Government of India announces Repurchase of Government Stock of Rs. 10,000 crore
By RBIWednesday, June 16, 2010
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The Governments of India in consultation with the Reserve Bank of India have announced, vide its Notification No. F.No.4(3)-W&M/2010 dated June 16, 2010 (NotificationUser.aspx?Id=5729&Mode=0) , repurchase of (i) 12.25 per cent Government Stock 2010, (ii) 11.30 per cent Government Stock 2010 and (iii) 6.57 per cent Government Stock 2011 for their cash management operations. The repurchase of the Government Stocks will be up to a nominal amount of Rs. 20,000 crore to be undertaken in one or multiple tranches. The repurchase operations are purely of ad hoc nature and will be funded through the current surplus cash balances of the Government. 2. Accordingly, it has been decided to repurchase the above Government Stocks for an aggregate amount of Rs.10,000 crore through multi-security auction using the multiple price method on June 18, 2010 (Friday). The settlement would be on June 21, 2010 (Monday). 3. The repurchase operations of the Government will have the following features: (a) There is an overall aggregate ceiling amount of Rs.10,000 crore for all the securities in the basket put together. There is no security-wise notified amount. (b) The Reserve Bank of India reserves the right to: (i) Decide on the quantum of purchase of individual securities, (c) The auction shall be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on June 18, 2010 (Friday). (d) Offers for the auction should be submitted in electronic format using Open Market Operation (OMO) module of NDS. The bids should be submitted between 10.30 A.M. and 12.30 P.M. (e) The result of the auction will be announced on June 18, 2010 and payment to successful offerers will be made during the banking hours on June 21, 2010 (Monday). Successful offerers may note to make available the requisite amount of securities in their SGL account in the forenoon on June 21, 2010 (Monday). G. Raghuraj Press Release : 2009-2010/1714 |
