Press Information Bureau

Government of India

Ministry of Finance

30-July-2012 18:59 IST

Auction for Sale of Government Stocks

Press Note

Government of India have announced the sale (re-issue) of (i) “8.19 percent Government Stock 2020” for a notified amount of Rs. 4,000 crore (nominal) through price based auction,  (ii) “8.33 percent Government Stock 2026” for a notified amount of Rs. 7,000 crore (nominal) through price based auction, (iii) “8.28 percent Government Stock 2032” for a notified amount of Rs. 2,000 crore (nominal) through price based auction; and (iv) “8.83 percent Government Stock 2041” for a notified amount of Rs. 2,000 crore (nominal) through

price based auction. 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 August 03, 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 August 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 12.00 p.m.  

         The result of the auctions will be announced on August 03, 2012 and payment by successful bidders will be on August 06, 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: Shravana 08, 1934; July 30, 2012

DSM/SS/GN

Government securities auction using uniform price method permits competitive and non competitive electronic bids and when issued trading. Announcement prescribes a uniform price auction for re issuance of central government stocks, permitting competitive and non competitive electronic bids on the Negotiated Dealing System within specified time windows, allocating up to a capped share to eligible individuals and institutions under the Non Competitive Bidding Facility, and confirming eligibility of the stocks for When Issued trading subject to RBI guidelines, with results and payment scheduled per the auction timetable.