RBI to Auction Rs 28,000-Crore Government Securities on October 10

The Reserve Bank of India (RBI) has announced that it will conduct an auction of Government of India (GoI) securities worth Rs 28,000 crore on Friday, October 10, as part of its regular borrowing programme, ANI reported. According to the RBI, the auction will be carried out through its Core Banking Solution (e-Kuber) platform at the Mumbai office. The sale includes the re-issue of two long-term bonds - 6.68 per cent Government Security 2040 valued at Rs 16,000 crore and 6.90 per cent Government Security 2065 worth Rs 12,000 crore. The settlement for successful bids will take place on Monday, October 13.

Additional subscription option for investors

As per the RBI notification, the Government retains the option to accept additional subscriptions of up to Rs 2,000 crore for each security. The sale will be conducted using the multiple-price auction method, under which each successful bidder is allotted securities at their respective quoted price or yield.

Add Zee Business as a Preferred Source

For non-competitive bids, submissions will be accepted between 10:30 am and 11:00 am on October 10. Competitive bids can be placed from 10:30 am to 11:30 am the same day. Results of the auction will be announced later that day and payments by successful bidders must be completed by October 13.

Primary Dealers and retail participation

The RBI has also opened the window for Primary Dealers to submit bids for underwriting the Additional Competitive Underwriting (ACU) portion between 9:00 am and 9:30 am on the day of the auction. The bonds will be eligible for "When Issued" trading from October 7 to October 10, allowing transactions before the official issue date.

Retail investors can participate through the RBI Retail Direct portal under the non-competitive bidding scheme which enables individuals to invest directly in government bonds. The minimum bid amount is Rs 10,000 and further bids can be made in multiples of Rs 10,000.

RBI retains discretion over bids

The RBI has said it reserves full discretion to accept or reject any or all bids, either wholly or partially, without assigning reasons. Investors may place more than one competitive bid but the combined total must not exceed the notified amount for the auction.

The sale is part of the Government's regular market borrowing programme aimed at managing fiscal requirements and supporting liquidity in the domestic debt market.