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Government of India have announced the sale (re-issue) of "7.55 per cent Government Stock 2010" for a notified amount of Rs. 4,000 crore (nominal) through price based auction using multiple price auction method. The auction will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on July 27, 2006 (Thursday).

2. Interested persons may submit bids in the prescribed form obtainable from the Regional Director, Reserve Bank of India (RBI), Public Debt Office, Fort, Mumbai and Reserve Bank of India website www.rbi.org.in on July 27, 2006 in sealed cover super scribed '7.55 per cent Government Stock 2010 - Auction dated July 27, 2006" and deposit them in the appropriate tender box at RBI, Fort, Mumbai. NDS members should submit competitive as well as non-competitive bids in electronic format using Primary Market Operation (PMO) module of NDS. All bids should be submitted by 12.30 P.M.

3. The price percent expected by the bidder should be expressed up to two decimal points. An investor can submit more than one bid at different yields, but a separate application should be submitted for each bid. The aggregate amount of bids submitted by a person in the auction should not exceed the notified amount of the auction.

4. The result of the auction will be displayed at RBI, Mumbai Office, Fort, Mumbai on Thursday, July 27, 2006. Successful bidders should deposit with that Office the price amount of Government Stock(s) covered by their successful bids on July 28, 2006 by 3.00 P.M. in cash or by cheque on their account with RBI, Mumbai or by Banker's Pay Order.

5. Interest on the Government Stock will be paid half-yearly. The Stock will be governed by the provisions of Public Debt Act, 1944 and the rules framed there under.

6. The Stock will be eligible for ready forward facility.

7. For further details, Government of India Notifications No. 4(6) -W&M/2006 dated July 21, 2006 may be seen.

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(*PFs, Trusts, RRBs, Cooperative Banks, NBFCs, Corporates, HUFs and Individuals)

Retail investors can participate in the auctions on a non-competitive basis through a bank or a primary dealer. For the retail investors, Rs. 200 crore have been earmarked in the auction of "7.55 per cent Government Stock 2010". For more information, detailed list and telephone numbers of primary dealers/ bank branches and application forms please visit RBI web site www.ncgsecs.rbi.org.in or FIMMDA website www.fimmda.org.