Executive Summary:
The Government of India announces the sale/reissue of four Government Stocks via auction on October 6, 2017, through the Reserve Bank of India (RBI). The total notified amount is ₹15,000 crore, with an option to retain an additional ₹1,000 crore. Payment by successful bidders is due on October 9, 2017.
Key Points / Main Content:
Auction Details:
* Auction conducted by RBI, Mumbai on October 6, 2017.
* Bids submitted electronically via RBI's e-Kuber system on October 6, 2017.
* Non-competitive bids: 10:30 a.m. to 11:30 a.m.
* Competitive bids: 10:30 a.m. to 12:00 noon.
* Auction results displayed by RBI, Mumbai on October 6, 2017.
Stock Details:
* Reissue of: 6.84 GS 2022, 6.68 GS 2031, 6.57 GS 2033, 6.62 GS 2051.
* Method: Price Multiple.
* Payment Date/Date of Issue: October 9, 2017.
* Accrued interest is included in the payment.
* Interest paid half-yearly; stock repaid at par on maturity.
Allotment and Subscription:
* Up to 5% of notified amount allotted to eligible individuals/institutions via non-competitive bidding.
* GoI can retain additional subscription up to ₹1,000 crore against any security.
General Terms:
* Sale subject to terms in this Specific Notification and General Notification F.No.413WM2008, dated October 8, 2008.
* Stocks eligible for When Issued trading per RBI guidelines.
Impact Analysis:
Bidders:
* Impact: Successful bidders must pay for allotted stock, including accrued interest.
* Action Required: Submit bids on October 6, 2017, via RBI's e-Kuber system and make payment by October 9, 2017.
RBI:
* Impact: Responsible for conducting the auction and displaying results.
* Action Required: Conduct auction on October 6, 2017, display results, and facilitate stock sales.
Eligible Individuals/Institutions (Non-Competitive Bidders):
* Impact: Opportunity to acquire Government Stock through non-competitive bidding.
* Action Required: Submit non-competitive bids between 10:30 a.m. and 11:30 a.m. on October 6, 2017.
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 related matters.
Reserve Bank of India: The central bank of India, responsible for conducting auctions for government stocks.
Mumbai, Maharashtra: The city where the Reserve Bank of India's office is located, which is conducting the auction.
Government Stock: Debt instrument issued by the Government of India.
6.84 GS 2022: Government Stock with a coupon rate of 6.84% maturing in 2022.
6.68 GS 2031: Government Stock with a coupon rate of 6.68% maturing in 2031.
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 September 29, 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 October 6,
2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking
Solution (E-Kuber) system on October 6, 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
October 6, 2017. The payment by successful bidders will be on October 9, 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 (month /
payment due date)
6.84% GS 2022 6.84 Jun 19, 2017 October 8, 2017 Dec 19 and Jun 19
6.68% GS 2031 6.68 Sep 17, 2017 October 8, 2017 Mar 17 and Sep 17
6.57% GS 2033 6.57 Jun 05, 2017 October 8, 2017 Dec. 05 and Jun 05
6.62% GS 2051 6.62 May 28, 2017 October 8, 2017 Nov 28 and May 28
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India