Press Releases

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Date : Sep 08, 2017
Auction of State Government Securities

The following State Governments/UT have offered to sell 10/12/15/20 Years of security by way of auction for an aggregate amount of ₹ 22,725 crore (Face Value).

Sr. No. State Amount to be raised (₹ cr) Tenure (Yrs) Type of Auction
1 Andhra Pradesh 3000 20 Yield based
2 Gujarat* 1000 10 Yield based
3 Jammu and Kashmir 300 10 Yield based
4 Jharkhand 1000 15 Yield based
5 HARYANA 500 10 Yield based
6 MADHYA PRADESH 2000 10 Yield based
7 MAHARASHTRA# 500 10 Yield based
8 MAHARASHTRA 1000 Re-issue of 7.18% Maharashtra SDL 2029 Price based
9 Meghalaya 125 10 Yield based
10 Mizoram 100 10 Yield based
11 Nagaland 200 10 Yield based
12 Odisha 1000 15 Yield based
13 Puduchchery 100 10 Yield based
14 Punjab 1500 10 Yield based
15 Rajasthan 2000 12 Yield based
16 TAMILNADU 2000 Re-issue of 7.18% TNSDL 2027 Price based
17 Telangana 1000 20 Yield based
18 Uttarakhand 400 10 Yield based
19 Uttar Pradesh @ 2000 10 Yield based
20 West Bengal 3000 15 Yield based
  Total 22725    
* Gujarat will have an option to retain an additional amount of ₹ 300 Cr.
# Maharashtra will have an option to retain an additional amount of ₹ 300 Cr for the issuance of 10 year security
@ Uttar Pradesh will have an option to retain an additional amount of ₹ 500 Cr

The auction will be conducted on the Reserve Bank of India Core banking Solution (E-Kuber) system on September 12, 2017 (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 Reserve Bank of India Core banking Solution (E-Kuber) system on September 12, 2017 (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 up to two decimal points. An investor can submit more than one competitive bid at different prices in electronic format on the Reserve Bank of India Core banking Solution (E-Kuber) system. 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 September 12, 2017 (Tuesday) and payment by successful bidders will be made during banking hours on September 13, 2017 (Wednesday) 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 March 13 and September 13 of each year till maturity for the new securities. 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 Adviser

Press Release : 2017-2018/682


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