The Government of India (GoI) has declared the re-issue of several government securities, including the “6.99% Government Security 2026,” “7.17% Government Security 2030,” “7.41% Government Security 2036,” and “7.40% Government Security 2062,” which will be sold through price-based auctions using uniform and multiple price methods. The auctions will be conducted by the Reserve Bank of India in Mumbai on May 12, 2023 (Friday).
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Sale details and bidding procedures
The re-issue of the “6.99% Government Security 2026” will be sold for a notified amount of ₹8,000 crore (nominal), while the “7.17% Government Security 2030” will be sold for a notified amount of ₹7,000 crore (nominal). The “7.41% Government Security 2036” and “7.40% Government Security 2062” will be sold for notified amounts of ₹12,000 crore (nominal) each. The GoI will have the option to retain additional subscription up to Rs. 2,000 crore against each security.
Eligible individuals and institutions can bid for up to 5% of the notified amount of the securities sale through the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities. The auctions will accept both competitive and non-competitive bids, which must be submitted electronically on the Reserve Bank of India Core Banking Solution (E-Kuber) system on May 12, 2023. Non-competitive bids must be submitted between 10:30 a.m. and 11:00 a.m., and competitive bids must be submitted between 10:30 a.m. and 11:30 a.m.
| Security Name | Notified Amount (Nominal) | Additional Subscription Option | Eligibility for Non-Competitive Bidding | Bidding Time |
|---|---|---|---|---|
| 6.99% Government Security 2026 | ₹8,000 crore | Up to ₹2,000 crore | Yes, up to 5% of notified amount | Non-competitive bids: 10:30 a.m. to 11:00 a.m. Competitive bids: 10:30 a.m. to 11:30 a.m. |
| 7.17% Government Security 2030 | ₹7,000 crore | Up to ₹2,000 crore | Yes, up to 5% of notified amount | Non-competitive bids: 10:30 a.m. to 11:00 a.m. Competitive bids: 10:30 a.m. to 11:30 a.m. |
| 7.41% Government Security 2036 | ₹12,000 crore | Up to ₹2,000 crore | Yes, up to 5% of notified amount | Non-competitive bids: 10:30 a.m. to 11:00 a.m. Competitive bids: 10:30 a.m. to 11:30 a.m. |
| 7.40% Government Security 2062 | ₹12,000 crore | Up to ₹2,000 crore | Yes, up to 5% of notified amount | Non-competitive bids: 10:30 a.m. to 11:00 a.m. Competitive bids: 10:30 a.m. to 11:30 a.m. |
Result announcement and payment details
The results of the auctions will be declared on May 12, 2023 (Friday), and payment by successful bidders will be on May 15, 2023 (Monday). The securities will be eligible for “When Issued” trading, in accordance with the guidelines on “When Issued transactions in Central Government Securities” issued by the Reserve Bank of India.
Conclusion
The re-issue of government securities is an opportunity for eligible individuals and institutions to invest in a safe and secure investment option. The auctions provide a transparent and efficient platform for interested parties to participate and acquire the securities. Interested parties should review the auction details and submit their bids within the designated time frame to participate in this sale.
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FAQs
Q: What is the Auction for Sale (re-issue) of Government Securities?
A: The Auction for Sale (re-issue) of Government Securities is a process conducted by the Government of India to sell and reissue securities to the public.
Q: What are the securities being auctioned?
A: The securities being auctioned are (i) 6.99% Government Security 2026, (ii) 7.17% Government Security 2030, (iii) 7.41% Government Security 2036, and (iv) 7.40% Government Security 2062.
Q: What is the notified amount for each security?
A: The notified amount for each security is ₹8,000 crore (nominal) for 6.99% Government Security 2026, ₹7,000 crore (nominal) for 7.17% Government Security 2030, ₹12,000 crore (nominal) for 7.41% Government Security 2036, and ₹12,000 crore (nominal) for 7.40% Government Security 2062.
Q: When will the auction take place?
A: The auction will take place on May 12, 2023 (Friday).
Q: Who will conduct the auctions?
A: The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai.
Q: What is the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities?
A: The Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities is a scheme that allows eligible individuals and institutions to bid for up to 5% of the notified amount of the sale of securities.
Q: How should bids be submitted?
A: 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 May 12, 2023. Non-competitive bids should be submitted between 10:30 a.m. and 11:00 a.m. and competitive bids should be submitted between 10:30 a.m. and 11:30 a.m.
Q: When will the result of the auctions be announced?
A: The result of the auctions will be announced on May 12, 2023 (Friday).
Q: When is the payment due for successful bidders?
A: Payment by successful bidders will be due on May 15, 2023 (Monday).
Q: Will the Securities be eligible for trading?
A: Yes, the Securities will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India.
