Underwriting Auctions for Government securities

By RBI
Wednesday, November 23, 2011

The Government of India have announced the sale (re-issue) of (i) "Floating Rate Bonds 2020for a notified amount of `3,000 crore (nominal), (ii) " 9.15 per cent Government  Stock 2024" for a notified amount of `6,000 crore (nominal) and (iii) "8.30 per cent Government Stock  2040for a notified amount of `4,000 crore (nominal) through auctions to be held on November 25, 2011. The underwriting auctions for the captioned securities will be conducted on November 24, 2011 (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:

( ` in crore)                               

Nomenclature of the Security

Notified Amount

MUC amount per Primary Dealer

Minimum bidding commitment per PD under ACU auction

Floating Rate Bond 2020

3,000

72

72

9.15 per cent GS 2024

6,000

143

143

8.30 per cent  GS  2040

4,000

96

96

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 November 24, 2011 (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 : 2011-2012/812

Filed under: Finance

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