The Reserve Bank of India will hold auctions on Friday, July 5, in Mumbai, to sell government bonds valued at Rs 28,000 crore in three lots, as announced by the Finance Ministry on Wednesday.
“7.02 percent Government Security 2027” is included in the first lot, with a stated sum of Rs 6,000 crore.
A recognized sum of Rs 10,000 crore is associated with the third lot of “7.30 per cent Government Security 2053,” while the second batch of “7.23 per cent Government Security 2039” is valued at Rs 12,000 crore.
The multiple price approach will be used to conduct a price-based auction for the three lots.
Up to Rs 2,000 crore in additional subscriptions may be kept by the government against each of the three securities.
According to the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities, qualifying persons and institutions will receive up to 5% of the notified amount of the securities auction.
On July 5, bids for the auction, both competitive and non-competitive, must be electronically filed via the Reserve Bank of India Core Banking Solution (E-Kuber) system.
The window for submitting non-competitive bids is between 10.30 and 11 a.m., while the window for submitting competitive bids is between 10.30 and 11.30 a.m.
On Friday, July 5, 2024, the auction results will be revealed. Successful bidders will receive their money on Monday, June 8, 2024.
As per the RBI norms, the Securities will be eligible for “When Issued” trading.
