**Policy Summary: Reissue of 6.97% Government Stock 2026**
The Government of India, through the Ministry of Finance's Department of Economic Affairs, announces the sale reissue of the 6.97% Government Stock 2026 for an aggregate amount of ₹5,000 crore (Nominal). This sale will adhere to the terms and conditions outlined in this Specific Notification and the General Notification F. No. 4(13)/WM/2008, dated October 8, 2008.
The stock will be sold through the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using the multiple price auction method, as prescribed in the General Notification. Up to 5% of the notified amount will be allotted to eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility.
The auction will be conducted by the RBI, Mumbai Office, on January 27, 2017. 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 AM and 11:30 AM, and competitive bids between 10:30 AM and 12:00 Noon.
The Government Stock has a tenure of ten years, commencing from September 6, 2016, and will be repaid at par on September 6, 2026. The result of the auction will be displayed by the RBI at its Mumbai Office on January 27, 2017. Payment by successful bidders is due on January 30, 2017, which is also the date of reissue. This payment will include accrued interest from September 6, 2016, to January 29, 2017.
Interest at a rate of 6.97% per annum will accrue on the nominal value of the Stock from the original issue date, payable semi-annually on March 6 and September 6. The stock will be eligible for When Issued trading as per RBI guidelines.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy and financial regulations.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic management.
6.97 per cent Government Stock 2026: A government security being reissued with a specified interest rate and maturity date.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: Location of the Reserve Bank of India office where the auction is conducted.
General Notification F. No. 4 13WM2008: A previously issued notification providing general guidelines 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 January 23, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 6.97 per cent Government Stock 2026
F. No.4 (3) 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 ₹ 5,000 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 January 27, 2017. Bids for the auction should be submitted in electronic format
on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 27,
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 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 January 27, 2017. The payment by successful bidders will be on January
30, 2017 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 January 29, 2017.
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