The Government of India (GoI) has announced the sale (re-issue) of two government securities through a price-based auction utilizing the multiple price method:
- 6.79% Government Security 2034: Notified amount of ₹22,000 crore (nominal).
- 7.09% Government Security 2074: Notified amount of ₹10,000 crore (nominal).
Additionally, the government retains the option to accept an extra subscription of up to ₹2,000 crore for each of the securities.
Auction Details
The auctions will be conducted by the Reserve Bank of India (RBI) at its Mumbai Office, Fort, Mumbai, on Friday, January 3, 2025.
Bidding Timeline:
- Non-Competitive Bids: To be submitted electronically via the RBI Core Banking Solution (E-Kuber) system between 10:30 a.m. and 11:00 a.m.
- Competitive Bids: To be submitted between 10:30 a.m. and 11:30 a.m.
Allocation for Non-Competitive Bidders:
Up to 5% of the notified amount will be reserved for eligible individuals and institutions under the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.
Auction Results and Payment
The results of the auctions will be declared on January 3, 2025. Successful bidders are required to make payments on Monday, January 6, 2025.
Eligibility for “When Issued” Trading
The securities will qualify for “When Issued” trading as per the RBI guidelines outlined in its circular dated July 24, 2018 (RBI/2018-19/25), including subsequent amendments.
This auction provides a significant opportunity for investors, aligning with the government’s aim to manage its borrowing program effectively while offering secure investment avenues.
