The Government of India have announced the Sale (issue/re-issue) of (i) “7.68 per cent Government Stock 2023” for a notified amount of ₹ 3,000 crore (nominal) through price based auction, (ii) “new security maturing on March 19, 2030” for a notified amount of ₹ 7,000 crore (nominal) through yield based auction, (ii) “8.24 per cent Government Stock  2033” for a notified amount of ₹ 3,000 crore (nominal) through price based auction,  and (iv) “8.17 per cent Government Stock 2044” for a notified amount of ₹ 3,000 crore (nominal) through price based auction. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai on May 08, 2015 (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 Reserve Bank of India Core Banking Solution (E-Kuber) system on May 08, 2015. 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 result of the auctions will be announced on May 08, 2015 and payment by successful bidders will be on May 11, 2015 (Monday).

The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India (RBI) vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.

Government securities auction: multiple price and yield-based methods govern bidding, allocation and settlement timelines. Government announced auctions for various central government securities to be conducted by the Reserve Bank of India using the multiple price method, with instruments offered through price-based and yield-based auctions. Bids-competitive and non-competitive-must be submitted electronically on the RBI E-Kuber system within prescribed time windows; up to five percent of each notified amount is reserved for eligible participants under the Scheme for Non-Competitive Bidding Facility. Auction results and settlement dates are specified, and the securities are eligible for When Issued trading under RBI guidelines.