News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Circulars »
 1 Cr LPA-Opening Senior Chartered Accountant
 Directions for Central Counterparties (CCPs)
 Scheme for Reimbursement of MDR- withdrawal of RBI circulars
  RBI-Directions for Central Counterparties (CCPs)
 National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) systems – Waiver of charges
 Sale of Securities held in Held to Maturity (HTM) Category - Accounting treatment
 Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks - Sale of investments held under Held to Maturity (HTM) category
  RBI releases Prudential Framework for Resolution of Stressed Assets
  RBI releases Prudential Framework for Resolution of Stressed Assets
 RBI releases Prudential Framework for Resolution of Stressed Assets
  RBI-Statement on Developmental and Regulatory Policies

Auction of Government of India Dated Securities May20, 2019
May, 21st 2019

RBI/2018-19/185
Ref.No.IDMD/3257/08.02.032/2018-19

May 20, 2019

All Scheduled Commercial Banks
All State Co-operative Banks/All Scheduled Primary
(Urban) Co-operative Banks /All Financial Institutions/
All Primary Dealers.

Dear Sir/Madam,

Auction of Government of India Dated Securities

Government of India has offered to sell (re-issue) four dated securities for a notified amount of 17,000 crore as per the following details:

Sr No Security Notified Amount
(in crore)
GoI Notification Auction Date Settlement date
1 7.32% GS 2024 5,000 F.No.4(6) W&M/2019 dated
May 20, 2019
May 24, 2019
(Friday)
May 27, 2019
(Monday)
2 7.26% GS 2029 6,000
3 7.69% GS 2043 2,000
4 7.72% GS 2049 4,000
  Total 17,000      

Subject to the limit of 17000 Cr being total notified amount, GoI will have the option to retain additional subscription up to 1000 Cr each against any one or more of the above securities.

The auction will be price based using multiple price method. The Reserve Bank of India at Mumbai will conduct the auctions. The salient features of the auctions and the terms and conditions governing the issue of the Stocks are given in the notifications (copies enclosed), which should be read along with the General Notification F.No.4(2)–W&M/2018, dated March 27, 2018 issued by Government of India.

2. We wish to draw your attention, in particular, to the following:

(i) The Stocks will be issued for a minimum amount of 10,000/- (nominal) and in multiples of 10,000/- thereafter.

(ii) In all the auctions, Government Stock up to 5% of the notified amount of sale will be allotted to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities. Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. Allotment under the non-competitive segment to the bank or PD will be at the weighted average rate of yield/price that will emerge in the auction on the basis of the competitive bidding.

(iii) 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 May 24, 2019. Bids in physical form will not be accepted except in extraordinary circumstances. The non-competitive bids should be submitted between 11.30 a.m. and 12.00 noon and the competitive bids should be submitted between 11.30 a.m. and 12.30 pm.

(iv) 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).

(v) An investor can submit more than one competitive bids in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.

(vi) On the basis of bids received, the Reserve Bank will determine the minimum price up to which tenders for purchase of Government Stock will be accepted at the auctions. Bids quoted at rates lower than the minimum price determined by the Reserve Bank of India will be rejected. Reserve Bank of India will have the full discretion to accept or reject any or all bids either wholly or partially without assigning any reason.

(vii) The result of the auctions will be announced on May 24, 2019 (Friday) and payment by successful bidders will be on May 27, 2019 (Monday).

(viii) The Government Stocks will be issued by credit to Subsidiary General Ledger Account (SGL) of parties maintaining such account with Reserve Bank of India or in the form of Stock Certificate. Interest on the Government Stock will be paid half-yearly.

(ix) The Government Stocks will be repaid at par on Jan 28, 2024; Jan 14, 2029; Jun 17, 2043; Jun 15, 2049 respectively.

(x) The Stocks will qualify for the ready forward facility.

(xi) The Stocks will be eligible for “When Issued” trading during the period May 21 – May 24, 2019 in accordance with guidelines on ‘When Issued’ transactions in Central Government Securities issued by Reserve Bank of India vide circular No. RBI/2018-19/25 dated July 24, 2018 as amended from time to time.

Yours faithfully

(Arvind Kumar)
General Manager

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions