Government of India announce the sale of two dated securities

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Mumbai, Nov 17 (UNI) The Government of India has announced the sale (re-issue) of 7.56 per cent Government Stock 2014 for a notified amount of Rs 6,000 crore (nominal).

The Government have also announced the sale (re-issue) of 7.94 per cent Government Stock 2021 for a notified amount of Rs 3,000 crore.

Both the Government Stocks will be sold through price based auctions using multiple price method. The auctions will be conducted by the Reserve Bank of India (RBI), South Mumbai Office on November 21, a release issued by RBI said.

Up to five per cent of the notified amount of the sale of both the stocks will be alotted to eligible individuals and institutions as per the scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Bids in the prescribed form obtainable from the Regional Director, Reserve Bank of India, South Mumbai Office (Public Debt Office), and RBI website www.rbi.org.in should be submitted to that Office on November 21. The NDS members should submit competitive as well as non-competitive bids in electronic format using Primary Market Operation (PMO) module of NDS. All bids should be submitted by 12.30 hrs.

The result of the auctions will be announced on November 21 and payment by successful bidders will be during banking hours on November 24.The Stocks will qualify for the ready forward facility.

The underwriting of the Government Securities under auctions by the Primary Dealers will be as per the Revised Scheme of Underwriting Commitment and Liquidity Support announced by the Reserve Bank vide circular RBI/2007-08/186 dated November 14. Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by Primary Dealers up to 12.30 hrs. on November 20, using PMO module of NDS.

The Stocks will be eligible for When Issued trading for a period commencing from November 18-21, 2008 in accordance with the guidelines on When Issued transactions in Central Government Securities issued by the Reserve Bank of India vide circular No.

RBI /2006-07/178 dated November 16, 2006 as amended from time to time.

As per the indicative calendar, the Government was to auction a dated security of 5-9 year tenure for a nominal amount of Rs.6,000 crore during November 14-21, 2008 and a dated security of 10-14 year tenure for a nominal amount of Rs.3,000 crore during December 5-12, 2008. Instead, the Government, in consultation with the Reserve Bank of India have decided to issue both the dated securities on November 21, 2008.

UNI AR AB NP2022

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