**Summary:**
The Government of India, through the Ministry of Finance's Department of Economic Affairs, announces the sale (reissue) of the "8.24 per cent Government Stock 2033" for an aggregate amount of ₹3,000 crore nominal. This sale will adhere to the terms and conditions outlined in this 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 under the Scheme for Non-competitive Bidding Facility.
The auction will be conducted by the RBI, Mumbai Office, on January 15, 2016. Electronic bids should be submitted through the RBI's e-Kuber system 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 will be eligible for When Issued trading, following RBI guidelines.
The Government Stock has a tenure of 19 years, commencing from November 10, 2014, and will be repaid at par on November 10, 2033. 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, including accrued interest from November 10, 2015, to January 17, 2016.
Interest will accrue at a rate of 8.24 per cent per annum on the nominal value, payable semi-annually on May 10 and November 10.
For further information, contact 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, Government of India, responsible for economic policy and programs.
8.24 per cent Government Stock 2033: A specific government bond being reissued, with a coupon rate of 8.24% and maturing in 2033.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city in India where the Reserve Bank of India's office is located and where the auction is conducted.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A previously issued notification providing 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 January 11, 2016
NOTIFICATION
Auction for Sale (Re-issue) of 8.24 per cent Government Stock 2033
F. No.4 (2)-W&M/2015(ii):Government of India hereby notifies sale of 8.24 per cent
Government Stock 2033’ (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 19 years tenure commencing from November 10, 2014.
The Stock will be repaid at par on November 10, 2033.
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 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 November 10, 2015 to January 17, 2016.
Interest
8. Interest at the rate 8.24 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 May 10 and November
10.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India