Government notifies auction of Rs15,000 crore bonds
22 May 2009
The Government of India has announced the sale (re-issue) of government stock for a total amount of Rs15,000 crore on 28 May, a government press release said.
The Reserve Bank of India will conduct price-based auction of `7.59 per cent stock maturing in 2016, for a notified amount of Rs6,000 crore; `7.94 per cent, 2021' stock for a notified amount of Rs3,000 crore; `8.24 per cent 2027' stock for a notified amount of Rs3,000 crore and `7.40 per cent 2035' stock for a notified amount of Rs3,000 crore on 28 May.
The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai, using uniform price method, the release said.
Up to 5 per cent 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 28 May 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 release said.
The result of the auctions will be announced on the same day and payment by successful bidders will be on 29 May 2009.
The stocks will be eligible for ''when issued'' trading in accordance with the guidelines issued by the Reserve Bank of India from time to time, the release added.
