FinMin announces auction for sale of government stocks

Finance Ministry has announced the auction for sale (re-issue) of government stocks through multiple price method. The Reserve Bank of India, Mumbai office, will conduct the auctions on Friday, said a statement today.

Issuing a statement, the Ministry said, "Government of India has announced the sale (issue/re-issue) of (i) “6.84 per cent government stock, 2022” for a notified amount of  Rs 5,000 crore (nominal) through price based auction, (ii) “New government stock of 10 year tanor” for a notified amount of Rs 9,000 crore (nominal) through yield based auction, (iii) “7.73 per cent government stock  2034” for a notified amount of Rs 2,000 crore (nominal) through price based auction, (iv) “7.72 per cent government stock, 2055” for a notified amount of  Rs 2,000 crore (nominal) through price based auction."
 
The statement, howevwer, said this is subject to the limit of Rs 18,000 crore, being total notified amount, GoI will have the option to retain additional subscription up to Rs 1,000 crore against any of the above security. 

"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," the Finance Ministry said. 

Further, it said that both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 05, 2018. 

"The non-competitive bids should be submitted between 10.30 am and 11.30 am and the competitive bids should be submitted between 10.30 am and 12 noon," the statement added.   

The auction results will be announced on Friday and payment by successful bidders will be on Monday.