Government of India has announced the Sale (Issue/Re-issue) of (i) ‘6.18 per cent  Government Stock, 2024’ for a notified amount of ₹ 12,000 crore (nominal) through price based auction, (ii) ‘New  Government Stock, 2034’ for a notified amount of ₹ 11,000 crore (nominal) through yield  based auction, and (iii) ‘7.16 per cent Government Stock, 2050’ for a notified amount of ₹ 7,000 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 by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on May 29, 2020 (Friday) using multiple price method.

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 29, 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 29, 2020 (Friday) and payment by successful bidders will be on June 01, 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 protocol: multiple issues offered via price and yield auctions with competitive and non competitive bidding windows. Announcement sets auction terms for multiple government securities using price based and yield based methods under a multiple price auction. Bids must be submitted electronically on the central banking system within prescribed competitive and non competitive windows. A limited portion of notified amounts is reserved for eligible participants under the Non Competitive Bidding Facility, the government may retain additional subscription up to a specified cap, results will be declared and successful bidders must make payment on the scheduled date, and the securities are eligible for When Issued trading per central guidelines.