This notification from the Government of India, Ministry of Finance, Department of Economic Affairs, dated October 24, 2016, 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, through a price-based auction using a multiple price auction method, as outlined in 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 via a non-competitive bidding facility. The auction will be held on October 28, 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. "When Issued" trading will be permitted.
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 payment date for successful bidders is November 01, 2016, which includes accrued interest from September 12, 2016, to October 31, 2016.
Interest will accrue at a rate of 6.84% per annum on the nominal value of the Stock. Broken period interest from September 12, 2016, to December 18, 2016, will be paid on December 19, 2016, with subsequent interest payments made semi-annually on June 19 and December 19.
Prashant Goyal, Joint Secretary to the Government of India, issued the notification.
Key Entities Referenced
6.84 per cent Government Stock 2022: A specific government stock being reissued.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai Office, Fort, Mumbai: The specific branch office of the Reserve Bank of India conducting the auction, located in Maharashtra State.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A previously issued general notification relevant to the stock sale.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to bid non-competitively.
EKuber: The Reserve Bank of India Core Banking Solution system used for submitting bids.
Prashant Goyal: Joint Secretary to the Government of India, as indicated by the document's signature.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated October 24, 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 October 28, 2016. Bids for the auction should be submitted in electronic format
on the Reserve Bank of India Core Banking Solution (E-Kuber) system on October 28,
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 October 28, 2016. The payment by successful bidders will be on
November 01, 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 October 31, 2016.
Interest
8. Interest at the rate of 6.84 per cent per annum will accrue on the nominal value of the
Stock. The broken period interest from September 12, 2016 to December 18, 2016 will be
paid on December 19, 2016 and the interest thereafter will be payable half-yearly on June
19 and December 19.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India