This notification from the Government of India, Ministry of Finance, Department of Economic Affairs, dated February 1, 2016, announces the sale and reissue of the 8.17 per cent Government Stock 2044, for an aggregate amount of ₹2,000 crore nominal. The sale will be conducted by the Reserve Bank of India (RBI), Mumbai Office, through 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 via the Scheme for Non-competitive Bidding Facility. The auction will be held on February 5, 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 Government Stock has a tenure of thirty years, commencing from December 1, 2014, and will be repaid at par on December 1, 2044. It is eligible for When Issued trading, according to RBI guidelines. The payment date for successful bidders is February 8, 2016, which includes accrued interest from December 1, 2015, to February 7, 2016. Interest at 8.17% per annum will be paid semi-annually on June 1 and December 1.
Key Entities Referenced
Ministry of Finance: A ministry within the Government of India responsible for economic and financial matters.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India, that deals with economic policies and programs.
8.17 per cent Government Stock 2044: A specific government security being reissued, bearing an interest rate of 8.17% and maturing in 2044.
Reserve Bank of India: The central bank of India, responsible for conducting auctions and managing government securities.
Mumbai Office, Fort, Mumbai: A branch office of the Reserve Bank of India located in Mumbai, Maharashtra, involved in the auction process.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A previously issued notification providing general guidelines related to government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to participate in government security auctions without placing competitive bids.
Prashant Goyal: Joint Secretary to the Government of India; signatory of the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated February 1, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 8.17 per cent Government Stock 2044
F. No.4 (2) W&M/2015(iii):Government of India hereby notifies sale (re-issue) of ‘8.17 per cent
Government Stock 2044’ (hereinafter called 'the Stock') for an aggregate amount of रु 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
February 5, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank
of India Core Banking Solution (E-Kuber) system on February 5, 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 December 01, 2014. The
Stock will be repaid at par on December 01, 2044.
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 February 5, 2016. The payment by successful bidders will be on February 8, 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 01, 2015 to February 7,
2016.
Interest
8. Interest at the rate of 8.17 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 01 and December 01.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India