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Government of India Announces Auction for Re-issued Government Securities (G-Secs)

The Government of India (GoI) has announced the re-issue and auction of two Government Securities (G-Secs):

  • 7.10% GS 2034: Offered for a notified amount of ₹20,000 crore (nominal)
  • 7.46% GS 2073: Offered for a notified amount of ₹12,000 crore (nominal)

Auction Details:

  • Auction Type: Price-based auction using the multiple price method
  • Date: Friday, April 26, 2024
  • Venue: Reserve Bank of India, Mumbai Office
  • Eligible Bidders: Individuals, institutions (competitive and non-competitive bids)

Key Points:

  • The GoI can retain an additional subscription of up to ₹2,000 crore for each security.
  • Up to 5% of the notified amount is reserved for non-competitive bids.
  • Electronic bids can be submitted via the RBI Core Banking Solution (E-Kuber) system.
  • Non-competitive bids: April 26, 2024 (between 10:30 AM and 11:00 AM)
  • Competitive bids: April 26, 2024 (between 10:30 AM and 11:30 AM)
  • Auction results will be announced on April 26, 2024.
  • Payment by successful bidders is due on April 29, 2024.
  • “When Issued” trading is permitted as per RBI guidelines.

Additional Information:

  • Investors interested in participating in the auction should consult with authorized financial institutions and familiarize themselves with the detailed auction rules set by the Reserve Bank of India.
  • This re-issue of G-Secs provides an opportunity for individuals and institutions to invest in government debt and potentially earn attractive returns.

This auction is a significant event for the Indian financial market, and participation can be a valuable way to diversify investment portfolios.

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