New Delhi
In a strategic move to address fiscal requirements, the Indian government has declared the auction (re-issue) of three government securities with the aim of raising a total amount of Rs 30,000 crore. The securities scheduled for auction on December 1 include the ‘7.37 per cent Government Security 2028’ (Rs 7,000 crore), ‘7.18 per cent Government Security 2033’ (Rs 13,000 crore), and ‘7.30 per cent Government Security 2053’ (Rs 10,000 crore). The Reserve Bank of India (RBI) will facilitate the auctions at its Mumbai Office, and the government retains the option to retain additional subscriptions up to Rs 2,000 crore for each security. The bidding process, comprising both competitive and non-competitive bids, will be conducted electronically through the RBI Core Banking Solution (E-Kuber) system. Non-competitive bids are scheduled between 10:30 a.m. and 11:00 a.m., while competitive bids will be accepted from 10:30 a.m. to 11:30 a.m. Eligible individuals and institutions can participate, with up to 5 per cent of the notified amount allotted for non-competitive bids. The auction results will be announced on December 1, and successful bidders are expected to make payments on December 4. These securities will also be eligible for When Issued trading, following RBI guidelines for such transactions in Central Government Securities. This initiative underscores the government’s proactive financial management approach, promoting transparency and market stability.
