This notification from the Government of India, Ministry of Finance, Department of Economic Affairs, dated August 22, 2016, announces the sale reissue of the 7.59 per cent Government Stock 2026 for an aggregate amount of ₹8,000 crore nominal. The sale will be conducted through the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai 400 001, via a price-based auction using the multiple price auction method, as prescribed in 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 through a non-competitive bidding facility. The auction will be held on August 26, 2016, 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 on the RBI's e-Kuber system.
The stock is eligible for When Issued trading as per RBI guidelines and has a tenure of 10 years commencing from January 11, 2016, repayable at par on January 11, 2026. The auction results will be displayed by the RBI at its Fort, Mumbai Office on August 26, 2016. Payment by successful bidders is due on August 29, 2016, including accrued interest from July 11, 2016, to August 28, 2016. Interest at 7.59% per annum will be paid semi-annually on January 11 and July 11.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy and financial regulation of 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, maturing in 2026 and bearing an interest rate of 7.59%.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and regulating the financial system.
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 previously issued notification by the Government of India that contains general terms and conditions applicable to 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 placing competitive bids.
Prashant Goyal: Joint Secretary to the Government of India, signing the order.
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 7.59 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
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 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
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 July 11, 2016 to August 28, 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 last coupon payment 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