Govt to reissue stock for sale

New Delhi, Jan 5 (UNI) Government today announced the sale (re-issue) of "8.33 per cent Government Stock, 2036" for a notified amount of Rs 4,000 crore.

The Stock will be sold through a price based auction using multiple price method. The auction will be conducted by the Reserve Bank of India, Mumbai Office.

According to an official release issued here today, up to 5 per cent of the notified amount of the sale of the stock will be allotted 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, Mumbai Office (Public Debt Office), and RBI website www.rbi.org.in should be submitted to that Office on January 12, 2007. 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 pm.

The result of the auction will be announced on January 12 and payment by successful bidders will be during banking hours on January 15.

The stocks will be eligible for When Issued trading in accordance with the guidelines on When Issued transactions in Central Government Securities issued by the Reserve Bank of India circular issued on November 16, 2006.

It may be recalled that as per the indicative calendar for issuance of marketable dated securities, the Government were also schedule to issue security with a term of 10-14 years for a notified amount of Rs 5,000 crore during the period January 5-12, 2007.

However, on a review of the current borrowing requirements, the Government, in consultation with the RBI, have decided to cancel the issuance of the security with a term of 10-14 years for Rs 5,000 crore and issue only the security with a term of over 20 years for Rs 4,000 crore.

UNI