**Policy Summary: Re-issuance of 6.57% Government Stock 2033**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the re-issuance and sale of the 6.57 percent Government Stock 2033 for an aggregate nominal amount of ₹2,000 crore. (F. No.4 3 WM2016ii)
The sale will be conducted by the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using the multiple price auction method, as per the guidelines outlined in General Notification F. No. 4 13WM2008, 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 December 23, 2016, by the Reserve Bank of India, Mumbai. Electronic bids must be submitted through the RBI's e-Kuber system on the same day. Non-competitive bids are to be submitted between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon.
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 stock is eligible for When Issued trading, as per RBI guidelines.
The auction results will be displayed by the RBI at its Mumbai Office on December 23, 2016. Payment by successful bidders is due on December 26, 2016, which includes accrued interest from December 05, 2016, to December 25, 2016.
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.
For further information, contact:
Reserve Bank of India,
Mumbai Office, Fort,
Mumbai 400 001
Key Entities Referenced
Ministry of Finance: The Union Ministry of Finance of the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy and programs.
6.57 Percent Government Stock 2033: A specific government stock being reissued, with a coupon rate of 6.57% and maturing in 2033.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city in which the Reserve Bank of India office is located and where the auction is conducted.
General Notification F. No. 4 13WM2008: A general notification issued by the Government of India related to government stock auctions, dated October 8, 2008.
Prashant Goyal: Joint Secretary to the Government of India, signing the notification.
EKuber: The Reserve Bank of India Core Banking Solution system used for submitting bids.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated December 19, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 6.57 Percent 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 December 23, 2016. Bids for the auction should be submitted in electronic
format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on December
23, 2016. 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 December 23, 2016. The payment by successful bidders will be on
December 26 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 December 25, 2016.
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