On Monday, the Ministry of Finance declared its plans to issue two sets of government bonds totaling Rs 32,000 crore, scheduled for auction on April 26 (Friday).
The auction will feature two tranches: the first is a Rs 20,000 crore issuance of "7.1 per cent Government Security 2034", and the second is a Rs 12,000 crore issuance of "7.46 per cent Government Security 2073".
These auctions will be conducted by the Reserve Bank of India (RBI) in Mumbai, employing a price-based auction format that uses the multiple price method.
In addition, the government reserves the right to accept oversubscriptions up to Rs 2,000 crore for each type of bond issued.
Eligible individuals and institutions may be allocated up to 5 per cent of the bonds offered through a non-competitive bidding process, which is part of the government securities auction scheme.
Both competitive and non-competitive bids must be entered electronically using the Reserve Bank of India's Core Banking Solution (E-Kuber) on the auction day, April 26.
The timeframe for submitting non-competitive bids is from 10:30 a.m. to 11:00 a.m., while competitive bids can be submitted until 11:30 a.m., as per the details from the Finance Ministry.
The outcomes of these auctions will be disclosed on the same day, with payments from the successful bidders expected by the following Monday, April 29.
Furthermore, the issued securities will qualify for "When Issued" trading, in line with existing RBI regulations.
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