**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 re-issuance will be conducted through a price-based auction using the multiple price auction method, managed by the Reserve Bank of India (RBI), Mumbai Office.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility. The auction will take place on May 5, 2017, with non-competitive bids to be 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 payment date for successful bidders is May 8, 2017, which includes accrued interest from December 19, 2016, to May 7, 2017. Interest will continue to accrue at a rate of 6.84% per annum, payable semi-annually on June 19 and December 19. The result of the auction will be displayed by the Reserve Bank of India at its Fort, Mumbai Office on May 5, 2017. The stock will be eligible for When Issued trading as per RBI guidelines.
This notification is issued under the authority of the President of India. Further details regarding the auction mechanism are available in the General Notification F. No. 4(13)/WM/2008, dated October 8, 2008. Contact for further information: Prashant Goyal, Joint Secretary to the Government of India.
Key Entities Referenced
Ministry of Finance: The ministry under which the Department of Economic Affairs and Budget Division operate.
Department of Economic Affairs: A department of the Ministry of Finance, involved in issuing the notification.
6.84 per cent Government Stock 2022: The specific government stock being reissued through the auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: The city where the Reserve Bank of India office is located and where the auction results will be displayed.
General Notification F. No. 4 13WM2008: A prior notification that contains general terms and conditions applicable 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 for a portion of the government stock.
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 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 May 5, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on May 5, 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 May 5, 2017. The payment by successful bidders will be on May 8, 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 7, 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