Govt announces sale of floating rate bonds
The auctions will be conducted using multiple price methods and done by the Reserve Bank of India (RBI) on January 25
The government has announced the sale (re-issue) of "Floating Rate Bonds 2024" for a notified amount of Rs 3,000 crore (nominal) through price based auction on January 25.
It will also sale “7.17 per cent Government Stock, 2028” for a notified amount of Rs 8,000 crore (nominal) through price based auction. Subject to the limit of Rs 11,000 crore, being total notified amount, the Government of India will have the option to retain additional subscription up to Rs 1,000 crore each against any one or more of the above securities.
The auctions will be conducted using multiple price method and will be done by the Reserve Bank of India (RBI) on January 25.
Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions according to the Scheme for Non-Competitive Bidding Facility in the Auction of Government 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 January 25, 2018. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.
The result of the auctions will be announced on January 25 itself and payment by successful bidders will be on January 29, 2018.
The stocks 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 (RBI).