This notification from the Government of India, Ministry of Finance, Department of Economic Affairs, dated August 8, 2016, announces the sale reissue of the 8.17 per cent Government Stock 2044 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 prescribed in 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 August 12, 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 on the RBI's e-Kuber system.
The stock is eligible for When Issued trading, has a thirty-year tenure commencing from December 1, 2014, and will be repaid at par on December 1, 2044. The result of the auction will be displayed by the RBI on August 12, 2016, and payment by successful bidders is due on August 16, 2016, which includes accrued interest from June 1, 2016, to August 15, 2016. Interest at 8.17 per cent per annum will accrue on the nominal value and be paid semi-annually on December 1 and June 1.
Key Entities Referenced
8.17 per cent Government Stock 2044: A government security being reissued through an auction process. It has a coupon rate of 8.17% and matures in 2044.
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 responsible for economic policies and programs.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai Office, Fort, Maharashtra: The specific branch of the Reserve Bank of India in Mumbai where the auction results will be displayed.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A previously issued notification providing general guidelines for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme allowing eligible individuals and institutions to participate in government security auctions 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 August 08, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 8.17 per cent Government Stock 2044
F. No.4 (3) W&M/2016(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 ` 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
August 12, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank
of India Core Banking Solution (E-Kuber) system on August 12, 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 August 12, 2016. The payment by successful bidders will be on August 16, 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. June 01, 2016 to August 15, 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 December 01 and June 01.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India