Government of India (GoI) has announced the Sale (Issue/Re-issue) of (i) ‘3.96% Government Security, 2022’ for a notified amount of ₹ 2,000 crore (nominal) through price based auction, (ii) ‘5.15% Government Security, 2025’ for a notified amount of ₹ 11,000 crore (nominal) through price based auction,  (iii) ‘5.85% Government Security, 2030’ for a notified amount of ₹ 11,000 crore (nominal) through price based auction, and (iv) ‘New Government Security, 2061’ for a notified amount of ₹ 7,000 crore (nominal) through yield based 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 February 18, 2021 (Thursday) using multiple price method.

Up to 5% of the notified amount of the sale of the Securities 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 February 18, 2021. The non-competitive bids should be submitted between10.30 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 February 18, 2021 (Thursday) and payment by successful bidders will be on February 22, 2021 (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.

Government securities auction: mixed price- and yield-based sale with non-competitive allocation and when-issued trading eligibility. Sale and re-issue of four central government securities will be conducted by the central bank on a specified date using the multiple price method: three securities via price-based auctions and one via a yield-based auction, with an option for the issuer to retain additional subscription against each. Up to five percent of each notified amount is reserved for eligible individuals and institutions under a non-competitive bidding facility; bids must be submitted electronically on the central bank's auction platform within prescribed time windows, and the securities qualify for when issued trading under central bank guidelines.