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

New Delhi, the September 1, 2006

NOTIFICATIO
Auction for Sale (Re-issue ) of ‘7. 59 per cent Government Stock, 2016

F No.4(6)-W&M/2006 : Government of India hereby notifies sale (reissue) of ‘7.59 per cent Government Stock, 2016’ 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

Method of Issu

2. The Government Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400001 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 rice 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).

Place and date of auction

4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on September 8, 2006. The application form duly filled in with the bids should be submitted to the aforesaid office on September 8, 2006, 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 /2005-06/382 dated May 3, 2006.

Tenure

6. The Stock will be of ten-year tenure commencing from April 12, 2006. The Stock will be repaid at par on April 12, 2016.

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 September 8, 2006. The payment by successful bidders will be on September 11, 2006, i.e., the date of re-issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of commencement of tenure of the Stock, i.e., April 12, 2006 to September 10, 2006.

8. Interest at the rate of 7.59 per cent per annum will accrue on the nominal value of the Stock from the date of commencement of the tenure and will be paid half yearly on October 12 and April 12.

By Order of the President of India

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