New Delhi, dated October 3, 2008

F. No.4 (2)-W&M/2008: Government of India hereby notifies sale of Government Stock (securities) of 6-year tenure for an aggregate amount of Rs. 6,000 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 (9)–W&M/2000,dated 6^th May 2002 issued by Government of India as amended from time to time.

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 (9)-W&M/2000,dated 6^th May 2002 by a yield based auction using multiple price auction method.

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 (Annexure).

4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on October 10, 2008. The application form duly filled in with the bids should be submitted to the aforesaid office on October 10, 2008, by 12.30 P.M.

5. The Stock will be eligible for "When Issued" trading in accordance with the guidelines issued by the Reserve Bank of India.

6. The Government Stock will be of six years tenure. The tenure of the Stock will commence from October 13, 2008. The Stock will be repaid at par on October 13, 2014.

7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on October 10, 2008. The payment by successful bidders will be on October 13, 2008 i.e., the date of issue.

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 April 13 and October 13.

By Order of the President of India

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