**Policy Summary: Reissue of 7.61 per cent Government Stock, 2030**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale/reissue of the "7.61 per cent Government Stock, 2030" for an aggregate amount of Rs. 8,000 crore (Nominal). This sale is governed by the terms and conditions outlined in this notification, as well as 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, Fort, Mumbai – 400 001, via a price-based auction using a multiple price auction method, as detailed in paragraph 5.1 of the General Notification F. No. 4/13/WM/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 be conducted by the RBI, Mumbai Office, on August 05, 2016. Electronic bids must be submitted through the RBI's e-Kuber system on the same date. Non-competitive bids should be submitted between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon.
The stock is eligible for When Issued trading, according to RBI guidelines. It has a fourteen-year tenure, commencing from May 09, 2016, and will be repaid at par on May 09, 2030.
The auction results will be displayed by the RBI at its Mumbai office on August 05, 2016. Payment by successful bidders is due on August 08, 2016, which is the date of reissue. This payment includes accrued interest on the nominal value of the stock from May 09, 2016, to August 07, 2016.
Interest at a rate of 7.61% per annum will accrue on the nominal value of the stock from the original issue date, payable semi-annually on November 09 and May 09.
Key Entities Referenced
Ministry of Finance: The ministry responsible for the finances of the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
7.61 per cent Government Stock, 2030: A specific government stock being reissued, with a 7.61% interest rate and maturity in 2030.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city where the Reserve Bank of India's office, involved in the auction, is located.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A general notification providing the 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 bid non-competitively in government securities auctions.
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 August 01, 2016
NOTIFICATION
Auction for Sale (Re-issue) of ‘7.61 per cent Government Stock, 2030'
F. No.4 (3)-W&M/2016(i) : Government of India hereby notifies sale (reissue) of ‘7.61 per cent Government Stock,
2030’ (hereinafter called 'the Stock') for an aggregate amount of Rs. 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 August 05,
2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking
Solution (E-Kuber) system on August 05, 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 Stock will be of Fourteen year tenure commencing from May 09, 2016. The Stock will be repaid at par on May
09, 2030.
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 August 05,
2016. The payment by successful bidders will be August 08, 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., May 09, 2016 to August 07, 2016.
Interest
8. Interest at the rate of 7.61 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 November 09 and May 09.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India