This notification announces the Government of India's sale (reissue) of the "7.68 per cent Government Stock 2023" for an aggregate amount of ₹3,000 crore nominal. The auction, conducted by the Reserve Bank of India (RBI) in Mumbai, will take place on June 03, 2016. The sale will be executed through 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 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 are due between 10:30 a.m. and 12:00 noon on June 03, 2016, via the RBI's e-Kuber system. The 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 issue date and payment date is June 06, 2016, which will include accrued interest from December 15, 2015, to June 05, 2016. Interest at 7.68% per annum will be paid semi-annually on June 15 and December 15. The stock is eligible for When Issued trading as per RBI guidelines. The result of the auction will be displayed by the RBI at its Mumbai office on June 03, 2016. Prashant Goyal, Joint Secretary to the Government of India, issued the notification.
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 reissued, with a coupon rate of 7.68% and maturing in 2023.
Reserve Bank of India: The central bank of India, responsible for conducting the auction of the government stock.
Mumbai, Maharashtra: The city where the Reserve Bank of India's office is located and where the auction is conducted.
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 that allows eligible individuals and institutions to bid for a portion of the government stock without competing on price.
Prashant Goyal: Joint Secretary to the Government, signing the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated May 30, 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
June 03, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of India
Core Banking Solution (E-Kuber) system on June 03, 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
June 03, 2016. The payment by successful bidders will be on June 06, 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. December 15, 2015 to June 05, 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 June15 and December 15.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government