Executive Summary:
This notification from the Indian Ministry of Finance announces the sale/reissue of four Government Stocks via auction conducted by the Reserve Bank of India (RBI) on November 10, 2017. The total notified amount is ₹15000 crore, with an option to retain an additional ₹1000 crore. Payment by successful bidders is due on November 13, 2017.
Key Points / Main Content:
Auction Details:
* Auction conducted by: Reserve Bank of India, Mumbai Office.
* Auction Date: November 10, 2017.
* Bidding Submission: Electronic format via RBI's e-Kuber system.
* Non-competitive bids: 10.30 a.m. and 11.30 a.m. on November 10, 2017.
* Competitive bids: 10.30 a.m. and 12.00 noon on November 10, 2017.
* Auction Result: Displayed by RBI at its Mumbai Office on November 10, 2017.
Government Stock Details:
* Securities for sale/reissue: 6.84 GS 2022, 6.68 GS 2031, 6.57 GS 2033, 7.06 GS 2046.
* Base Method: Price Multiple for all stocks.
* Total Notified Amount: ₹15000 crore, with the option to retain additional subscription up to ₹1000 crore.
* Payment Date: November 13, 2017.
* Interest: Accrued interest paid half-yearly from the date of original issue/last coupon payment.
* Repayment: At par on the date of maturity.
Non-Competitive Bidding:
* Allotment: Up to 5% of the notified amount to eligible individuals and institutions.
* Scheme: As per the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities.
Other Points:
* "When Issued" Trading: Allowed as per RBI guidelines.
* Governing Notifications: Subject to terms and conditions in this specific notification and General Notification F.No.413WM2008, dated October 8, 2008.
Impact Analysis:
Bidders (Individuals and Institutions):
* Impact: Opportunity to acquire Government Stocks through competitive and non-competitive bidding.
* Action Required: Submit bids electronically via RBI's e-Kuber system within specified timeframes on November 10, 2017, and ensure payment by November 13, 2017, if successful.
Reserve Bank of India (RBI):
* Impact: Responsible for conducting the auction, displaying results, and facilitating the sale/reissue of Government Stocks.
* Action Required: Conduct the auction on November 10, 2017, display results at the Mumbai Office, and ensure smooth processing of bids and payments.
Government of India (GoI):
* Impact: Raises funds through the sale/reissue of Government Stocks.
* Action Required: Monitor the auction process and retain the option for additional subscription if needed.
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.
Reserve Bank of India: The central bank of India, responsible for conducting auctions of government stocks.
Mumbai: City in Maharashtra, location of the Reserve Bank of India office where the auction will be conducted.
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.
6.57 GS 2033: Government Stock with a coupon rate of 6.57% maturing in 2033.
7.06 GS 2046: Government Stock with a coupon rate of 7.06% maturing in 2046.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated November 6, 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
7.06% GS 2046 Oct. 10, 2016 30-00-00 Oct. 10, 2046 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
10, 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 10, 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 10, 2017. The payment by successful bidders will be on November 13, 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 November 12, 2017 Dec 19 and Jun 19
6.68% GS 2031 6.68 Sep 17, 2017 November 12, 2017 Mar 17 and Sep 17
6.57% GS 2033 6.57 Jun 05, 2017 November 12, 2017 Dec. 05 and Jun 05
7.06% GS 2046 7.06 October 10, 2017 November 12, 2017 Apr 10 and Oct 10
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India