Punjab Government Stock Securities for Five years

NOTIFICATION

No.7/2/2016-2FBII/1067.-Government of Punjab hereby notifies the sale of Punjab Government Stock (Securities) of 5 Year tenure for an aggregate amount of Rs. 400.00 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 No.7/5/-2003-2FBII/ 4991 dated 20.07.2007 of Government of Punjab.

Object of the Loan

To finance part of Capital Expenditure of Plan Schemes and to meet the expenditure on account of committed liabilities and other development schemes under execution.

Consent of Central Government has been obtained to the flotation of this loan as required by Article 293(3) of the Constitution of India.

Method of issue

2. Government Stock will be sold through the Reserve Bank of India, Mumbai Office (PDO) Fort, Mumbai – 400001 by auction in the manner as prescribed in paragraph 6.1 of the General Notification No. 7/5/-2003-2FBII/ 4991 dated 20.07.2007 at a coupon rate to be determined by the Reserve Bank of India at the yield auction under multiple price format.

Allotment to Non-competitive Bidders

3. The Government Stock up to 10% of the notified amount of the sale will be allotted to eligible individuals and institutions subject to a maximum limit of 1% of the notified amount for a single bid as per the Revised Schemes for Non-competitive Bidding Facility in the Auctions of State Government Securities of the General Notification (Annexure-II)

Place and Date of Auction

4. The auction will be conducted by the Reserve Bank of India, at its Mumbai Office Fort, Mumbai-400 001 on August 23, 2016 Bids for the auction should be submitted in electronic format, on the Reserve Bank of India Core Banking Solution (E-Kuber) System as stated below on August 23, 2016.

(a) The Competitive bids shall be submitted electronically on the Reserve Bank of India Core Banking Solution (E-Kuber) System between 10:30 A.M. and 12:00 P.M.

(b) The non-competitive bids shall be submitted electronically on the Reserve Bank of India Core Banking Solution (E-Kuber) System between 10:30 AM. And 11.30 A.M.

Result of auction

5. The result of the auction shall be displayed by the Reserve Bank of India on its website on the same day. The payment by successful bidders will be August 24, 2016.

Method of Payment

6. Successful bidders will make payment on August 24, 2016 before close of banking hours by means of cash, bankers’ Cheque/pay order, demand draft payable at Reserve Bank of India Mumbai / New Delhi or a Cheque drawn on their account with Reserve Bank of India, Mumbai (Fort)/ New Delhi.

Tenure

7. The stock will be of 5 year tenure. The tenure of the stock will commence on August 24, 2016.

Date of Repayment

8. The loan will be repaid at par on August 24, 2021.

Rate of Interest

9. The cut-off yield determined at the auction will be the coupon rate percent per annum on the stock sold at the auction. The interest will be paid on February 24 and August 24.

Eligibility of Securities

10. The investment in Government Stock will be reckoned as an eligible investment in Government Securities by banks for the purpose of Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The Stocks will qualify for the ready forward facility.

D.P.REDDY
Additional Chief Secretary to Government of Punjab
Department of Finance

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