The following eight State Governments have offered to sell dated securities by way of auction for an aggregate amount of Rs. 5385.00 crore (Face Value). The State-wise break up is as follows:
Sr. No. |
State |
Notified Amount
(Rs. Crore) |
Tenor of SDL
(in Years) |
Type of Auction |
1 |
Andhra Pradesh |
750.00 |
10 |
Yield Based |
2 |
Gujarat * |
800.00 |
10 |
Yield Based |
3 |
Haryana |
550.00 |
10 |
Yield Based |
4 |
Jharkhand |
500.00 |
10 |
Yield Based |
5 |
Karnataka* |
750.00 |
4 |
Yield Based |
6 |
Kerala |
1000.00 |
10 |
Yield Based |
7 |
Sikkim |
35.00 |
10 |
Yield Based |
8 |
Tamil Nadu * |
1000.00 |
10 |
Yield Based |
|
Total |
5385.00 |
|
|
*Govt of Gujarat will also have an option to retain additional subscription up to maximum of Rs. 200 Cr & Govts of Karnataka and Tamil Nadu will have the option to retain additional subscription up to maximum of Rs. 250 Cr. each. |
It may be noted that Government of Karnataka has offered to issue a new 4-Year security by way of auction. All State Development Loan auctions will be conducted under multiple price format.
The auction will be conducted on the Negotiated Dealing System (NDS) on October 23, 2012 (Tuesday). The Government Stock up to 10 % 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 1 % of its notified amount for a single bid per stock as per the Scheme for Non-competitive Bidding Facility (available on 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 23, 2012 (Tuesday). 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 Rs.10,000.00 and multiples of Rs.10,000.00 thereafter.
The results of the auction will be announced on October 23, 2012 (Tuesday) and payment by successful bidders will be made during banking hours on October 25, 2012 (Thursday) 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. Interest will be paid half yearly on April 25 and October 25 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.
Ajit Prasad
Assistant General Manager
Press Release: 2012-2013/676
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