PRESS NOTE

Government of India have announced the sale (re-issue) of (i) “8.07 percent Government Stock 2017” for a notified amount of Rs.3,000 crore (nominal), (ii) “8.08 percent Government Stock  2022” for a notified amount of Rs.4,000 crore (nominal) and  (iii) “8.28 percent Government Stock 2032” for a notified amount of Rs.3,000 crore (nominal)  through price based auctions. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on August 18, 2011 (Thursday).

Up to 5% of the notified amount of the sale of the stockswill 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 Negotiated Dealing System (NDS) on August 18, 2011. 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 12.30 p.m. 

The result of the auctions will be announced August 18, 2011 and payment by successful bidders will be on August 22, 2011 (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 /2006-07/178 dated November 16, 2006 as amended from time to time.

Department of Economic Affairs, Ministry of Finance

New Delhi: Shravana 21, 1933; August 12, 2011

Government securities auction using uniform price method with non competitive allotment and eligibility for When Issued trading. Sale by auction of specified Government Stocks will be conducted using the uniform price method with notified amounts for each security; up to five percent of each notified amount is reserved for allotment under the Non Competitive Bidding Facility. Competitive and non competitive bids must be submitted electronically on the Negotiated Dealing System within prescribed time windows on the auction day, with results announced on the auction date and payment by successful bidders on the specified payment date. The stocks are eligible for When Issued trading under existing Reserve Bank guidelines.