**Policy Summary: Reissue of 7.72 Percent Government Stock 2055**
The Government of India, Ministry of Finance, Department of Economic Affairs, announces the sale and reissue of the 7.72 percent 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 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, Fort, Mumbai 400 001, via a price-based auction using the 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 enclosed Scheme.
The auction will be conducted by the RBI, Mumbai Office, on October 28, 2016. Electronic bids should 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 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, following RBI guidelines.
The auction results will be displayed by the RBI at its Mumbai Office on October 28, 2016. Payment by successful bidders is due on November 1, 2016, the reissue date. This payment will include accrued interest on the nominal value of the stock from October 26, 2016, to October 31, 2016.
Interest at a rate of 7.72 percent per annum will accrue on the nominal value of the stock from the last coupon payment date and will be paid semi-annually on April 26 and October 26.
For further information, contact Prashant Goyal, Joint Secretary to the Government of India.
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.
Budget Division: A division within the Department of Economic Affairs, Ministry of Finance.
7.72 Percent Government Stock 2055: A specific government stock being reissued, maturing in 2055 with an interest rate of 7.72 percent.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: The city and state where the Reserve Bank of India's office is located and where the auction is conducted.
General Notification F. No. 4 13WM2008: A previously issued notification by the Government of India, providing general terms and conditions for government stock sales.
Prashant Goyal: Joint Secretary to the Government of India, signing the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated October 24, 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 ` 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
October 28, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on October 28, 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
October 28, 2016. The payment by successful bidders will be on November 1, 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. October 26, 2016 to October 31, 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 April 26 and October 26.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India