**Summary:**
This notification from 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, 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 under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities.
The auction will be held on December 23, 2016, by the RBI, Mumbai. Electronic bids should be submitted through the RBI's e-Kuber system on the same day. 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 will be eligible for When Issued trading, subject to RBI guidelines.
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 December 23, 2016. Payment by successful bidders, including accrued interest from October 26, 2016, to December 25, 2016, is due on December 26, 2016, the date of reissue.
Interest at a rate of 7.72 percent per annum will accrue on the nominal value of the Stock, payable semi-annually on April 26 and October 26.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy in 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 security being reissued through an auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: The city in which the Reserve Bank of India office is located, where the auction will be conducted.
General Notification F. No. 4 13WM2008: A previously issued notification providing general guidelines for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to participate in government security auctions without placing competitive bids.
Prashant Goyal: Joint Secretary to the Government of India
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated December 19, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 7.72 Percent Government Stock 2055
F. No.4 (3) W&M/2016(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
December 23, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank
of India Core Banking Solution (E-Kuber) system on December 23, 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
December 23, 2016. The payment by successful bidders will be on December 26, 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 December 25,
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