The Ministry of Finance notified that the government announced the sale (re-issue) of government securities. The notification stated that up to 5% of the notified amount of the sale of securities would be allotted to eligible institutions and individuals under the ‘Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities’.
As per the notification, the government has announced the sale (issue/re-issue) of the following four securities for a notified amount of Rs.39,000 crore:
- The ‘New Government Security 2026’ for a notified amount of Rs.8,000 crore through the yield-based auction using a uniform price method
- The ‘New Government Security 2030’ for a notified amount of Rs.7,000 crore through the yield-based auction using a uniform price method
- The ‘7.41% Government Security 2036’ for a notified amount of Rs.12,000 crore through a price-based auction using a uniform price method
- The ‘7.40% Government Security 2062’ for a notified amount of Rs.12,000 crore through a price-based auction using the multiple price method.
The government will keep the option to reserve up to Rs.2,000 crore additional subscriptions against all securities. The Reserve Bank of India (RBI) will conduct the auctions on 13 April 2023. Eligible persons must submit competitive and non-competitive bids for the auction on the RBI Core Banking Solution (E-Kuber) system on 13 April 2023.
They must submit the competitive bids between 10:30 a.m. and 11:30 a.m. and the non-competitive bids between 10:30 a.m. and 11:00 a.m. The primary dealers can submit the bids for the underwriting of the Additional Competitive Underwriting (ACU) portion from 09.00 a.m. to 09:30 a.m. on 13 April 2023 on the E-Kuber system. The RBI will announce the result of the auctions on 13 April, and the successful bidders must make the payment by 17 April 2023.
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