Press Information Bureau

Government of India

Ministry of Finance

05-June-2012 16:52 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. 3,000 crore (nominal) through price based auctions, (ii) “New 10 Year Government Stock ” for a notified amount of Rs.7,000 crore (nominal) through yield based auctions, (iii) “8.97 percent Government Stock 2030” for a notified amount of Rs.3,000 crore (nominal) through price based auctions and (iv) “8.33 percent Government Stock 2036” for a notified amount of  Rs. 2,000 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 June 08, 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 June 08, 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 June 08, 2012 and payment by successful bidders will be on June 11, 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 15, 1934; June 05, 2012

DSM/GN

Government securities auction: re issue offered via uniform price method with non competitive bidding facility and electronic submission. Re issue auctions of multiple Government Stocks will be conducted by the Reserve Bank of India, Mumbai using the uniform price method; specified tranches will be offered via price based and yield based auctions. Up to five percent of each notified amount is reserved for eligible individuals and institutions under the non competitive bidding facility. Competitive and non competitive bids must be submitted electronically on the Negotiated Dealing System within prescribed time windows. Auction results will be announced on the auction date and successful bidders will make payment on the scheduled settlement date. Stocks are eligible for 'When Issued' trading under RBI guidelines.