**Policy Summary: Re-issue of 7.72% Government Stock 2055**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale (re-issue) of the "7.72 per cent Government Stock 2055" for an aggregate amount of ₹3,000 crore (nominal). This sale is governed by the terms and conditions outlined in this notification (F. No.4/7/WM/2017iii) and the General Notification F. No. 4/13/WM/2008, dated October 8, 2008.
The stock will be sold via a price-based auction using the multiple price auction method, conducted by the Reserve Bank of India (RBI) at its Mumbai Office (Fort, Mumbai – 400 001). Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility.
The auction will take place on August 4, 2017. Non-competitive bids are to be submitted electronically via the RBI’s e-Kuber system between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon on the same day.
The Government Stock has a tenure of 40 years, commencing from October 26, 2015, and will be repaid at par on October 26, 2055. The stock is eligible for When Issued trading, as per RBI guidelines.
The results of the auction will be displayed by the RBI at its Mumbai Office on August 4, 2017. Payment by successful bidders is due on August 7, 2017, which is also the date of re-issue. This payment will include accrued interest on the nominal value of the stock from April 26, 2017 (last coupon payment date) to August 6, 2017.
Interest at a rate of 7.72% per annum will accrue on the nominal value of the stock from the original date of issue and will be paid semi-annually on October 26 and April 26.
For further information, contact:
Reserve Bank of India, Mumbai Office, Fort, Mumbai 400 001
Key Entities Referenced
Ministry of Finance: The ministry responsible for financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
7.72 per cent Government Stock 2055: A specific government security being reissued.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: City in India where Reserve Bank of India office is located and auction is conducted.
General Notification F. No. 4 13 WM2008: A previously issued notification providing general guidelines for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to bid for a portion of the government stock without competitive bidding.
Prashant Goyal: Joint Secretary to the Government of India.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated July 31, 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 August 4, 2017. Bids for the auction should be submitted in electronic format on the Reserve
Bank of India Core Banking Solution (E-Kuber) system on August 4, 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 year’ 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 August 4, 2017. The payment by successful bidders will be on August 7, 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 August 6, 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