**Summary:**
On June 27, 2016, the Government of India, through the Ministry of Finance's Department of Economic Affairs, announced the reissue and sale of the "7.68 per cent Government Stock 2023" for an aggregate amount of ₹3,000 crore nominal. The sale was conducted via a price-based auction using a multiple price auction method through the Reserve Bank of India (RBI), Mumbai Office. The auction took place on June 30, 2016, with electronic bids submitted through the RBI's e-Kuber system. Non-competitive bids were accepted between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon. Up to 5% of the notified amount was allotted to eligible individuals and institutions via a non-competitive bidding facility. 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 payment date for successful bidders was July 01, 2016, which included accrued interest from June 15, 2016. Interest at 7.68% per annum is paid semi-annually on December 15 and June 15. The stock was eligible for When Issued trading as per RBI guidelines. Further details can be found in Notification F. No. 4(13)WM2008, dated October 8, 2008, issued by the Government of India.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy, financial matters, taxation, and financial institutions in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for formulating and monitoring economic policies and programs.
7.68 per cent Government Stock 2023: A specific government bond being reissued through an auction, maturing in 2023 and carrying an interest rate of 7.68%.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai Office, Fort, Maharashtra: The specific branch office of the Reserve Bank of India located in Mumbai, responsible for conducting the auction.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A general notification issued by the Government of India, outlining the terms and conditions for government stock auctions, referenced in the specific notification.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to participate in government security auctions without having to competitively bid.
Prashant Goyal: Joint Secretary to the Government.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated June 27, 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 30, 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 30, 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 30, 2016. The payment by successful bidders will be on July 01, 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 June 30, 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