This notification from the Government of India, Ministry of Finance, Department of Economic Affairs, announces the sale (reissue) of the "7.35 per cent Government Stock 2024" for an aggregate amount of ₹3,000 crore nominal. The auction will be conducted by the Reserve Bank of India (RBI), Mumbai Office, on October 21, 2016, using a price-based auction method with multiple price auction. Bids are to be submitted electronically through the RBI's e-Kuber system on the same date, 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. Up to 5% of the notified amount will be allotted to eligible individuals and institutions via a non-competitive bidding facility.
The Government Stock has a tenure of 15 years, commencing from June 22, 2009, and will be repaid at par on June 22, 2024. The payment date for successful bidders is October 24, 2016, which includes accrued interest from June 22, 2016, to October 23, 2016. Interest will accrue at a rate of 7.35% per annum, payable semi-annually on December 22 and June 22. The stock is eligible for When Issued trading, according to RBI guidelines. The General Notification F. No. 4 13WM2008, dated October 8, 2008, also applies. The result of the auction will be displayed by the RBI at its Mumbai office on October 21, 2016. Contact Prashant Goyal, Joint Secretary to the Government of India, for further information.
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 advising the government on economic issues.
7.35 per cent Government Stock 2024: A specific government security being re-issued through an auction.
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 office is located and where the auction is conducted.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A prior notification providing 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 competitive bidding.
Prashant Goyal: Joint Secretary to the Government of India, signing the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated October 17, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 7.35 per cent Government Stock 2024
F. No.4 (3)-W&M/2016: Government of India hereby notifies sale of 7.35 per cent Government Stock
2024’ (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
October 21, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on October 21, 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
October 21, 2016. The payment by successful bidders will be on October 24, 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 June 22, 2016 to October 23, 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 December 22 and June 22.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India