Centre announces sale of floating rate bonds, govt. stock
New Delhi [India], Jan. 31 (ANI): Prime Minister Narendra Modi-led Centre on Monday announced the sale of floating rate bonds and government stock, as per the Economic Survey presented by Finance Minister Arun Jaitley in Parliament.
As per the survey, the "Floating Rate Bonds 2024" have been announced for a notified amount of Rs. 2000 crore (nominal) through price based auction and "6.79 percent Government Stock 2029" for a notified amount of Rs. 5,000 crores (nominal) through price based auction.
In addition, the "6.57 per cent Government Stock 2033" have been announced for a notified amount of Rs. 2,000 crores (nominal) through price based auction and "6.62 per cent Government Stock, 2051" for a notified amount of Rs. 2,000 crores (nominal) through price based auction.
The auctions will be conducted using multiple price method by the Reserve Bank of India (RBI) on February 3.
Up to five percent of the notified amount of the sale of the stocks will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities.
Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on February 3.
The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.
The result of the auctions will be announced on February 3 and payment by successful bidders will be on February 6.
The stocks will be eligible for "When Issued" trading in accordance with the guidelines on 'When Issued transactions in Central Government Securities' issued by the Reserve Bank of India vide circular No. RBI/2006-07/178 dated November 16, 2006, as amended from time to time. (ANI)