New Delhi [India], November 25 (ANI): In a move to manage fiscal requirements, the central government has announced the auction (re-issue) of three government securities, aiming to raise a cumulative amount of Rs 30,000 crore.
According to a media statement released by Finance Ministry, the securities to be auctioned include the ‘7.37 per cent Government Security 2028’ with a notified amount of Rs 7,000 crore, the ‘7.18 per cent Government Security 2033’ with a notified amount of Rs 13,000 crore, and the ‘7.30 per cent Government Security 2053’ with a notified amount of Rs 10,000 crore.
The auctions, scheduled for December 1, will be facilitated by the Reserve Bank of India (RBI) at its Mumbai Office. The government reserves the option to retain additional subscriptions up to Rs 2,000 crore for each of the mentioned securities.
The bidding process will encompass both competitive and non-competitive bids, to be submitted electronically via the RBI Core Banking Solution (E-Kuber) system, read the press release.
Non-competitive bids are scheduled to be submitted between 10:30 a.m. and 11:00 a.m., while competitive bids will be accepted from 10:30 a.m. to 11:30 a.m.
Eligible individuals and institutions can participate in the auction, with up to 5 per cent of the notified amount allotted for non-competitive bids, read the press release.
The auction results are set to be announced on December 1, with successful bidders expected to make payments on December 4.
These securities will also be eligible for “When Issued” trading, following the guidelines laid out by the Reserve Bank of India regarding such transactions in Central Government Securities, read the release.
This move reflects the government’s proactive approach to managing its financial obligations and maintaining transparency in the borrowing process, ensuring stability in the financial markets. (ANI)
