The following Ten State Governments have offered to sell dated securities by way of auction for an aggregate amount of `7800.00 crore (Face Value). The State-wise break up is as follows:
Sr. No. |
State |
Notified Amount
(` Crore) |
Tenor of SDL
(in Years) |
Type of Auction |
1 |
Andhra Pradesh |
750.00 |
10 |
Yield Based |
2 |
Gujarat * |
600.00 |
4 |
Yield Based |
3 |
Haryana |
550.00 |
10 |
Yield Based |
4 |
Himachal Pradesh |
400.00 |
5 |
Yield Based |
5 |
Karnataka * |
800.00 |
Re-Issue $ |
Price Based |
6 |
Maharashtra |
1000.00 |
10 |
Yield Based |
7 |
Punjab |
1000.00 |
10 |
Yield Based |
8 |
Rajasthan |
500.00 |
10 |
Yield Based |
9 |
Tamil Nadu* |
1200.00 |
10 |
Yield Based |
10 |
Uttar Pradesh |
1000.00 |
10 |
Yield Based |
|
Total |
7800.00 |
|
|
* Government of Gujarat & Karnataka will also have an option to retain additional subscription up to a maximum of `200 Crore (nominal) each and Government of Tamil Nadu will have an option to retain additional subscription up to a maximum of `300 crore (nominal) over and above the notified amount. |
$ It may be noted that Government of Karnataka has offered to re-issue 8.74% Karnataka SDL 2016 by way of auction. All State Development Loan auctions will be conducted under multiple price format.
The auction will be conducted by the Reserve Bank of India (RBI) at Mumbai on October 1, 2012 (Monday). The Government Stock upto 10 per cent of the notified amount of the sale of each of the stock will be allotted to eligible individuals and institutions subject to a maximum limit of one per cent of its notified amount for a single bid per stock as per the Scheme for Non-competitive Bidding Facility (available in RBI website).
Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Negotiated Dealing System (NDS) on October 1, 2012 (Monday). 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 yield percent per annum expected by the bidder should be expressed upto two decimal points. An investor can submit more than one competitive bid at different prices in electronic format on the NDS. However, the aggregate amount of bids submitted by a bidder should not exceed the notified amount for each State.
The Reserve Bank of India will determine the maximum yield/minimum price at which bids will be accepted. Securities will be issued for a minimum nominal amount of `10,000.00 and multiples of `10,000.00 thereafter.
The results of the auction will be announced on October 1, 2012 (Monday) and payment by successful bidders will be made during banking hours on October 3, 2012 (Wednesday) (October 2, 2012 being a holiday) at Mumbai and at respective Regional Offices of RBI.
The State Government Stocks will bear interest at the rates determined by RBI at the auctions. For newly issued securities; interest will be paid half yearly on April 3 and October 3 of each year till maturity. The Stocks will be governed by the provisions of the Government Securities Act, 2006 and Government Securities Regulations, 2007.
The investment in State Government Stocks will be reckoned as an eligible investment in Government Securities by banks for the purpose of Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The stocks will qualify for the ready forward facility.
J. D. Desai
Assistant Manager
Press Release : 2012-2013/523 |