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Auction for Sale (Re-Issue) of Government Securities: Here's what you need to know

 


• The ministry said that up to 5% of the notified amount of the sale of securities will be allocated to eligible individuals and institutions as per the Non-Competitive Bidding Facility Scheme

The Finance Ministry said in a statement today that the government has announced the sale (re-issue) of government securities.

The ministry said that up to 5% of the notified amount of the sale of securities will be allocated to eligible individuals and institutions under the Scheme for Non-Competitive Bidding Facility in the auction of government securities.

The securities 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. The ministry said that amendments are made from time to time.

The notification states that the government has announced the sale (re-issue) of -

(i) "7.10% GOI SGrB 2028" for a notified amount of ₹4,000 crore (nominal) through price based auction using the uniform price method

(ii) “7.29% GOI SGrB 2033” for a notified amount of ₹4,000 crore (nominal) through price based auction using the uniform price method.

The Government will have the option to retain additional subscription up to ₹2,000 crore for each of the above mentioned security. The auctions will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai on February 09, 2023 (Thursday).

"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 09, 2023. The bids should be submitted between 10.30 am to 11.30 am," the ministry said.

The result of the auctions will be announced on February 09, 2023 (Thursday) and payment by successful bidders will be made on February 10, 2023 (Friday).

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