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 June 14, 2019. Bids must be submitted electronically through the RBI's e-Kuber system on the auction date. Payment by successful bidders is due on June 17, 2019.
Key Points / Main Content:
Auction Details:
* RBI, Mumbai Office will conduct the auction.
* Auction Date: June 14, 2019.
* Bidding Platform: RBI's e-Kuber system.
* Non-competitive bids: 11:30 a.m. - 12:00 noon.
* Competitive bids: 11:30 a.m. - 12:30 p.m.
Government Stocks for Sale/Reissue:
* 7.00 GS 2021 maturing on Jan 21, 2021: ₹3,000 Crore
* 7.27 GS 2026 maturing on Apr 8, 2026: ₹3,000 Crore
* 7.57 GS 2033 maturing on Jun 17, 2033: ₹5,000 Crore
* 7.62 GS 2039 maturing on Sep 15, 2039: ₹2,000 Crore
* 7.63 GS 2059 maturing on Jun 17, 2059: ₹4,000 Crore
* Total notified amount: ₹17,000 Crore
* GoI has the option to retain additional subscription up to ₹1,000 Crore against any one or more securities.
Allotment and Payment:
* Up to 5% of the notified amount will be allotted to eligible non-competitive bidders.
* Payment by successful bidders is due on June 17, 2019, including accrued interest.
Interest and Repayment:
* Interest will be paid half-yearly on the nominal value of the Stock, accruing from the original issue/last coupon payment date.
* The Stocks will be repaid at par on the date of maturity.
Additional Information:
* The Stocks are eligible for When Issued trading.
* Auction results will be displayed by the RBI on June 14, 2019, at its Mumbai Office.
* The sale is subject to terms and conditions in the Specific Notification and General Notification F.No.42WM2018, dated March 27, 2018.
Impact Analysis:
RBI:
* Impact: Responsible for conducting the auction and displaying the results.
* Action Required: Conduct the auction on June 14, 2019, through the e-Kuber system, and display the results at the Mumbai Office.
Bidders (Individuals/Institutions):
* Impact: Opportunity to purchase/reissue Government Stocks.
* Action Required: Submit bids electronically on the RBI's e-Kuber system on June 14, 2019, and make payment by June 17, 2019, if successful.
Government of India:
* Impact: Raises funds through the sale/reissue of Government Stocks.
* Action Required: Oversee the auction process and manage the funds raised.
Key Entities Referenced
Ministry of Finance: The ministry responsible for the economy of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
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 office that conducts the auctions is located.
Government Stock: Debt instruments issued by the Government of India.
E-Kuber: The Core Banking Solution system of Reserve Bank of India used for submitting bids.
Arvind Shrivastava: Joint Secretary to the Government of India.
General Notification F.No.42WM2018: General notification issued by the Government of India regarding terms and conditions of stock sales.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated June 10, 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)
7.00% GS 2021 Jan 21, 2019 02-00-00 Jan 21, 2021 Price Multiple 3,000
7.27% GS 2026 Apr 8, 2019 07-00-00 Apr 8, 2026 Price Multiple 3,000
7.57% GS 2033 May 20, 2019 14-00-27 Jun 17, 2033 Price Multiple 5,000
7.62% GS 2039 Apr 8, 2019 20-05-07 Sep 15, 2039 Price Multiple 2,000
7.63% GS 2059 May 6, 2019 40-01-11 Jun 17, 2059 Price Multiple 4,000
Subject to the limit of `17000 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 June 14, 2019.
Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-
Kuber) system on June 14, 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 June 14,
2019. The payment by successful bidders will be on June 17, 2019 i.e. the date of issue/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)
7.00% GS 2021 7.00 New Stock June 16, 2019 Jul 21 and Jan 21
7.27% GS 2026 7.27 New Stock June 16, 2019 Oct 8 and Apr 8
7.57% GS 2033 7.57 New Stock June 16, 2019 Jun 17 and Dec 17
7.62% GS 2039 7.62 New Stock June 16, 2019 Sep 15 and Mar 15
7.63% GS 2059 7.63 New Stock June 16, 2019 Jun 17 and Dec 17
By Order of the President of India
(Arvind Shrivastava)
Joint Secretary to the Government of India