Auction for Sale (Re-issue ) of ‘8.28 per cent Government St

Auction for Sale (Re-issue ) of ‘8.28 per cent Government Stock, 2032’

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

New Delhi, dated September 4, 2009

NOTIFICATION

Auction for Sale (Re-issue ) of ‘8.28 per cent Government Stock, 2032’

F. No.4 (1)-W&M/2009(ii): Government of India hereby notifies sale (reissue) of ‘8.28 per cent Government Stock, 2032’ (hereinafter called 'the Stock') for an aggregate amount of Rs. 2,000 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 price based auction using uniform 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 September 11, 2009. Bids for the auction should be submitted in electronic format on the Negotiated Dealing System (NDS) on September 11, 2009. 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 12.30 p.m.

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 Stock will be of twenty five-year tenure commencing from February 15, 2007. The Stock will be repaid at par on February 15, 2032.

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 September 11, 2009. The payment by successful bidders will be on September 14, 2009, i.e., the date of re-issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of last coupon payment i.e., August 15, 2009 to September 13, 2009.

Interest
8.   Interest at the rate of 8.28 per cent per annum will accrue on the nominal value of the Stock from the date of last coupon payment and will be paid half yearly on  February 15 and August 15.

 By Order of the President of India

 (Shaktikanta Das)
Joint Secretary to the Government of India