**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 ₹5,000 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 stock will be sold through the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai – 400 001, via a price-based auction using the multiple price auction method. Up to 5% of the notified amount will be allotted to eligible individuals and institutions through the Scheme for Non-competitive Bidding Facility.
The auction will be conducted by the RBI, Mumbai Office, on February 03, 2017. Bids must be submitted electronically via the RBI’s e-Kuber system on the same date. Non-competitive bids are to 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 February 03, 2017. Payment by successful bidders is due on February 06, 2017, which is the date of reissue. Payment will include accrued interest from December 26, 2016, to February 05, 2017.
Interest at a rate of 6.79% per annum will accrue on the nominal value from the original issue date, 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
Ministry of Finance: The ministry responsible for economic policy in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
6.79 Government Stock 2029: A specific government security being reissued.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: The city where the Reserve Bank of India's office is located and where the auction will be conducted.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A previously issued notification by the Government of India containing general terms and conditions for government stock sales.
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, signing the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated January 30, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.79% Government Stock 2029
F. No.4 (3) W&M/2016(i): Government of India hereby notifies sale (re-issue) of 6.79 percent
Government Stock 2029 for an aggregate amount of ₹ 5,000 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
February 03, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank
of India Core Banking Solution (E-Kuber) system on February 03, 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 February 03, 2017. The payment by successful bidders will be on February 06, 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 February 05, 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