The Government of India (GoI) has announced the Sale (Re-issue) of (i) ‘4.48% Government Security, 2023’ for a notified amount of Rs 6,000 crore (nominal) through pricebased auction, (ii) ‘GoI Floating Rate Bonds, 2033’ for a notified amount of Rs 2,000 crore (nominal) through price based auction, (iii) ‘6.22% Government Security, 2035’ for a notified amount of Rs 9,000 crore (nominal) through price based auction, and (iv) ‘6.67%  Government Security, 2050’ for a notified amount of Rs 5,000 crore (nominal) through pricebased auction. GoI will have the option to retain additional subscription up to Rs 2,000 crore against each of the above securities. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on December 18, 2020 (Friday) using multiple price method.

Up to 5% of the notified amount of the sale of the securitieswill 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 December 18, 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 between10.30 a.m. and 11.30 a.m.

The result of the auctions will be announced on December 18, 2020 (Friday) and payment by successful bidders will be on December 21, 2020 (Monday).

The Securities 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.

Auction of Government Securities: re-issue auctions use multiple-price method with non-competitive allocation and E Kuber bidding windows. Re-issue auctions of four central government securities will be conducted by the Reserve Bank of India using the multiple price method, with the Government retaining an option to accept additional subscriptions against each security. Up to five percent of each notified amount is reserved for eligible individuals and institutions under the Scheme for Non-Competitive Bidding. Competitive and non-competitive bids must be submitted electronically on the RBI Core Banking Solution (E Kuber) within prescribed bidding windows. Auction results will be announced on the auction date and settlement will follow on the stated payment date; the securities are eligible for when-issued trading under RBI guidelines.