Government of India have announced the Sale (issue/re-issue) of (i) “7.35 per cent Government Stock 2024” for a notified amount of ₹ 3,000 crore (nominal) through price based auction, (ii) “ 14 years New Government stock maturing on May 9, 2030” for a notified amount of ₹ 8,000 crore (nominal) through yield based auction, (iii) “7.73 per cent Government Stock  2034” for a notified amount of ₹ 2,000 crore (nominal) through price based auction,  and (iv) “8.13 per cent Government Stock 2045” for a notified amount of ₹ 2,000 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 6, 2016 (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 6, 2016. 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 6, 2016 and payment by successful bidders will be May 9, 2016 (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: multi method bidding with competitive and non competitive facilities and when issued trading eligibility, electronic submission windows. Government stocks are offered by the Reserve Bank of India through electronic auctions administered from its Mumbai office using the multiple price method, combining price based and yield based bidding. Both competitive and a Non Competitive Bidding Facility (reservation up to five percent of each notified amount for eligible individuals and institutions) are available; bids must be submitted in designated electronic windows on auction day, results are declared the same day, settlement follows on the prescribed payment date, and the stocks are eligible for When Issued trading under RBI guidelines.