**Policy Summary: Reissue of 7.59% Government Stock 2026**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale (reissue) of the 7.59% Government Stock 2026 for an aggregate amount of ₹8,000 crore (Nominal). This sale will adhere to the terms and conditions outlined in this specific notification, as well as the general notification F. No. 4(13)/WM/2008, dated October 8, 2008.
The stock will be sold through a price-based auction using a multiple price auction method, facilitated by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai – 400 001, as detailed in paragraph 5.1 of the aforementioned general notification. Up to 5% of the notified amount will be allotted to eligible individuals and institutions via a non-competitive bidding facility.
The auction is scheduled for July 22, 2016, and will be conducted by the RBI in Mumbai. Bids must be submitted electronically through the RBI's e-Kuber system on the same date. Non-competitive bids are to be submitted between 10:30 a.m. and 11:30 a.m., while competitive bids should be submitted between 10:30 a.m. and 12:00 noon.
The Government Stock has a tenure of 10 years, commencing from January 11, 2016, and will be repaid at par on January 11, 2026. It is eligible for When Issued trading, following RBI guidelines.
The auction results will be displayed by the RBI at its Fort, Mumbai office on July 22, 2016. Payment by successful bidders is due on July 25, 2016 (the date of reissue), and includes accrued interest from January 11, 2016, to July 24, 2016.
Interest at a rate of 7.59% per annum will accrue on the nominal value from the original issue date, payable semi-annually on January 11 and July 11.
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.
7.59 per cent Government Stock 2026: A specific government security being reissued, with a coupon rate of 7.59% and maturing in 2026.
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 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 competitive bidding.
E-Kuber: The Core Banking Solution system of the Reserve Bank of India used for submitting bids in electronic format.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated July 18, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 7.59 per cent Government Stock 2026
F. No.4 (3) W&M/2016(i): Government of India hereby notifies sale (re-issue) of 7.59 per cent Government Stock
2026 for an aggregate amount of ₹ 8,000 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 22, 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 22, 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 ‘10 year’ tenure commencing from January 11, 2016. The Stock will be repaid at
par on January 11, 2026.
7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on July 22,
2016. The payment by successful bidders will be on July 25, 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 original
issue i.e January 11, 2016 to July 24, 2016.
Interest.
8. Interest at the rate of 7.59 per cent per annum will accrue on the nominal value of the Stock from the date of
original issue and will be paid half-yearly on January 11 and July 11.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India