Executive Summary:
The Government of India announces the sale/reissue of multiple Government Stocks via auction to be conducted by the Reserve Bank of India (RBI) on November 24, 2017. The total notified amount is ₹15000 crore, with an option to retain additional subscriptions up to ₹1000 crore. Payment by successful bidders is due on November 27, 2017.
Key Points / Main Content:
Auction Details:
* Auction conducted by: Reserve Bank of India, Mumbai.
* Date: November 24, 2017.
* Bidding platform: RBI’s e-Kuber system.
* Non-competitive bids: 10:30 a.m. to 11:30 a.m.
* Competitive bids: 10:30 a.m. to 12:00 noon.
Government Stock Information:
* Stocks for sale/reissue include: 6.84 GS 2022, 6.68 GS 2031, 6.57 GS 2033, and 6.62 GS 2051.
* Method: Price Multiple.
* Accrued interest: Payable on nominal value from the last coupon payment date up to November 26, 2017.
* Interest payment: Half-yearly.
* Repayment: At par on the maturity date.
Allotment and Trading:
* Non-competitive bidding: Up to 5% of the notified amount reserved for eligible individuals/institutions.
* "When Issued" trading: Permitted as per RBI guidelines.
Payment:
* Payment Date: November 27, 2017.
* Payment includes: Accrued interest on the nominal value of the stock.
Impact Analysis:
Bidders (Individuals and Institutions):
* Impact: Opportunity to invest in Government Stocks.
* Action Required: Submit bids through RBI’s e-Kuber system on November 24, 2017, and make payment by November 27, 2017, if successful.
Reserve Bank of India (RBI):
* Impact: Responsible for conducting the auction and displaying the results.
* Action Required: Conduct the auction on November 24, 2017, and display the results at its Mumbai office.
Government of India:
* Impact: Raises funds through the sale/reissue of Government Stocks.
* Action Required: Oversee the auction process and manage funds raised.
Key Entities Referenced
Ministry of Finance: The Indian government ministry responsible for economic and financial matters.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy and programs.
Reserve Bank of India: The central bank of India, responsible for conducting auctions of government stocks.
Mumbai, Maharashtra: The city in India where the Reserve Bank of India's office is located and where the auction is conducted.
Government Stock: A type of security issued by the Indian government.
6.84 GS 2022: A specific Government Stock with a coupon rate of 6.84% maturing in 2022.
6.68 GS 2031: A specific Government Stock with a coupon rate of 6.68% maturing in 2031.
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 November 20, 2017
NOTIFICATION
Auction for Sale (Re-issue) of Government Stock (GS)
F.No.4(7)W&M/2017:Government of India(GoI) hereby notifies sale(re-issue) of the following Government
Stocks:
Notified
Date of Tenure Date of
Name of the Security Base Method Amount
Original Issue (yy-mm-dd) Maturity
(in ` Crore)
6.84% GS 2022 Sep 12, 2016 06-03-07 Dec 19, 2022 Price Multiple 3000
6.68% GS 2031 Sep 04, 2017 14-00-13 Sep 17, 2031 Price Multiple 8000
6.57% GS 2033 Dec 05, 2016 17-00-00 Dec. 05, 2033 Price Multiple 2000
6.62% GS 2051 Nov. 28, 2016 35-00-00 Nov. 28, 2051 Price Multiple 2000
Subject to the limit of ` 15000 Cr, being total notified amount, GoI will have the option to retain additional
subscription up to ` 1000 Cr against any of the above security. The sale will be subject to the terms and
conditions spelt out in this notification (called ‘Specific Notification’). The Stock will be sold through Reserve Bank
of India, Mumbai Office, Fort, Mumbai- 400 001 as per 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.
Allotment to Non-competitive Bidders
2. 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
3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on November
24, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core
Banking Solution (E-Kuber) system on November 24, 2017. 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
4. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve
Bank of India.
Date of issue and payment for the stock
5. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on
November 24, 2017. The payment by successful bidders will be on November 27, 2017 i.e. the date of re-issue.
The payment for the stocks will include accrued interest on the nominal value of the Stock allotted in the auction
from the date of original issue / last coupon payment date to the date upto which accrued interest is due as
mentioned in the table in para 6.
Payment of Interest and Re-payment of Stock
6. Interest will accrue on the nominal value of the Stock from the date of original / last coupon payment and will
be paid half yearly. The Stock will be repaid at par on date of maturity.
Name of the Coupon rate Date of Original Issue Date upto which Date of Coupon
Security (%) / Last Coupon accrued interest is payments
payment due (month / date)
6.84% GS 2022 6.84 Jun 19, 2017 November 26, 2017 Dec 19 and Jun 19
6.68% GS 2031 6.68 Sep 17, 2017 November 26, 2017 Mar 17 and Sep 17
6.57% GS 2033 6.57 Jun 05, 2017 November 26, 2017 Dec 05 and Jun 05
6.62% GS 2051 6.62 May 28, 2017 November 26, 2017 Nov 28 and May 28
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India