Auction for sale (re-issue) of government stocks

The government will auction for sale (reissue) (i) ‘7.35 per cent Government Stock 2024’ for a notified amount of Rs. 2,000 crore (nominal), (ii) ‘7.61 per cent Government Stock, 2030’ for a notified amount of Rs. 8,000 crore (nominal), (iii) ‘7.50 per cent Government Stock, 2034’ for a notified amount of Rs. 2,000 crore (nominal), and (iv) of ‘7.72 per cent Government Stock, 2055’ for a notified amount of Rs. 2,000 crore (nominal).

Up to 5 per cent 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, the Union Ministry of Finance said in its release.

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 September 30, 2016. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.  

The result of the auctions will be announced on Friday and payment by successful bidders will Monday, Oct 3.  

The stocks 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 (RBI) vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.