**Policy Summary: Reissue of 6.84% Government Stock 2022**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale (reissue) of the "6.84 per cent Government Stock 2022" for an aggregate amount of ₹3,000 crore (nominal). The sale will be conducted by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai 400 001, via a price-based auction using the multiple price auction method, as per General Notification F. No. 4(13)/WM/2008, dated October 8, 2008.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility. The auction will be held on November 11, 2016, with non-competitive bids submitted 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 has a tenure of 6 years, 3 months, and 7 days, commencing from September 12, 2016, and will be repaid at par on December 19, 2022. The result of the auction will be displayed by the RBI at its Mumbai Office on November 11, 2016. Payment by successful bidders is due on November 15, 2016, which includes accrued interest from September 12, 2016, to November 14, 2016.
Interest at 6.84% per annum will accrue from September 12, 2016, to December 18, 2016, payable on December 19, 2016, and subsequently payable half-yearly on December 19 and June 19. The stock is eligible for "When Issued" trading, as per RBI guidelines.
Contact: Reserve Bank of India, Mumbai Office, Fort, Mumbai 400 001.
Key Entities Referenced
Ministry of Finance: The ministry responsible for financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy and related matters.
6.84 per cent Government Stock 2022: A specific government bond being reissued as part of this notification.
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's office, involved in the auction, is located.
General Notification F. No. 4 13WM2008: A previously issued notification providing 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 participate in government security auctions without placing competitive bids.
Prashant Goyal: Joint Secretary to the Government of India, as indicated by the sign-off.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated November 07, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 6.84 per cent Government Stock 2022
F. No.4 (2) W&M/2016(i): Government of India hereby notifies sale (re-issue) of ‘6.84
percent Government Stock 2022’ (hereinafter called 'the Stock') for an aggregate amount
of ` 3,000 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 November 11 2016. Bids for the auction should be submitted in electronic
format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on
November 11, 2016. 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 ‘6 years, 3 months and 7 days’ tenure commencing
from September 12, 2016. The Stock will be repaid at par on December 19, 2022.
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 November 11, 2016. The payment by successful bidders will be on
November 15, 2016 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
original issue payment i.e. September 12, 2016 to November 14, 2016.
Interest
8. Interest at the rate of 6.84 per cent per annum will accrue on the nominal value of the
Stock from the date of original issue i.e. September 12, 2016 to December 18, 2016 which
will be paid on December 19, 2016 and the interest thereafter will be payable half-yearly on
December 19 and June 19.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India