TFP Bureau, New Delhi; April 15, 2024: The Government of India (GoI) has revealed plans to conduct auctions for the sale (issue/re-issue) of two government securities: the ‘7.37% Government Security 2028’ and the ‘New Government Security 2064’. The auctions, managed by the Reserve Bank of India (RBI), Mumbai Office, are scheduled for April 19, 2024 (Friday).
The sale of the ‘7.37% GS 2028’ will be carried out for a notified amount of Rs. 12,000 crore (nominal) through a price-based auction using the multiple price method. Similarly, the ‘New GS 2064’ will be auctioned for a notified amount of Rs. 12,000 crore (nominal) using a yield-based auction also employing the multiple price method. The GoI retains the option to accept additional subscriptions of up to Rs. 2,000 crore for each security.
Eligible individuals and institutions can participate in the auction, with up to 5% of the notified amount allocated through the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.
Bidding for both competitive and non-competitive bids must be submitted electronically via the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 19, 2024. Non-competitive bids will be accepted between 10:30 a.m. and 11:00 a.m., while competitive bids can be submitted between 10:30 a.m. and 11:30 a.m.
The auction results will be announced on the same day, April 19, 2024 (Friday), with successful bidders required to make payments by April 22, 2024 (Monday).
These government securities will be eligible for ‘When Issued’ trading following the guidelines outlined in the Reserve Bank of India’s circular No. RBI/2018-19/25 dated July 24, 2018, and subsequent amendments regarding ‘When Issued transactions in Central Government Securities’.
