Auction for sale (re-issue) of govt securities: Here’s what you need to know
1 min read 26 Jun 2023, 09:54 PM ISTThe Ministry of Finance said that up to 5% of the notified amount of the sale of the securities will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities
PremiumNEW DELHI : The Ministry of Finance on Monday said in a statement that the government has announced the sale (re-issue) of government securities.
The ministry said that up to 5% of the notified amount of the sale of the securities will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities.
The securities 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/2018-19/25 dated July 24, 2018 as amended from time to time, the ministry said.
The notification said that the government has announced the sale (re-issue) of -
(i) “7.06% Government Security 2028“ for a notified amount of ₹8,000 crore (nominal) through price based auction using uniform price method
(ii) “7.26% Government Security 2033“ for a notified amount of ₹14,000 crore (nominal) through price based auction using uniform price method
(iii) “7.30% Government Security 2053" for a notified amount of ₹11,000 crore (nominal) through price based auction using multiple price method
The government will have the option to retain additional subscription up to ₹2,000 crore against each security mentioned above. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on 30 June, 2023 (Friday).
“Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on June 30, 2023. The non-competitive bids should be submitted between 10:30 a.m. and 11:00 a.m. and the competitive bids should be submitted between 10:30 a.m. and 11:30 a.m,“ the ministry said.
The result of the auctions will be announced on 30 June, 2023 (Friday) and payment by successful bidders will be on 3 July, 2023
