**Summary:**
The Government of India, 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 ₹7,000 crore nominal. This sale will be conducted 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 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 following the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities.
The auction will be held on October 21, 2016, conducted by the RBI in Mumbai. Electronic bids must be submitted through the RBI's e-Kuber system on the same date, with non-competitive bids accepted between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon.
The stock has a fourteen-year tenure commencing from May 09, 2016, and will be repaid at par on May 09, 2030. It is eligible for When Issued trading.
The result of the auction will be displayed by the RBI at its Mumbai office on October 21, 2016. Payment by successful bidders is due on October 24, 2016, which includes accrued interest from May 09, 2016, to October 23, 2016.
Interest at a rate of 7.61% per annum will accrue on the nominal value of the stock from the original issue date and will be paid semi-annually on November 09 and May 09.
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.
7.61 per cent Government Stock, 2030: A specific government bond being reissued, maturing in 2030 and bearing an interest rate of 7.61%.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing the government's debt.
Mumbai Office, Maharashtra: The specific branch of the Reserve Bank of India located in Mumbai, responsible for conducting the auction.
General Notification F. No. 4 13WM2008: A previously issued general notification providing the standard 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 for a portion of the government stock without competitive bidding.
Prashant Goyal: Joint Secretary to the Government of India, authorized to issue the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated October 17, 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 ` 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 October 21,
2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking
Solution (E-Kuber) system on October 21, 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 October 21,
2016. The payment by successful bidders will be October 24, 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 October 23, 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