**Policy Summary: Reissue of 7.73 per cent Government Stock 2034**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale/reissue of the 7.73 per cent Government Stock 2034 for an aggregate amount of ₹2,000 crore nominal. This sale is governed by the terms and conditions outlined in this specific 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, via a price-based auction using the multiple price auction method. Up to 5% of the notified amount will be allotted to eligible individuals and institutions as per the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities.
The auction will be conducted by the RBI, Mumbai Office, on May 20, 2016. Non-competitive bids are to be submitted electronically via 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 on the same day.
The Government Stock 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 May 20, 2016. Payment by successful bidders is due on May 23, 2016, which is the date of reissue. This payment will include accrued interest on the nominal value of the Stock from December 19, 2015, to May 22, 2016.
Interest at a rate of 7.73 per cent per annum will accrue on the nominal value of the Stock from the last coupon payment date and will be paid on June 19 and December 19.
Key Entities Referenced
7.73 per cent Government Stock 2034: Government security being reissued through an auction.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: City in India where the Reserve Bank of India office is located and auction is conducted.
F. No. 4 13WM2008: General Notification issued by the Government of India regarding terms and conditions of the stock.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: Scheme allowing eligible individuals and institutions to bid non-competitively.
E Kuber: The Reserve Bank of India Core Banking Solution system used for submitting bids.
Prashant Goyal: Joint Secretary to the Government of India.
Ministry of Finance: The ministry responsible for finances of the Government of India
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated May 16, 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 May 20, 2016.
Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-
Kuber) system on May 20, 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 May 20,
2016. The payment by successful bidders will be on May 23, 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 December 19, 2015 to May 22, 2016.
Interest
8. Interest at the rate of 7.73 per cent per annum will accrue on the nominal value of the Stock from the date of last
coupon payment and will be paid on June 19 and December 19.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India