The Finance Ministry announced the sale of government bonds worth Rs 29,000 crore. These would be auctioned through three tranches by the Reserve Bank of India at Mumbai on May 31. The first tranche would include "New Government Security 2029" with a notified amount of Rs 12,000 crore, the sale of which would be undertaken through a yield-based auction using multiple price methods.
The second tranche, "New GOI SGrB 2034," valued at Rs 6,000 crore, will also be auctioned via a yield-based auction using multiple price methods. The third set, comprising 7.34 per cent Government Security 2064 worth Rs 11,000 crore, will be auctioned through a price-based auction using multiple price methods. Additionally, the government may retain additional subscriptions up to Rs 2,000 crore for each of the three securities.
As per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities, up to five percent of the notified sale amount will be allocated to eligible individuals and institutions. Both the competitive and non-competitive bids for the auction are to be made electronically through the Core Banking Solution (E-Kuber) of the Reserve Bank of India on May 31, 2024.
Non-competitive bids are to be entered between 10:30 a.m. and 11:00 a.m., and competitive bids are to be entered between 10:30 a.m. and 11:30 a.m. The result of the auction will be announced on May 31, 2024 (Friday). Successful bidders have to make payment by June 3, 2024 (Monday). The securities will qualify for "When Issued" dealing as per RBI directives.
