Underwriting Auctions for Government Securities

April 08, 2015 / 10:18 IST

The Government of India have announced the sale (re-issue) of (i) ‘8.27 per cent Government Stock 2020’ for a notified amount of Rs.3,000 crore (nominal); (ii) ‘8.15 per cent Government Stock 2026’ for a notified amount of Rs.7,000 crore (nominal) (iii) ‘8.24 per cent Government Stock 2033’ for a notified amount of Rs.3,000 crore (nominal) and (iv) ‘8.17 per cent Government Stock 2044’ for a notified amount of Rs.3,000 crore (nominal) through auctions to be held on April 10, 2015.

2. As per revised scheme of underwriting, dated November 14, 2007, the amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under Additional Competitive Underwriting (ACU) for the underwriting auctions, per Primary Dealer, are as under:

(` in crore)
Nomenclature of the Security	Notified Amount	MUC amount per Primary Dealer	Minimum bidding commitment per PD under ACU auction
8.27 per cent GS 2020	3000	75	75
8.15 per cent GS 2026	7000	175	175
8.24 per cent GS 2033	3000	75	75
8.17 per cent GS 2044	3000	75	75

3. The underwriting auctions will be conducted using multiple price based auction method on April 9, 2015. Primary Dealers (PDs) may submit their bids for ACU auctions electronically through Core Banking Solution (E- Kuber) System between 10.30 a.m. and 12.00 noon on the date of underwriting auction.

4.The underwriting commission will be credited to the current account of the respective PDs at the RBI, Fort, Mumbai on the date of issue of securities.

Ajit Prasad Assistant General Manager