RBI/2017-18/121
Ref. No.IDMD/1805/08.02.032/2017-18
January 15, 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 (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
|
6.84% GS 2022
|
3,000
|
F.No.4(7)
W&M/2017 dated
January 15, 2018
|
January 19, 2018
(Friday)
|
January 22, 2018
(Monday)
|
2
|
7.17% GS 2028
|
8,000
|
3
|
7.73% GS 2034
|
2,000
|
4
|
7.06% GS 2046
|
2,000
|
|
Total
|
15,000
|
|
|
|
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 one or more of the above securities.
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 January 19, 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 19,
2018 (Friday) and payment by successful bidders will
be on January
22, 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 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
16 – January 19, 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
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