RBI to auction govt securities worth ₹33,000 cr on 2 Sept. Details here
2 min read . Updated: 29 Aug 2022, 10:01 PM IST
Premium- The Centre will also have the option to retain an additional subscription of ₹2 crore against each security. Notably, RBI fixed September 5 as the settlement date for these securities.
The Reserve Bank of India (RBI) will be auctioning four dated government securities worth ₹33,000 crore on September 2. The Centre will also have the option to retain an additional subscription of ₹2 crore against each security. Notably, RBI fixed September 5 as the settlement date for these securities. Both competitive and non-competitive bids for the auction should be submitted in electronic format on RBI's core banking solution (E-Kuber) system.
These four government securities as per Finance Ministry are:
– 6.69% Government Security 2024 amounting to ₹4,000 crore.
– 7.10% Government Security 2029 aggregating ₹7,000 crore.
– 7.26% Government Security 2032 worth ₹13,000 crore. This would be the highest security for the auction in value terms. It also has the highest coupon rate among the four dated securities.
– 6.95% Government Security 2061 aggregating to ₹9,000 crore.
The auctions will be conducted by RBI in the Mumbai office on September 2, 2022.
In its statement, FinMin said, up to 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.
On September 2, 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 am.
It added, that the result of the auctions will be announced on September 02, 2022 (Friday) and payment by successful bidders will be on September 05, 2022 (Monday).
RBI in its statement said, bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by ‘Primary Dealers’ from 09.00 a.m. up to 09:30 a.m. on September 02, 2022 (Friday) on the Reserve Bank of India Core Banking Solution (E-Kuber) system.
The Stocks will be eligible for “When Issued" trading for a period commencing from August 30 - September 02, 2022.
Each bank or Primary Dealer (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 RBI's E-Kuber system.
Individual investors can also place bids as per the non-competitive scheme through the Retail Direct portal.
Allotment under the non-competitive segment to the bank or PD will be at the weighted average rate of yield/price of the successful bids that will emerge in the auction on the basis of the competitive bidding.
