**Policy Summary: Reissue of 8.13 per cent Government Stock 2045**
The Government of India, through the Ministry of Finance's Department of Economic Affairs, announces the sale (reissue) of the 8.13 per cent Government Stock 2045 for an aggregate amount of ₹2,000 crore nominal. The sale will adhere to the terms and conditions outlined in this specific notification, as well as 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 general notification. Up to 5% of the notified amount is reserved for allotment to eligible individuals and institutions through the Scheme for Non-competitive Bidding Facility.
The auction will be conducted by the RBI, Mumbai Office, on May 6, 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 are to be submitted between 10:30 a.m. and 12:00 noon. The stock is eligible for When Issued trading, following RBI guidelines.
The Government Stock has a thirty-year tenure, commencing from June 22, 2015, and will be repaid at par on June 22, 2045. The auction results will be displayed by the RBI at its Fort, Mumbai Office on May 6, 2016. Payment by successful bidders is due on May 9, 2016, which is the date of reissue. This payment will include accrued interest from December 22, 2015, to May 8, 2016.
Interest at a rate of 8.13 per cent per annum will accrue on the nominal value of the stock, payable semi-annually on June 22 and December 22.
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 responsible for economic policy and development.
8.13 per cent Government Stock 2045: A specific government security being reissued.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai Office, Fort, Mumbai: The specific branch of the Reserve Bank of India conducting the auction, located in Maharashtra.
General Notification F. No. 4 13WM2008: A previously issued general notification providing the broader framework for government security auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A specific scheme allowing eligible individuals and institutions to participate in government security auctions on a non-competitive basis.
Prashant Goyal: Joint Secretary to the Government of India.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated May 2, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 8.13 per cent Government Stock 2045
F. No.4 (3) 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 May 6, 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 6, 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 May 6, 2016. The payment by successful bidders will be on May 9, 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 May 8, 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 last coupon payment and will be paid on June 22, and December
22.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India