**Policy Summary: Re-issue of 7.59 percent Government Stock 2029**
On July 4, 2016, the Government of India, Ministry of Finance, Department of Economic Affairs, announced the re-issue of the 7.59 percent Government Stock 2029 for an aggregate nominal amount of ₹7,000 crore. This re-issue will be governed by the terms and conditions outlined in this specific notification, as well as the general notification F. No. 4(13)WM2008, dated October 8, 2008.
The sale will be conducted through the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using the multiple price auction method, as detailed in paragraph 5.1 of the general notification. Up to 5% of the notified amount will be allotted to eligible individuals and institutions through the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities.
The auction was held on July 8, 2016, by the Reserve Bank of India, Mumbai. Electronic bids were to be submitted on the RBI's e-Kuber system on the same day, with non-competitive bids due between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon.
The stock was eligible for When Issued trading, according to RBI guidelines. The Government Stock has a tenure of 13 years, 5 months, and 01 day, commencing from October 19, 2015, and will be repaid at par on March 20, 2029.
The auction results were displayed by the RBI at its Mumbai Office on July 8, 2016. Payment by successful bidders was due on July 11, 2016, inclusive of accrued interest from March 20, 2016, to July 10, 2016.
Interest at a rate of 7.59 percent per annum accrues on the nominal value of the Stock and is paid semi-annually on September 20 and March 20.
For further information, contact:
Reserve Bank of India
Mumbai Office
Fort, Mumbai - 400 001
Key Entities Referenced
General Notification F. No. 4 13WM2008: A general notification providing terms and conditions related to the stock sale.
7.59 percent Government Stock 2029: Government security being re-issued through auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: City in which the Reserve Bank of India office is located and where the auction results will be displayed.
E-Kuber: Reserve Bank of India Core Banking Solution system for submitting bids.
Prashant Goyal: Joint Secretary to the Government of India.
Ministry of Finance: The ministry under which the Department of Economic Affairs and Budget Division operate.
Department of Economic Affairs: The department within the Ministry of Finance responsible for the budget division.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated July 04, 2016
NOTIFICATION
Auction for Sale (Re issue) of 7.59 percent Government Stock 2029
F. No.4 (3) W&M/2016(i): Government of India hereby notifies sale (re-issue) of 7.59 percent Government Stock 2029
for an aggregate amount of ₹ 7,000 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 08, 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 08, 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 ‘13 years, 5 months and 01 day’ tenure commencing from October 19, 2015. The
Stock will be repaid at par on March 20, 2029.
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 July 08,
2016. The payment by successful bidders will be on July 11, 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. March 20, 2016 to July 10, 2016.
Interest
8. Interest at the rate of 7.59 per cent per annum will accrue on the nominal value of the Stock the date of last coupon
payment and will be paid half yearly on September 20 and March 20.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government