PIB News Update: Government of India has announced the Sale (Issue/Re-issue) of (i) ‘New Government Stock, 2025’ for a notified amount of ` 12,000 crore (nominal) through yield based auction, (ii) ‘6.19 percent Government Stock, 2034’ for a notified amount of ` 11,000 crore (nominal) through price based auction, and (iii) ‘7.16 per cent Government Stock, 2050’ for a notified amount of ` 7,000 crore (nominal) through price based auction. GoI will have the option to retain additional subscription up to ` 2,000 crore each against any one or more of the above securities. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on June 12, 2020 (Friday) using multiple price method. 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.
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 June 12, 2020. The non-competitive bids should be submitted between 10.30 a.m. and11.00 a.m. and the competitive bids should be submitted between 10.30 a.m. and11.30 a.m. The result of the auctions will be announced on June 12, 2020 (Friday) and payment by successful bidders will be on June 15, 2020 (Monday).
The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2018-19/25 dated July 24, 2018 as amended from time to time.