Friday, June 6, 2008

Auction of government stock

by Jo Black

Indian federal government has announced the sale (re-issue) of 7.59 percent Government Stock 2016, for a notified amount of Rs. 60 billion or $1.53 billion (nominal) through a price based auction using the multiple price method.

Government of India has also announced the sale (re-issue) of 7.95 percent Government Stock 2032, for a notified amount of Rs. 40 billion or $1.02 billion (nominal) through a price based auction using the multiple price method.

The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on May 9, 2008.

Up to 5% of the notified amount of the sale of both the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Bids in the prescribed form obtainable from the Regional Director, Reserve Bank of India, Mumbai Office (Public Debt Office), Fort, Mumbai-400 001 and should be submitted to that Office on May 9, 2008.

The NDS members should submit competitive as well as non-competitive bids in electronic format using Primary Market Operation (PMO) module of NDS. All bids should be submitted by 12.30 P.M.

The result of the auctions will be announced on May 9, 2008 and payment by successful bidders will be during banking hours on May 12, 2008.

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 vide circular No. RBI /2006-07/178 dated November 16, 2006.

 

 

 

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