**Summary:**
This notification, issued by the Government of India's Ministry of Finance on April 28, 2017, announces the sale reissue of the 6.57% Government Stock 2033 for an aggregate nominal amount of ₹2,000 crore. 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 outlined in General Notification F. No. 4/13/WM/2008, dated October 8, 2008.
A portion of the stock, up to 5% of the notified amount, will be allotted to eligible individuals and institutions through a non-competitive bidding facility. The auction will take place on May 5, 2017, 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, submitted electronically 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 for the stock is May 8, 2017, which will include accrued interest from December 05, 2016, to May 7, 2017. Interest at a rate of 6.57% per annum will accrue on the nominal value of the stock, payable semi-annually on June 5 and December 5. The stock is eligible for When Issued trading, in accordance with RBI guidelines. The results of the auction will be displayed by the RBI at its Mumbai Office on May 5, 2017. For further details, contact the 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 responsible for economic policy and development.
6.57 Government Stock 2033: A specific government bond being reissued, maturing in 2033 with an interest rate of 6.57%.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai Office, Fort, Mumbai: The specific branch of the Reserve Bank of India responsible for the auction.
General Notification F. No. 4 13WM2008: A general notification related to government stock auctions, issued on October 8, 2008.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing 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 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 ₹ 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 May 5, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on May 5, 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 May 5, 2017. The payment by successful bidders will be on May 8, 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 last coupon payment i.e. December 05, 2016 to May 7, 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