On Monday, the Finance Ministry unveiled plans for the sale of government bonds totaling Rs 30,000 crore across three distinct categories. These bonds are set to be auctioned by the RBI's Mumbai Office on April 12, marking a significant financial event for investors and institutions alike.
The bond offerings encompass a diverse range, catering to various investment preferences. Among them are the 7.32 per cent Government Security 2030, with a notified amount of Rs 11,000 crore, slated for a price-based auction utilizing the price method. Additionally, the New Government Security 2039, valued at Rs 10,000 crore, will undergo a yield-based auction employing the multiple price method. Lastly, the 7.30 per cent Government Security 2053, with an amount of Rs 9,000 crore, will be available through a price-based auction utilizing the multiple price method.
Furthermore, the government retains the option to accept additional subscriptions of up to Rs 2,000 crore for each of these securities, providing flexibility in meeting demand.
To ensure broader participation, up to 5 per cent of the notified amount will be allocated to eligible individuals and institutions under the non-competitive bidding facility, adhering to the established scheme for auctioning government securities.
Interested parties must submit their bids electronically through the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 12, 2024. Non-competitive bids are accepted between 10:30 a.m. and 11:00 a.m., while competitive bids must be submitted between 10:30 a.m. and 11:30 a.m.
Following the auction, results will be disclosed promptly on April 12, with successful bidders required to make payments by April 15 to secure their acquisitions.
Moreover, these securities will qualify for "When Issued" trading, aligning with RBI's guidelines on 'When Issued transactions in Central Government Securities', as highlighted by the Finance Ministry. This provision offers investors additional avenues for engaging with the securities market.
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