Government of India Announces Auction for Sale (Re-issue) of Government Securities
The Government of India (GoI) has announced an auction for the re-issue of three Government Securities (GS) scheduled for September 06, 2024. The securities on offer are as follows:
- 7.02% Government Security 2027: Notified amount of ₹6,000 crore (nominal).
- 7.23% Government Security 2039: Notified amount of ₹12,000 crore (nominal).
- 7.34% Government Security 2064: Notified amount of ₹11,000 crore (nominal).
These re-issues will be conducted through a price-based auction using the multiple price method. Additionally, the government retains the option to accept up to ₹2,000 crore in additional subscriptions for each of these securities.
Auction Details
Auction Date: Friday, September 06, 2024.
Conducting Authority: The auctions will be conducted by the Reserve Bank of India (RBI) at its Mumbai Office, Fort, Mumbai.
Allotment to Eligible Bidders: Up to 5% of the notified amount will be reserved for eligible individuals and institutions through the Non-Competitive Bidding Facility.
Bidding Process
Both competitive and non-competitive bids for the auction are to be submitted electronically via the RBI Core Banking Solution (E-Kuber) system. Submission timelines for bids are as follows:
Non-Competitive Bids: 10:30 a.m. to 11:00 a.m.
Competitive Bids: 10:30 a.m. to 11:30 a.m.
The auction results will be announced later on September 06, 2024, & payments by successful bidders are due by September 09, 2024.
When Issued Trading
The securities will be eligible for “When Issued” trading, in accordance with the RBI’s guidelines on ‘When Issued transactions in Central Government Securities’ as outlined in circular No. RBI/2018-19/25 dated July 24, 2018 and its subsequent amendments.
This auction offers a valuable opportunity for investors looking to participate in government securities with varying maturity periods. For more information, investors can visit the Reserve Bank of India’s official website.
