Ref. No. IDMD/1869/08.02.032/2017-18
January 22, 2018
Scheduled Commercial Banks
All State Co-operative Banks/All Scheduled Primary
(Urban) Co-operative Banks /All Financial Institutions/
All Primary Dealers.
Government of India Dated Securities
of India has offered to sell (re-issue) two dated
securities for notified amount of Rs. 11,000
per the following details:
(in Rs crore)
GOI FRB 2024
January 22, 2018
7.17% GS 2028
to the limit of Rs 11000 Cr being total notified amount, GoI will have the
option to retain additional subscription up to Rs 1000 Cr each against any
one or more of the above security.
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.
We wish to draw your attention, in particular, to the following:
The Stocks will be issued for a minimum amount of Rs.10,000/- (nominal) and
in multiples of Rs 10,000/- thereafter.
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.
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 25,
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.
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.
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.
The result of the auctions will be announced on January 25, 2018 (Thursday) and payment by successful bidders
will be on January 29, 2018 (Monday).
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.
The Government Stocks will be repaid at par on November 07, 2024; January 08, 2028 respectively.
The Stocks will qualify for the ready forward facility.
The Stocks will be eligible for “When Issued” trading during the
period January 23 – January 25, 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.