THE GAZETTE OF INDIA; EXTRAORDINARY

[PAKI I—SKC. 1]

MINISTRY OF FINANCE AND COMPANY AFFAIRS

(Department of Economic Affairs)

(BUDGET DIVISION)

NOTIFICATION

New Delhi, the 3rd September, 2002

Auction for Sale (Re-issue) of "7.46 per cent Government Stock, 2017"

F. No. 4(9)-W&M/2002.—Government of India hereby notifies sale (re-issue) of '7.46 per cent

Government Stock, 2017' for an aggregate amount of Rs. 4,000 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.

Method of Issue

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 price-based auction usinjz multiple price auction method.

Allotment to Non-competitive Bidders

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

The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-

400001 on September 9, 2002, The application form duly filled in with the bids should be submitted to

the aforesaid office on September 9, 2002, before the close of banking hours.

Tenure

The Stock will be of fifteen- year tenure commencing from August 28, 2002. The stock will be

repaid at par on August 28, 2017.

Date of issue and payment for the stock

The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai

office on September 9, 2002. The payment by successful bidders will be on September 11, 2002, i.e.,

the date of issue. The payment for the Stock will include accrued interest on the nominal value of the

Stock applied for from the date of commencement of tenure of the stock i.e.. Aupust 28, 20 OJL

Interest

The interest at the rate of 7.46 per cent per annum will accrue on the nominal value of the Stock

from the date of commencement of tenure of the stock and will be paid half yearly on February 28 and

August 28.

By Order of the President of India

D. SWARUP, Addl. Secy

XNNEXURE

Scheme for Non-competitive Biddine Facility in the Auctions of Government Securities

Scope: With a view to encouraging wider participation and retail holding of Government securities

it is proposed to allow participation on "non-competitive" basis in select auctions of dated Government of

India securities. Accordingly, non-competitive bids up to 5 per cent of the notified amount will be accepted

in the auctions of dated securities. The reserved amount will be within the notified amount.

II.

Eligibility: Participation on a non-competitive basis in the auctions of dated GOI Securities

will be open to investors who satisfy the following:

1. do not maintain current account (CA) or Subsidiary General Ledger (SGL) account with the

Reserve Bank oflndia.

Exceptions: Regional Rural Banks (RRBs), Urban Co-operative Banks (UCBs) and Non-Banking

Financial Companies (NBFCs) shall be covered under this Scheme in view of their statutory

obligations.

make a single bid for an amount not more than Rs. one crore (face value) per auction.

3. submit their bid indirectly through any one bank or PD offering this scheme.

Exceptions: Regional Rural Banks (RRBs), Urban Co-operative Banks (UCBs) and Non-Banking

Financial Companies (NBFCs) shall be eligible to submit their non competitive bids directly.

III.

Coverage: Subject to the conditions mentioned above, participation on "non-competitive" basis is

open to any person including firms, companies, corporate bodies, institutions, provident funds, trusts, and

any other entity as may be prescribed by RBI. The minimum amount for bidding will be Rs. 10,000 (face

value) and thereafter in multiples in Rs. 10,000 as hitherto for dated stocks.

IV.

Other Operational Guidelines:

1. It will not be mandatory for the retail investor to maintain a constituent subsidiary general

ledger (CSGL) account with the bank or PD through whom they wish to participate. However,

an investor can make only a single bid under this scheme. An undertaking to the effect that the

investor is making only a single bid will have to be obtained and kept on record by the bank or

PD.

2. Each bank or PD on the basis at firm orders submit a single customer bid for the aggregate

amount on the day of the auction. Details of individual customers vii. name, amount, etc. shall

be provided as an Annexure to the bid.

3. Allotment under the non-competitive segment to the bank or PD will be at the weighted

average rate of yield/price that will emerge in the auction on the basis of the competitive

bidding. The securities will be issued to the bank or PD against payment on the date of issue

irrespective of whether the bank or PD has received payment from their clients.

4. In case the aggregate amount of bid is more than the reserved amount (5% of notified amount),

pro rala allotment would be made. In case of partial allotments, it will be the responsibility of

the bank or PD to appropriately allocate securities to their clients in a transparent manner.

5. In case the aggregate amount of bids is less than the reserved amount, the shortfall will be

taken to competitive portion.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART I— SEC. 1]

6. Security would be issued only in SGL form by RBI. RBI would credit either the main SGL

account or the CSGL account of the bank or PD as indicated by them. The facility for

affording credit to the main SGL account is for the sole purpose of servicing investors who are

not their constituents. Therefore, the bank or PD would have to indicate clearly at the time of

tendering the non-competitive bids the amounts (face value) to be credited to their SGL account

and the CSGL account. Delivery in physical form from the main SGL account is permissible at

the instance of the investor subsequently.

7. It will be the responsibility of the bank or the PD to pass on the securities to their clients.

Except in extraordinary circumstances, the transfer of securities to the clients shall be

completed wilhin/ivc working days from the date of issue.

8. The bank or PD can recover upto six paise per Rs. 100 as brokerage/commission/service

charges for rendering this service to their clients. Such costs may be built into the sale price or

recovered separately frorn the clients. In case the transfer of securities is effected subsequent to

the issue date of the security, the consideration amount payable by the client to the bank or PD

would also include accrued interest from the date of issue.

9. Modalities for obtaining payment from clients towards cost of the securities, accrued interest

wherever applicable and brokerage/commission/service charges may be worked out by the bank

or PD as per agreement with the client. It may be noted that no other costs such as funding

costs should be built into the price or recovered from the client.

