**Policy Summary: Reissue of 8.13 per cent Government Stock 2045**
On January 11, 2016, the Government of India, Ministry of Finance, Department of Economic Affairs, announced the sale reissue of the "8.13 per cent Government Stock 2045" for an aggregate amount of ₹3,000 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 will be allotted to eligible individuals and institutions through a non-competitive bidding facility.
The auction will be conducted by the RBI, Mumbai Office, on January 15, 2016. Electronic bids via the RBI’s e-Kuber system must be submitted 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 stock is eligible for When Issued (WI) trading, as per RBI guidelines. It 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 January 15, 2016. Payment by successful bidders is due on January 18, 2016, which includes accrued interest from December 22, 2015, to January 17, 2016.
Interest at a rate of 8.13 per cent per annum will accrue on the nominal value, payable semi-annually on June 22 and December 22.
For further information, contact:
Prashant Goyal
Joint Secretary to the Government of India
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic policy, financial regulation and related matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India, responsible for advising the government on economic issues.
8.13 per cent Government Stock 2045: A specific government bond being reissued through an auction, maturing in 2045 and bearing 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 and state where the Reserve Bank of India's office, involved in the auction process, is located.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A prior notification issued by the Government of India that contains the general terms and conditions applicable to the sale of government stock.
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 competing in the price-based auction.
Prashant Goyal: Joint Secretary to the Government of India, as indicated by the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated January 11, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 8.13 per cent Government Stock 2045
F. No.4 (2) W&M/2015(iii):Government of India hereby notifies sale of ‘8.13 per cent
Government Stock 2045’ (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 January 15, 2016. Bids for the auction should be submitted in electronic format
on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 15, 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 on January 15, 2016. The payment by successful bidders will be on
January 18, 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 January 17, 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 half yearly on June 22, and
December 22.
By Order of the President of India
(Prashant Goyal )
Joint Secretary to the Government of India