## Policy Summary: Reissue of 8.13% Government Stock 2045
This notification, issued by the Government of India, Ministry of Finance, Department of Economic Affairs on May 16, 2016, announces the sale reissue of the 8.13 percent 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 and the General Notification F. No. 4(13)/WM/2008, dated October 8, 2008.
The stock will be sold through a price-based auction using a multiple price auction method, conducted by the Reserve Bank of India (RBI), Mumbai Office. Up to 5% of the notified amount will be allotted to eligible individuals and institutions via a non-competitive bidding facility.
The auction will be held on May 20, 2016. Non-competitive bids are to be submitted electronically via the RBI's e-Kuber system 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.
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 Mumbai Office on May 20, 2016. Payment by successful bidders is due on May 23, 2016, which includes accrued interest from December 22, 2015, to May 22, 2016.
Interest at a rate of 8.13 percent per annum will accrue on the nominal value of the stock and will be paid semi-annually on June 22 and December 22.
The notification is issued by order of the President of India. Contact person for further information is Prashant Goyal, Joint Secretary to the Government.
Key Entities Referenced
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, Government of India, responsible for economic policy and development.
8.13 per cent Government Stock 2045: A specific government bond being reissued, maturing in 2045 with an interest rate of 8.13%.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city where the Reserve Bank of India office is located and where the auction will be conducted.
F. No. 4 13WM2008: General Notification issued by Government of India on October 8, 2008 regarding terms and conditions
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.
E-Kuber: The Core Banking Solution system of the Reserve Bank of India, used for submitting bids in electronic format.
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 8.13 per cent Government Stock 2045
F. No.4 (3) W&M/2016(iii): Government of India hereby notifies sale (re-issue) of “8.13 per cent Government Stock
2045” (herein after 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 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 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 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., December 22, 2015 to May 22, 2016.
Interest
8. Interest at the rate 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 half yearly on June 22 and December 22.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government