The Government of India (GoI) has recently made an exciting announcement that opens up a unique investment opportunity for individuals and institutions. The sale (re-issue) of three Government Securities (GS) is set to take place, presenting investors with the chance to participate in a secure and lucrative venture. The securities available for purchase are as follows:
- 7.06% GS 2028: This GS, offering an attractive interest rate of 7.06%, has a maturity date of 2028. The notified amount for this security is a substantial Rs 8,000 crore (nominal). The auction will employ a price-based method, specifically the uniform price method.
- 7.26% GS 2033: With a maturity date in 2033, the 7.26% GS 2033 provides investors with a long-term investment opportunity. The notified amount for this security stands at Rs 14,000 crore (nominal), and the auction will also use the uniform price method.
- 7.36% GS 2052: The 7.36% GS 2052 offers an extended investment horizon, with a maturity date of 2052. The notified amount for this security is Rs 11,000 crore (nominal), and the auction will employ the multiple price method.
|Government Security||Interest Rate||Maturity Date||Notified Amount (Nominal)||Auction Method|
|7.06% GS 2028||7.06%||2028||Rs 8,000 crore||Uniform price|
|7.26% GS 2033||7.26%||2033||Rs 14,000 crore||Uniform price|
|7.36% GS 2052||7.36%||2052||Rs 11,000 crore||Multiple price|
Please note that the table provides a concise overview of the government securities available for purchase, including their interest rates, maturity dates, notified amounts, and the respective auction methods.
The Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai, will conduct the auctions on May 19, 2023 (Friday). It’s important to note that the GoI holds the option to retain additional subscriptions up to Rs 2,000 crore for each of the aforementioned securities.
Table of Contents
Eligibility and Bidding Process
Eligible individuals and institutions can secure up to 5% of the notified amount through the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities. This ensures that even those with smaller investment capabilities can participate and benefit from these government securities.
Both competitive and non-competitive bids must be submitted electronically via the Reserve Bank of India Core Banking Solution (E-Kuber) system on May 19, 2023. The submission timeframe for non-competitive bids is between 10:30 a.m. and 11:00 a.m., while competitive bids should be submitted between 10:30 a.m. and 11:30 a.m.
Results and Payment
The results of the auctions will be announced on May 19, 2023 (Friday), providing investors with prompt feedback on the outcome. Successful bidders will then be required to make their payments on May 22, 2023 (Monday), enabling them to complete the investment process efficiently.
Additional Trading Opportunities
Investors should also take note that the securities will be eligible for “When Issued” trading, aligning with the guidelines outlined in the Reserve Bank of India’s circular No. RBI/2018-19/25 dated July 24, 2018, and subsequent amendments. This added feature provides traders with increased flexibility and opportunities for further trading in Central Government Securities.
Don’t miss out on this incredible chance to invest in secure and rewarding government securities. Act now and participate in the upcoming auction on May 19, 2023. Secure your financial future and benefit from the potential returns these high-quality securities offer.