This notification from the Government of India, Ministry of Finance, Department of Economic Affairs, dated May 30, 2016, 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 be conducted through the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using a multiple price auction method, as per the terms and conditions outlined in this notification and the General Notification F. No. 4/13/WM/2008, dated October 8, 2008.
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 held on June 03, 2016, with non-competitive bids submitted between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon via the RBI’s e-Kuber system.
The stock is eligible for When Issued trading, and has a tenure of thirty years, commencing from June 22, 2015, with repayment at par on June 22, 2045. The auction results will be displayed by the RBI at its Mumbai Office on June 03, 2016, and payment by successful bidders is due on June 06, 2016, which includes accrued interest from December 22, 2015, to June 05, 2016. Interest at 8.13 per cent per annum will accrue from the original issue date and will be paid semi-annually on June 22 and December 22. Contact person for this notification is 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 policies and programs.
8.13 per cent Government Stock 2045: A specific government bond being reissued and sold through auction.
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 office is located, which is conducting the auction.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A previous notification providing the general terms and conditions for government stock auctions.
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.
Prashant Goyal: Joint Secretary to the Government of India, signing the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated May 30, 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 ` 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
June 03, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of India
Core Banking Solution (E-Kuber) system on June 03, 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 June 03, 2016. The payment by successful bidders will be on June 06, 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 June 05, 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