## Policy Summary: Reissue of 6.79% Government Stock 2027
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale reissue of the 6.79% Government Stock 2027 for an aggregate amount of ₹8,000 crore nominal. This reissue is governed by the terms and conditions outlined in this notification (F. No.4/7/WM/2017) and the General Notification F. No. 4/13/WM/2008, dated October 8, 2008.
The sale will be conducted by the Reserve Bank of India (RBI), Mumbai Office, through a price-based auction using the multiple price auction method. Up to 5% of the notified amount will be allotted to eligible individuals and institutions via the Scheme for Non-competitive Bidding Facility.
The auction is scheduled for June 30, 2017, and will be executed electronically via the RBI's e-Kuber system. Non-competitive bids are to 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 ten years, commencing from May 15, 2017, and will be repaid at par on May 15, 2027.
The auction results will be displayed by the RBI at its Mumbai Office on June 30, 2017. Payment by successful bidders is due on July 3, 2017, which is also the date of reissue. This payment will include accrued interest on the nominal value from May 15, 2017, to July 2, 2017.
Interest at a rate of 6.79% per annum will accrue on the nominal value of the stock from the original date of issue and will be paid semi-annually on November 15 and May 15.
This notification is issued by order of the President of India. For further information, contact Prashant Goyal, Joint Secretary to the Government of India.
Key Entities Referenced
Mumbai, Maharashtra: The city where the Reserve Bank of India office is located and where the auction is conducted.
Ministry of Finance: A ministry within the Government of India responsible for financial matters.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
6.79 per cent Government Stock 2027: A specific government stock being reissued, with a coupon rate of 6.79% and maturing in 2027.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A general notification that specifies the terms and conditions of government stock auctions.
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, signing the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated June 23, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.79 per cent Government Stock 2027
F. No.4 (7) W&M/2017(i): Government of India hereby notifies sale (re-issue) of ‘6.79 percent
Government Stock 2027’ (hereinafter called 'the Stock') for an aggregate amount of ₹ 8,000
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 30, 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 30, 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 ten years tenure commencing from May 15, 2017. The Stock will
be repaid at par on May 15, 2027.
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 30, 2017. The payment by successful bidders will be on July 3, 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 15, 2017 to July 2, 2017.
Interest
8. Interest at the rate of 6.79 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 November 15 and May 15.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India