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

New Delhi, dated April 16, 2008

NOTIFICATION

Auction for Sale of Government Stock of 10 Years

F. No.4 (2)-W&M/2008: Government of India hereby notifies sale of Government Stock (securities) of 10-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 6th May 2002 issued by Government of India as amended from time to time.

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 (9)-W&M/2000,dated 6th May 2002 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 (Annexure).

Place and date of auction

4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on April 21, 2008. The application form duly filled in with the bids should be submitted to the aforesaid office on April 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 in its circular No. RBI /2006-07/178 dated November 16, 2006.

Tenure

6. The Government Stock will be of ten years tenure. The tenure of the Stock will commence from April 22, 2008. The Stock will be repaid at par on April 22, 2018.

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 April 21, 2008. The payment by successful bidders will be on April 22, 2008 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 October 22 and April 22.

By Order of the President of India

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