Underwriting Auctions for Government Securities

The Government of India have announced the sale (reissue) of “7.99 per cent Government Stock 2017” for a notified amount of ` 4,000 crore (nominal), "8.08 per cent Government Stock 2022" for a notified amount of ` 5,000 crore (nominal) and "8.30 per cent Government Stock 2040” for a notified amount of ` 2,000 crore (nominal) respectively, through auctions to be held on October 22, 2010. The underwriting auctions for the captioned securities will be conducted on October 21, 2010 (Thursday).

As per revised scheme of underwriting, dated November 14, 2007, the amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under Additional Competitive Underwriting (ACU) for the underwriting auctions, per Primary Dealer, are as under:

The underwriting auctions will be conducted using multiple price based auction method. Primary Dealers (PDs) may submit their bids for ACU auctions electronically through Negotiated Dealing System (NDS) between 10.30 a.m. and 12.30 p.m. on October 21, 2010 (Thursday).

The underwriting commission will be credited to the current account of the respective PDs at the RBI, Fort, Mumbai   on the date of issue of securities.

 Ajit Prasad
Assistant General Manager

Press Release : 2010-2011/548