The following State Governments have announced the sale of 10-year State Development Loans for an aggregate amount of Rs. 3,264.100 crore through a yield based auction using multiple price auction method.

Sr. No. State Notified  Amount

                               (Rs. crore)

1 Jammu & Kashmir   564.100

2 Kerala                    500.000

3 Uttar Pradesh         1,000.000

4 Uttarakhand           200.000

5 West Bengal          1,000.000

   Total                      3,264.100

The auction will be conducted by the Reserve Bank of India (RBI) at Mumbai on May 27, 2008 (Tuesday). Bids in the prescribed form obtainable from the Regional Director, Reserve Bank of India, Public Debt Office, Main Building, Fort, Mumbai- 400 001 should be submitted to that Office on Tuesday, May 27, 2008. The competitive bids by the NDS members should be submitted only in electronic format using Primary Market Operation (PMO) module of NDS. All bids should be submitted by 12.30 P.M. on May 27, 2008. On the basis of bids received, RBI will determine the maximum yield at which offers will be accepted.

The results of the auction will be announced on May 27, 2008 and payment by successful bidders will be made during banking hours on May 28, 2008 at Mumbai and at respective Regional Offices of Reserve Bank of India.

The investment in Government Stocks will be reckoned as an eligible investment in Government Securities by banks for the purpose of Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The stocks will qualify for the ready forward facility.

Bids for underwriting of the West Bengal Government Stock under the auction can be submitted by the ‘Primary Dealers’ up to 12.30 P.M. on May 26, 2008 (Monday) using PMO module of NDS.

Sourced From: Reserve Bank of India