The Government of India has announced the sale (re-issue) of five dated Government of India securities for an aggregate notified amount of ₹17,000 crore (nominal) through price-based auctions, to be conducted by the Reserve Bank of India (RBI) on Friday, June 14, 2019.
The securities on offer and their notified amounts are as follows:
7.00% Government Stock, 2021 – ₹3,000 crore
7.27% Government Stock, 2026 – ₹3,000 crore
7.57% Government Stock, 2033 – ₹5,000 crore
7.62% Government Stock, 2039 – ₹2,000 crore
7.63% Government Stock, 2059 – ₹4,000 crore
Subject to the overall notified amount of ₹17,000 crore, the Government of India will have the option to retain additional subscriptions of up to ₹1,000 crore each against one or more of the above securities.
The auctions will be conducted using the multiple price auction method by the RBI, Mumbai Office, Fort, Mumbai.
Non-Competitive Bidding
Up to 5 per cent of the notified amount of each stock will be reserved for allotment to eligible individuals and institutions under the Non-Competitive Bidding Facility in the auction of government securities.
Auction Timings and Submission
Both competitive and non-competitive bids must be submitted electronically through the RBI Core Banking Solution (E-Kuber) system on June 14, 2019:
Non-competitive bids: 11:30 a.m. to 12:00 noon
Competitive bids: 11:30 a.m. to 12:30 p.m.
Settlement and Results
The auction results will be announced on June 14, 2019, and payment by successful bidders will be due on June 17, 2019 (Monday).
The securities will be eligible for ‘When Issued’ trading, in accordance with the RBI guidelines on When Issued transactions in Central Government Securities, issued vide Circular No. RBI/2018-19/25 dated July 24, 2018, as amended from time to time.