Banks and PDs will be required to furnish information relating to operations under the Scheme to

the Reserve Bank of India (Bank) as may be called for from time to time within the time frame prescribed

by the Bank.

VI.

The aforesaid guidelines are subject to review by the Bank and accordingly, if and when considered

necessary, the Scheme will be modified.

NOTIFICATION

New Delhi, the 3rd September, 2002

Auction for Sale (Rc-issuc) of "8.35 per cent Government Stock, 2022"

F. No. 4(9)-W&M/2002(l).—Government of India hereby notifies sale (re-issue) o f 8.35

per cent Government Stock, 2022' 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

Notification¹) 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.

Method of Issue

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 price-based auction using multiple price auction method-

Allotment to Non-competitive Bidders

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

The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-

400001 on September 9, 2002. The application form duly filled in with the bids should be

submitted to the aforesaid office on September 9, 2002, before the close of banking hours.

Tenure

The Stock will be of twenty- year tenure commencing from May 14, 2002. The stock will

be repaid at par on May 14, 2022.

Date of issue and payment for the stock

The result of the auction shall be displayed by the Reserve Bank of India at its Fort,

Mumbai office on September 9, 2002. The payment by successful bidders will be on September 11,

2002, i.e., the date of issue. The payment for the Stock will include accrued interest on the nominal

value of the Stock applied for from the date of commencement of tenure of the stock i.e.. May 14.

2002.

Interest

The interest at the rate of 8.35 per cent per annum will accrue on the nominal value of the

Stock from the date of commencement of tenure of the stock and will be paid half yearly on

November 14 and May 14.

By Order of the President of India

D SWARUP, Add]. Secy.

(; ANNEXURE

Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities

Scope: With a view to encouraging wider participation and retail holding < f Government securities

it is proposed to allow participation on "non-competitive"

basi*; in select a ;cti<>ns uf dated Government of

India securities. Accordingly, non-competitive bids up to 5 per cent ofthc noiifictl amount will be accepted

in the auctions of dated securities, The reserved amount will be within the notified amount.

10_

THE GAZETTE OF INDIA, EXTRAORDINARY

[PART I—SK-. 1J

II.

Eligibility: Participation on a non-competitive basis in the auctions of dated GOI Securities

will be open to investors who satisfy the following:

1. do not maintain current account (CA) or Subsidiary General Ledger (SGL) account with the

Reserve Bank of India.

Exceptions. Regional Rural Banks (RRBs), Urban Co-operative Banks (UCBs) and Non-Banking

Financial Companies (NBFCs) shall be covered under this Scheme in view of their statutory

obligations.

make a single bid for an amount not more than Rs. one crore (face value) per auction.

submit their bid indirectly through any one bank or PD offering this scheme.

Exceptions: Regional Rural Banks (RRBs), Urban Co-opcralivc Banks (UCBs) and Non-Banking

Financial Companies (NBFCs) shall be eligible to submit their non competitive bids directly.

III.

Coverage: Subject to the conditions mentioned above, participation on "non-competilive" basis is

open to any person including firms, companies, corporate bodies, institutions, provident funds, trusts, and

any other entity as may be prescribed by RBI. The minimum amount for bidding will be Rs. 10,000 (face

value) and thereafter in multiples in Rs. 10,000 as hitherto for dated stocks.

IV.

Other Operational Guidelines:

1. It will not be mandatory for the retail investor to maintain a constituent subsidiary general

ledger (CSGL) account with the bank or PD through whom they wish to participate. However,

an investor can make only a single bid under this scheme. An undertaking to the effect that the

investor is making only a single bid will have to be obtained and kept on record by the bank or

PD.

Each bank or PD on the basis of firm orders submit a single customer bid for the aggregate

amount on the day of the auction. Details of individual customers viz. name, amount, etc. shall

be provided as an Anncxurc to the bid,

Allotment under the non-competitive segment to the bank or PD will be at the weighted

average rate of yield/price that will emerge in the auction on the basis of the competitive

bidding. The securities will be issued to the bank or PD against payment on the date of issue

irrespective of whethei the bank or PD has received payment from their clients.

4. In case the aggregate amount of bid is more than the reserved amount (5% of notified amount),

pro rata allotment would be made. In case of partial allotments, it will be the responsibility of

the bank or PD to appropriately allocate securities to their clients in a transparent manner.

5. In case the aggregate amount of bids is less than the reserved amount, the shortfall will be

taken to competitive portion.

6. Security would be issued only in SGL form by RBI. RBI would credit either the main SGL

account or the CSGL account of the bank or PD as indicated by them. The facility for

affording credit to the main SGL account is for the sole purpose of servicing investors who arc

not their constituents. Therefore, the bank or PD would have to indicate clearly at the time of

tendering the non-competitive bids the amounts (face value) to be credited to their SGL account

and the CSGL account, Delivery in physical form from the main SGL account is permissible at

the instance of the investor subsequently.

7. It will be the responsibility of the bank or the PD to pass on the securities to their clients.

Cxccpt in extraordinary circumstances, the transfer of securities to the clients shall be

completed within/ive working days from the date of issue.

8. The bank or PD can lecover upto six paise per Rs. 1U0 as brokerage/commission/scrvice

charges for rendering this service to their clients. Such costs may be built into the sale price or

recovered separately from the clients. In case the transfer of securities is effected subsequent to