RBI announces sale of Rs15,000-crore of government bonds
26 July 2010
The Reserve Bank of India (RBI) today announced the sale of Government of India stock for a total amount of Rs15,000 crore, in bid to suck off extra liquidity in the system.
The RBI will sell (re-issue) 7.17 per cent 2015 government stock for a notified amount of Rs5,000 crore, 7.80 per cent 2020 stock for a notified amount of Rs5,000 crore, 8.24 per cent 2027 stock for a notified amount of Rs3,000 crore and 8.30 per cent 2040 stock for a notified amount of Rs2,000 crore through price-based auctions.
The stocks will be issued for a minimum amount of Rs10,000 and in multiples of Rs10,000 thereafter, an RBI 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 30 July 2010. 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 auctions will be conducted by the Reserve Bank of India Mumbai Office, Fort, Mumbai, using uniform price method, RBI said in a release.