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Auction of State Government Securities (Revised)
February, 04th 2019

The following State Governments have offered to sell securities by way of auction for an aggregate amount of  24,600 Cr (Face Value) which is revised due to addition of Government of Haryana.

Sr. No. State Amount to be raised
( Cr)
Tenure
(Years)
Type of Auction
1. Andhra Pradesh 1000 9 Yield
2. 1500 12 Yield
3. Assam 1000 10 Yield
4. Bihar 2000 10 Yield
5. Chhattisgarh 1000 6 Yield
6. Goa 200 10 Yield
7. Gujarat * 1000 10 Yield
8. Jammu & Kashmir 800 10 Yield
9. Jharkhand 1000 10 Yield
10. Karnataka 2000 10 Yield
11. Kerala 1000 10 Yield
12. Madhya Pradesh 1000 Re-issue Price (Re-issue of 08.37% MP SDL 2028 issued on December 05, 2018)
13. Manipur 200 10 Yield
14. Punjab 1000 10 Yield
15. Rajasthan 1500 10 Yield
16. Tamil Nadu * 1200 Re-issue Price (Re-issue of 08.08% TN SDL 2028 issued on December 26, 2018)
17. Tripura 200 10 Yield
18. Uttar Pradesh 3000 10 Yield
19. West Bengal 2000 20 Yield
20. Haryana 2000 20 Yield
  Total 24600    
* Gujarat and Tamil Nadu will have an option to retain additional amount of up to 300 crore each

The auction will be conducted on the Reserve Bank of India Core Banking Solution (E-Kuber) system on February 05, 2019 (Tuesday). The Government Stock up to 10% of the notified amount of the sale of each stock will be allotted to eligible individuals and institutions subject to a maximum limit of 1% of its notified amount for a single bid per stock as per the Scheme for Non-competitive Bidding Facility (available on RBI website).

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 February 05, 2019 (Tuesday). The non-competitive bids should be submitted between 10.30 A.M. and 11.30 A.M. and the competitive bids should be submitted between 10.30 A.M. and 12.00 noon.

Only in the event of system failure, physical bids would be accepted. Such physical bids should be submitted to the Public Debt Office (email; Phone no: 022-22632527, 022-22701299) in the prescribed form obtainable from RBI website (https://www.rbi.org.in/Scripts/BS_ViewForms.aspx) before the auction timing ends. In case of technical difficulties, Core Banking Operations Team should be contacted (email; Phone no: 022-27595414, 022-27595666). For other auction related difficulties, IDMD auction team can be contacted (email; Phone no: 022-22702431, 022-22705125).

The yield percent per annum expected by the bidder should be expressed up to two decimal points. An investor can submit more than one competitive bid at different prices in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a bidder should not exceed the notified amount for each State.

The Reserve Bank of India will determine the maximum yield /minimum price at which bids will be accepted. Securities will be issued for a minimum nominal amount of 10,000.00 and multiples of 10,000.00 thereafter.

The results of the auction will be announced on February 05, 2019 (Tuesday) and payment by successful bidders will be made during banking hours on February 06, 2019 (Wednesday) at Mumbai and at respective Regional Offices of RBI.

The State Government Stocks will bear interest at the rates determined by RBI at the auctions. Interest will be paid half yearly on August 06 and February 06 of each year till maturity for the new securities. The Stocks will be governed by the provisions of the Government Securities Act, 2006 and Government Securities Regulations, 2007.

The investment in State Government Stocks will be reckoned as an eligible investment in Government Securities by banks for the purpose of Statutory LiquidityRatio (SLR) under Section 24 of the Banking Regulation Act, 1949. The stocks will qualify for the ready forward facility.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/1833

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