Government Securities Auction for Sale (Re-Issue): The Government of India (GoI) has recently made an exciting announcement regarding the sale (re-issue) of three Government Securities, namely, ‘7.06% GS 2028,’ ‘7.26% GS 2033,’ and ‘7.36% GS 2052.’ This auction presents a unique opportunity for investors to participate in the Indian market. In this article, we will delve into the details of these securities, the auction process, and the key dates to remember. Read on to discover how you can potentially benefit from this investment opportunity.
Government Securities Auction for Sale (Re-Issue)
7.06% Government Security 2028
The first Government Security on offer is the ‘7.06% Government Security 2028.’ The GoI has set a notified amount of Rs 8,000 crore (nominal) for this security. The auction will be conducted using the uniform price method. It provides investors with a chance to secure a reliable and long-term investment option with an attractive interest rate.
7.26% Government Security 2033
The second Government Security available for auction is the ‘7.26% Government Security 2033.’ With a notified amount of Rs 14,000 crore (nominal), this security offers investors an opportunity to diversify their portfolios. Like the previous security, the auction for this security will also be conducted using the uniform price method.
7.36% Government Security 2052
The third Government Security in line is the ‘7.36% Government Security 2052.’ GoI has allocated a notified amount of Rs 11,000 crore (nominal) for this security. The auction for this security will utilize the multiple price method. By investing in this security, investors can potentially secure long-term financial stability while enjoying competitive interest rates.
Sure! Here’s the information presented in a table format:
| Security | Notified Amount (Rs. crore) | Auction Method |
|---|---|---|
| 7.06% GS 2028 | 8,000 | Price Based Auction (Uniform Price Method) |
| 7.26% GS 2033 | 14,000 | Price Based Auction (Uniform Price Method) |
| 7.36% GS 2052 | 11,000 | Price Based Auction (Multiple Price Method) |
Auction Process and Key Dates
The Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai, will be responsible for conducting the auctions on June 02, 2023 (Friday). Investors can submit both competitive and non-competitive bids electronically through the Reserve Bank of India Core Banking Solution (E-Kuber) system on this date.
To facilitate wider participation, up to 5% of the notified amount of the securities will be allotted to eligible individuals and institutions through the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.
For non-competitive bids, investors should submit their bids between 10:30 a.m. and 11:00 a.m. Competitive bids, on the other hand, must be submitted between 10:30 a.m. and 11:30 a.m. This ensures a streamlined and efficient bidding process for all participants.
- Auction Date: June 02, 2023 (Friday)
- Non-Competitive Bids Submission Time: Between 10:30 a.m. and 11:00 a.m.
- Competitive Bids Submission Time: Between 10:30 a.m. and 11:30 a.m.
- Result Announcement Date: June 02, 2023 (Friday)
- Payment Deadline for Successful Bidders: June 05, 2023 (Monday)
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Results and Payment
The auction results will be announced on June 02, 2023 (Friday). Successful bidders will be required to make their payments by June 05, 2023 (Monday). This prompt payment process allows investors to efficiently complete their transactions and secure their investments.
Eligibility for “When Issued” Trading
The Securities being auctioned will also be eligible for “When Issued” trading, following the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India. This additional trading option provides investors with the flexibility to buy or sell the securities before the actual issuance, enhancing liquidity and market participation.
Conclusion
The auction for the sale (re-issue) of the ‘7.06% GS 2028,’ ‘7.26% GS 2033,’ and ‘7.36% GS 2052’ Government Securities presents an excellent opportunity for investors to diversify their portfolios and potentially earn competitive returns. By participating in this auction, investors can gain exposure to the Indian market while enjoying the stability and reliability offered by Government Securities.
Mark your calendars for June 02, 2023, and prepare to participate in this auction. Don’t miss out on the chance to invest in India’s future and secure your financial goals. Take advantage of this unique opportunity and make your mark in the world of investments.
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