**Policy Summary: Re-issuance of 6.97% Government Stock 2026**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale (re-issuance) of the "6.97 per cent Government Stock 2026" for an aggregate amount of ₹7,000 crore (Nominal). The sale will be conducted via a price-based auction using a 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 is scheduled for April 28, 2017, 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 on the RBI's e-Kuber system.
The stock has a ten-year tenure, commencing from September 6, 2016, and will be repaid at par on September 6, 2026. The payment date for successful bidders is May 2, 2017, which includes accrued interest from March 06, 2017, to May 1, 2017. Interest at 6.97% per annum will accrue on the nominal value, payable semi-annually on September 06 and March 06. The stock is eligible for When Issued trading as per RBI guidelines.
The General Notification F. No. 4 13WM2008, dated October 8, 2008, provides additional terms and conditions. The RBI will display the auction results at its Mumbai office on April 28, 2017.
Key Entities Referenced
Ministry of Finance: The ministry responsible for financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
6.97 per cent Government Stock 2026: A specific government bond being reissued.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: The city in Maharashtra where the Reserve Bank of India office is located and where the auction is conducted.
General Notification F. No. 4 13WM2008: A general notification document that specifies terms and conditions, dated October 8, 2008.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that provides a facility for eligible individuals and institutions to bid non-competitively in government securities auctions.
Prashant Goyal: Joint Secretary to the Government of India.
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 6.97 per cent Government Stock 2026
F. No.4 (7) W&M/2017(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 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 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 April 28, 2017. The payment by successful bidders will be on May 2, 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 last coupon payment i.e. March 06, 2017 to May 1, 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 September 06 and March 06.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India