**Policy Summary: Reissue of 7.72% Government Stock 2055**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale (reissue) 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 specific 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 through the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using a multiple price auction method, as detailed in paragraph 5.1 of the General Notification. Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility, as per the scheme outlined in Annex.
The auction will be conducted by the RBI, Mumbai Office, on May 5, 2017. Electronic bids must be submitted through the RBI's e-Kuber system on the same date. Non-competitive bids are to be submitted between 10:30 a.m. and 11:30 a.m., while competitive bids should be submitted between 10:30 a.m. and 12:00 noon.
The stock is eligible for "When Issued" trading, according to RBI guidelines. It has a tenure of 40 years, commencing from October 26, 2015, and will be repaid at par on October 26, 2055.
The auction results will be displayed by the RBI at its Mumbai Office on May 5, 2017. Payment by successful bidders is due on May 8, 2017, the date of reissue. This payment will include accrued interest on the nominal value of the allotted stock from April 26, 2017, to May 7, 2017.
Interest at a rate of 7.72% per annum will accrue on the nominal value of the stock from the original issue date, payable semi-annually on October 26 and April 26.
This notification is issued by order of the President of India. Contact: Prashant Goyal, Joint Secretary to the Government of India.
Key Entities Referenced
7.72 per cent Government Stock 2055: A specific government stock being reissued, with a coupon rate of 7.72% and maturing in 2055.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and displaying the results.
Mumbai, Maharashtra: The city and state where the Reserve Bank of India office responsible for the auction is located.
General Notification F. No. 4 13 WM2008: 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 competitive bidding.
Reserve Bank of India Core Banking Solution EKuber: The electronic platform used for submitting bids in the auction.
Prashant Goyal: Joint Secretary to the Government of India, responsible for issuing the notification.
Ministry of Finance Department of Economic Affairs Budget Division: The division of the Indian government responsible for the notification regarding the auction.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 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 May 5, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on May 5, 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 May 5, 2017. The payment by successful bidders will be on May 8, 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 May 7, 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