Government of India announce the sale of three dated securities for ` 13,000 crore on November 25, 2011

The Government of India have announced the sale (re-issue) of (i) “Floating Rate Bond 2020” for a notified amount of  `3,000 crore (nominal) through price based auction. The variable interest rate for payment of interest on FRB 2020 will be the average of the implicit yields at cut-off prices of last three auctions of Government of India 182 day Treasury Bills. The reset of variable interest rates will be made semi-annually and will be announced by the Reserve Bank of India on or before the commencement of the respective coupon periods. (ii) “9.15 percent Government Stock 2024” for a notified amount of  `6,000 crore (nominal) through price based auction and (iii) “8.30 percent Government Stock 2040” for a notified amount of  `4,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on November 25, 2011 (Friday).

Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Negotiated Dealing System (NDS) on November 25, 2011. 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 12.30 p.m.

The result of the auctions will be announced on November 25, 2011 and payment by successful bidders will be on November 28, 2011 (Monday). 

The stocks will qualify for the ready forward facility.

The underwriting of the Government Securities under auctions by the ‘Primary Dealers’ will be as per the “Revised Scheme of Underwriting Commitment and Liquidity Support” announced by the Reserve Bank vide circular RBI/2007-08/186 dated November 14, 2007. Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by ‘Primary Dealers’ from 10.30 AM to 12.30 P.M. on November 24, 2011 (Thursday) on the Negotiated Dealing System (NDS).

The Stocks will be eligible for “When Issued” trading from November 22- November 25, 2011 in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI /2006-07/178 dated November 16, 2006 as amended from time to time.

Ajit Prasad
Assistant General Manager

Press Release : 2011-2012/800