**Policy Summary: Re-issuance of 7.73% Government Stock 2034**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale re-issuance of the 7.73 per cent Government Stock 2034 for an aggregate amount of ₹2,000 crore nominal. The sale will be conducted by the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using the multiple price auction method, as per 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 through the Scheme for Non-competitive Bidding Facility. The auction will be held on April 22, 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 on the RBI's e-Kuber system.
The 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 on April 22, 2016, with payment due on April 25, 2016, which includes accrued interest from December 19, 2015, to April 24, 2016.
Interest at 7.73 per cent per annum will accrue on the nominal value, payable on June 19 and December 19. Further information can be obtained from Joint Secretary to the Government of India, Prashant Goyal.
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 and managing government securities.
Mumbai Office, Fort, Mumbai: The specific branch of the Reserve Bank of India responsible for conducting the auction.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A pre-existing notification providing general terms and conditions applicable to the auction.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to bid non-competitively for a portion of the government stock.
Reserve Bank of India Core Banking Solution EKuber: The electronic platform used for submitting bids in the auction.
Prashant Goyal: Joint Secretary to the Government of India, the signatory of the notification.
Ministry of Finance Department of Economic Affairs Budget Division: The division within the Indian government responsible for issuing the notification regarding the government stock auction.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated April 18, 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
April 22, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on April 22, 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 April 22, 2016. The payment by successful bidders will be on April 25, 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 April 24, 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