Auction for Sale (Issue/Re-issue) of Government Stock (GS)

Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division

New Delhi, dated Jun 18, 2018


Auction for Sale (Issue/Re-issue) of Government Stock (GS)

F.No.4(6)W&M/2018: Government of India(GoI) hereby notifies sale(issue/re-issue) of the following Government Stocks:

Name of the Security

Date of Original Issue


Date of Maturity



Notified Amount
(in ? Crore)

6.65% GS 2020

Apr 09, 2018


Apr 09, 2020




7.59% GS 2026

Jan 11, 2016


Jan 11, 2026




GoI FRB 2031

May 07, 2018


Dec 07, 2031




6.57% GS 2033

Dec 05, 2016


Dec. 05, 2033




7.06% GS 2046

Oct 10, 2016


Oct 10, 2046




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 (

Place and date of auction
3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on 
Jun 22, 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 22, 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 22, 2018. The payment by successful bidders will be on Jun 25, 2018 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.

Name of the Security

Coupon rate 

Date of Last Coupon payment

Date upto which accrued interest is due

Date of Coupon payments  
(month / date)

6.65% GS 2020


New Stock

Jun 24, 2018

Oct 09 and Apr 09

7.59% GS 2026


Jan 11, 2018

Jun 24, 2018

July 11 and Jan 11

GoI FRB 2031


Jun 07, 2018

Jun 24, 2018

Dec 07 and Jun 07

6.57% GS 2033


Jun 05, 2018

Jun 24, 2018

Dec 05 and Jun 05

7.06% GS 2046


April 10, 2018

Jun 24, 2018

Oct 10 and Apr 10

New GoI FRB 2031 :

(i) The interest at a variable rate will be paid every half-yearly.

(ii) The Floating Rate Bond will carry the coupon, which will have a base rate, equivalent to Weighted Average Yield (WAY) of last 3 auctions (from the rate fixing day) of 182 Day T-Bills (Please see Annex for illustration), plus a fixed spread, of 100 basis points as decided by way of auction mechanism. The spread will be fixed throughout the tenure of the bond.  The implicit yields will be computed by reckoning 365 days in a year.

(iii) In the event of Government of India 182-day Treasury Bill auctions being discontinued during the currency of the Bonds, the base rate of the coupon will be the average of Yield to Maturity (YTM) rates prevailing for six month Government of India Security/ies as on the last three non-reporting Fridays prior to the commencement of the semi-annual coupon period. In case particular Friday/s is/are holiday/s, the yield to maturity rates as on the previous working day shall be taken.

(iv) The base rate for the coupon period Jun 7, 2018 to Dec 6, 2018 is 6.79% per annum. Accordingly, the rate of interest on FRB 2031 for this period shall be 7.79% per annum. The rate of interest payable half yearly on the Bonds during the subsequent years shall be announced by the Reserve Bank of India before the commencement of the relative semi-annual coupon period.

By Order of the President of India

(Arvind Shrivastava)
Joint Secretary to the Government of India


Illustration: Base Rate payable on Floating Rate Bonds 2031

Calculation of base rate for the first coupon payment for period ending Dec 6, 2018


182 DTB auction dated

Cut off Price

Weighted Average Yield (%)


June 6, 2018




May 30, 2018




May 23, 2018







@ annualized for 365day year

Variable Coupon Rate = (20.3587 / 3) = 6.786233% + 1% spread

Rounded off to two decimal places = 7.79%

Interest rate applicable for the year
(June 7, 2018 to December 6, 2018) = 7.79 per cent per annum


Seair Exim offers an Import-Export data demo.

We do not mediate buying, selling of products or services.

Seair is proud to have a loyal customer base from big brands.

We have successfully served many reputable clients for Import-Export Data Information Services. Here are some of our clients:

Get a free Import-Export data demonstrative report on desired products.

We don’t offer any assistance over buying or selling any products.

Thank You

Big thanks to showing your interest in SEAIR Exim Solutions. We’ve currently received your request for data information. We will return on the same query in a short span of time.

Copyright © 2009 - 2020 All Rights Reserved.