**Policy Summary: Re-issue of 6.62 per cent Government Stock 2051**
The Government of India, through the 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 is governed by 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, Fort, Mumbai – 400 001, via a price-based auction using the 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 through a non-competitive bidding facility.
The auction will be conducted by the RBI, Mumbai Office, on June 23, 2017. Electronic bids must be submitted through the RBI's e-Kuber system on the same date. Non-competitive bids should be submitted between 10:30 a.m. and 11:30 a.m., while competitive bids should be submitted between 10:30 a.m. and 12:00 noon.
The stock is eligible for "When Issued" trading, as per RBI guidelines. It has a tenure of 35 years, commencing from November 28, 2016, and will be repaid at par on November 28, 2051.
The auction results will be displayed by the RBI at its Fort, Mumbai Office, on June 23, 2017. Payment by successful bidders is due on June 27, 2017, the date of re-issue. This payment includes accrued interest on the nominal value of the allotted stock from May 28, 2017 (last coupon payment date) to June 26, 2017.
Interest at a rate of 6.62% per annum will accrue on the nominal value of the stock from the last coupon payment date and will be paid semi-annually on November 28 and May 28.
For further information, contact the Joint Secretary to the Government of India, Prashant Goyal.
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, Government of India.
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.
Mumbai, Maharashtra: The city in Maharashtra where the Reserve Bank of India's office is located and the auction will be conducted.
General Notification F. No. 4 13 WM2008: A previously issued notification providing general terms and conditions related to government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to participate in government security auctions 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 June19, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.62 per cent Government Stock 2051
F. No.4 (2) 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 June 23, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank
of India Core Banking Solution (E-Kuber) system on June 23, 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 June 23, 2017. The payment by successful bidders will be on June 27, 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. May 28, 2017 to June 26, 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 last coupon payment and will be paid half yearly on November 28 and May 28.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India