**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). The sale will be conducted via a price-based auction using a multiple price auction method, facilitated by the Reserve Bank of India (RBI), Mumbai Office. This notification is further subject to the terms and conditions specified in the General Notification F. No. 4/13/WM/2008, dated October 8, 2008.
A portion of the stock, up to 5% of the notified amount, will be allotted to eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility. The auction is scheduled for June 30, 2016, with non-competitive bids 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 Government Stock has a tenure of 10 years, commencing from January 11, 2016, and will be repaid at par on January 11, 2026. The issue date and payment for the stock are set for July 01, 2016, which will include accrued interest from January 11, 2016, to June 30, 2016. Interest at a rate of 7.59% per annum will accrue on the nominal value, payable semi-annually on July 11 and January 11. The stock will be eligible for When Issued trading as per RBI guidelines. The auction results will be displayed by the RBI at its Mumbai Office on June 30, 2016.
For further information, contact the Joint Secretary to the Government of India, Prashant Goyal.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy and financial regulation in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for advising the government on economic matters.
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 and state where the Reserve Bank of India's office is located and where the auction is conducted.
General Notification F. No. 4 13WM2008: A general notification providing the standard terms and conditions for government stock auctions, dated October 8, 2008.
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.
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 June 27, 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 June 30,
2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking
Solution (E-Kuber) system on June 30, 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 June 30,
2016. The payment by successful bidders will be on July 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 original
issue. i.e. January 11, 2016 to June 30, 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