RBI Announced to Sell Three Govt Securities for a Total of ₹30,000 Cr on Friday

The auction will be a multiple price-based auction -- successful bids will get accepted at their respective quoted price for the security

Mumbai: The Reserve Bank of India on Monday announced sale of three government dated securities totalling ₹30,000 crore.

The securities will be sold through the Reserve Bank of India's Mumbai office on August 21 (Friday).

"Government of India (GOI) has announced the sale (re-issue) of three dated securities for a notified amount of ₹30,000 crore...," the RBI said, adding that the government will have the option to retain additional subscription up to ₹2,000 crore against each security.

It further said that both competitive and non-competitive bids for the auction should be submitted in electronic format on the RBI Core Banking Solution (E-Kuber) system on August 21.

"The result will be announced on the same day and payment by successful bidders will have to be made on August 24, 2020 (Monday)," RBI said.

The auction will be a multiple price-based auction -- successful bids will get accepted at their respective quoted price for the security.

"The Stocks will be issued for a minimum amount of ₹10,000 (nominal) and in multiples of ₹10,000 thereafter," the central bank said.

In all the auctions, government stock up to 5 per cent of the notified amount of sale will be allotted to the eligible individuals and institutions under the scheme for non-competitive bidding facility in the auctions of government securities.

With a view to encouraging wider participation and retail holding of government securities, retail investors are allowed participation on "non-competitive" basis in select auctions of dated Government of India securities and Treasury Bills.

As part of the overall strategy of diversifying the investor base for government securities, the government and RBI have been taking various measures to encourage participation of retail investors in G-Sec market, including introduction of non-competitive bidding in primary auctions.

The Union Budget 2016-17 had announced, inter-alia, that RBI will facilitate retail participation in the primary markets through stock exchanges.

(Except for the headline, this story has not been edited by Scrabbl staff and is published from a syndicated feed.)