RBI/2016-17/38
Ref.No.IDMD/ /08.02.032/2016-17
August 12, 2016
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 Rs 15,000 crore as per the following details:
Sr No |
Security |
Notified Amount |
GoI Notification |
Auction Date |
Settlement date |
1 |
7.80% GS 2021 |
3,000 |
4(3)-W&M/2016 dated |
August 19, 2016 |
August 22, 2016 |
2 |
7.59% GS 2029 |
8,000 |
4(3)-W&M/2016(i) dated |
||
3 |
7.73% GS 2034 |
2,000 |
4(3)W&M/2016(ii) dated |
||
4 |
8.13% GS 2045 |
2,000 |
4(3)-W&M/2016(iii) dated |
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 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 August 19, 2016. 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 August 19, 2016 and payment by successful bidders will be on August 22, 2016 (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 April 11, 2021; March 20, 2029; December 19, 2034; June
22, 2045; respectively.
(ix) The Stocks will qualify for the ready
forward facility.
(x) The Stocks will be eligible for “When
Issued” trading during the period August 16- August 19, 2016 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,
(Chandan Kumar)
General Manager
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