This notification, issued by the Government of India's Ministry of Finance on February 1, 2016, announces the sale and reissue of the 7.59 per cent Government Stock 2026 for an aggregate amount of ₹8,000 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 outlined in the general notification F. No. 4(13)/WM/2008, dated October 8, 2008. Up to 5% of the notified amount will be allotted to eligible non-competitive bidders.
The auction is scheduled for February 5, 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 stock is eligible for When Issued trading, adhering to RBI guidelines. The Government Stock has a 10-year tenure, commencing from January 11, 2016, and will be repaid at par on January 11, 2026.
The auction results will be displayed by the RBI at its Mumbai Office on February 5, 2016. Payment by successful bidders is due on February 8, 2016, which includes accrued interest from January 11, 2016, to February 7, 2016. Interest at 7.59 per cent per annum will be paid semi-annually on July 11 and January 11. Contact Joint Secretary to the Government of India Prashant Goyal for any queries.
Key Entities Referenced
Ministry of Finance: The ministry responsible for financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy and programs.
7.59 per cent Government Stock 2026: A specific government stock being reissued, bearing an interest rate of 7.59% and maturing in 2026.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and related activities.
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, providing the standard terms and conditions for 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 security auctions on a non-competitive basis.
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 February 1, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 7.59 per cent Government Stock 2026
F. No.4 (2) W&M/2015(i): Government of India hereby notifies sale (re-issue) of 7.59 per
cent Government Stock 2026 for an aggregate amount of रु 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 February 5, 2016. Bids for the auction should be submitted in electronic format
on the Reserve Bank of India Core Banking Solution (E-Kuber) system on February 5, 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 February 5, 2016. The payment by successful bidders will be on
February 8, 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 February 7, 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