RBI fixes underwriting cut-off fee rate

Mumbai, July 13 (UNI) The Reserve Bank of India(RBI) has determined the underwriting cut-off fee rate as 19 paise per Rs 100 yesterday.

Announcing this, RBI said it will conduct the auction of 10 years Andhra Pradesh State Government Stock today. For this auction, the underwriting notified amount is Rs 742 crore. However, the notified amount of the auction was Rs 742.15 crore.

Eleven underwriting bids were accepted for the same. At the auction, an aggregate 32 bids were received worth Rs 1200 crore.

The partial allotment percentage of the underwriting bids was 54.29 per cent.

The auction today, will be a yield based auction, andmultiple price auctionmethod will be used for this.

The maximum yield will be determined on the basis of bids received by RBI and bids will be accepted on that yield.

The results of the auction will be declared on the same day.

Payment by successful bidders will be during banking hours on next day (July 14, 2006) at Mumbai and at respective regional offices of the Reserve Bank of India.

UNI SN GB NV1643