Friday, April 10, 2009

Government Announces The Sale Of Two Dated Securities - April 10, 2009

The Government of India have announced the sale (re-issue) of "7.56 per cent Government Stock 2014" for a notified amount of Rs. 8,000 crore (nominal) and "8.24 per cent Government Stock 2027" for a notified amount of Rs. 4,000 crore. Both the Government Stocks will be sold through price based auctions using the uniform price method. The auctions will be conducted by the Reserve Bank of India on April 17, 2009.

Upto 5% of the notified amount of the sale of both the stocks will be allotted to eligible individuals as well as institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

The bids in the prescribed form should be submitted to the RBI on April 17, 2009. The result of the auctions will be announced on April 17, 2009 and the payment by successful bidders will be during banking hours on April 20, 2009.

Moreover, the stocks will qualify for the ready forward facility. The underwriting of the Government Securities under auctions by the ''Primary Dealers'' will be as per the "Revised Scheme of Underwriting Commitment and Liquidity Support" announced by the Reserve Bank vide circular RBI/2007-08/186 dated November 14, 2007.

Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by ''Primary Dealers'' up to 12.30 P.M. on April 16, 2009 (Thursday) using PMO module of NDS.

Moreover, the Stocks will be eligible for "When Issued" trading for a period commencing from April 13-17, 2009.

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