**Policy Summary: Reissue of 6.79% Government Stock 2029**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale reissue of the 6.79% Government Stock 2029 for an aggregate amount of ₹7,000 crore nominal. This sale will adhere to the terms and conditions outlined in this notification and the General Notification F. No. 4(13)/WM/2008, dated October 8, 2008.
The auction will be conducted by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai 400 001, on May 5, 2017, using a price-based auction method with multiple price auction methodology via the RBI's e-Kuber system. Up to 5% of the notified amount will be allotted to eligible individuals and institutions through the Scheme for Non-competitive Bidding Facility. 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 on May 5, 2017.
The stock is eligible for When Issued trading as per RBI guidelines. It has a tenure of 13 years, commencing from December 26, 2016, and will be repaid at par on December 26, 2029.
The auction results will be displayed by the RBI at its Mumbai office on May 5, 2017. Payment by successful bidders is due on May 8, 2017, which includes accrued interest from December 26, 2016, to May 7, 2017. Interest at 6.79% per annum will accrue on the nominal value, payable semi-annually on June 26 and December 26.
For further information, contact Prashant Goyal, Joint Secretary to the Government of India.
Key Entities Referenced
6.79 Government Stock 2029: Government security being reissued through auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: City in which the Reserve Bank of India office is located and where the auction results will be displayed.
General Notification F. No. 4 13WM2008: A previously issued notification that contains general terms and conditions relevant to the stock auction.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to bid non-competitively for a portion of the Government Stock.
EKuber: The Reserve Bank of India's Core Banking Solution system used for submitting auction bids.
Prashant Goyal: Joint Secretary to the Government of India.
Ministry of Finance: The ministry under which the Department of Economic Affairs and Budget Division function.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 28, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.79% Government Stock 2029
F. No.4 (7) W&M/2017(i): Government of India hereby notifies sale (re-issue) of 6.79 percent
Government Stock 2029 for an aggregate amount of ` 7,000 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
May 5, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on May 5, 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 ‘13 year’ tenure commencing from December 26, 2016. The
Stock will be repaid at par on December 26, 2029.
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 May 5, 2017. The payment by successful bidders will be on May 8, 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 December 26, 2016 to May 7, 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 June 26, and December 26.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India