Tuesday, 6 May 2014

Auction for Sale (Re-Issue) of Government Stock

Government of India have announced the Sale (re-issue) of (i)“ 7.80 per cent Government Stock 2020” for a notified amount of Rs. 4,000 crore (nominal) through price based auction, (ii) “8.83 per cent Government Stock 2023” for a notified amount of Rs. 7,000 crore (nominal) through price based auction , (iii) “8.32 per cent Government Stock 2032” for a notified amount of Rs. 2,000 crore (nominal) through price based auction,  and (iv) “8.30 per cent Government Stock 2042” for a notified amount of Rs. 3,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai on May 9, 2014 (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 May 9, 2014. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.mand the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.   

            The result of the auctions will be announced on May 9, 2014 and payment by successful bidders will be on May 12, 2014 (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(RBI) vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.

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