 "RBI to buy back IIBs maturing 2023")
The Reserve Bank of India (RBI) on Friday said that government will repurchase the inflation-indexed bonds (IIBs) maturing in 2023 through a reverse auction on February 11.
The not-so-successful bonds have received a tepid response due to poor marketing and tax issues.
"The Government of India has notified the repurchase of 1.44 per cent Inflation Indexed Government Stock-2023 through reverse auction for an aggregate amount of Rs 6,500 crore", RBI said in a release.
RBI said the repurchase will be held to prematurely redeem the government stock by utilising surplus cash balances and underscoring that it was an ad-hoc move.
The bids for the auction are to be submitted in electronic format on RBI's Core Banking Solution (E-Kuber) system on February 11, 2016 (Thursday) between 10.30 am and 12 Noon.
The auction results will be announced on the same day.
RBI said it can decide on the quantum of purchase of individual securities as well as can accept less than the aggregate amount of Rs 6,500 crore.
Besides, it reserves the right to accept or reject any or all of the offers either wholly or partially without assigning any reason, RBI added.
In the past, RBI had said that it was working to make the instrument more attractive and was in discussion with the government on this.
The not-so-successful bonds have received a tepid response due to poor marketing and tax issues.
"The Government of India has notified the repurchase of 1.44 per cent Inflation Indexed Government Stock-2023 through reverse auction for an aggregate amount of Rs 6,500 crore", RBI said in a release.
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These bonds were launched as an alternative to gold as an investment in the days of high current account deficit.
RBI said the repurchase will be held to prematurely redeem the government stock by utilising surplus cash balances and underscoring that it was an ad-hoc move.
The bids for the auction are to be submitted in electronic format on RBI's Core Banking Solution (E-Kuber) system on February 11, 2016 (Thursday) between 10.30 am and 12 Noon.
The auction results will be announced on the same day.
RBI said it can decide on the quantum of purchase of individual securities as well as can accept less than the aggregate amount of Rs 6,500 crore.
Besides, it reserves the right to accept or reject any or all of the offers either wholly or partially without assigning any reason, RBI added.
In the past, RBI had said that it was working to make the instrument more attractive and was in discussion with the government on this.