GoI announce sale of two dated securities for Rs 10,000cr

The Government of India have announced the sale (re-issue) of “8.24 per cent Government Stock 2018” for a notified amount of Rs. 6,000 crore (nominal). The Government of India have also announced the sale (re-issue) of “8.28 per cent Government Stock 2032” for a notified amount of Rs. 4,000 crore. Both the Government Stocks will be sold through price based auctions using multiple price method.  The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on May 23, 2008 (Friday).

Up to 5% of the notified amount of the sale of both 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.

Bids in the prescribed form obtainable from the Regional Director, Reserve Bank of India, Mumbai Office (Public Debt Office), Fort, Mumbai- 400001 and RBI website www.rbi.org.in should be submitted to that Office on May 23, 2008. The NDS members should submit competitive as well as non-competitive bids in electronic format using Primary Market Operation (PMO) module of NDS. All bids should be submitted by 12.30 P.M.

The result of the auctions will be announced on May 23, 2008 and payment by successful bidders will be during banking hours on May 26, 2008 (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 May 22, 2008 (Thursday) using PMO module of NDS.

The Stocks will be eligible for “When Issued” trading for a period commencing from May 20-23, 2008  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.

Sourced From: Reserve Bank of India