WHAT WAS THE NOTIFICATION?
Government of India(GoI) has notified sale(re-issue) of the Government Stocks
Interest: Interest will accrue on the nominal value of the Stock from the date of original / last
coupon payment and will be paid half yearly. The Stock will be repaid at par on date of
maturity.
WHAT ARE GOVERNMENT STOCKS/BONDS/SECURITIES?
One of the bonds sold by a government to finance its budget deficit (the difference between
what it gets in taxes and what it spends). Government bonds are usually considered to be a
very safe form of investment.
A government security is a bond issued by a government authority with a promise of
repayment upon maturity. Government securities such as savings bonds, treasury bills and
notes also promise periodic coupon or interest payments. These securities are considered low-risk, since they are backed by the taxing power of the government.
The terms on which a government can sell bonds depend on how creditworthy the market
considers it to be. International credit rating agencies will provide ratings for the bonds, but
market participants will make up their own minds about this.
AUCTION OF GOVERNMENT OF INDIA DATED SECURITIES
WHAT WAS THE NOTIFICATION?
Government of India has offered to sell (re-issue) dated securities for notified amount of Rs.
15,000 crore
The Stocks will be issued for a minimum amount of Rs. 10,000/- (nominal) and in multiples of
Rs. 10,000/- thereafter.