Repurchase of Government Stocks

Repurchase of Government Stocks 
The Government of India hereby notifies repurchase of (i) 7.59 per cent Government Stock 2016, (ii) 10.71 per cent Government Stock 2016, and (iii) 7.02 per cent Government Stock 2016 (herein after called the Government Stocks) for its cash management operations. The repurchase by the Government of India will be undertaken to prematurely redeem the Government stocks by utilising the current surplus cash balances. 

Mode of Repurchase 

The repurchase of the Government Stocks will be undertaken through reverse auction by the Government of India in one or more tranches. The actual procedure to be followed in this regard and the date of repurchase/settlement will be notified by the Reserve Bank of India.

Nominal Amount of Repurchase 

The repurchase of “7.59 per cent Government Stock 2016”, “10.71 per cent Government Stock 2016”, and “7.02 per cent Government Stock 2016” will be for an aggregate amount of Rs. 20,000 crore.


The payment for the repurchase of the Government Stocks will be made by the Government of India from its cash balances maintained with the CAS, RBI, Nagpur. Such payment will include the accrued interest on the nominal value of the successful bids/offer accepted by the Reserve Bank of India. The Government stocks repurchased in this manner will get prematurely redeemed and interest will cease to accrue on such redeemed Government stocks.

Statutory Provision 

With respect to any such matter which has not been provided under this Notification, the Government Stock shall be governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007 framed thereunder and the earlier corresponding Notification(s) issued by the Government of India. 
Memorandum of Understanding (MoU) Between National Investment and Infrastructure Fund (NIIF) Ltd and Rusnano OJSC of Russia; both Agreed to Set-Up The Russia-India High Technology Private Equity Fund for Joint Implementation of Investments into Projects in India 
National Investment and Infrastructure Fund (NIIF) Ltd. has signed a Memorandum of Understanding (MoU) with RUSNANO OJSC of Russia

The signing of the MoU is a follow-up of the Prime Minister’s visit to Russia on 23-24 December, 2015 and discussions between NIIF and RUSNANO over the past several months. Both sides agreed to cooperate in diverse sectors and facilitate high-technology investments in India.

Both NIIF and RUSNANO have agreed to set up the RUSSIA-INDIA HIGH TECHNOLOGY PRIVATE EQUITY FUND for joint implementation of investments into projects in India:

Both the Parties will establish a joint working group with a view to further develop cooperation between the Parties and work on the development of the definitive agreements based on the principles outlined in the Memorandum.

Earlier, the Government of India has established the National Investment and Infrastructure Fund (NIIF) as a Category II Alternate Investment Fund (AIF) under the Securities and Exchange Board of India (SEBI) Regulations. NIIF is financed from Government’s own contribution and is expected to have equity participation from both foreign and domestic strategic anchor partners, with the Government’s share being 49%. The initial authorized corpus of NIIF is Rs. 40,000 crore, which may be raised from time to time. The objective of NIIF is to maximise economic impact mainly through infrastructure development in commercially viable projects, both Greenfield and Brownfield, including stalled projects and other nationally important projects in India.

RUSNANO is a Russian development institute with interest to invest in projects in the field of high technologies and defense including the projects aimed at establishment of manufacturing industrial enterprises in India. 
Government to repurchase securities through reverse auction for an aggregate amount of rs. 20,000 crore (Face Value) 

The Government of India have announced the repurchase of its Securities through reverse auction for an aggregate amount of Rs. 20,000 crore (face value). The security-wise details of the repurchase are given as under:

S. No.
Date of maturity
  7.59% Government Stock 2016
10.71% Government Stock 2016
  7.02% Government Stock 2016

The repurchase by the Government of India will be undertaken to redeem prematurely the Government Stocks by utilizing surplus cash balances. The above repurchase of the Government Stocks is purely ad hoc in nature.

Auction for securities will be on price-based auction format. The auctions will be conducted using multiple price method. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on February 04, 2016 (Thursday) between 10.30 a.m. and 12.00 noon. The result of the auctions will be announced on the same day

Government sets-up Tax Policy Research Unit and Tax Policy Council to bring consistency, multidisciplinary inputs, and coherence in Tax Policy 
       The Tax Administration Reform Commission (TARC) have in their First Report, identified handling of tax policy and related legislation as one of the areas which needs structural modifications. Observing that currently, this is handled in the two Boards i.e. CBDT and CBEC, independently in the Tax Research Unit (TRU) and Tax Policy and Legislation (TPL) wings, the proposals of the Boards reach the Finance Minister in separate channels. To bring consistency, multidisciplinary inputs, and coherence in policy making, TARC has recommended that a Tax Council supported by a common Tax Policy and Analysis (TPA) unit should be established to cater to needs of both direct and indirect taxes. Comprising tax administrators, economists, and other specialists such as statisticians, tax law experts, operation research specialists and social researchers should be set-up for both the Boards.

