**Policy Summary: Reissue of 6.79% Government Stock 2029**
The Government of India, Ministry of Finance, Department of Economic Affairs, announces the sale/reissue of the 6.79 percent Government Stock 2029 for an aggregate amount of ₹7,000 crore (nominal). This offering is governed by the terms and conditions outlined in this specific notification (F. No.4/7/WM/2017) and the general notification F. No. 4/13/WM/2008, dated October 8, 2008.
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. A maximum of 5% of the notified amount will be allotted to eligible individuals and institutions through the Non-competitive Bidding Facility.
The auction is scheduled for April 21, 2017, and will be conducted by the RBI, Mumbai Office. Electronic bids must be submitted through the RBI's e-Kuber system on the same day. Non-competitive bids should be submitted between 10:30 a.m. and 11:30 a.m., while competitive bids should be submitted between 10:30 a.m. and 12:00 noon.
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 result of the auction will be displayed by the RBI at its Mumbai Office on April 21, 2017. Payment by successful bidders is due on April 24, 2017, which is the date of reissue, and will include accrued interest from December 26, 2016, to April 23, 2017.
Interest at a rate of 6.79% per annum will accrue on the nominal value of the Stock from the date of original issue and will be paid semi-annually on June 26 and December 26. The stock is eligible for When Issued trading, according to RBI guidelines.
For further information, contact:
Prashant Goyal
Joint Secretary to the Government of India.
Key Entities Referenced
Ministry of Finance: The ministry within the Government of India responsible for economic and financial matters.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India, responsible for economic policy and 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 in which the Reserve Bank of India office is located where the auction will be conducted.
General Notification F. No. 4 13WM2008: A previously issued notification by the Government of India, which contains general terms and conditions applicable 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 competing in the price-based auction.
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 17, 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
April 21, 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 21, 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 21, 2017. The payment by successful bidders will be on April 24, 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 April 23, 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