The Government of India has announced the Sale (Issue/Re-issue) of (i) ‘5.09 per cent  Government Stock, 2022’ for a notified amount of ₹ 3,000 crore (nominal) through price based auction, (ii) ‘New 10 Year Government Stock, 2030’ for a notified amount of ₹ 10,000 crore (nominal) through yield based auction, (iii) ‘7.19 per cent  Government Stock, 2060’  for a notified amount of  ₹ 6,000 crore (nominal) through price based auction. GoI will have the option to retain additional subscription up to Rs 2,000 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 May 08, 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 May 08, 2020. The non-competitive bids should be submitted between 10.30 a.m. and 11.00 a.m. and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m.   

The result of the auctions will be announced on May 08, 2020 (Friday) and payment by successful bidders will be on May 11, 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: issuance and re-issuance conducted by RBI with competitive and non-competitive bidding and allocation rules. Sale and re-issue of specified Government securities will be conducted by the Reserve Bank of India using the multiple price method: price-based auctions for the re-issues and a yield-based auction for a new ten-year stock; the issuer may retain additional subscription up to a notified limit. Both competitive and non-competitive bids must be submitted electronically via the E-Kuber system within prescribed windows; up to five percent is reserved under the Non-Competitive Bidding Facility. Auction results and payment follow on scheduled dates, and the stocks are eligible for 'When Issued' trading per RBI guidelines.