Auction for Sale (Re-Issue) of ‘6.18% GS 2024’, Auction for Sale (Re-issue) of ‘GoI Floating Rate Bond 2031’, Auction for Sale (Re-Issue) of ‘7.69% GS 2043’, and Auction for Sale (Re-Issue) of ‘7.72% GS 2049’

The Government of India has announced the Sale (Re-issue) of (i) ‘6.18 per cent  Government Stock, 2024’ for a notified amount of ₹ 2,000 crore (nominal) through price based auction,  (ii) ‘GoI Floating Rate Bonds,  2031’ for a notified amount of ₹ 6,000 crore (nominal) through price based auction, (iii) ‘7.69 per cent  Government Stock, 2043’  for a notified amount of   ₹ 2,000 crore (nominal) through price based auction, and (iv) ‘7.72 per cent  Government Stock, 2049’  for a notified amount of  ₹ 4,000 crore (nominal) through price based auction. Subject to the limit of Rs 14,000 crore, being total notified amount, GoI will have the option to retain additional subscription up to Rs 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 24, 2020 (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 24, 2020. 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 24, 2020 (Friday) and payment by successful bidders will be on January 27, 2020 (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.

Government securities auction procedure using price-based multiple-price method with non-competitive bidding facility and electronic bidding. The Government announced re-issue auctions of several central government securities to be conducted by the RBI through a price-based multiple price method, with an overall notified limit and an option to retain additional subscriptions. Both competitive and non-competitive electronic bids must be submitted on the RBI E-Kuber system within prescribed time windows, with up to a specified percentage reserved for eligible individuals and institutions under the non-competitive bidding scheme. The announcement sets out the auction timetable, allotment and payment dates, and confirms eligibility of the stocks for 'When Issued' trading under RBI guidelines.