This notification announces the Government of India's 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 May 6, 2016, using a price-based auction method with multiple price auction. Bids must be submitted electronically via the RBI's e-Kuber system on May 6, 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. Up to 5% of the notified amount will be allotted to eligible individuals and institutions via a non-competitive bidding facility. The 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 May 9, 2016, which includes accrued interest from December 22, 2015, to May 8, 2016. Interest will accrue at 7.35% per annum, paid semi-annually on June 22 and December 22. The stock is eligible for When Issued trading as per RBI guidelines. The General Notification F. No. 4 13WM2008, dated October 8, 2008, also applies. Contact: Prashant Goyal, Joint Secretary to the Government of India. F. No.4 3WM2016 refers.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy, financial matters, taxation, and financial institutions in India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for formulating and monitoring economic policies and programs.
7.35 per cent Government Stock 2024: A specific government security being reissued through an auction. It carries an interest rate of 7.35% and matures in 2024.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city in which the Reserve Bank of India office responsible for the auction is located.
General Notification F. No. 4 13WM2008: A previously issued 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 participate in government security auctions without placing competitive bids.
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 May 2, 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
May 6, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on May 6, 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 May 6, 2016. The payment by successful bidders will be on May 9, 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 May 8, 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