**Policy Summary: Reissue of 7.68 per cent Government Stock 2023**
On August 8, 2016, the Government of India, Ministry of Finance, Department of Economic Affairs, announced the sale of the "7.68 per cent Government Stock 2023" for an aggregate amount of ₹3,000 crore nominal. This sale, governed by notification F. No.4 3WM2016 and General Notification F. No. 4 13WM2008, dated October 8, 2008, will be conducted by the Reserve Bank of India (RBI) via a price-based auction using a multiple price auction method.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility. The auction took place on August 12, 2016, conducted by the RBI at its Mumbai Office. Bids were submitted electronically via the RBI's e-Kuber system.
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 August 16, 2016, which included accrued interest from June 15, 2016, to August 15, 2016.
Interest at a rate of 7.68% per annum accrues on the nominal value, payable semi-annually on December 15 and June 15.
Key Entities Referenced
7.68 per cent Government Stock 2023: A government security being reissued through an auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: The city where the Reserve Bank of India office is located and where the auction results will be displayed.
General Notification F. No. 4 13WM2008: A general notification issued by the Government of India, providing 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 non-competitively in government security auctions.
EKuber: The Reserve Bank of India Core Banking Solution system used for submitting bids in electronic format.
Prashant Goyal: Joint Secretary to the Government of India, issuing the notification.
Ministry of Finance: The ministry under which the Department of Economic Affairs operates.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated August 08, 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
August 12, 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 12, 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
August 12, 2016. The payment by successful bidders will be on August 16, 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 June 15, 2016 to August 15, 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 December 15 and June 15.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India