**Policy Summary: Reissue of 7.50 per cent Government Stock, 2034**
On July 25, 2016, the Government of India, Ministry of Finance, Department of Economic Affairs, announced the sale and reissue of the "7.50 per cent Government Stock, 2034" for an aggregate amount of ₹2,000 crore nominal. This sale is governed by the terms and conditions outlined in this notification, as well as the General Notification F. No. 4/13/WM/2008, dated October 8, 2008.
The Stock will be sold through the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using the multiple price auction method. Up to 5% of the notified amount will be allotted to eligible individuals and institutions according to the Scheme for Non-competitive Bidding Facility.
The auction was conducted by the RBI, Mumbai Office, on July 29, 2016. Non-competitive bids were to be submitted 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 as per RBI guidelines. It has a thirty-year tenure commencing from August 10, 2004, and will be repaid at par on August 10, 2034.
The auction results were displayed by the RBI at its Mumbai office on July 29, 2016. Payment by successful bidders was due on August 01, 2016, the date of reissue, and included accrued interest from February 10, 2016, to July 31, 2016.
Interest at a rate of 7.50 per cent per annum will accrue on the nominal value of the Stock and will be paid semi-annually on August 10 and February 10.
For further information, contact:
Prashant Goyal
Joint Secretary to the Government of India
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic management.
7.50 per cent Government Stock, 2034: A specific government bond being reissued 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 13 WM2008: 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 on government securities without competing in the price-based auction.
EKuber: The Reserve Bank of India Core Banking Solution system used for submitting bids in electronic format.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated July 25, 2016
NOTIFICATION
Auction for Sale (Re-issue ) of ‘7.50 per cent Government Stock, 2034'
F. No.4 (3)-W&M/2016(ii): Government of India hereby notifies sale (reissue) of ‘7.50 per cent
Government Stock, 2034’ (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
July 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 July 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 Stock will be of thirty-year tenure commencing from August 10, 2004. The Stock will be repaid
at par on August 10, 2034.
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 29, 2016. The payment by successful bidders will be on August 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., February 10, 2016 to July 31, 2016.
Interest
8. Interest at the rate of 7.50 per cent per annum will accrue on the nominal value of the Stock from the
date of last coupon payment and will be paid half yearly on August 10 and February 10.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India