**Policy Summary: Re-issue of 6.62% Government Stock 2051**
The Government of India, Ministry of Finance, Department of Economic Affairs, announces the sale re-issue of the "6.62 per cent Government Stock 2051" for an aggregate amount of ₹3,000 crore nominal. This sale will adhere to the terms and conditions outlined in this specific notification, as well as the general notification F. No. 4(13)/WM/2008, dated October 8, 2008.
The stock will be sold through the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using a multiple price auction method, as prescribed in the general notification. 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 conducted by the RBI Mumbai Office on April 21, 2017. Electronic bids must be submitted through the RBI's e-Kuber system on the same date. 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 35 years, commencing from November 28, 2016, and will be repaid at par on November 28, 2051. It will be eligible for When Issued trading as per RBI guidelines.
The auction results will be displayed by the RBI at its Mumbai Office on April 21, 2017. Payment by successful bidders is due on April 24, 2017, which is the date of re-issue. This payment includes accrued interest from the original issue date of November 28, 2016, to April 23, 2017.
Interest at a rate of 6.62% per annum will accrue on the nominal value of the stock from the original issue date, payable semi-annually on May 28 and November 28.
For further information, contact the Reserve Bank of India, Mumbai Office, Fort, Mumbai 400 001 or refer to notification F. No.4 7 WM2017iii, dated April 17, 2017 and F. No. 4 13 WM2008, dated October 8, 2008.
Key Entities Referenced
Ministry of Finance: A ministry within the Government of India responsible for economic and financial matters.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policies and programs.
6.62 per cent Government Stock 2051: A specific government security being reissued through an auction.
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 conducting the auction.
General Notification F. No. 4 13 WM2008, dated October 8, 2008: A previously issued notification that provides the general terms and conditions for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to bid for a portion of the government stock without competitive bidding.
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 April 17, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.62 per cent Government Stock 2051
F. No.4 (7) W&M/2017(iii): Government of India hereby notifies sale of 6.62 per cent Government
Stock 2051 (hereinafter called “The Stock”) 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 April 21, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank
of India Core Banking Solution (E-Kuber) system on April 21, 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 April 21, 2017. The payment by successful bidders will be on April 24, 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 April 23, 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