**Executive Summary:**
The Government of India announces the sale/reissue of government stocks via auction on October 12, 2018, through the Reserve Bank of India (RBI). The total notified amount is ₹11,000 crore, with an option to retain an additional ₹1,000 crore. Payment by successful bidders is due on October 15, 2018.
**Key Points / Main Content:**
* **Auction Details:**
* Auction Date: October 12, 2018
* Auctioneer: Reserve Bank of India, Mumbai
* 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 Stocks for Sale/Reissue:**
* 7.37 GS 2023: Maturity Date - April 16, 2023, Notified Amount - ₹3,000 crore
* 7.17 GS 2028: Maturity Date - January 08, 2028, Notified Amount - ₹3,000 crore
* 7.40 GS 2035: Maturity Date - September 09, 2035, Notified Amount - ₹2,000 crore
* 7.06 GS 2046: Maturity Date - October 10, 2046, Notified Amount - ₹3,000 crore
* Method: Price Multiple
* **Allotment to Non-Competitive Bidders:**
* Up to 5% of the notified amount is reserved for eligible individuals and institutions.
* **When Issued Trading:**
* The stock is eligible for "When Issued" trading as per RBI guidelines.
* **Payment and Interest:**
* Payment Date: October 15, 2018
* Payment includes accrued interest from the last coupon payment date.
* Interest is paid half-yearly, and the stock is repaid at par on maturity.
**Impact Analysis:**
* **Bidders (Individuals, Institutions, Banks):**
* *Impact:* Opportunity to acquire government stocks with varying maturities and interest rates.
* *Action Required:* Submit bids electronically through the RBI's e-Kuber system within the specified time frame on October 12, 2018, and ensure payment by October 15, 2018.
* **Reserve Bank of India (RBI):**
* *Impact:* Responsible for conducting the auction and displaying the results.
* *Action Required:* Conduct the auction on October 12, 2018, announce results, and facilitate the payment process.
* **Government of India:**
* *Impact:* Raises funds through the sale/reissue of government stocks.
* *Action Required:* Monitor the auction process and manage the funds raised.
Key Entities Referenced
7.06 GS 2046: Government Stock maturing in 2046 with a coupon rate of 7.06%.
Reserve Bank of India: The central bank of India, responsible for conducting the auction of government stocks.
Government Stock: Debt instrument issued by the Government of India.
Mumbai Office, Fort, Mumbai 400 001: The specific branch of the Reserve Bank of India located in Mumbai, Maharashtra, that is responsible for conducting the auction.
7.37 GS 2023: Government Stock maturing in 2023 with a coupon rate of 7.37%.
7.17 GS 2028: Government Stock maturing in 2028 with a coupon rate of 7.17%.
7.40 GS 2035: Government Stock maturing in 2035 with a coupon rate of 7.40%.
Arvind Shrivastava: 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 October 8, 2018
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 ` Crore)
7.37% GS 2023 Apr 16, 2018 05-00-00 Apr 16, 2023 Price Multiple 3,000
7.17% GS 2028 Jan 08, 2018 10-00-00 Jan 08, 2028 Price Multiple 3,000
7.40% GS 2035 Sep 09, 2005 30-00-00 Sep 09, 2035 Price Multiple 2,000
7.06% GS 2046 Oct 10, 2016 30-00-00 Oct 10, 2046 Price Multiple 3,000
Subject to the limit of ` 11000 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 October 12,
2018. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking
Solution (E-Kuber) system on October 12, 2018. 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 12,
2018. The payment by successful bidders will be on October 15, 2018 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)
7.37% GS 2023 7.37 New Stock October 14, 2018 Oct 16 and Apr 16
7.17% GS 2028 7.17 Jul 08, 2018 October 14, 2018 Jan 08 and Jul 08
7.40% GS 2035 7.40 Sep 09, 2018 October 14, 2018 Mar 09 and Sep 09
7.06% GS 2046 7.06 Oct 10, 2018 October 14, 2018 Oct 10 and Apr 10
By Order of the President of India
(Arvind Shrivastava)
Joint Secretary to the Government of India