RBI/2018-19/67
Ref.No.IDMD/1077/08.02.032/2018-19
October
29, 2018
All Scheduled Commercial Banks
All State Co-operative Banks/All Scheduled Primary
(Urban) Co-operative Banks/All Financial Institutions/
All Primary Dealers.
Dear Sir/Madam,
Auction
of Government of India Dated Securities
Government of India has offered
to sell (re-issue) five dated securities for notified amount of ? 11,000 crore as
per the following details:
Sr
No
|
Security
|
Notified
Amount
(in ? crore)
|
GoI
Notification
|
Auction
Date
|
Settlement
date
|
1
|
6.65% GS 2020
|
2,000
|
F.No.4(6) W&M/2018 dated
Oct 29, 2018
|
Nov
02, 2018
(Friday)
|
Nov
05, 2018
(Monday)
|
2
|
7.59% GS 2026
|
2,000
|
3
|
7.17% GS 2028
|
3,000
|
4
|
7.50% GS 2034
|
1,000
|
5
|
7.06% GS 2046
|
3,000
|
|
Total
|
11,000
|
|
|
|
Subject to the limit of ? 11000
Cr being total notified amount, GoI will have the option to retain
additional subscription up to ? 1000 Cr each against any one or more of the
above securities.
The auction for securities will
be price based using multiple price
method. The Reserve Bank of India at
Mumbai will conduct the auctions. The salient features of the auctions and
the terms and conditions governing the issue of the Stocks are given in the
notifications (copies enclosed), which should be read along with the General Notification F.No.4(2)–W&M/2018, dated March
27, 2018 issued by Government of India.
2. We wish to draw your
attention, in particular, to the following:
(i) The Stocks will be issued
for a minimum amount of ? 10,000/- (nominal) and in multiples of ? 10,000/-
thereafter.
(ii) In all the auctions,
Government Stock up to 5% of the notified amount of sale will be allotted
to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in
the Auctions of Government Securities. Each bank or PD on the basis of firm
orders received from their constituents will submit a single consolidated
non-competitive bid on behalf of all its constituents in electronic format
on the Reserve Bank of India Core Banking Solution (E-Kuber) system.
Allotment under the non-competitive segment to the bank or PD will be at
the weighted average rate of yield/price that will emerge in the auction on
the basis of the competitive bidding.
(iii) Both competitive and non-competitive
bids for the auction should be submitted in electronic format on the
Reserve Bank of India Core Banking Solution (E-Kuber) system on Nov 02, 2018. Bids
in physical form will not be accepted except in extraordinary
circumstances. The non-competitive bids should be submitted between 10.30
a.m. and 11.30 noon and the competitive bids should be submitted between
10.30 a.m. and 12.00 p.m.
(iv) An investor can submit more
than one competitive bid at different prices in electronic format on the
Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the
aggregate amount of bids submitted by a person in an auction should not
exceed the notified amount of auction.
(v) On the basis of bids
received, the Reserve Bank will determine the minimum price up to which
tenders for purchase of Government Stock will be accepted at the auctions.
Bids quoted at rates lower than the minimum price determined by the Reserve
Bank of India will be rejected. Reserve Bank of India will have the full
discretion to accept or reject any or all bids either wholly or partially
without assigning any reason.
(vi) The result of the auctions
will be announced on Nov
02, 2018 (Friday) and payment by successful
bidders will be on Nov 05,
2018 (Monday).
(vii) The Government Stocks will
be issued by credit to Subsidiary General Ledger Account (SGL) of parties
maintaining such account with Reserve Bank of India or in the form of Stock
Certificate. Interest on the Government Stock will be paid half-yearly.
(viii) The Government Stocks
will be repaid at par on Apr
09, 2020; Jan 11, 2026; Jan 08, 2028; Aug 10, 2034; and Oct 10, 2046 respectively.
(ix) The Stocks will qualify for
the ready forward facility.
(x) The Stocks will be eligible
for “When Issued” trading during the period Oct 30-Nov 02, 2018 in accordance with guidelines on ‘When Issued’
transactions in Central Government Securities issued by Reserve Bank of
India vide circular No.RBI/2006-07/178 dated
November 16, 2006 as amended from time to time.
Yours faithfully
(Arvind Kumar)
General Manager
|