Aucton for Sale (Re-Issue) of Government Stocks
Aucton for Sale (Re-Issue) of
Government Stocks
The Government of India have
announced the Sale (re-issue) of (i) “7.68 per cent Government Stock 2023” for
a notified amount of Rs. 3,000 crore (nominal) through price based auction,
(ii) “7.59 per cent Government Stock 2026” for a notified amount of Rs. 8,000
crore (nominal) through price based auction, (iii) “7.73 per cent Government
Stock 2034” for a notified amount of Rs.1,000 crore (nominal) through price
based auction, and (iv) “8.17 per cent Government Stock 2044” for a notified
amount of Rs. 2,000 crore (nominal) through price based auction. The auctions
will be conducted using multiple price method. The auctions will be conducted
by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai on February
05, 2016 (Friday).
Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.
Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on February 05, 2016. 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 noon.
The result of the auctions will be announced on February 05, 2016 and payment by successful bidders will beFebruary 08, 2016 (Monday).
The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.
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CBDT Signs Two Bilateral
Advance Pricing Agreements (APAs) With United Kingdom
The Central Board of Direct
Taxes (CBDT) has entered into two bilateral Advance Pricing Agreements (APAs)
with United Kingdom on 29th January, 2016. With this signing, CBDT has
concluded three bilateral APAs the first one being a bilateral APA signed with Japan
in December, 2014.
The two bilateral APAs were signed with two Indian group entities of a UK based Multi-National Company (MNC). The APAs have been entered into soon after the Competent Authorities of India and United Kingdom finalised the terms of the bilateral arrangement under the Mutual Agreement Procedure (MAP) process contained in the India-UK DTAA.
The APAs cover the period 2013-14 to 2017-18 and also have a “Rollback” provision for 2 years (2011-12 and 2012-13). Transfer pricing disputes on the same transaction were recently resolved under MAP for each of these two companies for the years 2006-07 to 2010-11. With the signing of the bilateral APAs, the two Indian companies have been provided with tax certainty for 12 years each (5 years under MAP and 7 years under APA). This is a significant step towards providing a stable and predictable tax regime.
The two APAs are also significant because they address the issues of payment of management & service charges and payment of royalty. These transactions generally face prolonged and multi-layered transfer pricing disputes.
With this signing, CBDT has so far signed 41 APAs out of which 38 are unilateral and 3 are bilateral.
The two bilateral APAs were signed with two Indian group entities of a UK based Multi-National Company (MNC). The APAs have been entered into soon after the Competent Authorities of India and United Kingdom finalised the terms of the bilateral arrangement under the Mutual Agreement Procedure (MAP) process contained in the India-UK DTAA.
The APAs cover the period 2013-14 to 2017-18 and also have a “Rollback” provision for 2 years (2011-12 and 2012-13). Transfer pricing disputes on the same transaction were recently resolved under MAP for each of these two companies for the years 2006-07 to 2010-11. With the signing of the bilateral APAs, the two Indian companies have been provided with tax certainty for 12 years each (5 years under MAP and 7 years under APA). This is a significant step towards providing a stable and predictable tax regime.
The two APAs are also significant because they address the issues of payment of management & service charges and payment of royalty. These transactions generally face prolonged and multi-layered transfer pricing disputes.
With this signing, CBDT has so far signed 41 APAs out of which 38 are unilateral and 3 are bilateral.
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Calendar for Auction of
Government of India Treasury Bills (for the Quarter ending March 2016)
After review of the cash position, Government of
India, in consultation with the Reserve Bank of India, has revised the auction
calendar for the issuance of Treasury Bills for the remaining part of Q4 of
2015-16 as under:
|
Notified Amount for Auction of Treasury Bills
(During February 3, 2016 to – March 31, 2016)
(` Crore)
|
||||
|
Date
of Auction
|
91
Days
|
182
Days
|
364
Days
|
Total
|
|
February 03, 2016
|
8,000
|
6,000
|
14,000
|
|
|
February 10, 2016
|
8,000
|
6,000
|
|
14,000
|
|
February 17, 2016
|
8,000
|
6,000
|
14,000
|
|
|
February 24, 2016
|
8,000
|
6,000
|
|
14,000
|
|
March 02, 2016
|
8,000
|
6,000
|
14,000
|
|
|
March 09, 2016
|
8,000
|
6,000
|
|
14,000
|
|
March 16, 2016
|
8,000
|
6,000
|
14,000
|
|
|
March 23, 2016
|
8,000
|
6,000
|
|
14,000
|
|
March 30, 2016
|
8,000
|
6,000
|
14,000
|
|
|
Total
|
72,000
|
24,000
|
30,000
|
126,000
|
The
Government of India/Reserve Bank of India will continue to have the flexibility
to modify the notified amount and timing for auction of Treasury Bills
depending upon the requirements of the Government of India, evolving market
conditions and other relevant factors. Thus, the calendar is subject to change,
if circumstances so warrant including for reasons such as intervening holidays.
Such changes, if any, will be communicated through regular press releases.
The
auction of Treasury Bills will be subject to the terms and conditions specified
in the General Notification No. F2(12)-W&M/97 dated March 31, 1998 issued
by the Government of India, as amended from time to time.
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