**Policy Summary: Re-issuance of 6.79% Government Stock 2029**
The Government of India, through the Ministry of Finance's Department of Economic Affairs, announces the sale (re-issuance) of the 6.79 percent Government Stock 2029 for an aggregate amount of ₹7,000 crore (nominal). This sale will adhere to the terms and conditions outlined in this specific notification, as well as the general notification F. No. 4(13)/WM/2008, dated October 8, 2008.
The Reserve Bank of India (RBI), Mumbai Office, will conduct the sale via a price-based auction using a multiple price auction method, as detailed in paragraph 5.1 of the general notification. Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility.
The auction will take place on June 23, 2017, conducted by the RBI in Mumbai. Electronic bids must be submitted through the RBI's e-Kuber system on the same day. Non-competitive bids are accepted between 10:30 a.m. and 11:30 a.m., while competitive bids are accepted between 10:30 a.m. and 12:00 noon. The stock is eligible for "When Issued" trading as per 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 payment date for successful bidders is June 27, 2017, which is also the date of re-issuance.
Interest will accrue at 6.79% per annum on the nominal value of the stock from the last coupon payment date and will be paid semi-annually on December 26 and June 26.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy, financial matters, taxation, and financial institutions in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for advice on economic issues.
6.79 per cent 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 regulating the banking system and managing the country's currency.
Mumbai, Maharashtra: The city in which the Reserve Bank of India's office responsible for the auction is located.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A previously issued notification that contains general terms and conditions related to the sale of government stock.
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 having to competitively bid.
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 June 19, 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
June 23, 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 23, 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 June 23, 2017. The payment by successful bidders will be on June 27, 2017 i.e. the date of re-
issue. The coupon payment for the period December 26, 2016 to June 26, 2017 will be on June 23,
2017 (26th being holiday). Accordingly, the payment for the Stock will not include accrued interest on
the nominal value of the Stock allotted in the auction.
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