The Government of India has announced the re-issue of three government securities for sale: (i) “7.02% Government Security 2031” for ₹10,000 crore, (ii) “7.23% Government Security 2039” for ₹13,000 crore, and (iii) “7.09% Government Security 2054” for ₹10,000 crore. These will be auctioned via a price-based auction using the multiple price method. Additionally, the government may retain up to ₹2,000 crore in extra subscriptions for each security.
The auctions will be conducted by the Reserve Bank of India (RBI) on October 18, 2024. Up to 5% of the notified amount will be reserved for eligible individuals and institutions under the Scheme for Non-Competitive Bidding in Government Securities.
Both competitive and non-competitive bids should be submitted electronically through the RBI’s E-Kuber system on the auction day. Non-competitive bids must be submitted between 10:30 a.m. and 11:00 a.m., and competitive bids between 10:30 a.m. and 11:30 a.m.
The auction results will be declared the same day, and successful bidders must make payments by October 21, 2024. These securities will also be eligible for “When Issued” trading per RBI guidelines.
