**Policy Summary: Repurchase of Inflation Indexed Bond**
On January 8, 2016, the Government of India, through the Ministry of Finance's Department of Economic Affairs, announced the repurchase of the 1.44 per cent Inflation Indexed Government Stock 2023. The repurchase, totaling Rs. 6,500 crore, will be executed through reverse auction(s) conducted by the Government of India, utilizing a multiple price auction method. The Reserve Bank of India will announce the settlement date(s) for the repurchase. Payment for the repurchased stocks, including accrued interest on successful bids, will be made from the Government of India's cash balances held with the CAS, RBI, Nagpur. Upon repurchase, the Government Stocks will be prematurely redeemed, and interest accrual will cease. The Government Securities Act, 2006, the Government Securities Regulations, 2007, and earlier related notifications will govern any matters not explicitly addressed in this notification. Prashant Goyal, Joint Secretary to the Government of India, issued the order on behalf of the President of India.
Key Entities Referenced
Ministry of Finance: A department of the Government of India responsible for financial matters.
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 regulating the country's financial system.
1.44 per cent Inflation Indexed Government Stock2023: Inflation Indexed Government Stock maturing in 2023, subject to repurchase.
Government Securities Act, 2006: A law governing government securities in India.
Government Securities Regulations, 2007: Regulations framed under the Government Securities Act, 2006.
CAS, RBI, Nagpur, Maharashtra: Cash Account Section of the Reserve Bank of India, located in Nagpur, Maharashtra.
Prashant Goyal: Joint Secretary to the Government of India.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
Department of Economic Affairs
(Budget Division)
New Delhi, the January 08, 2016
NOTIFICATION
Repurchase of Inflation Indexed Bond
F.No 4(16)-W&M/2012: The Government of India hereby notifies repurchase of “1.44 per
cent Inflation Indexed Government Stock-2023” (hereinafter called the Government Stocks).
Mode of Repurchase
2. The repurchase of the Government Stocks will be undertaken through reverse auction by
the Government of India and in one or more tranches by multiple price auction method. The
date of repurchase / settlement will be notified by the Reserve Bank of India.
Nominal Amount of Repurchase
3. The repurchase of “1.44 per cent Inflation Indexed Government Stock-2023” will be for
an aggregate amount of Rs. 6,500 crore.
Payment
4. The payment for the repurchase of the Government Stocks will be made by the
Government of India from its cash balances maintained with the CAS, RBI, Nagpur. Such
payment will include the accrued interest on the nominal value of the successful bids/offer
accepted by the Reserve Bank of India. The Government Stocks repurchased in the manner
will get prematurely redeemed and interest will cease to accrue on such redeemed
Government Stocks.
Statutory Provision
5. With respect to any such matter which has not been provided under this notification, the
Government Stock shall be governed by the Government Securities Act, 2006 and the
Government Securities Regulations, 2007 framed thereunder and the earlier corresponding
Notification(s) Issued by the Government of India.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India