**Policy Summary: Re-issuance of 7.72% Government Stock 2055**
This notification, issued by the Government of India, Ministry of Finance, Department of Economic Affairs on August 28, 2017, announces the sale (re-issuance) of the 7.72 per cent Government Stock 2055 for an aggregate amount of ₹3,000 crore (nominal). The sale will be conducted through a price-based auction using a multiple price auction method via the Reserve Bank of India (RBI), Mumbai Office.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility. The auction is scheduled for September 01, 2017, 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 via the RBI's e-Kuber system.
The stock has a tenure of 40 years, commencing from October 26, 2015, and will be repaid at par on October 26, 2055. The issue date and payment date are both set to September 04, 2017, which includes accrued interest from April 26, 2017, to September 03, 2017. Interest at a rate of 7.72% per annum will be paid semi-annually on October 26 and April 26. The result of the auction will be displayed by the RBI at its Mumbai office on September 01, 2017.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy, financial affairs, and taxation 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.
Budget Division: A division within the Department of Economic Affairs responsible for preparing the Union Budget.
7.72 per cent Government Stock 2055: A specific government security being reissued through an auction, maturing in 2055 and carrying an interest rate of 7.72%.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city where the Reserve Bank of India office is located and where the auction is conducted.
General Notification F. No. 4 13 WM2008: 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 participate in government security auctions without placing competitive bids.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated August 28, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 7.72 per cent Government Stock 2055
F. No.4 (7) W&M/2017(iii): Government of India hereby notifies sale of 7.72 per cent Government
Stock 2055 (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 September 01, 2017. Bids for the auction should be submitted in electronic format on the Reserve
Bank of India Core Banking Solution (E-Kuber) system on September 01, 2017. 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 ’40 years’ tenure commencing from October 26, 2015. The Stock
will be repaid at par on October 26, 2055.
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 September 01, 2017. The payment by successful bidders will be on September 04, 2017 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. April 26, 2017 to September
03, 2017.
Interest
8. Interest at the rate of 7.72 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 October 26 and April 26.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India