Govt to issue three dated securities worth Rs24,000cr for auction on January 14

11 Jan 2022 , 11:05 AM

The Indian government has announced the sale (issue/re-issue) of three dated securities aggregating to Rs24,000cr. The auction of these securities will be conducted on January 14, 2022.

The securities are – (i) New Government Security, 2032’ for a notified amount of Rs 13,000 crore (nominal) through price based auction using uniform price method; (ii) ‘‘GoI Floating Rate Bonds, 2034’ for a notified amount of Rs 4,000 crore (nominal) through price based auction using uniform price method; and (iii) ‘6.95% Government Security 2061’ for a notified amount of Rs 7,000 crore (nominal) through price based auction using multiple price method.

Furthermore, the government also has the option to retain additional subscriptions up to Rs 2,000 crore each against one or more security/ies.

About 5% of the notified amount of the sale of the Securities will be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

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 14, 2022. The non-competitive bids should be submitted between 10.30 a.m. and 11.00 a.m.and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m.

The result of the auctions will be announced on January 14, 2022  (Friday) and payment by successful bidders will be on January 17, 2022 (Monday).