Executive Summary:
The Government of India announces the sale/reissue of four Government Stocks via auction to be conducted by the Reserve Bank of India (RBI) in Mumbai on March 8, 2019. Bids must be submitted electronically through the RBI's e-Kuber system on the same day. Payment by successful bidders is due on March 11, 2019.
Key Points / Main Content:
Auction Details:
* Sale/reissue of Government Stocks with varying maturity dates and coupon rates.
* Total notified amount is ₹12,000 crore, with the GoI retaining the option to accept an additional ₹1,000 crore for any of the mentioned securities.
* Auction conducted by RBI, Mumbai Office, on March 8, 2019.
Bidding Process:
* Bids to be submitted electronically on RBI's e-Kuber system on March 8, 2019.
* Non-competitive bids: 11:30 a.m. - 12:00 noon.
* Competitive bids: 11:30 a.m. - 12:30 p.m.
Allotment and Payment:
* Up to 5% of the notified amount allotted to eligible individuals/institutions via Non-competitive Bidding Facility.
* Auction results displayed by RBI, Mumbai Office, on March 8, 2019.
* Payment by successful bidders due on March 11, 2019, including accrued interest.
Interest and Repayment:
* Interest accrues from the date of original issue/last coupon payment and is paid semi-annually.
* Stock repaid at par on maturity date.
When Issued Trading:
* The stock is eligible for "When Issued" trading as per RBI guidelines.
Impact Analysis:
Bidders (Individuals, Institutions, and Other Eligible Entities):
* Impact: Opportunity to invest in Government Stocks with varying tenures and interest rates.
* Action Required: Submit bids electronically via RBI's e-Kuber system on March 8, 2019, and ensure payment by March 11, 2019, if the bid is successful.
Reserve Bank of India (RBI):
* Impact: Responsible for conducting the auction and displaying the results.
* Action Required: Conduct the auction on March 8, 2019, display results, and manage the allotment and payment processes.
Government of India (GoI):
* Impact: Raises funds through the sale/reissue of Government Stocks.
* Action Required: Monitor the auction process and manage the funds raised.
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 responsible for economic policy and development.
Government Stock: Securities issued by the Government of India to raise funds from the market.
Reserve Bank of India: The central bank of India, responsible for conducting auctions and managing government securities.
Mumbai Office, Maharashtra: Branch office of the Reserve Bank of India located in Mumbai, responsible for conducting the auction.
7.32 GS 2024: Government Stock maturing in 2024 with a coupon rate of 7.32%.
7.26 GS 2029: Government Stock maturing in 2029 with a coupon rate of 7.26%.
Arvind Shrivastava: 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 March 01, 2019
NOTIFICATION
Auction for Sale (Re-issue) of Government Stock (GS)
F.No.4(6)W&M/2018: Government of India(GoI) hereby notifies sale (re-issue) of the following Government Stocks:
Date of Tenure Date of Notified Amount
Name of the Security Base Method
Original Issue (yy-mm-dd) Maturity (in Rs Crore)
7.32% GS 2024 Jan 28, 2019 05-00-00 Jan 28, 2024 Price Multiple 3,000
7.26% GS 2029 Jan 14, 2019 10-00-00 Jan 14, 2029 Price Multiple 4,000
8.24% GS 2033 Nov 10, 2014 19-00-00 Nov 10, 2033 Price Multiple 2,000
7.72% GS 2055 Oct. 26, 2015 40-00-00 Oct. 26, 2055 Price Multiple 3,000
Subject to the limit of `12000 Cr, being total notified amount, GoI will have the option to retain additional subscription
up to `1000 Cr each against any one or more of the above securities. 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(2)–W&M/2018, dated March 27, 2018 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 March 08,
2019. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking
Solution (E-Kuber) system on March 08, 2019. The non-competitive bids should be submitted between 11.30 a.m.
and 12.00 noon and the competitive bids should be submitted between 11.30 a.m. and 12.30 pm.
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 March 08,
2019. The payment by successful bidders will be on March 11, 2019 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 issue / last coupon payment and
will be paid half yearly. The Stock will be repaid at par on date of maturity.
Date of Coupon
Name of the Coupon rate Date of Last Coupon Date upto which
payments
Security (%) payment accrued interest is due
(month / date)
7.32% GS 2024 7.32 New Stock March 10, 2019 July 28 and Jan 28
7.26% GS 2029 7.26 New Stock March 10, 2019 July 14 and Jan 14
8.24% GS 2033 8.24 Nov 10, 2018 March 10, 2019 May 10 and Nov 10
7.72% GS 2055 7.72 Oct 26, 2018 March 10, 2019 Apr 26 and Oct 26
By Order of the President of India
(Arvind Shrivastava)
Joint Secretary to the Government of India