Auction for sale (re-issue) of govt securities: Here’s what you need to know

Market


NEW DELHI : The Ministry of Finance today said in a statement that the Government of India has announced the Sale (Re-issue) government securities.

The ministry said that up to 5% of the notified amount of the sale of the securities will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities.

The Securities will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2018-19/25 dated July 24, 2018 as amended from time to time, the ministry said.

The notification said that the government has announced the sale (re-issue) of –

(i) “7.38% Government Security 2027“ for a notified amount of 7,000 crore (nominal) through price based auction using uniform price method

(ii) “7.26% Government Security 2032“ for a notified amount of 12,000 crore (nominal) through price based auction using uniform price method

(iii) “7.36% Government Security 2052“ for a notified amount of 9,000 crore (nominal) through price based auction using multiple price method.

The government will have the option to retain additional subscription up to 2,000 crore against each security mentioned above. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on 25 November, 2022 (Friday).

“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 November 25, 2022. The non-competitive bids should be submitted between 10.30 a.m. and 11.00 a.m. and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m,“ the ministry said.

The result of the auctions will be announced on 25 November, 2022 (Friday) and payment by successful bidders will be on 28 November, 2022 (Monday).

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less



Source link

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments