Government of India

Ministry of Finance

Department of Economic Affairs

Budget Division

New Delhi, dated December 24, 2012

NOTIFICATION

F. No.4 (5) W&M/2012(ii): Government of India hereby notifies sale (new) of Government Stock (securities) of 30-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 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

Method of Issue

2. The 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 (13)–W&M/2008, dated October 8, 2008 by a yield based auction using uniform price auction method.

Allotment to Non-competitive Bidders

3. The 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 December 28, 2012. Bids for the auction should be submitted in electronic format on Reserve Bank of India Core Banking Solution (E-Kuber) system on December 28, 2012. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 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.

Tenure

6. The Government Stock will be of thirty years tenure. The tenure of the Stock will commence from December 31, 2012. The Stock will be repaid at par on December 31, 2042.

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 December 28, 2012. The payment by successful bidders will be on December 31, 2012 i.e., the date of issue.

Interest

8. The coupon rate for the securities will be set at the cut-off yield to maturity rate decided in the auction. The interest will be payable half-yearly on June 30 and December 31.

By Order of the President of India

(Dr. Rajat Bhargava)

Joint Secretary to the Government of India

Government securities auction: long term stock offered by uniform price auction with coupon set at cut off yield. Government issuance of long term marketable debt by auction: a thirty year Government Stock will be offered by a yield based uniform price auction through the central bank's electronic bidding system, with a reserved portion for eligible non competitive bidders, coupon set at the auction cut off yield payable semi annually, eligibility for when issued trading, and payment and settlement governed by published auction results and the general notification terms.