Government of India announce repurchase auction of GOI dated Securities

The Government of India, in consultation with the Reserve Bank of India have announced, vide its Notification No. F.No.4(3)-W&M/2010 dated October 21, 2010, repurchase of (i) 8.75 per cent Government Stock 2010 for the entire outstanding amount of Rs.500.22 crore, (ii) 12.32 per cent Government Stock 2011 for the entire outstanding amount of Rs.9,462 crore and (iii) 6.57 per cent Government Stock 2011 for the entire outstanding amount for Rs.18,590.50 crore, for their cash management operations. The repurchase of the Government Stocks will be undertaken in one or more tranches. The repurchase operations would be purely of ad hoc in nature and will be funded through the current surplus cash balances of the Government of India.

Accordingly, it has been decided to repurchase the above Government Stocks for an aggregate amount of Rs.12,000.00 crore through multi-security auction using the multiple price method on October 25, 2010 (Monday). The settlement would be on October 26, 2010 (Tuesday).

The repurchase operations of the Government will have the following features:

(a) There is an overall aggregate ceiling amount of Rs.12,000 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:

1. Decide on the quantum of purchase of individual securities,
2. Accept less than the aggregate amount of Rs.12,000.00 crore
3. Purchase marginally higher than the aggregate amount due to rounding off effects,
4. Accept or reject any or all of the offers either wholly or partially if deemed fit without assigning reason.

(c) The auction shall be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on October 25, 2010 (Monday).

(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 October 25, 2010 and payment to successful offerers will be made during the banking hours on October 26, 2010 (Tuesday). Successful offerers may note to make available the requisite amount of securities in their SGL account in the forenoon on October 26, 2010 (Tuesday).

Ajit Prasad
Assistant General Manager

Press Release : 2010-2011/560