## Policy Summary: Reissue of 7.72% Government Stock 2055
This notification, issued by the Government of India, Ministry of Finance, Department of Economic Affairs, announces 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 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 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 through the Scheme for Non-competitive Bidding Facility. The auction is scheduled for June 30, 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 via 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 stock is eligible for When Issued trading as per RBI guidelines.
The result of the auction will be displayed by the RBI at its Mumbai office on June 30, 2016. Payment by successful bidders, inclusive of accrued interest from April 26, 2016, to June 30, 2016, is due on the date of reissue, July 01, 2016.
Interest at a rate of 7.72% per annum will accrue on the nominal value from the original issue date and will be paid semi-annually on October 26 and April 26.
For further information, contact:
Prashant Goyal
Joint Secretary to the Government of India
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy, financial matters, taxation, and economic development in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for advising the government on economic matters.
Budget Division: A division within the Department of Economic Affairs responsible for preparing and managing the Union Budget.
7.72 Percent Government Stock 2055: A specific government security being reissued, maturing in 2055 and carrying an interest rate of 7.72%.
Reserve Bank of India: The central bank of India, responsible for regulating the banking system and managing the country's currency.
Mumbai Office, Fort, Maharashtra: A branch office of the Reserve Bank of India located in Mumbai, Maharashtra, involved in conducting the auction.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A general notification issued by the Government of India providing the general terms and conditions for the sale of government stock.
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 June 27, 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
June 30, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of India
Core Banking Solution (E-Kuber) system on June 30, 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
June 30, 2016. The payment by successful bidders will be on July 01, 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 June 30, 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 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