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

New Delhi, dated November 17, 2008

NOTIFICATION
Auction for Sale (Re-issue ) of ‘7.94 per cent Government Stock, 2021

F. No.4 (2 )-W&M/2008(i) : Government of India hereby notifies sale (reissue) of ‘7.94 per cent Government Stock, 2021’(hereinafter called 'the Stock') for an aggregate amount of Rs. 3,000 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 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 November 21, 2008. The application form duly filled in with the bids should be submitted to the aforesaid office on November 21, 2008, by 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 fifteen-year tenure commencing from May 24, 2006. The Stock will be repaid at par on May 24, 2021.

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 November 21, 2008. The payment by successful bidders will be on November 24, 2008, i.e., the date of re-issue.

Interest

8.  Interest at the rate of 7.94 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  May  24 and November 24   . 

By Order of the President of India

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