**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, 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, 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 under the Scheme for Non-competitive Bidding Facility.
The auction will be conducted by the RBI, Mumbai Office, on July 29, 2016. Electronic bids should be submitted through the RBI's e-Kuber system on the same date, with non-competitive bids accepted between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon.
The Stock is eligible for When Issued trading, as per RBI guidelines. It has a tenure of ten years, commencing from April 11, 2011, and will be repaid at par on April 11, 2021.
The auction results will be displayed by the RBI at its Mumbai Office on July 29, 2016. Payment by successful bidders is due on August 01, 2016, which is the date of reissue. This payment will include accrued interest from April 11, 2016, to July 31, 2016.
Interest at a rate of 7.80 per cent per annum will accrue on the nominal value of the Stock and will be paid semi-annually on October 11 and April 11.
For further information, contact:
Prashant Goyal
Joint Secretary to the Government of India
Key Entities Referenced
Ministry of Finance: The ministry responsible for the financial matters of the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy and programs.
Budget Division: A division within the Department of Economic Affairs, Ministry of Finance, likely responsible for budget-related activities.
7.80 per cent Government Stock, 2021: A specific government security being reissued, with a coupon rate of 7.80% and maturing in 2021.
Reserve Bank of India: The central bank of India, responsible for conducting the auction of the government stock.
Mumbai, Maharashtra: The city and state where the Reserve Bank of India's office responsible for the auction is located.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A general notification providing the standard terms and conditions for government stock auctions.
Prashant Goyal: Joint Secretary to the Government of India, signatory of the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated July 25, 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 29, 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 29, 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 29, 2016. The payment by successful bidders will be on August 01, 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 31, 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