## Policy Summary: Reissue of 6.97% Government Stock 2026
This notification, issued by the Government of India's Ministry of Finance, Department of Economic Affairs, announces the sale (reissue) of the 6.97 percent Government Stock 2026 for an aggregate amount of ₹7,000 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 this notification and 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 individuals and institutions through a non-competitive bidding facility. The auction will be held on November 11, 2016, with non-competitive bids accepted 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 is eligible for "When Issued" trading as per RBI guidelines. It has a tenure of 10 years, commencing from September 6, 2016, and will be repaid at par on September 6, 2026. The auction results will be displayed by the RBI at its Mumbai Office on November 11, 2016. Payment by successful bidders is due on November 15, 2016, and includes accrued interest from September 6, 2016, to November 14, 2016. Interest at a rate of 6.97% per annum will accrue on the nominal value, payable semi-annually on March 06 and September 06.
For further information, contact the Reserve Bank of India, Mumbai Office, Fort, Mumbai 400 001.
Key Entities Referenced
6.97 per cent Government Stock 2026: Government of India stock being reissued, maturing in 2026 with an interest rate of 6.97 percent.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and displaying results.
Mumbai, Maharashtra: Location of the Reserve Bank of India office where the auction results will be displayed.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A general notification issued by the Government of India, containing terms and conditions applicable to the stock sale.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to bid non-competitively for a portion of the government stock.
EKuber: The Reserve Bank of India Core Banking Solution system used for submitting bids in electronic format.
Prashant Goyal: Joint Secretary to the Government of India, authorized to issue the notification.
Ministry of Finance Department of Economic Affairs Budget Division: The department and division within the Indian government responsible for issuing the notification regarding the sale of government stock.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated November 07, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 6.97 per cent Government Stock 2026
F. No.4 (2) W&M/2016(i): Government of India hereby notifies sale (re-issue) of ‘6.97
percent Government Stock 2026’ (hereinafter called 'the Stock') for an aggregate amount
of ` 7,000 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 November 11, 2016. Bids for the auction should be submitted in electronic
format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on
November 11, 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 ten years tenure commencing from September 6, 2016.
The Stock will be repaid at par on September 6, 2026.
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 November 11, 2016. The payment by successful bidders will be on
November 15, 2016 i.e. the date of re-issue. The payment for the Stock will include accrued
interest on the nominal value of the Stock allotted in the auction from the date of original
issue i.e. September 06, 2016 to November 14, 2016.
Interest
8. Interest at the rate of 6.97 per cent per annum will accrue on the nominal value of the
Stock from the date of original issue and will be paid half yearly on March 06 and
September 06.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India