Press Information Bureau

Government of India

Ministry of Finance

29-March-2012 12:41 IST

Auction for Sale of Government Stocks

PRESS NOTE

Government of India have announced the (i) Sale (Re-issue) of “8.19 percent Government Stock 2020” for a notified amount of Rs.4,000 crore (nominal) through price based auctions, (ii) Sale (Re-issue) of “9.15 percent Government Stock 2024” for a notified amount of Rs.8,000 crore (nominal) through price based auctions, (iii) Sale (Re-issue) of “8.97 percent Government Stock 2030” for a notified amount of Rs.3,000 crore (nominal) through price based auctions and (iv) Sale (Re-issue) of “8.83 percent Government Stock 2041” for a notified amount of Rs.3,000 crore (nominal) through price based auctions. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on April 03, 2012 (Tuesday).

Up to 5% of the notified amount of the sale of the stocks 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 Negotiated Dealing System (NDS) on April 03, 2012. The non- competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.30 p.m.

The result of the auctions will be announced on April 03, 2012 and payment by successful bidders will be on April 04, 2012 (Wednesday).

The Stocks 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 /2006-07/178 dated November 16, 2006 as amended from time to time.

Department of Economic Affairs, Ministry of Finance

New Delhi: Chaitra 09, 1933; March 29, 2012

SS/GN

Auction of government securities by uniform price method with reserved non-competitive allocation and when-issued trading eligibility. Re-issues of multiple dated Government Stocks will be offered through uniform price auctions conducted by the Reserve Bank of India, with competitive and non-competitive electronic bids submitted on the Negotiated Dealing System within prescribed time windows. Up to five percent of each notified issuance is reserved for eligible individuals and institutions under the Non-Competitive Bidding Facility. Auction results and settlement dates are specified, and the stocks will be eligible for When Issued trading under existing RBI guidelines.