Govt to repurchase Rs 20,000 crore of bonds in reverse auction: FinMin

The Ministry of Finance on Saturday notified the repurchase of its Securities through reverse auction for an aggregate amount of Rs 20,000 crore (face value), the Reserve Bank of India said. 

Government has announced the repurchase of its Securities through reverse auction for an aggregate amount of Rs. 20,000 crore (face value).

— Ministry of Finance (@FinMinIndia) October 22, 2016

As per the apex bank, the repurchase by the Government will be undertaken to redeem prematurely the Government Stocks by utilizing surplus cash balances.

The repurchase by the Government of India will be undertaken to redeem prematurely the Government Stocks by utilizing surplus cash balances.

— Ministry of Finance (@FinMinIndia) October 22, 2016

Auction for securities will be on price-based auction format, the RBI said.

"The auctions will be conducted using multiple price method. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on October 24, 2016 (Monday) between 10.30 a.m. and 12.00 noon. The result of the auctions will be announced on the same day & settlement will take place on October 25, 2016", said the RBI.