**Summary:**
The Government of India, through the Ministry of Finance's Department of Economic Affairs, announces the sale (reissue) of the "7.06 per cent Government Stock, 2046" for an aggregate amount of ₹3,000 crore (nominal). This sale will adhere to the terms and conditions outlined in this notification (Specific Notification) and 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 is scheduled for April 28, 2017, and will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001. Electronic bids must be submitted via the RBI's e-Kuber system on the same day. Non-competitive bids should be submitted between 10:30 a.m. and 11:30 a.m., and competitive bids 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 issue date and payment date for successful bidders is May 2, 2017. Payment includes accrued interest from April 10, 2017, to May 1, 2017.
Interest at a rate of 7.06% per annum will accrue on the nominal value of the stock from the original issue date, payable semi-annually on October 10 and April 10. The auction results will be displayed by the RBI at its Mumbai office on April 28, 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 policy in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for formulating and implementing economic policies.
7.06 per cent Government Stock, 2046: A specific government security being reissued, maturing in 2046 and bearing an interest rate of 7.06%.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city where the Reserve Bank of India's office is located, which is conducting the auction.
General Notification F. No. 4 13WM2008: A previously issued notification (dated October 8, 2008) that provides the general 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 having to compete on price.
Prashant Goyal: Joint Secretary to the Government of India; signatory of the notification.
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 ‘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 ₹ 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 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 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 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. April 10, 2017 to May 1, 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