Ref. No. IDMD/2060/08.02.032/2017-18
All Scheduled Commercial
All State Co-operative Banks/All Scheduled Primary
(Urban) Co-operative Banks /All Financial Institutions/
All Primary Dealers.
of Government of India Dated Securities
Government of India has offered
to sell (re-issue) two dated securities for notified amount of Rs. 11,000 crore as
per the following details:
(in Rs crore)
GOI FRB 2024
F.No.4(7) W&M/2017 dated
February 05, 2018
7.17% GS 2028
Subject 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.
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 Rs.10,000/- (nominal) and in multiples of Rs
(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
(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 February 09, 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 February
09, 2018 (Friday) and payment by successful
bidders will be on February
12, 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 November
07, 2024; January 08, 2028 respectively.
(ix) The Stocks will qualify for
the ready forward facility.
(x) The Stocks will be eligible for
“When Issued” trading during the period February 06 – February 09, 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.