This notification, issued by the Government of India's Ministry of Finance on August 28, 2017, announces the sale and reissue of the 6.84 percent Government Stock 2022 for an aggregate amount of ₹3,000 crore nominal. The sale will be conducted through the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using a multiple price auction method, as outlined in the General Notification F. No. 4/13/WM/2008, dated October 8, 2008.
Up to 5% of the notified amount will be allotted to eligible non-competitive bidders. The auction will take place on September 1, 2017, with electronic bids to be submitted through the RBI's e-Kuber system. Non-competitive bids are due 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, as per RBI guidelines. It 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. Payment by successful bidders is due on September 4, 2017, which includes accrued interest from June 19, 2017, to September 3, 2017.
Interest at a rate of 6.84 percent per annum will accrue on the nominal value of the stock, payable semi-annually on December 19 and June 19. The auction results will be displayed by the RBI at its Mumbai office on September 1, 2017. For further information, contact the Joint Secretary to the Government of India, Prashant Goyal.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic and financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
6.84 per cent Government Stock 2022: A specific government security being reissued through an auction.
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 is located and where the auction will be conducted.
General Notification F. No. 4 13WM2008: A previously issued notification providing general guidelines for 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, signatory of the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated August 28, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.84 per cent Government Stock 2022
F.No.4 (7) W&M/2017: 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 September 01, 2017. Bids for the auction should be submitted in electronic format on the Reserve
Bank of India Core Banking Solution (E-Kuber) system on September 01, 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 ‘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 September 01, 2017. The payment by successful bidders will be on September 04, 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 19, 2017 to September
03, 2017.
Interest
8. Interest at the rate of 6.84 per cent per annum will accrue on the nominal value of the Stock from
date of last coupon payment and will be paid half-yearly on December 19 and June 19.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India