Auction of State Government Securities
The following State Governments have offered to sell the following security by way of the auction for an aggregate amount of INR 13,975 Cr (Face Value).
Sr.No. | State | Amount to be raised (Cr) | Tenure of SDL (in Years) | Type of Auction |
1. | Andhra Pradesh | 1400 | 10 | Yield |
2. | Assam | 500 | 10 | Yield |
3. | Gujarat | 1000 | 10 | Yield |
4. | Haryana | 500 | 10 | Yield |
5. | Himachal Pradesh | 500 | 10 | Yield |
6. | Jammu & Kashmir | 600 | 10 | Yield |
7. | Kerala | 1000 | 10 | Yield |
8. | Maharashtra | 2000 | Re-issue | Re-issue 7.18% Maharashtra SDL 2029 |
9. | Nagaland | 150 | 10 | Yield |
10. | Pondicherry | 125 | 12 | Yield |
11. | Punjab | 300 | 10 | Yield |
12. | Rajasthan | 1500 | 10 | Yield |
13. | Tamil Nadu | 2000 | 10 | Yield |
14. | Uttarakhand | 400 | 10 | Yield |
15. | West Bengal | 2000 | 10 | Yield |
Total | 13,975 | |||
# Gujarat will have an option to retain additional ₹ 300 Cr under the green shoe |
The auction will be conducted on the Reserve Bank of India Core Banking Solution (E-Kuber) system on February 20, 2018 (Tuesday). The Government Stock up to 10% of the notified amount of the sale of each of the stock will be allotted to eligible individuals and institutions subject to a maximum limit of 1% of its notified amount for a single bid per stock as per the Scheme for Non-competitive Bidding Facility (available on RBI website).
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 February 20, 2018 (Tuesday). 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 yield percent per annum expected by the bidder should be expressed up to two decimal points. An investor can submit more than one competitive bid at different prices in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a bidder should not exceed the notified amount for each State.
The Reserve Bank of India will determine the maximum yield/minimum price at which bids will be accepted. Securities will be issued for a minimum nominal amount of ₹ 10,000.00 and multiples of ₹ 10,000.00 thereafter.
The results of the auction will be announced on February 20, 2018 (Tuesday) and payment by successful bidders will be made during banking hours on February 21, 2018 (Wednesday) at Mumbai and at respective Regional Offices of RBI.
The State Government Stocks will bear interest at the rates determined by RBI at the auctions. Interest will be paid half yearly on August 21 and February 21 of each year till maturity for the new securities. The Stocks will be governed by the provisions of the Government Securities Act, 2006 and Government Securities Regulations, 2007.
The investment in State Government Stocks will be reckoned as an eligible investment in Government Securities by banks for the purpose of Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The stocks will qualify for the ready forward facility.
Auction of Government of India Treasury Bills
In the press release dated 16 Feb 2018 the Reserve Bank of India has announced the auction of 364-day Government of India Treasury Bills for notified amount of ₹ 4,000 Crore, auction of 182- day Government of India Treasury Bills for notified amount of ₹ 3,000 Crore and auction of 91-day Government of India Treasury Bills for notified amount of ₹ 7,000 Crore. The sale will be subject to the terms and conditions specified in the General Notification F.No.4 (8)-W&M/2015 dated May 26, 2016, issued by Government of India, as amended from time to time. State governments, eligible provident funds in India, designated Foreign Central Banks and any person or institution specified by the Bank in this regard, can participate on a non-competitive basis, the allocation for which will be outside the notified amount. Individuals can also participate on a non-competitive basis as retail investors. For retail investors, the allocation will be restricted to a maximum of 5 percent of the notified amount.
The auction will be conducted on February 21, 2018, using “Multiple Price Auction” method. The competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10.30 a.m. and 12.00 noon on Wednesday, February 21, 2018. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. Results will be announced on the same day. Payment by successful bidders will be on Thursday, February 22, 2018.
General Notification F.No.4 (8)-W&M/2015 dated May 26, 2016
Sale of Government of India Treasury Bills by Auction | |
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Source from Reserve Bank of India