Auction of Government of India Dated
All Scheduled Commercial Banks
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:
Subject to the limit of ? 15000 Cr
being total notified amount, GoI will have the option to retain additional
subscription up to ? 1000 Cr against any of the above security.
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/-
(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 October 6, 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
(vi) The result of the auctions
will be announced on October 6,
2017 (Friday) and payment by successful
bidders will be on October 9,
(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 17, 2031; December 5, 2033, and November 28, 2051 respectively.
(ix) The Stocks will qualify for
the ready forward facility.
(x) The Stocks will be eligible
for “When Issued” trading during the period October 3 – October 6, 2017 in accordance with guidelines on ‘When Issued’
transactions in Central Government Securities issued by Reserve Bank of India
No.RBI/2006-07/178 dated November 16, 2006 as amended from time
We have successfully served many reputable clients for Import-Export Data Information Services. Here are some of our clients: