 AM and 12:00 Noon via the RBI’s e-Kuber system. The stock is eligible for When Issued (WI) trading, subject to RBI guidelines.
The Government Stock has a tenure of 17 years, commencing from December 05, 2016, and will be repaid at par on December 05, 2033. Payment by successful bidders is due on February 06, 2017, which includes accrued interest from the original issue date (December 05, 2016) to February 05, 2017.
Interest at a rate of 6.57% per annum will accrue on the nominal value of the stock from the original issue date, payable semi-annually on June 5 and December 5. The auction results will be displayed by the RBI at its Mumbai office on February 03, 2017.
For further information, contact the Reserve Bank of India, Mumbai Office, Fort, Mumbai 400 001 or refer to General Notification F. No. 4(13)WM2008, dated October 8, 2008.
Key Entities Referenced
Ministry of Finance: The ministry within the Government of India responsible for economic and financial matters.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
6.57 Government Stock 2033: A specific government security being reissued through auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city and state where the Reserve Bank of India's office is located and where the auction will be conducted.
General Notification F. No. 4 13WM2008: A pre-existing general notification that establishes the terms and conditions for government stock auctions, referenced in the specific notification.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to participate in government security auctions without competitive bidding.
Prashant Goyal: Joint Secretary to the Government of India, authorized to issue the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated January 30, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.57% Government Stock 2033
F. No.4 (3) W&M/2016(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 February 03, 2017. Bids for the auction should be submitted in electronic format on the Reserve
Bank of India Core Banking Solution (E-Kuber) system on February 03, 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 February 03, 2017. The payment by successful bidders will be on February 06, 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 February 05, 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