RBI/2016-17/307
Ref. No. IDMD/3010/08.02.032/2016-17
May
22, 2017
All Scheduled Commercial Banks
All State Co-operative Banks/All Scheduled Primary
(Urban) Co-operative Banks /All Financial Institutions/
All Primary Dealers.
Dear Sir/Madam,
Auction
of Government of India Dated Securities
Government of India has offered
to sell (re-issue) four dated securities for notified amount of ? 15,000 crore as
per the following details:
Sr
No
|
Security
|
Notified
Amount
(in ? crore)
|
GoI
Notification
|
Auction
Date
|
Settlement
date
|
1
|
GoI FRB 2024
|
3,000
|
4(7)-W&M/2017 dated
May 22, 2017.
|
May
26, 2017
(Friday)
|
May
29, 2017
(Monday)
|
2
|
6.79% GS 2027
|
8,000
|
4(7)-W&M/2017(i)
dated May 22, 2017.
|
3
|
7.73% GS 2034
|
2,000
|
4(7)-W&M/2017(ii)
dated May 22, 2017.
|
4
|
7.06% GS 2046
|
2,000
|
4(7)-W&M/2017(iii)
dated May 22, 2017.
|
|
Total
|
15,000
|
|
|
|
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 ? 10,000/- (nominal) and in multiples of ? 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 May 26, 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 May
26, 2017 (Friday). and payment by successful
bidders will be on May 29,
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 November
07, 2024; May 15, 2027; 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 May 23-May 26, 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
(Arun
Bhagoliwal)
Deputy General Manager
|