Government of India (GoI) has announced the sale (re-issue) of (i) “7.17% Government Security 2030” for a notified amount of ₹12,000 crore (nominal) through price based auction using uniform price method, (ii) “7.18% Government Security 2037” for a notified amount of ₹10,000 crore (nominal) through price based auction using uniform price method and (iii) “7.25% Government Security 2063” for a notified amount of ₹12,000 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 October 13, 2023 (Friday).

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 October 13, 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 October 13, 2023 (Friday) and payment by successful bidders will be on October 16, 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: re-issue uses uniform and multiple price methods with non-competitive allocation and electronic bidding. Three central government securities are to be re-issued via scheduled auctions: two via the uniform price method and one via the multiple price method, with the Government permitted to retain additional subscriptions against each security. Up to five percent of each notified amount is reserved for eligible participants under the Non-Competitive Bidding Facility. Bids are to be submitted electronically on the RBI E-Kuber system within prescribed time windows for non-competitive and competitive bids; auction results and payment follow set schedules. The securities are eligible for When Issued trading under RBI guidelines.