The Government of India (GoI) has announced the sale (issue/ re-issue) of (i) “New Government Security 2028” for a notified amount of Rs 8,000 crore (nominal) through yield based auction using uniform price method, (ii) “7.26% Government Security 2033” for a notified amount of Rs 14,000 crore (nominal) through price based auction using uniform price method and (iii) “7.36% Government Security 2052” for a notified amount of Rs 11,000 crore (nominal) through price based auction using multiple price method. GoI will have the option to retain additional subscription up to Rs. 2,000 crore against each security mentioned above. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on April 06, 2023 (Thursday).

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 April 06, 2023. The non-competitive bids should be submitted between 12:30 p.m. and 01:00 p.m. and the competitive bids should be submitted between 12:30 p.m. and 01:30 p.m.

The result of the auctions will be announced on April 06, 2023 (Thursday) and payment by successful bidders will be on April 10, 2023 (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: uniform and multiple price methods scheduled with competitive and non competitive bidding procedures. The Government of India announced auctions for three specified Government Securities with notified amounts and an option to retain additional subscriptions. Distinct auction methods apply: yield based uniform price, price based uniform price, and price based multiple price. The Reserve Bank of India will conduct auctions via the E Kuber electronic system with defined competitive and non competitive bid windows and up to five percent reserved for eligible bidders under the Non Competitive Bidding Facility. Auction result and settlement dates are pre set and the securities are eligible for When Issued trading under RBI guidelines.