## Summary of Government of India Notification: Reissue of 7.73% Government Stock 2034
This notification, issued by the Department of Economic Affairs, Ministry of Finance, Government of India on October 24, 2016, announces the sale reissue of the 7.73 percent Government Stock 2034 for an aggregate amount of ₹2,000 crore nominal.
The sale will be conducted through a price-based auction using the multiple price auction method by the Reserve Bank of India (RBI), Mumbai Office. 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 will be held on October 28, 2016, with non-competitive bids submitted 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 stock is eligible for When Issued trading as per RBI guidelines.
The Government Stock has a remaining 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 on October 28, 2016. Payment by successful bidders is due on November 1, 2016, which includes accrued interest from June 19, 2016, to October 31, 2016.
Interest at a rate of 7.73 percent per annum will accrue on the nominal value, payable semi-annually on December 19 and June 19.
Key Entities Referenced
7.73 per cent Government Stock 2034: A 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 where the Reserve Bank of India office is located and where the auction results will be displayed.
General Notification F. No. 4 13 WM2008, dated October 8, 2008: A prior notification specifying the general terms and conditions for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to bid for a portion of the government stock.
EKuber: The Reserve Bank of India's Core Banking Solution system used for submitting bids.
Prashant Goyal: Joint Secretary to the Government of India, signing the notification.
Ministry of Finance, Department of Economic Affairs: The government ministry and department responsible for issuing 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 7.73 per cent Government Stock 2034
F.No.4(3)W&M/2016(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
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 “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
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. June 19, 2016 to October 31, 2016.
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 December 19 and June 19.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India