**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. This sale will adhere to the terms and conditions outlined in this notification, as well as those specified in 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 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 take place on June 23, 2017, conducted by the Reserve Bank of India, Mumbai. Electronic bids must be submitted through 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 are to be submitted between 10:30 a.m. and 12:00 noon.
The stock is eligible for When Issued trading, in accordance with RBI guidelines.
The Government 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 auction results will be displayed by the RBI at its Mumbai office on June 23, 2017. Payment by successful bidders is due on June 27, 2017, which is the date of reissue. This payment will include accrued interest on the nominal value of the allotted stock from June 19, 2017, to June 26, 2017.
Interest at a rate of 6.84 per cent per annum will accrue on the nominal value of the Stock, payable semi-annually on December 19 and June 19.
For further information, contact:
Reserve Bank of India
Mumbai Office, Fort, Mumbai 400 001
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 responsible for economic policy and development.
6.84 per cent Government Stock 2022: A specific government bond being reissued with a maturity date in 2022 and an interest rate of 6.84%.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai Office, Fort, Maharashtra: The specific branch of the Reserve Bank of India where the auction is conducted.
General Notification F. No. 4 13WM2008: A previously issued notification that 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 having to compete on price.
Prashant Goyal: Joint Secretary to the Government of India.
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 6.84 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 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 ‘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 June 23, 2017. The payment by successful bidders will be on June 27, 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 June 26, 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