**Summary:**
This notification from the Government of India, Ministry of Finance, Department of Economic Affairs, dated July 11, 2016, announces the sale (reissue) of the "7.35 per cent Government Stock 2024" for an aggregate amount of ₹3,000 crore nominal. The sale will be conducted through the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using a multiple price auction method, as outlined in the general notification F. No. 4/13/WM/2008, dated October 8, 2008.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility. The auction will take place on July 15, 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 via the RBI's e-Kuber system.
The stock is eligible for When Issued trading, subject to 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 July 15, 2016. Payment by successful bidders is due on July 18, 2016, which includes accrued interest from June 22, 2016, to July 17, 2016. Interest at a rate of 7.35% per annum will be paid semi-annually on December 22 and June 22.
For further information, contact the Joint Secretary to the Government, Prashant Goyal.
Key Entities Referenced
Ministry of Finance: A ministry of the Government of India, responsible for financial matters.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy and development programs.
Budget Division: A division within the Department of Economic Affairs responsible for budget preparation.
7.35 per cent Government Stock 2024: A specific government bond being reissued, maturing in 2024 with an interest rate of 7.35%.
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 office of the Reserve Bank of India located in Mumbai, Maharashtra, where the auction will be conducted.
General Notification F. No. 4 13WM2008: A previously issued notification providing general terms and conditions related to government stock auctions.
Prashant Goyal: Joint Secretary to the Government.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated July 11, 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
July 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 July 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
July 15, 2016. The payment by successful bidders will be on July 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 June 22, 2016 to July 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 December 22 and June 22.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government