Press Information Bureau

Government of India

Ministry of Finance

22-May-2012 16:09 IST

Auction for Sale of Government Stocks

PRESS NOTE

Government of India have announced the sale (re-issue) of (i) “8.24 percent Government Stock 2018” for a notified amount of Rs. 4,000 crore (nominal), (ii) “8.79 percent Government Stock 2021” for a notified amount of Rs. 6,000 crore (nominal), (iii) “8.28 percent Government Stock 2027” for a notified amount of Rs. 2,000 crore (nominal), and (iv) “8.33 percent Government Stock  2036” 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 May 25, 2012 (Friday).

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 May 25, 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 12.00 p.m.   

The result of the auctions will be announced on May 25, 2012 and payment by successful bidders will be on May 28, 2012 (Monday).   

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: Jyaistha 01, 1934; May 22, 2012

DSM/GN

Government securities auction uses uniform price method; non-competitive allotment permitted and bids submitted electronically on negotiated dealing system. Re-issues of Central Government stocks will be sold via price-based auctions using the uniform price method, administered by the Reserve Bank of India. Both competitive and non-competitive bids are permitted, with up to five percent of each issue reserved for eligible individuals and institutions under the non-competitive bidding scheme. Bids must be submitted electronically on the Negotiated Dealing System within prescribed time windows, and auction results, payment and settlement will occur on the dates notified by the government and RBI.