The central government has announced the sale (re-issue) of five dated securities for Rs 12,000 crore.
For security of 6.65 per cent Government Securities (GS) 2020, the notified amount is Rs 2,000 crore. For security of 7.37 per cent GS 2023, the notified amount is Rs 2,000 crore. For security of 7.95 per cent GS 2032, the notified amount is Rs 3,000 crore, according to a press release by the Reserve Bank of India (RBI).
The security of 7.40 per cent GS 2035 has a notified amount of Rs 2,000 crore, while for security of 7.72 per cent GS 2055, the notified amount is Rs 3,000 crore.
Subject to the limit of Rs 12,000 crore, being the total notified amount, the Centre will have the option to retain additional subscription of up to Rs 1,000 crore each against any one or more of the above security. The auction will be conducted using the multiple price method.
Up to five percent 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 RBI Core Banking Solution (E-Kuber) system on November 16. The non-competitive bids should be submitted between 10:30 am and 11:30 am, and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon, the RBI said.
The result of the auctions will be announced on November 16. The stocks will qualify for the ready forward facility, the statement said.
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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 RBI. Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by 'primary dealers' from 10:30 am up to 12.00 noon on November 15 on the RBI Core Banking Solution (E-Kuber) system.
The stocks will be eligible for "when issued" trading for a period commencing from November 13 to 16 in accordance with the guidelines on 'when-issued transactions in central government securities' issued by the central bank dated November 16, 2006 as amended from time to time.