Govt to sell securities worth Rs18,000 crore on 14 July
RBI says 5% of the amount will be allotted for eligible institutions as per the scheme for non-competitive bidding facility in the auction of govt securities
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New Delhi: The Reserve Bank of India (RBI) on Monday said the government will sell four dated securities for Rs18,000 crore on 14 July through auction.
The auction will be conducted using the multiple price method. Up to five percent of the amount will be allotted for eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities, RBI said.
The result of the auctions will be announced on the same day, the central bank said in a statement.
Payment by successful bidders will be on 17 July. Both competitive and non-competitive bids for the auction have to be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. The stocks will qualify for the ready forward facility, RBI said.
The government has plans to borrow Rs3.72 trillion from markets in the first half of the current fiscal, which is about 64% of the borrowing target for full year. To finance the fiscal deficit of 3.2% of GDP for 2017-18, the Budget had pegged gross borrowing at Rs5.8 trillion and net borrowing at Rs4.25 trillion.