**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 ₹8,000 crore (Nominal). This sale is governed by the terms and conditions outlined in this specific notification (F. No.4/3/WM/2016) and the general notification F. No. 4/13/WM/2008, dated October 8, 2008.
The stock will be sold 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 a non-competitive bidding facility.
The auction will be conducted by the RBI Mumbai Office on May 20, 2016. Non-competitive bids were accepted between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon, submitted electronically through the RBI's e-Kuber system.
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 result of the auction will be displayed by the RBI at its Mumbai Office on May 20, 2016. Payment by successful bidders was due on May 23, 2016, including accrued interest from March 20, 2016, to May 22, 2016.
Interest at a rate of 7.59% per annum will accrue on the nominal value of the Stock and will be paid semi-annually on September 20 and March 20. The stock is eligible for When Issued trading, according to RBI guidelines.
For further information, contact:
Prashant Goyal
Joint Secretary to the Government of India.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy, financial affairs, taxation, and financial institutions in India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for formulating and monitoring economic policies and programs.
7.59 percent Government Stock 2029: A specific government bond being re-issued with a coupon rate of 7.59% and maturing in 2029.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai Office, Fort, Mumbai: The specific branch of the Reserve Bank of India located in Mumbai, Maharashtra, where the auction is conducted.
General Notification F. No. 4 13WM2008: A previously issued notification providing general guidelines for government stock auctions, dated October 8, 2008.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to participate in government security auctions without competitive bidding.
Prashant Goyal: Joint Secretary to the Government of India, signatory of the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated May 16, 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 ` 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 May 20, 2016.
Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-
Kuber) system on May 20, 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 May 20,
2016. The payment by successful bidders will be on May 23, 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 May 22, 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 of India