       Considering the above, the Government has created a Tax Policy Research Unit (TPRU) and Tax Policy Council.

Details are given below.

       The Tax Policy Research Unit (TPRU) will be a multi disciplinary body with the following objectives:-

(i)                 Carry-out studies on various topics of fiscal and tax policies referred to it by CBDT and CBEC  and will provide independent analysis on such  topics;
(ii)               Will also prepare and disseminate policy papers and background papers on various tax policy issues;
(iii)             Will assist Tax Policy Council chaired by FM in taking appropriate tax policy decisions; and
(iv)             Liaise with State Commercial Tax Departments.

       For this purpose the TPRU may also interact with various research institutions, wherever necessary. The TPRU will prepare for every tax proposal an analysis covering the following three points:-

·                     The legislative intent behind the proposal, i.e., why this proposal is being framed and what is the policy objective.
·                     Expected increase or decrease in tax collection through the proposal; and
·                     The likely economic impact (positive or negative) through the proposal (other than the effect on tax collection)
       Tax Policy Research Unit (TPRU) shall comprise of officers from both the Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC) as well as economists, statisticians, operational researchers, legal experts.  Member (L&V), CBDT and Member (Budget), CBEC will be the link officer between TPRU and CBDT and CBEC. The unit will be headed by an officer of the level of Chief Commissioner at functional level alternatively from CBDT and CBEC for a fixed tenure, who will directly report to Revenue Secretary.


       With an aim to have a consistent and coherent approach to the issue of tax policy and having regard for need to have an interdisciplinary approach , a Tax Policy Council  under  the Union Finance Minister with 9 other members as given below is constituted;

1     Finance Minister                                             Chairman
2     MOS (F)                                                          Member
3     Dy Chairman, NITI Aayog                             Member
4     MOS (I/C) Commerce and Industry   Member
5     Finance Secretary                                            Member
6     Secretary, DEA                                               Member
7     Revenue Secretary                                          Member
8     Secretary, Commerce                          Member
9     Secretary, DIPP                                              Member
10   Chief Economic Advisor to FM                     Member

       The Chairman, CBDT and Chairman, CBEC shall be special invitees.
       The Tax Policy Council will look at all the research findings coming from Tax Policy Research (TPRU) Unit and suggest broad policy measures for taxation. The Council will be advisory in nature, which will help the Government in identifying key policy decisions for taxation.

1.15 Crore Subscribers for National Pension System (NPS) as on 23.1.2016 
National Pension System (NPS) had 11,459,555 subscribers with a total corpus of Rs. 90, 327 crore as on 23rd January, 2016. The total Assets under Management are worth Rs. 109,140 crore while Assets under Management per subscriber is Rs. 95,000 on an average.

The number of NPS Subscribers of the Central Government are 1611,020 with a total corpus of Rs. 34,754 crore while subscribers from the different State Governments are 2,859,094 with a total corpus of Rs. 45,486 crore. The number of NPS subscribers in the Corporate Sector are 448,509 while in Unorganized Sector is 128,484, the total being 576,993. The number of subscribers under NPS Lite include 4,463,637 and under Atal Pension Yojana (APY) 1,948,811, with a total number of subscribers 6,412,448 in these two categories.

NPS subscribers of Central Government are 14.1% of the total subscribers while that of the State Governments are 24.9%. The NPS subscribers under NPS Lite constitute 39% while under APY 17% of the total subscribers.

Since PFRDA has completed two years of its statutory status on 1st February, 2016, to mark this occasion, PFRDA in collaboration with all its intermediaries in the National Pension System including Central and State Governments’ Nodal Offices, POPs, Aggregators, Central Recordkeeping Agency and NPS Trust etc. is observing NPS Service Week from 1st to 6th February, 2016. This week-long campaign is being dedicated to service-orientation towards the subscribers and aimed at awareness building and improved information dissemination. During this Service Week, besides sharing of information on the range of functionalities and services now available under the NPS, the subscriber community will be apprised about the need for constant updation of data/information to enable the system to operate at its optimum service level, so that the intended benefits can reach all the employees/subscribers under NPS. Besides, the subscribers will also be able to make best use of all the opportunities and facilities.

