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

New Delhi, the July 30, 2002

NOTIFICATION

Auction for Sale (Re-issue ) of ‘10.18 per cent Government Stock, 2026’

No.4(9)-W&M/2002 (1) : Government of India hereby notifies sale (reissue) of ‘10.18 per cent Government Stock, 2026’ 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 (9)–W&M/2000 dated 6^th May, 2002 issued by Government of India.

Method of Issue

2 The Government 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 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 (Annexure I).

Place and date of auction

4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on August 2, 2002. The application form duly filled in with the bids should be submitted to the aforesaid office on August 2, 2002, before the close of banking hours.

Tenure

5. The Stock will be of twenty five-year tenure commencing from September 11, 2001. The stock will be repaid at par on September 11, 2026.

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 August 2, 2002. The payment by successful bidders will be on August 5, 2002. i.e. the date of issue. The payment for the Stock will include accrued interest on the nominal value of the Stock applied for from the last coupon payment date i.e. March 11, 2002.

Interest

7. Interest at the rate of 10.18 per cent per annum will accrue on the nominal value of the Stock from the last coupon date and will be paid half yearly on September 11 and March 11.

By Order of the President of India

(D.Swarup)
Additional Secretary (Budget)