Executive Summary:
This notification from the Indian Ministry of Finance announces the sale/reissue of government stocks via auction conducted by the Reserve Bank of India (RBI) on June 29, 2018. The total notified amount is Rs 12000 Cr, with an option to retain additional subscriptions up to Rs 1000 Cr per security. Payment by successful bidders is due on July 2, 2018.
Key Points / Main Content:
Auction Details:
* Auction conducted by: Reserve Bank of India, Mumbai Office.
* Auction date: June 29, 2018.
* Bidding platform: RBI's E-Kuber system.
* Non-competitive bids: 10.30 a.m. - 11.30 a.m.
* Competitive bids: 10.30 a.m. - 12.00 noon.
* Result announcement: June 29, 2018, at RBI Mumbai Office.
Government Stock Specifics:
* Reissue of multiple Government Stocks with varying maturity dates and coupon rates.
* Stocks include: 6.84 GS 2022, 7.17 GS 2028, 7.40 GS 2035, and 7.72 GS 2055.
* Interest will accrue from the original issue/last coupon payment date and paid semi-annually.
* Stocks will be repaid at par on the maturity date.
Bidding and Allotment:
* Up to 5% of the notified amount is reserved for non-competitive bidders.
* Government retains the option to hold additional subscriptions up to Rs 1000 Cr against any security.
* Payment date: July 2, 2018, including accrued interest.
* Stocks are eligible for When Issued trading as per RBI guidelines.
Impact Analysis:
Successful Bidders:
* Impact: Allotment of Government Stocks based on auction results. Payment for stocks including accrued interest.
* Action Required: Make payment for allotted stocks by July 2, 2018, including accrued interest from the specified date.
Reserve Bank of India (RBI):
* Impact: Responsible for conducting the auction and displaying the results.
* Action Required: Conduct the auction on June 29, 2018, announce results, and facilitate stock trading and payment.
Non-Competitive Bidders:
* Impact: Allotment of Government Stock up to 5% of the notified amount.
* Action Required: Submit bids between 10.30 a.m. and 11.30 a.m. on June 29, 2018, through the E-Kuber system.
Government of India:
* Impact: Sale/reissue of Government Stocks to manage finances.
* Action Required: Monitor auction results and exercise the option to retain additional subscriptions if needed.
Key Entities Referenced
Ministry of Finance: The Indian government ministry responsible for financial matters.
Department of Economic Affairs: A department within the Ministry of Finance responsible for economic policy and programs.
Reserve Bank of India: The central bank of India, responsible for conducting auctions of government stocks.
Mumbai Office, Fort, Mumbai: A branch office of the Reserve Bank of India located in Mumbai, Maharashtra, involved in the auction process.
Government Stock: Refers to the government securities being sold/reissued in the notification.
E-Kuber: The Core Banking Solution system of the Reserve Bank of India used for submitting bids in electronic format.
Arvind Shrivastava: Joint Secretary to the Government of India, signatory of the notification.
6.84 GS 2022: Government Stock with a coupon rate of 6.84% maturing in 2022.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated Jun 25, 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)
6.84% GS 2022 Sep 12, 2016 06-03-07 Dec 19, 2022 Price Multiple 3000
7.17% GS 2028 Jan. 08, 2018 10-00-00 Jan. 08, 2028 Price Multiple 4000
7.40% GS 2035 Sep 09, 2005 30-00-00 Sep 09, 2035 Price Multiple 2000
7.72% GS 2055 Oct. 26, 2015 40-00-00 Oct. 26, 2055 Price Multiple 3000
Subject to the limit of Rs 12000 Cr, being total notified amount, GoI will have the option to retain additional
subscription up to Rs 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 Jun 29, 2018.
Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-
Kuber) system on Jun 29, 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 Jun 29,
2018. The payment by successful bidders will be on Jul 2, 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)
6.84% GS 2022 6.84 Jun 19, 2018 Jul 1, 2018 Dec 19 and Jun 19
7.17% GS 2028 7.17 New stock Jul 1, 2018 July 08 and Jan 08
7.40% GS 2035 7.40 Mar 09, 2018 Jul 1, 2018 Sep 09 and Mar 09
7.72% GS 2055 7.72 Apr 26, 2018 Jul 1, 2018 Oct 26 and Apr 26
By Order of the President of India
(Arvind Shrivastava)
Joint Secretary to the Government of India