The Pension Fund Regulatory and Development Authority (PFRDA) is organizing the 2nd Pension Conclave in national Capital on 4th February 2016 with the theme, “Towards Universal Pension: Coverage, Adequacy and Sustainability” in which all the stake holders are expected to participate and share their experiences. PFRDA proposes to use this occasion to acknowledge/award the best performing banks and Post Offices in mobilization and registration of subscribers under the Atal Pension Yojana (APY) up to 31st December 2015, and institute awards for best performing POPs under the Voluntary segment of the National Pension System.

Earlier, PFRDA launched NPS Awareness Programme for State autonomous bodies, Unorganized Sector, Corporate Sector and other categories in order to highlight the benefits of joining NPS and has requested the various State Governments to implement NPS more inclusively among the State Autonomous Bodies, Boards, Corporations, Societies, Universities and State aided institutions under various State Government departments. During the awareness programme, key features and benefits of NPS, details and process of joining NPS, details about NPS architecture investment and exit guidelines of NPS are highlighted. 
Finance Minister to inaugurate India Investment Summit 2016 on 4th February, 2016: Focus on Investment Opportunities in different Sectors in India including Road, Highways, Oil and Gas, Urban Infrastructure and Railways among others 
The Union Finance Minister, Shri Arun Jaitley will inaugurate the two-day ‘India Investment Summit 2016’ on Thursday, 4th February, 2016. The Finance Minister Shri Jaitley will also unveil the logo of National Infrastructure and Investment Fund (NIIF) beside delivering ‘Inaugural Address’ on the occasion. A film on NIIF will also be shown during the Session. H.H. Sheikh Hamid Bin Zayed Al Nahyan, Managing Director, Abu Dhabi Investment Authority will deliver the ‘Special Address’ during the Inaugural Session. The two day India Investment Summit 2016 is being held in the national capital on 4th & 5th February, 2016.

Shri M. Venkaiah Naidu, Union Minister of Urban Development will deliver the Opening Address in the First Session on ‘Current Status, Outlook and Investment Opportunities in Developing Urban Infrastructure’. Other Panelists during this Session will include Dr. Nandita Chatterjee, Secretary, Ministry of Housing and Urban Development Alleviation, Dr. Samir Sharma, Additional Secretary, Ministry of Urban Development and Smt. Arundhati Bhattacharya, Chairperson, State Bank of India.

Other Sessions on the First Day of the Summit include a Session on ‘Current Status Outlook and Investment Opportunities in Power and Renewable Energy’ which will be addressed by Shri Pradip Kumar Pujari, Secretary, Ministry of Power, Government of India and Shri Upendra Tripathi, Secretary, Ministry of New and Renewable Energy, Government of India among others. Another Session will be on the ‘Current Status Outlook and Investment Opportunities in Road Transport, Highways and Ports’ which will be addressed by Shri Nitin Gadkari, Union Minister for Road Transport & Highways and Shipping. Other Panelists during the Session include Shri Rajive Kumar, Secretary, Ministry of Shipping, Government of India, Shri Sanjay Mitra, Secretary, Department of Road Transport and Highways, Government of India and Shri Raghav Chandra, Chairman, National Highway Authority of India (NHAI).

The Second Day of the Summit will start with a Session on ‘Regulatory Architecture’ which will be addressed by Shri Jayant Sinha, Minister of State for Finance, Government of India along with Dr. Arvind Subramanian, Chief Economic Adviser (CEA), Shri H.R. Khan, Deputy Governor, RBI and Shri S. Raman, Member, Security and Exchange Board of India (SEBI) among others.

Thereafter, there will be ‘State Sessions’ where States of Odisha, Tamil Nadu, Karnataka, Punjab, Andhra Pradesh, Madhya Pradesh, West Bengal and Gujarat will showcase the investment opportunities in the respective States. These sessions will be addressed by the senior officers of the respective State Governments along with presentations on investment opportunities in different Sectors in the States.

The Concluding Session will be addressed by Shri Suresh Prabhu, Union Minister for Railways where ‘Investment Opportunities in Railway Sector in India’ would be on focus. Other participants during the Session will include Shri A.K. Mittal, Chairman, Indian Railway Board and Shri S. Mookerjee, Financial Commissioner, Railway Board among others. 

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