**Policy Summary: Re-issuance of 7.50% Government Stock, 2034**
The Government of India, Ministry of Finance, announces the sale re-issuance of the 7.50 per cent Government Stock, 2034, for an aggregate amount of Rs. 2,000 crore (nominal). The sale will be conducted by the Reserve Bank of India (RBI), Mumbai Office, through a price-based auction using a multiple price auction method, as per 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 via a non-competitive bidding facility. The auction took place on August 26, 2016, conducted by the RBI Mumbai Office. Electronic bids were submitted through the RBI's e-Kuber system on the same date, with non-competitive bids submitted between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon.
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 August 26, 2016. Payment by successful bidders was due on August 29, 2016, including accrued interest from August 10, 2016, to August 28, 2016. Interest at 7.50 per cent per annum accrues on the nominal value, payable semi-annually on February 10 and August 10.
For further information, contact Prashant Goyal, Joint Secretary to the Government of India.
Key Entities Referenced
Ministry of Finance: The ministry responsible for the financial matters of the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India, responsible for economic policy and related matters.
7.50 per cent Government Stock, 2034: A specific government bond being reissued, maturing in 2034 with a coupon rate of 7.50%.
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's office is located and where the auction is conducted.
General Notification F. No. 4 13 WM2008: A prior notification issued by the Government of India related to the terms and conditions of government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to participate in government securities auctions 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 August 22, 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 Rs. 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
August 26, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on August 26, 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
August 26, 2016. The payment by successful bidders will be on August 29, 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., August 10, 2016 to August 28, 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 February 10 and August 10.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India