Union govt to sell 2 dated securities of Rs 10,000 cr on Nov 7

Mumbai, Nov 3 (UNI) The Government of India have announced the sale (re-issue) of ''8.24 per cent Government Stock 2018'' for a notified amount of Rs 6,000 crore (nominal).

The Government of India have also announced the sale (re-issue) of ''8.28 per cent Government Stock 2032'' for a notified amount of Rs 4,000 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, Mumbai Office, Fort, Mumbai on November 7, a release issued by RBI said.

Up to 5 per cent of the notified amount of the sale of both the stocks 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, head office in south Mumbai and RBI website www.rbi.org.in should be submitted to that Office on November 7, 2008, the release said. 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 7, 2008 and payment by successful bidders will be during banking hours on November 10. 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, 2007.

Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by 'Primary Dealers' up to 1230 hrs on November 6, 2008 using PMO module of NDS.

The Stocks will be eligible for 'When Issued' trading for a period commencing from November 4 and ending November 7 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.

UNI AR SR NP2053