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Government
of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New
Delhi, dated May 08, 2017
NOTIFICATION
Auction
for Sale of New Government Stock of 10 year
F. No.4 (7) W&M/2017(i):
Government of India hereby notifies sale of New Government Stock (Securities)
of ‘10 year tenure’ for an aggregate amount of ? 8,000 crore
(nominal). The sale will be subject to the terms and conditions spelt out
in this notification (called ‘Specific Notification’) as also 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.
Method of Issue
2. The Stock will be sold through Reserve Bank of India, Mumbai Office,
Fort, Mumbai- 400 001 in the manner as prescribed in paragraph 5.1 of the
General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a yield based auction using multiple price auction method.
Allotment to Non-competitive
Bidders
3. 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
4. The auction will be conducted by Reserve Bank of India, Mumbai Office,
Fort, Mumbai-400 001 on May
12, 2017. Bids for the auction should be
submitted in electronic format on the Reserve Bank of India Core Banking
Solution (E-Kuber) system on May
12, 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
5. The Stock will be eligible for “When Issued” trading in accordance with
the guidelines issued by the Reserve Bank of India.
Tenure
6. The Government Stock will be of ten years tenure commencing from May 15, 2017.
The Stock will be repaid at par on May
15, 2027.
Date of issue and payment for
the stock
7. The result of the auction shall be displayed by the Reserve Bank of
India at its Fort, Mumbai Office on May
12, 2017. The payment by successful
bidders will be on May 15,
2017 i.e. the date of issue.
Interest
8. The coupon rate for the securities will be set at the cut-off yield to
maturity rate decided in the auction. The interest will be payable
half-yearly on November 15 and May
15.
By
Order of the President of India
(Prashant
Goyal)
Joint Secretary to the
Government of India
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