**Policy Summary: Re-issuance of Government Stock**
The Government of India, Ministry of Finance, announces the sale re-issuance of the 7.06 per cent Government Stock, 2046, for an aggregate amount of ₹2,000 crore nominal. This sale will adhere to the terms and conditions outlined in this specific notification, as well as the general notification F. No. 4/13/WM/2008, dated October 8, 2008.
The Reserve Bank of India (RBI), Mumbai Office, will conduct the sale via a price-based auction using the multiple price auction method. 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 12, 2017, conducted by the Reserve Bank of India, Mumbai. Bids must be submitted electronically through the RBI's e-Kuber system on the same date. Non-competitive bids are to be submitted between 10:30 a.m. and 11:30 a.m., while competitive bids should be submitted between 10:30 a.m. and 12:00 noon. The stock is eligible for When Issued trading, as per RBI guidelines.
The stock has a thirty-year tenure, commencing from October 10, 2016, and will be repaid at par on October 10, 2046. The payment date for successful bidders is May 15, 2017, which includes accrued interest from April 10, 2017, to May 14, 2017. Interest at a rate of 7.06% per annum will accrue on the nominal value, payable semi-annually on October 10 and April 10.
The auction results will be displayed by the RBI at its Mumbai office on May 12, 2017.
For further information, contact:
Prashant Goyal
Joint Secretary to the Government of India
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic and financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy and development.
7.06 per cent Government Stock, 2046: A government security with a coupon rate of 7.06% that matures in 2046.
Reserve Bank of India: The central bank of India, responsible for conducting auctions for government stock.
Mumbai, Maharashtra: The city where the Reserve Bank of India office is located and where the auction is conducted.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A general notification issued by the Government of India providing the terms and conditions for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to bid for a portion of the government stock without competitive bidding.
Prashant Goyal: Joint Secretary to the Government of India.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated May 08, 2017
NOTIFICATION
Auction for Sale (Re-issue) of ‘7.06 per cent Government Stock, 2046’
F. No.4 (7)-W&M/2017(iii): Government of India hereby notifies sale (reissue) of ‘7.06 per cent
Government Stock, 2046’ (hereinafter called 'the Stock') for an aggregate amount of ₹ 2,000
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 12, 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 12, 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 Stock will be of thirty-year tenure commencing from October 10, 2016. The Stock will be
repaid at par on October 10, 2046.
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 12, 2017. The payment by successful bidders will be on May 15, 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. April 10, 2017 to May 14, 2017.
Interest
8. Interest at the rate of 7.06 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 October 10 and April 10 .
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India