Auction for Sale (Re-issue) of Government Stocks

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The Government of India have announced the Sale (re-issue) of (i) “7.80 per cent Government Stock 2021” for a notified amount of Rs. 3,000 crore (nominal) through price based auction, (ii) “7.59 per cent Government Stock 2029” for a notified amount of Rs. 8,000 crore (nominal) through price based auction, (iii) “7.50 per cent Government Stock  2034” for a notified amount of Rs. 2,000 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 June 10, 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 June 10, 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 June 10, 2016 and payment by successful bidders will be June 13, 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(RBI) vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.

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