Press Information Bureau

Government of India

Ministry of Finance

22-May-2012 16:09 IST

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

Auction of government stocks using uniform price method allows competitive and non-competitive bids with allocation for eligible individuals. Re-issue auction of four Central Government stocks will be conducted by the Reserve Bank of India using the uniform price method, with electronic bids on the Negotiated Dealing System. Non-competitive and competitive bids have prescribed submission windows, auction results and a scheduled payment date are specified, and up to a set percentage of the notified amount is reserved for eligible individuals and institutions under the Scheme for Non-Competitive Bidding Facility. The stocks are eligible for 'When Issued' trading per RBI guidelines.