**Policy Summary: Reissue of 7.72 Percent Government Stock 2055**
On August 22, 2016, the Government of India, Ministry of Finance, Department of Economic Affairs, announced the sale reissue of the 7.72 percent Government Stock 2055 for an aggregate amount of ₹2,000 crore nominal. The sale will be conducted by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai 400 001, through a price-based auction using a multiple price auction method, as outlined in General Notification F. No. 4/13/WM/2008, dated October 8, 2008.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions via a non-competitive bidding facility. The auction will take place on August 26, 2016, 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 on the RBI's e-Kuber system.
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 result of the auction will be displayed by the RBI at its Mumbai Office on August 26, 2016. Payment by successful bidders is due on August 29, 2016, which includes accrued interest from April 26, 2016, to August 28, 2016.
Interest at a rate of 7.72 percent per annum will accrue on the nominal value of the Stock and will be paid semi-annually on October 26 and April 26. The stock is eligible for When Issued trading, according to RBI guidelines.
For further information, contact Prashant Goyal, Joint Secretary to the Government of India.
Key Entities Referenced
Ministry of Finance: The ministry responsible for the financial affairs of the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
7.72 Percent Government Stock 2055: A specific government bond being reissued through auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and displaying results.
Mumbai, Maharashtra: The city in Maharashtra where the Reserve Bank of India office is located and the auction is conducted.
General Notification F. No. 4 13WM2008: A previously issued general notification related to 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 for a portion of the government stock.
EKuber: The Reserve Bank of India Core Banking Solution system used for submitting bids.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated August 22, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 7.72 Percent Government Stock 2055
F. No.4 (3) W&M/2015(iii): Government of India hereby notifies sale (re-issue) 7.72 percent Government
Stock 2055 of for an aggregate amount of ` 2,000 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 26, 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 26, 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 ’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 26, 2016. The payment by successful bidders will be on August 29, 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 April 26, 2016 to August 28, 2016.
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 last coupon payment 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