**Policy Summary: Re-issuance of 6.79% Government Stock 2029**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the re-issuance of the 6.79 percent Government Stock 2029 for a total nominal amount of ₹7,000 crore. The sale will be conducted via a price-based auction using a multiple price auction method, facilitated by the Reserve Bank of India (RBI) in Mumbai.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility. The auction is scheduled for April 7, 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 via the RBI's e-Kuber system.
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. Payment by successful bidders is due on April 10, 2017, including accrued interest from December 26, 2016, to April 9, 2017.
Interest will accrue at a rate of 6.79% per annum, payable semi-annually on June 26 and December 26. Further details can be found in Notification F. No. 4(3)/WM/2017 and General Notification F. No. 4(13)/WM/2008, dated October 8, 2008. The Joint Secretary to the Government of India, Prashant Goyal, issued this notification.
Key Entities Referenced
Ministry of Finance: The Indian government ministry responsible for economic policy, financial regulations, and taxation.
Department of Economic Affairs: A department within the Ministry of Finance responsible for advising the government on economic matters.
6.79 Government Stock 2029: A specific government security being reissued, maturing in 2029 and bearing an interest rate of 6.79%.
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 that will conduct the auction.
General Notification F. No. 4 13WM2008: A previously issued notification that provides 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 bid for a portion of the government stock without participating in the competitive bidding process.
Prashant Goyal: Joint Secretary to the Government of India; signatory of the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 3, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.79% Government Stock 2029
F. No.4 (3) 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
April 7, 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 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 ’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 April 7, 2017. The payment by successful bidders will be on April 10, 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. December 26, 2016 to April 9, 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