**Summary:**
This notification, issued by the Government of India, Ministry of Finance, Department of Economic Affairs on January 22, 2016, announces the sale (reissue) of the "7.35 per cent Government Stock 2024" for an aggregate amount of ₹2,000 crore nominal. The sale will be conducted through 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 via a non-competitive bidding facility. The auction will be held on January 29, 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, submitted electronically through the RBI's e-Kuber system.
The stock has a tenure of 15 years, commencing from June 22, 2009, and will be repaid at par on June 22, 2024. Successful bidders will make payments on February 01, 2016, which includes accrued interest from December 22, 2015, to January 31, 2016.
Interest at a rate of 7.35% per annum will accrue on the nominal value, payable semi-annually on June 22 and December 22. The stock is eligible for When Issued trading as per RBI guidelines.
Key Entities Referenced
7.35 per cent Government Stock 2024: A specific government stock being reissued through an auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: City in India where the Reserve Bank of India office is located and where the auction results will be displayed.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A general notification providing terms and conditions for 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.
Reserve Bank of India Core Banking Solution EKuber: The electronic platform used for submitting bids for the auction.
Prashant Goyal: Joint Secretary to the Government of India.
Ministry of Finance: The ministry responsible for the policy.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated January 22, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 7.35 per cent Government Stock 2024
F. No.4 (2)-W&M/2015:Government of India hereby notifies sale of 7.35 per cent
Government Stock 2024’ (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 January 29, 2016. Bids for the auction should be submitted in electronic format
on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 29,
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 15 years tenure commencing from June 22, 2009. The
Stock will be repaid at par on June 22, 2024.
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 29, 2016. The payment by successful bidders will be on
February 01, 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 last coupon
payment i.e December 22, 2015 to January 31, 2016.
Interest
8. Interest at the rate of 7.35 per cent per annum will accrue on the nominal value of the
Stock from date of last coupon payment and will be paid half-yearly on June 22 and
December 22.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India