Ministry of Finance

Posted On: 14 JAN 2019 6:24PM by PIB Delhi

The Government of India has announced the Sale (Issue/Re-issue) of (i) ‘New Government Stock 2021’  for a notified amount of  Rs. 2,000 crore (nominal) through yield based auction, (ii) ‘8.24 per cent Government Stock, 2027’ for a notified amount of  Rs. 2,000 crore (nominal) through price based auction, (iii) ‘7.95 per cent Government Stock, 2032’’ for a notified amount of ₹ 3,000 crore (nominal) through price based auction, (iv) ‘7.40 per cent Government Stock, 2035’ for a notified amount of ₹ 2,000 crore (nominal) through price based auction, and (v) ‘7.06 per cent Government Stock, 2046’ for a notified amount of ₹ 3,000 crore (nominal) through price based auction. Subject to the limit of ₹ 12,000 crore, being total notified amount, GoI will have the option to retain additional subscription up to ₹ 1,000 crore each against any one or more of the above securities. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on January 18, 2019 (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 January 18, 2019. The non-competitive bids should be submitted between 11.30 a.m. and 12.00 noon and the competitive bids should be submitted between 11.30 a.m. and 12.30 p.m.

The result of the auctions will be announced on January 18, 2019 (Friday) and payment by successful bidders will be on January 21, 2019 (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 vide Circular No. RBI/2018-19/25 dated July 24, 2018 as amended from time to time.

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DSM/RM/KA

Government securities auction: allotment and non-competitive bidding procedures set, with results and settlement dates specified. Five Government stocks will be auctioned on January 18, 2019 using the multiple price method, including one yield-based and four price-based issues; the Government may retain additional subscriptions within an overall notified limit. Up to 5% of each issue is reserved for non-competitive bids; competitive and non-competitive bids must be submitted electronically on the central bank's core banking system within specified time windows. Results, payment dates, and when-issued trading eligibility follow the prescribed guidelines.