The Government of India have announced the sale (re-issue) of (i) “6.07 percent Government Stock 2014” for a notified amount of Rs.6,000 crore (nominal) (ii) “7.94 percent Government Stock 2021” for a notified amount of Rs.4,000 crore (nominal) (iii) "8.24 percent Government Stock 2027" for a notified amount of Rs.3,000 crore (nominal) and (iv) “7.40 percent Government Stock 2035” for a notified amount of Rs. 2,000 crore (nominal) through price based auctions. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on June 26, 2009 (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 Negotiated Dealing System (NDS) on June 26, 2009. 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 12.30 p.m.
The result of the auctions will be announced on June 26, 2009 and payment by successful bidders will be on June 29, 2009 (Monday).
The Stocks will qualify for the ready forward facility.
The underwriting of the Government Securities under auctions by the ‘Primary Dealers’ will be as per the “Revised Scheme of Underwriting Commitment and Liquidity Support” announced by the Reserve Bank vide circular RBI/2007-08/186 dated November 14, 2007. Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by ‘Primary Dealers’ up to 12.30 P.M. on June 25, 2009 (Thursday) on the Negotiated Dealing System (NDS).
The Stocks will be eligible for “When Issued” trading for a period commencing from June 22-26, 2009 in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI /2006-07/178 dated November 16, 2006 as amended from time to time.
As per the indicative calendar, the Government of India was to auction dated securities amounting to Rs.12,000 crore during June 19-26, 2009. The Government of India, considering its cash balance and the overall liquidity conditions, have decided, in consultation with the Reserve Bank of India, to auction dated securities amounting to Rs.15,000 crore.
Ajit Prasad
Manager
Press Release : 2008-2009/2065 |
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