The Reserve Bank of India (RBI) today said the Government of India will auction 32,000 crore rupees worth of dated government securities on July 10 to raise funds, with settlement scheduled for July 13.
The auction comprises the re-issue of two government securities-6.36 percent Government Security (GS) 2031 for a notified amount of Rs 21,000 crore and 7.71 percent GS 2066 for Rs 11,000 crore.
The government has also retained the option to accept additional subscriptions of up to ₹2,000 crore against each security, if required.
According to the RBI, the auction will be conducted through its Mumbai office using the multiple price method. Both competitive and non-competitive bids will be submitted electronically through the RBI’s e-Kuber platform on July 10.
Non-competitive bids will be accepted between 10:30 am and 11:00 am, while competitive bids can be submitted until 11:30 am. The auction results will be announced the same day.
The central bank said Primary Dealers can submit bids for the Additional Competitive Underwriting (ACU) portion between 9:00 am and 9:30 am on the auction day.
The securities will also be eligible for ‘When Issued’ trading from July 7 to July 10.
The RBI said the securities will be issued for a minimum investment of Rs 10,000, with allotments under the non-competitive segment available to eligible retail investors and institutions. Individual investors can participate through the RBI Retail Direct portal.
The auction is part of the government’s market borrowing programme to finance its expenditure through the issuance of sovereign debt instruments.
