The Ministry of Finance made an announcement on Wednesday regarding the issuance of Government bonds amounting to Rs 28,000 crore, which will be conducted through auctions managed by the Reserve Bank of India (RBI) in Mumbai on Friday, July 5.
The first batch includes "7.02 per cent Government Security 2027" with a designated amount of Rs 6,000 crore. Following that, the second set comprises "7.23 per cent Government Security 2039" valued at Rs 12,000 crore, while the third lot, "7.30 per cent Government Security 2053," is set at Rs 10,000 crore.
These bonds will be auctioned through a price-based auction using the multiple price method. The government retains the option to accept additional subscriptions up to Rs 2,000 crore for each of these securities.
Under the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities, eligible individuals and institutions will be allotted up to 5 per cent of the notified amount.
All competitive and non-competitive bids shall be submitted electronically using the Reserve Bank of India Core Banking Solution on July 5. Non-competitive bids are accepted between 10:30 a.m. and 11:00 a.m. and competitive bids from 10:30 a.m. to 11:30 a.m.
Results of the auctions will be announced on July 5, 2024 (Friday) and payment by successful bidders will be on June 8, 2024 (Monday). It will be eligible for "When Issued" trading as per RBI guidelines.
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