**Summary:**
The Government of India, through the Ministry of Finance's Department of Economic Affairs, announces the sale (reissue) of the 7.73 per cent Government Stock 2034 for an aggregate amount of ₹1,000 crore (nominal). This sale is governed by the terms and conditions outlined in this notification and the General Notification F. No. 4(13)WM2008, 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, as prescribed in the general notification. Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility.
The auction will be conducted by the RBI in Mumbai on February 5, 2016. Electronic bids must be submitted through the RBI's e-Kuber system on the same day. Non-competitive bids should be submitted between 10:30 a.m. and 11:30 a.m., while competitive bids are accepted between 10:30 a.m. and 12:00 noon.
The Stock is eligible for When Issued trading, subject to 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 auction results will be displayed by the RBI at its Mumbai office on February 5, 2016. Payment by successful bidders, including accrued interest from December 19, 2015, to February 7, 2016, is due on February 8, 2016 (the date of reissue).
Interest at a rate of 7.73% per annum will accrue on the nominal value of the Stock and will be paid semi-annually on June 19 and December 19.
This notification is issued by order of the President of India, signed by Prashant Goyal, Joint Secretary to the Government of India.
Key Entities Referenced
Ministry of Finance: A department of the Government of India responsible for economic and financial matters.
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 bond being reissued, with a coupon rate of 7.73% and maturing in 2034.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city where the Reserve Bank of India's office is located, which conducts the auction.
General Notification F. No. 4 13WM2008: A general notification related to government stock auctions, issued on October 8, 2008, providing the standard terms and conditions.
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, signing the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated February 01, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 7.73 per cent Government Stock 2034
F. No.4 (2) W&M/2015(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 रु 1,000 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
February 5, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank
of India Core Banking Solution (E-Kuber) system on February 5, 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 February 5, 2016. The payment by successful bidders will be on February 8, 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 i.e December 19, 2015 to February 7, 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 on June 19 and December 19.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India