**Policy Summary: Re-issuance of 7.59% Government Stock 2026**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale re-issuance of the 7.59 per cent Government Stock 2026 for an aggregate amount of ₹8,000 crore (Nominal). This re-issuance will be conducted via a price-based auction using a multiple price auction method, managed by the Reserve Bank of India (RBI), Mumbai Office. The auction is scheduled for April 22, 2016.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility. Non-competitive bids are to be submitted electronically via the RBI’s e-Kuber system between 10:30 a.m. and 11:30 a.m. on April 22, 2016, while competitive bids should be submitted between 10:30 a.m. and 12:00 noon on the same day.
The Government Stock has a tenure of 10 years, commencing from January 11, 2016, and will be repaid at par on January 11, 2026. The payment date for successful bidders is April 25, 2016, which includes accrued interest from January 11, 2016, to April 24, 2016.
Interest at a rate of 7.59% per annum will accrue on the nominal value of the Stock from the original issue date, payable semi-annually on July 11 and January 11. The stock will be eligible for When Issued trading as per RBI guidelines.
The results of the auction will be displayed by the RBI at its Mumbai Office on April 22, 2016. This sale re-issuance is governed by 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, issued by the Government of India.
For further information, contact the Reserve Bank of India, Mumbai Office, Fort, Mumbai 400 001.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic and financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India, responsible for economic policy and development.
7.59 per cent Government Stock 2026: A specific government bond being reissued, maturing in 2026 with an interest rate of 7.59%.
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 will be conducted.
General Notification F. No. 4 13WM2008: A general notification issued by the Government of India on October 8, 2008, providing the terms and conditions for government stock sales.
EKuber: The Core Banking Solution system of Reserve Bank of India, used for submitting bids in electronic format.
Prashant Goyal: Joint Secretary to the Government of India, signatory of the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 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
April 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 April 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.
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 April 22, 2016. The payment by successful bidders will be on April 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 April 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 July 11 and January 11.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India