The Government of India have announced the sale (new/re-issue) of (i) “New 5 year Government Stock 2017” for a notified amount of ` 4,000 crore (nominal) through yield based auction; (ii) “8.15 percent Government Stock 2022” for a notified amount of ` 7,000 crore (nominal) through price based auction; (iii) “8.97 percent Government Stock 2030” for a notified amount of ` 2,000 crore (nominal) through price based auction; and (iv) “8.33 percent Government Stock 2036” for a notified amount of ` 2,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on June 29, 2012 (Friday).
Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.
Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Negotiated Dealing System (NDS) on June 29, 2012. 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 p.m.
The result of the auctions will be announced on June 29, 2012 and payment by successful bidders will be on July 03, 2012 (Tuesday) (July 02 being Annual closing day of RBI).
The stocks will qualify for the ready forward facility.
The underwriting of the Government Securities under auctions by the ‘Primary Dealers’ will be as per the “Revised Scheme of Underwriting Commitment and Liquidity Support” announced by the Reserve Bank vide circular RBI/2007-08/186 dated November 14, 2007. Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by ‘Primary Dealers’ from 10.30 AM to 12.00 P.M. on June 28, 2012 (Thursday) on the Negotiated Dealing System (NDS).
The Stocks will be eligible for “When Issued” trading from June 26- June 29, 2012 in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI /2006-07/178 dated November 16, 2006 as amended from time to time.
The new five year stock will be reckoned as an eligible investment in Government Securities by banks for SLR purpose under Section 24 of the Banking Regulation Act, 1949.
Assistant General Manager
Press Release : 2011-2012/2062