GOI Notification –Sale (Reissue) of 6.57 % Government Stock’11

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Economic Affairs)
(Budget Division)

New Delhi, January 18, 2008

NOTIFICATION

Auction for Sale (Re-issue) of ’6.57 per cent Government Stock, 2011’
Under Market Stabilisation Scheme

F.No. 4 (1)-W&M/2007: Government of India hereby notifies sale (reissue) of ’6.57 per cent Government Stock, 2011 ’ for an aggregate amount of Rs.3,000 crore (nominal) under the Market Stabilisation Scheme. 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 (9)–W&M/2000,dated 6th May 2002 issued by Government of India as amended time to time.

Method of Issue

2. The Government Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400001 in the manner as prescribed in paragraph 5.1 of the General Notification F No.4 (9)–W&M/2000,dated 6th May 2002 by a price based auction using multiple price auction method.
     
Allotment to Non-competitive Bidders

3. 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-400001 on January 23, 2008. The application form duly filled in with the bids should be submitted to the aforesaid office on January 23, 2008 by 12.30 P.M.

Tenure

5. The Stock will be of eight year tenure commencing from February 24, 2003.   The stock will be repaid at par on February 24, 2011.

Date of issue and payment for the stock

6. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai office on January 23, 2008. The payment by successful bidders will be on January 24, 2008, i.e., the date of issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the last coupon payment date, i.e., August 24, 2007 to January 23, 2008.

Interest

7. Interest at the rate of 6.57 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 24 and August 24.

By Order of the President of India

(L. M. Vas)
Joint Secretary to the Government of India