The Government of India (GoI) has announced the Sale (Issue/re-issue) of (i) ‘5.63% Government Security, 2026’ for a notified amount of ₹ 11,000 crore (nominal) through price based auction using uniform price method (ii) ‘New GoI Floating Rate Bonds, 2034’ for a notified amount of ₹ 3,000 crore (nominal) through spread  based auction using uniform price  method (iii) ‘6.64% Government Security, 2035’ for a notified amount of ₹ 10,000 crore (nominal) through price based auction using uniform price method, and (iv) ‘6.67% Government Security, 2050’ for a notified amount of ₹ 7,000 crore (nominal) through price based auction using multiple price method. GoI will have the option to retain additional subscription up to Rs 8,000 crore against the above Security/Securities. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on Friday i.e. August 27, 2021.

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 August 27, 2021. 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 August 27, 2021 (Friday) and payment by successful bidders will be on August 30, 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 rules set bidding methods, non-competitive allocation and eligibility for when issued trading. Government of India announced auctions for several central government securities using price-based and spread-based auction methods (uniform price or multiple price as specified), with an option to accept additional subscriptions. Up to five percent of each notified amount is reserved for eligible individuals and institutions under the Non-Competitive Bidding Facility. Bids must be submitted electronically on the E Kuber platform within specified competitive and non-competitive windows; results and settlement follow the announced schedule. The securities are eligible for When Issued trading under RBI guidelines.