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

New Delhi, the March 19, 2007

NOTIFICATION

Auction for Sale (Re-issue ) of ‘6.65 per cent Government Stock, 2009’ under Market Stabilisation Scheme

No. 4(2)-W&M/2006: Government of India hereby notifies sale (reissue) of ‘6.65 per cent Government Stock, 2009’ for an aggregate amount of Rs. 2,000 crore (nominal) under the Market Stabilization Scheme. 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 time to time.

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 6th 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 (Annex).

Place and date of auction

4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on March 22, 2007. The application form duly filled in with the bids should be submitted to the aforesaid office on March 22, 2007, by 12.30 P.M.

Tenure

5. The Stock will be of seven-year tenure commencing from April 5, 2002. The stock will be repaid at par on April 5, 2009.

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 March 22, 2007. The payment by successful bidders will be on March 23, 2007, i.e., the date of issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the last coupon payment date, i.e., October 5, 2006 to March 22, 2007.

Interest

7. Interest at the rate of 6.65 per cent per annum will accrue on the nominal value of the Stock from the date of last coupon payment and will be paid half yearly on April 5 and October 5.

By Order of the President of India

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