**Policy Summary: Re-issuance of 6.84% Government Stock 2022**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale re-issuance of the 6.84 percent Government Stock 2022, for an aggregate amount of ₹3,000 crore (Nominal). This sale is governed by the terms and conditions outlined in this notification, as well as the General Notification F. No. 4(13)WM/2008, dated October 8, 2008.
The re-issuance will be conducted via a price-based auction using a multiple price auction method, facilitated by the Reserve Bank of India (RBI) at its Mumbai Office (Fort, Mumbai – 400 001). The auction date is April 28, 2017.
A maximum of 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility. Non-competitive bids are to be submitted electronically via the RBI's e-Kuber system 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 on April 28, 2017.
The stock is eligible for "When Issued" trading, as per 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 RBI will display the auction results at its Mumbai Office (Fort) on April 28, 2017. Payment by successful bidders is due on May 2, 2017, which is also the date of re-issue. This payment includes accrued interest on the nominal value of the stock from the last coupon payment date (December 19, 2016) to May 1, 2017.
Interest on the stock will accrue at a rate of 6.84 percent per annum on the nominal value, payable semi-annually on June 19 and December 19.
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, financial institutions, taxation, and financial affairs in India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for formulating and monitoring economic policies and programs.
6.84 per cent Government Stock 2022: A specific government bond being reissued through auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai Office, Maharashtra: The specific branch of the Reserve Bank of India located in Mumbai, responsible for conducting the auction.
General Notification F. No. 4 13WM2008: A prior notification providing the general terms and conditions for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to participate in government security auctions without competitive bidding.
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 April 24, 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 April 28, 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 28, 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 April 28, 2017. The payment by successful bidders will be on May 2, 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. December 19, 2016 to May 1, 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 June 19 and December 19.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India