Auction of Government of India Dated
Securities
RBI/2016-17/215 January
23, 2017 All Scheduled Commercial Banks Dear Sir/Madam, Auction
of Government of India Dated Securities Government of India has offered to
sell (issue/re-issue) four dated securities for notified amount of Rs 11,000 crore as
per the following details:
The auction for securities will be price based using multiple price method. The Reserve Bank of India at Mumbai will conduct the
auctions. The salient features of the auctions and the terms and conditions
governing the issue of the Stocks are given in the notifications (copies
enclosed), which should be read along with the General Notification F. No. 4
(13)–W&M/2008, dated October 8, 2008 issued by Government of India. 2. We wish to draw your attention,
in particular, to the following: (i) The Stocks will be issued for
a minimum amount of Rs.10,000/- (nominal) and in multiples of Rs 10,000/-
thereafter. (ii) In all the auctions,
Government Stock up to 5% of the notified amount of sale will be allotted to
the eligible individuals and institutions under the Scheme for
Non-competitive Bidding Facility in the Auctions of Government
Securities. Each bank or PD on the basis of firm orders received from their
constituents will submit a single consolidated non-competitive bid on behalf
of all its constituents in electronic format on the Reserve Bank of India
Core Banking Solution (E-Kuber) system. Allotment under the non-competitive
segment to the bank or PD will be at the weighted average rate of yield/price
that will emerge in the auction on the basis of the competitive bidding. (iii) 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 January 27, 2017.
Bids in physical form will not be accepted except in extraordinary
circumstances. 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 noon. (iv) An investor can submit more
than one competitive bid at different prices in electronic format on the
Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the
aggregate amount of bids submitted by a person in an auction should not
exceed the notified amount of auction. (v) On the basis of bids received,
the Reserve Bank will determine the minimum price up to which tenders for
purchase of Government Stock will be accepted at the auctions. Bids quoted at
rates lower than the minimum price determined by the Reserve Bank of India
will be rejected. Reserve Bank of India will have the full discretion to
accept or reject any or all bids either wholly or partially without assigning
any reason. (vi) The result of the auctions
will be announced on January 27, 2017
(Friday). and payment by successful
bidders will be on January 30,
2017. (Monday). (vii) The Government Stocks will
be issued by credit to Subsidiary General Ledger Account (SGL) of parties
maintaining such account with Reserve Bank of India or in the form of Stock
Certificate. Interest on the Government Stock will be paid half-yearly. (viii) The Government Stocks will
be repaid at par on December 19,
2022; September 6, 2026; December 19, 2034, and October 10, 2046 respectively. (ix) The Stocks will qualify for
the ready forward facility. (x) The Stocks will be eligible
for “When Issued” trading during the period January 24—January 27, 2017, in accordance with guidelines on ‘When Issued’
transactions in Central Government Securities issued by Reserve Bank of India
vide circular No.RBI /2006-07/178 dated November 16, 2006 as
amended from time to time. Yours
faithfully (Chandan
Kumar) |
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