## Policy Summary: Reissue of 6.79% Government Stock 2027
This notification, issued by the Government of India, Ministry of Finance, Department of Economic Affairs, announces the sale reissue of the 6.79 percent Government Stock 2027 for an aggregate amount of ₹8,000 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 detailed in General Notification F. No. 4/13/WM/2008, 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 August 11, 2017, by the RBI in Mumbai. Electronic bids must be submitted through the RBI's e-Kuber system on August 11, 2017, with non-competitive bids accepted 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 ten years, commencing from May 15, 2017, and will be repaid at par on May 15, 2027. The issue date and payment for the stock are scheduled for August 14, 2017, which will include accrued interest from May 15, 2017, to August 13, 2017. Interest at 6.79 percent per annum will accrue on the nominal value from the original issue date and will be paid semi-annually on November 15 and May 15. The stock will be eligible for When Issued trading as per RBI guidelines. The result of the auction will be displayed by the RBI at its Mumbai office on August 11, 2017. Further information can be obtained from the Reserve Bank of India, Mumbai Office, Fort, Mumbai 400 001.
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.
6.79 per cent Government Stock 2027: A specific government bond being reissued.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai Office, Fort, Mumbai, Maharashtra: The specific branch of the Reserve Bank of India conducting the auction.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A general notification providing the terms and conditions for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to bid non-competitively in government security auctions.
Prashant Goyal: Joint Secretary to the Government of India.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated August 7, 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 August 11, 2017. Bids for the auction should be submitted in electronic format on the Reserve
Bank of India Core Banking Solution (E-Kuber) system on August 7, 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 August 11, 2017. The payment by successful bidders will be on August 14, 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. May 15, 2017 to August 13, 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