RBI to auction 2 govt stocks for Rs 10,000 cr on Oct 20

Mumbai, Oct 15 (UNI) The Reserve Bank of India (RBI) today said it will hold auctions on October 20, for two Government securities with a cumulative value of Rs 10,000 crore.

RBI, in a release here, said the Government of India has announced the sale of a new six-year Government Stock for a notified amount of Rs 6,000 crore (nominal) through a yield-based auction using multiple price method. The Government also announced the sale (re-issue) of ''7.95 per cent Government Stock 2032'' for a notified amount of Rs 4,000 crore (nominal) through a price-based auction using multiple price method.

Up to five per cent of the notified amount of the sale of both the stocks would be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities, the RBI said.

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 on November 14, 2007. The Stocks will be eligible for ''When Issued'' trading for a period commencing from October 16 to 20, 2008 in accordance with the guidelines on ''When Issued'' transactions in Central Government Securities' issued by the RBI.

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