Team News Riveting
Mumbai, May 3
The Reserve Bank of India (RBI) on Monday announced sale of four government dated securities totalling Rs 32,000 crore.
The securities will be sold through the Reserve Bank of India’s Mumbai office on May 10.
“Government of India (GOI) has announced the sale (re-issue) of four dated securities for a notified amount of Rs 32,000 crore,” the RBI said on Monday, adding that the government will have the option to retain additional subscription up to Rs 8,000 crore against above security/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 May 07, 2021. 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 10.30a.m. and 11.30 a.m. “The result will be announced on the same day and payment by successful bidders will have to be made on May 10, 2021 (Monday),” the RBI said.
The auction will be a multiple price-based auction i.e. successful bids will get accepted at their respective quoted price for the security. 2. The auction will be yield based for new security and price based for securities which are re-issued. 3. In case of a Floating Rate Bonds (FRB), the auction will be spread-based for new security and price based for securities which are reissued. At the time of placing bids for new FRB, the spread should be quoted in percentage terms. Minimum Bid Size4.
The Stocks will be issued for a minimum amount of Rs 10,000/- (nominal) and in multiples of Rs 10,000/- thereafter.
