This notification from the Government of India, Ministry of Finance, Department of Economic Affairs, dated April 18, 2016, announces the sale (reissue) of the "7.68 per cent Government Stock 2023" for an aggregate amount of ₹3,000 crore nominal. The sale will be conducted by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai 400 001, through a price-based auction using a multiple price auction method, as per the General Notification F. No. 4/13/WM/2008, dated October 8, 2008. Up to 5% of the notified amount will be allotted to eligible non-competitive bidders.
The auction took place on April 22, 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 was eligible for When Issued trading.
The Government Stock has a tenure of 8 years, 7 months, and 19 days, commencing from April 27, 2015, and will be repaid at par on December 15, 2023. The payment date for successful bidders was April 25, 2016, inclusive of accrued interest from December 15, 2015, to April 24, 2016. Interest at 7.68% per annum accrues on the nominal value, payable semi-annually on June 15 and December 15.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic and financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy and development.
7.68 per cent Government Stock 2023: A specific government security being re-issued through an auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai Office, Maharashtra: The specific branch of the Reserve Bank of India involved in the auction process.
General Notification F. No. 4 13WM2008: A general notification issued by the Government of India providing the standard terms and conditions for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to bid for a portion of the government stock without having to compete on price.
Prashant Goyal: Joint Secretary to the Government of India, who signed the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 18, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 7.68 per cent Government Stock 2023
F. No.4 (3)-W&M/2016:Government of India hereby notifies sale of 7.68 per cent Government Stock
2023’ (hereinafter called 'the Stock') for an aggregate amount of ` 3,000 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
April 22, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on April 22, 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 ‘8 year, 7 months and 19 days” tenure commencing from April 27,
2015. The Stock will be repaid at par on December 15, 2023.
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 April 22, 2016. The payment by successful bidders will be on April 25, 2015. 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 December 15, 2015 to April 24, 2016.
Interest
8. Interest at the rate of 7.68 per cent per annum will accrue on the nominal value of the Stock from
date of last coupon payment and will be paid half-yearly on June 15 and December 15.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India