**Policy Summary: Reissue of 7.35% Government Stock 2024**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale and reissue of the 7.35% Government Stock 2024, for an aggregate amount of ₹2,000 crore (nominal). This sale is governed by the terms and conditions outlined in this notification and the General Notification F. No. 4(13)WM2008, dated October 8, 2008.
The Stock will be sold through the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using a 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 be conducted by the RBI, Mumbai Office, on January 15, 2016. Non-competitive bids are to be submitted electronically via the RBI's e-Kuber system between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon on the same day.
The Stock is eligible for When Issued trading, as per RBI guidelines. It has a tenure of 15 years, commencing from June 22, 2009, and will be repaid at par on June 22, 2024.
The auction results will be displayed by the RBI at its Mumbai Office on January 15, 2016. Payment by successful bidders is due on January 18, 2016, which is the date of reissue. This payment will include accrued interest from December 22, 2015, to January 17, 2016.
Interest at a rate of 7.35% per annum will accrue on the nominal value of the Stock and will be paid semi-annually on June 22 and December 22.
This notification is issued by order of the President of India. For further information, contact Prashant Goyal, Joint Secretary to the Government of India.
Key Entities Referenced
Ministry of Finance: The ministry within the Government of India responsible for economic and financial matters.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India, responsible for economic policy and development.
7.35 per cent Government Stock 2024: A specific government security being reissued through auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai Office, Fort, Mumbai, Maharashtra: The specific branch of the Reserve Bank of India conducting the auction.
General Notification F. No. 4 13WM2008: A prior notification (dated October 8, 2008) providing general terms and conditions related to 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, as indicated by the document's sign-off.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated January 11, 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 रु 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 15, 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 15,
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 15, 2016. The payment by successful bidders will be on January
18, 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 17, 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