This notification from the Government of India, Ministry of Finance, Department of Economic Affairs, dated January 11, 2016, 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 through a price-based auction using a multiple price auction method, managed by the Reserve Bank of India (RBI) at its Mumbai Office, Fort, Mumbai 400 001, on January 15, 2016.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions via a non-competitive bidding facility. Non-competitive bids are to be submitted between 10:30 a.m. and 11:30 a.m., while competitive bids should be submitted between 10:30 a.m. and 12:00 noon on January 15, 2016, 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 January 15, 2016. Payment by successful bidders is due on January 18, 2016, which includes accrued interest from October 19, 2015, to January 17, 2016.
Interest at 7.59% per annum will accrue from October 19, 2015, payable on March 20, 2016, and subsequently half-yearly on September 20 and March 20. The stock is eligible for When Issued trading as per RBI guidelines. Further information can be found in General Notification F. No. 4/13/WM/2008, dated October 8, 2008.
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 development.
7.59 percent Government Stock 2029: A government security being re-issued, maturing in 2029 with an interest rate of 7.59 percent.
Reserve Bank of India: The central bank of India, responsible for conducting the auction of the government stock.
Mumbai, Maharashtra: City in India where Reserve Bank of India office is located which is conducting the auction.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A general notification providing the terms and conditions for the sale of government stock.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to bid for a portion of the government stock without competitive bidding.
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 11, 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 15, 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 15,
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 15, 2016. The payment by successful bidders will be on January
18, 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 17, 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