**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 re-issuance and sale of the 7.73% Government Stock 2034 for an aggregate amount of ₹2,000 crore (Nominal). This sale will adhere to the terms and conditions outlined in this notification and the General Notification F. No. 4/13/WM/2008, dated October 8, 2008.
The re-issuance will be conducted via a price-based auction using a multiple price auction method, managed by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai 400 001. 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 is scheduled for August 05, 2016, and will be conducted via the RBI's e-Kuber system. Non-competitive bids must be submitted between 10:30 a.m. and 11:30 a.m., while competitive bids are due between 10:30 a.m. and 12:00 noon on the same day.
The stock will be 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 auction results will be displayed by the RBI at its Mumbai Office on August 05, 2016. Payment by successful bidders is due on August 08, 2016, which includes accrued interest from June 19, 2016, to August 07, 2016.
Interest at 7.73% per annum will accrue on the nominal value, payable semi-annually on December 19 and June 19.
For further information, contact Prashant Goyal, Joint Secretary to the Government of India.
Key Entities Referenced
Ministry of Finance: The ministry responsible for financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
7.73 per cent Government Stock 2034: A specific government stock being reissued, bearing an interest rate of 7.73% and maturing in 2034.
Reserve Bank of India: The central bank of India, responsible for conducting the auction of the government stock.
Mumbai Office, Fort, Mumbai: The specific branch of the Reserve Bank of India located in Mumbai, Maharashtra responsible for the auction.
General Notification F. No. 4 13 WM2008: A general notification issued by the Government of India related 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 non-competitively in government security auctions.
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 August 01, 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 रु 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
August 05, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on August 05, 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
August 05, 2016. The payment by successful bidders will be on August 08, 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 August 07, 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