## Policy Summary: Reissue of 7.80 per cent Government Stock, 2021
This notification, issued by the Government of India, Ministry of Finance, Department of Economic Affairs on July 4, 2016, announces the sale reissue of the 7.80 per cent Government Stock, 2021 for an aggregate amount of ₹3,000 crore nominal. The sale will adhere to 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, Fort, Mumbai – 400 001, via a price-based auction using the multiple price auction method, as detailed in paragraph 5.1 of the aforementioned General Notification. A maximum of 5% of the notified amount will be allotted to eligible individuals and institutions through the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities.
The auction was conducted by the RBI, Mumbai Office, on July 8, 2016. Bids were to be submitted electronically via the RBI’s Core Banking Solution (E-Kuber) system on the same day. Non-competitive bids were accepted between 10:30 a.m. and 11:30 a.m., while competitive bids were accepted between 10:30 a.m. and 12:00 noon. The Stock was eligible for When Issued trading, as per RBI guidelines.
The Government Stock has a tenure of ten years, commencing from April 11, 2011, and will be repaid at par on April 11, 2021. The results of the auction were displayed by the RBI at its Fort, Mumbai Office on July 8, 2016. Payment by successful bidders was due on July 11, 2016, the date of reissue, and included accrued interest from April 11, 2016, to July 10, 2016.
Interest at a rate of 7.80 per cent per annum accrues on the nominal value of the Stock and is paid semi-annually on October 11 and April 11.
This notification was issued by order of the President of India, with Prashant Goyal, Joint Secretary to the Government of India, as the issuing authority.
Key Entities Referenced
7.80 per cent Government Stock, 2021: A government security being reissued, with a coupon rate of 7.80% and maturing in 2021.
Ministry of Finance: The ministry responsible for economic and financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for advising the government on economic issues.
Reserve Bank of India: The central bank of India, responsible for regulating the country's monetary policy and banking system.
Mumbai, Maharashtra: The location of the Reserve Bank of India office where the auction will be conducted.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A general notification issued by the Government of India regarding the terms and conditions of government stock sales.
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 competitive bidding.
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 July 04, 2016
NOTIFICATION
Auction for Sale (Re-issue) of ‘7.80 per cent Government Stock, 2021’
F. No.4 (3) W&M/2016: Government of India hereby notifies sale (re-issue) of ‘7.80 per cent Government Stock,
2021’ (hereinafter called 'the Stock') for an aggregate amount of ₹ 3,000 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 July 08, 2016.
Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-
Kuber) system on July 08, 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 ten years tenure commencing from April 11, 2011. The Stock will be repaid at
par on April 11, 2021.
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 July 08,
2016. The payment by successful bidders will be on July 11, 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., April 11, 2016 to July 10, 2016.
Interest
8. Interest at the rate of 7.80 per cent per annum will accrue on the nominal value of the Stock from the date of last
coupon payment and will be paid half yearly October 11 and April 11.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India