The Finance Ministry has announced the sale of government bonds worth Rs 28,000 crore through auctions to be conducted by the Reserve Bank of India (RBI) in Mumbai on Friday, July 5. This sale is divided into three lots.
Details of the Government Bonds
First Lot: 7.02% Government Security 2027
Notified Amount: Rs 6,000 crore
Second Lot: 7.23% Government Security 2039
Notified Amount: Rs 12,000 crore
Third Lot: 7.30% Government Security 2053
Notified Amount: Rs 10,000 crore
Auction Process
Auction Method
The bonds will be sold through a price-based auction using the multiple price method. The government has the option to retain additional subscriptions up to Rs 2,000 crore for each of the three securities.
Non-Competitive Bidding Facility
Up to 5% of the notified amount of the sale of securities will be allotted to eligible individuals and institutions under the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.
Submission of Bids
Non-Competitive Bids: Submit between 10:30 a.m. and 11:00 a.m. on July 5.
Competitive Bids: Submit between 10:30 a.m. and 11:30 a.m. on July 5.
Bids must be submitted electronically on the RBI Core Banking Solution (E-Kuber) system.
Auction Results and Payment
Announcement of Results
The auction results will be announced on Friday, July 5, 2024.
Payment by Successful Bidders
Payment by successful bidders is due on Monday, July 8, 2024.
Eligibility for “When Issued” Trading
The securities will be eligible for “When Issued” trading as per RBI guidelines.
