The Government of India (GoI) has announced the sale (re-issue) of (i) “7.06% Government Security 2028” for a notified amount of Rs 8,000 crore (nominal) through price 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 May 04, 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 May 04, 2023. 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 04, 2023 (Thursday) and payment by successful bidders will be on May 08, 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 procedures: re-issue, pricing methods, non-competitive allocation, and when-issued trading eligibility. Re-issuance auctions are announced for three government securities with specified notified nominal amounts; two will use the uniform price method and one the multiple price method. The issuer may accept additional subscriptions up to a set margin per security and will reserve up to five percent of each notified amount for eligible non-competitive bidders. Competitive and non-competitive electronic bids must be submitted via the designated core banking auction platform within prescribed time windows on the auction date. Results are announced on auction date and settlement occurs on the scheduled payment date. Securities qualify for when-issued trading under existing guidelines.