**Policy Summary: Re-issuance of 8.13% Government Stock 2045**
The Government of India, through the Ministry of Finance, Department of Economic Affairs, announces the sale re-issuance of the 8.13 per cent Government Stock 2045 for an aggregate amount of ₹2,000 crore nominal. This sale is governed by the terms and conditions outlined in this notification, as well as 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, facilitated by the Reserve Bank of India (RBI), Mumbai Office. Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility.
The auction is scheduled for April 22, 2016, and will be conducted by the Reserve Bank of India, Mumbai. Bids must be submitted electronically through the RBI's e-Kuber system on the same day. 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 thirty-year tenure commencing from June 22, 2015 and will be repaid at par on June 22, 2045. The result of the auction will be displayed by the Reserve Bank of India at its Mumbai Office on April 22, 2016. Payment by successful bidders is due on April 25, 2016, the date of re-issue. This payment will include accrued interest on the nominal value of the stock from December 22, 2015, to April 24, 2016.
Interest at a rate of 8.13 per cent per annum will accrue on the nominal value of the Stock from the original date of issue and will be paid semi-annually on June 22 and December 22. The stock will be eligible for When Issued trading as per RBI guidelines.
For further information, contact:
Joint Secretary to the Government of India,
Department of Economic Affairs,
Ministry of Finance.
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 responsible for economic policy and related matters.
8.13 per cent Government Stock 2045: A specific government bond being reissued.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and related activities.
Mumbai Office, Fort, Mumbai: The specific branch of the Reserve Bank of India involved in the auction process, located in Maharashtra State.
General Notification F. No. 4 13 WM2008, dated October 8, 2008: A previously issued general notification providing the broader framework for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to participate in government security auctions on a non-competitive basis.
EKuber: The Reserve Bank of India's Core Banking Solution system used for submitting bids in electronic format.
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 8.13 per cent Government Stock 2045
F. No.4 (2) W&M/2016(iii):Government of India hereby notifies sale of ‘8.13 per cent Government
Stock 2045’ (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 thirty years tenure commencing from June 22, 2015. The Stock
will be repaid at par on June 22, 2045.
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, 2015. 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 22, 2015 to April 24,
2016.
Interest
8. Interest at the rate of 8.13 per cent per annum will accrue on the nominal value of the Stock from
the date of original issue and will be paid half yearly on June 22, and December 22.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India