The Centre has set the discount floor for the high-coupon gilt buyback from banks at 7.5 per cent to the market price.
A Reserve Bank of India release said while the floor for minimum discount has been set, the cut-off discount will be arrived at on the basis of the target premium payable set by the government.
The buyback, to be held on July 19, will be structured as a switch, with the government buying back pre-announced 19 securities with a total outstanding amount of Rs 100,438 crore.
In turn, existing securities
