**Policy Summary: Re-issue of 7.73% Government Stock 2034**
The Government of India, Ministry of Finance, Department of Economic Affairs, announces the sale re-issue of the 7.73 per cent Government Stock 2034 for an aggregate amount of ₹2,000 crore nominal. (F.No.47WM2017ii). The sale will be conducted by the Reserve Bank of India (RBI), Mumbai Office, through a price-based auction using a multiple price auction method.
Up to 5% of the notified amount will be allotted to eligible individuals and institutions via the Scheme for Non-competitive Bidding Facility. The auction will take place on April 28, 2017. Non-competitive bids are to be submitted electronically on the RBI's e-Kuber system between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon.
The stock is eligible for When Issued trading, as per RBI guidelines. It has a tenure of 19 years, 2 months, and 7 days, commencing from October 12, 2015, and will be repaid at par on December 19, 2034.
The result of the auction will be displayed by the RBI at its Mumbai Office on April 28, 2017. Payment by successful bidders is due on May 2, 2017, which includes accrued interest from December 19, 2016, to May 1, 2017.
Interest will accrue at a rate of 7.73% per annum, payable semi-annually on June 19 and December 19.
Contact: Prashant Goyal, Joint Secretary to the Government of India.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic and financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India, responsible for economic policies and programs.
7.73 per cent Government Stock 2034: A specific government security being reissued through auction, maturing in 2034 with an interest rate of 7.73%.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city in India where the Reserve Bank of India's office responsible for the auction is located.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A previously issued notification by the Government of India containing general terms and conditions applicable 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 for a portion of the government stock without having to compete on price.
Prashant Goyal: Joint Secretary to the Government of India, signatory of the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 24, 2017
NOTIFICATION
Auction for Sale (Re-issue) of 7.73 per cent Government Stock 2034
F.No.4(7)W&M/2017(ii): Government of India hereby notifies sale (re-issue) of ‘7.73 per cent
Government Stock 2034 (hereinafter called 'the Stock') 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 April 28, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank
of India Core Banking Solution (E-Kuber) system on April 28, 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 “19 Years, 2 months and 7 days” tenure commencing
from October 12, 2015. The Stock will be repaid at par on December 19, 2034.
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 April 28, 2017. The payment by successful bidders will be on May 2, 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. December 19, 2016 to May 1, 2017.
Interest
8. Interest at the rate of 7.73 per cent per annum will accrue on the nominal value of the Stock from
date of last coupon payment and will be paid half-yearly on June 19 and December 19.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India