**Policy Summary: Re-issue of 7.59% Government Stock 2029**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale re-issue of the 7.59 percent Government Stock 2029 for an aggregate amount of ₹6,000 crore (nominal). The sale will be conducted by the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using the multiple price auction method. This notification, dated January 22, 2016, is issued under F. No.4/2/WM/2015i and is subject to the terms and conditions outlined within, as well as those specified 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 take place on January 29, 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, via the RBI's e-Kuber system.
The stock is eligible for When Issued trading, and has a tenure of 13 years, 5 months, and 1 day, commencing from October 19, 2015, with repayment at par on March 20, 2029.
The results of the auction will be displayed at the RBI, Mumbai Office, on January 29, 2016. Payment by successful bidders is due on February 01, 2016, which is the date of re-issue, and includes accrued interest from October 19, 2015, to January 31, 2016.
Interest at 7.59% per annum will accrue on the nominal value from October 19, 2015, to March 19, 2016, payable on March 20, 2016. Subsequent interest payments will be made semi-annually on September 20 and March 20.
For further information, refer to the notifications mentioned above or contact the Reserve Bank of India, Mumbai Office, Fort, Mumbai 400 001.
Key Entities Referenced
7.59 percent Government Stock 2029: A specific government stock being re-issued by the Government of India.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and displaying the results.
Mumbai, Maharashtra: City in India where the Reserve Bank of India's office, which is conducting the auction, is located.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A general notification referenced for terms and conditions of the stock sale.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to bid non-competitively for up to 5% of the notified amount.
EKuber: The Core Banking Solution system of the Reserve Bank of India, used for submitting bids electronically.
March 20, 2029: The date on which the Government Stock will be repaid at par.
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 January 22, 2016
NOTIFICATION
Auction for Sale (Re issue) of 7.59 percent Government Stock 2029
F. No.4 (2) W&M/2015(i): Government of India hereby notifies sale (re-issue) of 7.59
percent Government Stock 2029 for an aggregate amount of ₹ 6,000 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 January 29, 2016. Bids for the auction should be submitted in electronic format
on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 29,
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 January 29, 2016. The payment by successful bidders will be on
February 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 October 19, 2015 to January 31, 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 i.e., October 19, 2015 to March 19, 2016 which will be
paid on 20 March 2016 and the interest thereafter will be payable half yearly on September
20 and March 20.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India