Punjab govt notifies sale of government securities

Chandigarh, Aug 12 (UNI) The Punjab Government today notified the sale of Punjab Government Stock (securities) of 10 year tenure for an aggregate amount of Rs 500 crore (Nominal).

The sale will be subject to the terms and conditions spelt out in the notification of the government dated July 20.

The loan is being revised to the finance part of capital expenditure of Plan Scheme and other development schemes under execution. Consent of central government has been obtained to the floatation of this loan as required by Article 293(3) of the constitution of India.

Government stock will be sold through the Reserve Bank of India, Mumbai office, by auction in the manner as prescribed in paragraph 6.1 of the coupon rate to be determined by RBI at the yield auction under multiple price format.

The auction will be conducted by RBI at its Mumbai office on August 16. The application from the duly filled in with the bids should be submitted to the aforesaid office on August 16. The payment by successful bidders will be on August 17 .

Successful bidder will make payment on August 17 before close of banking hours by means of cash, bankers cheque/pay order/demand draft payable at RBI Mumbai/New Delhi or a cheque drawn on their account. The stock will be of ten year tenure.

The tenure of the stock will commence on August 17 and the loan will be repaid at par on same day . The cut off yield determined at the auction will be the coupon rate per cent per annum on the stock sold at the auction.

The interest will be paid every half yearly of February 17 and August 17.

UNI