**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 and sale of the 6.79 percent Government Stock 2029 for an aggregate nominal amount of ₹7,000 crore. This sale will adhere to the terms and conditions outlined in this notification, as well as those specified in General Notification F. No. 4(13)/WM/2008, dated October 8, 2008.
The auction will be conducted by the Reserve Bank of India (RBI) in Mumbai on August 4, 2017, utilizing a price-based, multiple price auction method via the RBI’s e-Kuber system. Up to 5% of the notified amount will be allotted to eligible non-competitive bidders, including individuals and institutions, according to the established scheme.
Bids must be submitted electronically via the e-Kuber system on August 4, 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 stock is eligible for When Issued trading, following RBI guidelines.
The Government Stock 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 in Mumbai on August 4, 2017. Payment by successful bidders is due on August 7, 2017, which is the date of re-issuance. This payment will include accrued interest on the allotted stock from June 26, 2017, to August 6, 2017.
Interest at a rate of 6.79 percent per annum will accrue on the nominal value of the stock, payable semi-annually on December 26 and June 26.
For further information, contact the Reserve Bank of India, Mumbai Office, Fort, Mumbai 400 001.
Key Entities Referenced
Ministry of Finance: A ministry within the Government of India responsible for economic and financial matters.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy and development programs.
6.79 per cent Government Stock 2029: A specific government security being reissued, with a coupon rate of 6.79% and maturing in 2029.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city where the Reserve Bank of India office is located and where the auction will be conducted.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A previously issued notification providing general 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 for a portion of the government stock without competing on price.
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 July 31, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.79 per cent 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
August 4, 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 4, 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 August 4, 2017. The payment by successful bidders will be on August 7, 2017 i.e. the date of re-
issue. The payment of 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. June 26, 2017 to August 6, 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 last coupon payment and will be paid half-yearly on December 26 and June 26.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India