Tuesday 31 January 2012

Government of India announces the sale of three dated securities for Rs.13,000 crore on February 3, 2012

The Government of India have announced the sale (re-issue) of (i) “7.83 percent Government Stock 2018” for a notified amount of` 3,000 crore (nominal) through price based auction, (ii) “8.79 percent Government Stock 2021” for a notified amount of `7,000 crore (nominal) through price based auction and (iii) “8.83 percent Government Stock 2041” for a notified amount of `3,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Fort, Mumbai on February 3, 2012 (Friday).

Up to 5% 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 Negotiated Dealing System (NDS) on February 3, 2012. 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 12.30 p.m.

The result of the auctions will be announced on February 3, 2012 and payment by successful bidders will be on February 6, 2012 (Monday).

The stocks will qualify for the ready forward facility.

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 Reserve Bank vide circular RBI/2007-08/186 dated November 14, 2007. Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by ‘Primary Dealers’ up to 12.30 P.M. on February 02, 2012 (Thursday) on the Negotiated Dealing System (NDS).

The Stocks will be eligible for “When Issued” trading for a period commencing from January 31, 2012 - February 3, 2012 in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI /2006-07/178 dated November 16, 2006 as amended from time to time.


R. R. Sinha
Deputy General Manager

Press Release : 2011-2012/1214

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