**Policy Summary: Reissue of 7.80 per cent Government Stock, 2021**
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. This sale will adhere to the terms and conditions outlined in this specific 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, Fort, Mumbai – 400 001, via a price-based auction using the multiple price auction method. 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, Mumbai, on May 20, 2016. Electronic bids must be submitted through the RBI’s e-Kuber system on the same date. Non-competitive bids are to be submitted between 10:30 a.m. and 11:30 a.m., while competitive bids should be submitted between 10:30 a.m. and 12:00 noon.
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 stock is eligible for When Issued trading, following guidelines issued by the RBI.
The auction results will be displayed by the RBI at its Mumbai Office on May 20, 2016. Payment by successful bidders is due on May 23, 2016, the date of reissue. This payment will include accrued interest from April 11, 2016, to May 22, 2016.
Interest at a rate of 7.80 per cent per annum will accrue on the nominal value of the Stock from the last coupon payment date and will be paid semi-annually on October 11 and April 11.
For further information, contact the Joint Secretary to the Government of India, Department of Economic Affairs, Ministry of Finance.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic management.
7.80 per cent Government Stock, 2021: A specific government security being reissued.
Reserve Bank of India: The central bank of India, responsible for conducting the auction.
Mumbai, Maharashtra: The city and state where the Reserve Bank of India office is located and the auction is conducted.
General Notification F. No. 4 13WM2008: A previously issued notification providing general terms and conditions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to bid non-competitively.
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 May 16, 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 May 20, 2016.
Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution
(E-Kuber) system on May 20, 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 May 20,
2016. The payment by successful bidders will be on May 23, 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. i.e., April 11, 2016 to May 22, 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 on October 11 and April 11.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India