RBI/2017-18/113
Ref. No. IDMD/1640/08.02.032/2017-18
January
01, 2018
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 (issue/re-issue) four dated securities for notified amount of Rs. 18,000 crore as
per the following details:
Sr
No
|
Security
|
Notified
Amount
(in Rs crore)
|
GoI
Notification
|
Auction
Date
|
Settlement
date
|
1
|
6.84% GS 2022
|
5,000
|
F.No.4(7) W&M/2017 dated
January 01, 2018
|
January
05, 2018
(Friday)
|
January
08, 2018
(Monday)
|
2
|
New GS of 10 year
|
9,000
|
3
|
7.73% GS 2034
|
2,000
|
4
|
7.72% GS 2055
|
2,000
|
|
Total
|
18,000
|
|
|
|
Subject to the limit of Rs 18000
Cr being total notified amount, GoI will have the option to retain
additional subscription up to Rs 1000 Cr against any of the above security.
The auction for the new security
will be yield based and for other securities it 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 05, 2018.
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
05, 2018 (Friday) and payment by successful
bidders will be on January 08,
2018 (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; January 08, 2028; December 19, 2034 and October 26, 2055 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 02 – January 05, 2018 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
(Arvind Kumar)
General Manager
|