This notification from the Government of India, Ministry of Finance, Department of Economic Affairs, dated January 30, 2017, announces the sale (reissue) of the 6.62 per cent Government Stock 2051 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 the multiple price auction method, as per the General Notification F. No. 4(13)/WM/2008, dated October 8, 2008.
The auction will be held on February 03, 2017, with electronic bids to be submitted through the RBI's e-Kuber system. 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. Up to 5% of the notified amount will be allotted to eligible individuals and institutions via a non-competitive bidding facility.
The Government Stock has a tenure of 35 years, commencing from November 28, 2016, and will be repaid at par on November 28, 2051. The result of the auction will be displayed by the RBI on February 03, 2017, at its Mumbai Office. Payment by successful bidders is due on February 06, 2017, which includes accrued interest from November 28, 2016, to February 05, 2017. Interest at 6.62% per annum will be paid semi-annually on May 28 and November 28. The stock will be eligible for When Issued trading as per RBI guidelines.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy, financial matters, taxation, and financial institutions in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for formulating and monitoring economic policies and programs.
6.62 per cent Government Stock 2051: A specific government bond being reissued, maturing in 2051 and bearing an interest rate of 6.62%.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai Office, Fort, Maharashtra: The specific branch of the Reserve Bank of India conducting the auction.
General Notification F. No. 4 13 WM2008: A previously issued notification that contains general terms and conditions related to the sale of government stock.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to bid for a portion of the government stock without directly competing in the price-based auction.
Prashant Goyal: Joint Secretary to the Government of India, signing 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 6.62 per cent Government Stock 2051
F. No.4 (2) W&M/2016(iii): Government of India hereby notifies sale of 6.62 per cent Government
Stock 2051 (hereinafter called “The Stock”) 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 ’35 year’ tenure commencing from November 28, 2016. The
Stock will be repaid at par on November 28, 2051.
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. November 28, 2016 to February 05, 2017.
Interest
8. Interest at the rate of 6.62 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 May 28 and November 28.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India