RBI/2016-17/307 Ref. No. IDMD/3010/08.02.032/2016-17 May 22, 2017 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) four dated securities for notified amount of ? 15,000 crore as per the following details: Sr No | Security | Notified Amount (in ? crore) | GoI Notification | Auction Date | Settlement date | 1 | GoI FRB 2024 | 3,000 | 4(7)-W&M/2017 dated May 22, 2017. | May 26, 2017 (Friday) | May 29, 2017 (Monday) | 2 | 6.79% GS 2027 | 8,000 | 4(7)-W&M/2017(i) dated May 22, 2017. | 3 | 7.73% GS 2034 | 2,000 | 4(7)-W&M/2017(ii) dated May 22, 2017. | 4 | 7.06% GS 2046 | 2,000 | 4(7)-W&M/2017(iii) dated May 22, 2017. | | Total | 15,000 | | | | 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 (13)–W&M/2008, dated October 8, 2008 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 May 26, 2017.
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 a.m. and the competitive bids should be submitted
between 10.30 a.m. and 12.00 noon. (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 May 26, 2017 (Friday). and payment by successful bidders will be on May 29, 2017 (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 November 07, 2024; May 15, 2027; December 19, 2034, and October 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 May 23-May 26, 2017,
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 (Arun Bhagoliwal) Deputy General Manager |