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

New Delhi, the August 1, 2003

NOTIFICATION

Auction for Sale of Government Stock of 25 Years

F. No. 4(8)-W&M/2003(i): Government of India hereby notifies sale of Government Stock (securities) of 25-Year tenure 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 (9)–W&M/2000, dated 6^th May 2002 issued by Government of India as amended by Notification No. 4(9)- W&M/2000, dated 20^th September 2002.

Method of Issue

2. The Government Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, and 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.

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 the Reserve Bank of India, Mumbai Office, Fort, Mumbai – 400 001 on August 7, 2003. The application form duly filled in with the bids should be submitted to the aforesaid Office on August 7, 2003 by 12.30 P.M.

Tenure

5. The Government Stock will be of twenty five years tenure notionally commencing from March 25, 2003. The Stock will be repaid at par on March 25, 2028.

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 7, 2003. The payment by successful bidders will be on August 8, 2003, i.e., the date of issue. The payment for the Stock will include accrued interest on the nominal value of the Stock from the notional commencement date of tenure of the Stock i.e., March 25, 2003 to August 7, 2003 at the coupon rate emerging in the auction.

Interest

7. Interest will accrue from the notional date of commencement of tenure of the Stock, i.e., from March 25, 2003 and will be payable every half-year on September 25 and March 25.

By Order of the President of India

(D.Swarup)
Additional Secretary (Budget)