Government of India have announced the sale of a new "six year Government Stock" for a notified amount of Rs.8,000 crore (nominal) through a yield based auction. Government of India have also announced the sale (re-issue) of "8.20 percent Government Stock 2022" for a notified amount of Rs. 5,000 crore (nominal) through a price based auction and "7.50 percent Government Stock 2034" for a notified amount of Rs. 2,000 crore (nominal) through a price based auction. All the auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on June 5, 2009 (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 June 5, 2009. 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 June 5, 2009 and payment by successful bidders will be on June 8, 2009 (Monday).
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 vide circular No. RBI /2006-07/178 dated November 16, 2006 as amended from time to time.
As per the indicative calendar, the Government of India was to auction dated securities amounting to Rs.12,000 crore during May 29-June 5, 2009. Instead, the Government of India, in consultation with the Reserve Bank of India, have decided to auction dated securities amounting to Rs.15,000 crore.
Government of India
Ministry of Finance
Department of Economic Affairs
North Block, New Delhi - 110001
Dated June 1, 2009
