Announcement of Auction for Sale (Issue/Re-issue) of Government Stocks

The Government of India has announced the Sale (Issue/Re-issue) of certain stocks.  

These stocks include; (a.) 7.37% Government Stock, 2023 for a notified amount of Rs. 3,000 crore (nominal) through price based auction, (b.) ‘New Government Stock of 10-year tenor’ for a notified amount of Rs. 4,000 crore (nominal) through yield based auction, (c.) ‘8.24% Government Stock, 2033’ for a notified amount of Rs. 2,000 crore (nominal) through price based auction and (d.) ‘8.17% Government Stock, 2044’ for a notified amount of Rs.3,000 crore (nominal) through price based auction.  

The government of India will have the option to retain additional subscription up to Rs. 1,000 crore each against anyone or more of the above securities, subject to the limit of Rs. 12,000 crore, being the total notified amount. 

However, the auctions will be conducted using the multiple price method. They will be conducted by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai on January 11, 2019(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. 

Though, 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 January 11, 2019. The non-competitive bids should be submitted between 11.30 a.m. and 12.00 noon and the competitive bids should be submitted between 11.30 a.m. and 12.30 noon. 

The result of the auctions will be announced on January 11, 2019 (Friday) and payment by successful bidders will be on January 14, 2019(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 RBI vide circular No. RBI/2018-19/25 dated July 24, 2018, as amended from time to time.