Non-Competitive Bidding

Auction of Government of India Securities

Government of India have offered to sale (re-issue) "6.85 percent Government Stock 2012" for a notified amount of Rs.6,000 crore through a price based auction using multiple price method. Government of India have also announced the sale a new 25 year Stock for a notified amount of Rs 3,000 crore (nominal) through a yield based auction using multiple price method. Securities will be issued for a minimum nominal amount of Rs.10,000/-and in multiples of Rs.10,000/- thereafter. Auctions will be conducted by Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai on June 3, 2003 (Tuesday).

2. Interested persons may submit bids in the prescribed form obtainable from the Regional Director, RBI, Public Debt Office, Fort, Mumbai on June 3, 2003 in sealed cover superscribed "Tender for 6.85 per cent Government Stock 2012 - Auction dated June 3, 2003" or "Tender for 25-year Government Stock - Auction dated June 3, 2003" (as the case may be) and deposit them in the appropriate tender box at RBI, Fort, Mumbai. The competitive bids by the NDS members should be submitted only in electronic format using NDS while all the non-competitive bids should be submitted in the prescribed physical form. All bids should be submitted by 12.30 P.M.

3. The price/yield per cent (as the case may be) expected by the bidder should be expressed up to two decimal points. An investor can submit more than one bid at different prices/yields (as the case may be), but separate application should be submitted for each bid. The aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of each auction.

4. The results of the auctions will be displayed at RBI, Mumbai Office, Fort, Mumbai on June 3, 2003 (Tuesday). Successful bidders should deposit with that Office the price amount of Government Stock(s) covered by their successful bids on June 4, 2003 by 2.30 p.m. in cash or by cheque on their account with RBI, Mumbai or by Banker's Pay Order.

5. Interest on the Government Stocks will be paid half-yearly. The Stocks will be governed by the provisions of Public Debt Act, 1944 and the rules framed thereunder.

6. Both the Stocks will be eligible for ready forward facility.

7. For further details, Government of India Notifications No 4(8) -W&M/2003 and No.4(8)-W&M/2003 (i) dated May 28, 2003 may be seen.

Attention Retail Investors*
(* PFs, Trusts, RRBs, Cooperative Banks, NBFCs, Corporates, HUFs and Individuals)

Retail investors can participate in the auction on a non-competitive basis through a bank or a primary dealer. For the retail investors, Rs. 250 crore have been earmarked in respect of ‘Floating Rate Bonds, 2014’. For more information, detailed list and telephone numbers of primary dealers/ bank branches and application forms please visit RBI web site www.ncgsecs.rbi.org.in or FIMMDA website www.fimmda.org.

Government Stock offers safety, liquidity, attractive returns for long duration. No TDS. Tax savings under Section 80L of the Income Tax Act.

For more information, detailed list & Tel. nos. of primary dealers, bank branches and application forms please visit www.ncgsecs.rbi.org.in or contact: Federal Bank Ltd., Cochin (0484 362974); Indian Overseas Bank, Chennai (044 5347754); UTI Bank, Surat ( 0261 663074); Karnataka Bank Ltd., Mangalore (0824 440708); Bank of Rajasthan, Udaipur (0294 420702); Vijaya Bank, Bangalore (080 5584281); Canara Bank, Bangalore (080 2226170); State Bank of India, Mumbai (022 2651363); HDFC Bank, Mumbai (022 2701616); Central Bank of India, Mumbai (022 2653083); Global Trust Bank, Mumbai (022 2886229); Bank of Baroda, Mumbai (022 2339424); Bank of India, Ahmedabad (079 5354281); ICICI Bank Ltd., Ahmedabad (079 6857990); Andhra Bank, Kanpur (0824-7 210010); Union Bank of India, Pune; DFHI (022 2625969); STCI Ltd. (022 2610873); ICICI Securities & Finance co. Ltd. (022 2846066); Gilt Securities Trading Corporation Ltd. (022 2646420); PNB Gilts Ltd. (022 2691812); SBI Gilts Ltd. (022 2810108); ABN AMRO Securities (India) Pvt. Ltd. (022 2022559); J.P. Morgan Securities India Pvt. Ltd. (022 2702149); Tata TD Water House Securities Ltd. (022 2703260); Deutsche Securities (India) Pvt. Ltd. (022 2078718); DSP Merrill Lynch Ltd. (022 2804170); Kotak Mahindra Capital Co.(Unlimited) (022 2341335); IDBI Capital Market Services Ltd. (022 2371212); Corpbank Securities Ltd. (022 2670436); HSBC Primary Dealership (India) Pvt. Ltd. (022 2671313); Standard Chartered-UTI Securities India Pvt. Ltd. (022 2694679)