The Finance Ministry has announced the sale of Government bonds worth Rs 28,000 crore through three separate auctions. These auctions will be conducted by the Reserve Bank of India (RBI) in Mumbai on Friday, July 5th.
The first lot consists of “7.02 per cent Government Security 2027” with a notified amount of Rs 6,000 crore. The second lot, valued at Rs 12,000 crore, comprises “7.23 per cent Government Security 2039”. Finally, the third lot consists of “7.30 per cent Government Security 2053” for a notified amount of Rs 10,000 crore.
All three lots will be sold through a price-based auction employing the multiple price method. The government retains the option to retain additional subscriptions up to Rs 2,000 crore against each of the three securities.
Up to 5 per cent of the notified amount for the sale of these securities 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 must be submitted electronically on the RBI Core Banking Solution (E-Kuber) system on July 5th. Non-competitive bids should be submitted between 10.30 a.m. and 11.00 a.m., while competitive bids are to be submitted between 10.30 a.m. and 11.30 a.m.
The results of the auctions will be announced on July 5th, 2024 (Friday), with payment by successful bidders due on June 8th (Monday). These securities will be eligible for “When Issued” trading in accordance with RBI guidelines.
