RBI/2019-20/223
Ref.No.IDMD/08.02.032/2019-20

April 20, 2020

All Scheduled Commercial Banks
All State Co-operative Banks/All Scheduled Primary
(Urban) Co-operative Banks/All Financial Institutions/
All Primary Dealers.

Dear Sir/Madam,

Auction of Government of India Dated Securities

Government of India has offered to sell (re-issue) four dated securities for a notified amount of ₹ 21,000 crore as per the following details:

GoI will have the option to retain additional subscription up to ₹ 2,000 crore each against any one or more of the above securities. The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’). The stocks will be sold through Reserve Bank of India Mumbai Office, Fort, Mumbai - 400001, as per the terms and conditions specified in the General Notification F.No.4(2)–W&M/2018, dated March 27, 2018 and Reserve Bank of India press release dated March 31, 2020 for release of Indicative market borrowing calendar for H1 2020-21.

The auction will be price based (for all securities), using multiple price method.

2. We wish to draw your attention, in particular, to the following:

(i) The Stocks will be issued for a minimum amount of ₹ 10,000/- (nominal) and in multiples of ₹ 10,000/- thereafter.

(ii) In all the auctions, Government Stock up to 5% of the notified amount of sale will be allotted to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities. Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. Allotment under the non-competitive segment to the bank or PD will be at the weighted average rate of yield/price that will emerge in the auction on the basis of the competitive bidding.

(iii) 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 April 24, 2020. Bids in physical form will not be accepted except in extraordinary circumstances. The non-competitive bids should be submitted between 10.30 a.m. and 11.00 a.m. and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m.

(iv) Only in the event of system failure, physical bids would be accepted. Such physical bids should be submitted to the Public Debt Office (email Phone no: 022-22632527, 022-22701299) in the prescribed form obtainable from RBI website (/en/web/rbi/forms) before the auction timing ends. In case of technical difficulties, Core Banking Operations Team should be contacted (email; Phone no: 022-27595414, 022-27595666). For other auction related difficulties, IDMD auction team can be contacted (email; Phone no: 022-27595688).

(v) An investor can submit more than one competitive bids in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.

(vi) On the basis of bids received, the Reserve Bank will determine the minimum price up to which tenders for purchase of Government Stock will be accepted at the auctions. Bids quoted at rates lower than the minimum price determined by the Reserve Bank of India will be rejected. Reserve Bank of India will have the full discretion to accept or reject any or all bids either wholly or partially without assigning any reason.

(vii) The result of the auctions will be announced on April 24, 2020 (Friday) and payment by successful bidders will be on April 27, 2020 (Monday).

(viii) The Government Stocks will be issued by credit to Subsidiary General Ledger Account (SGL) of parties maintaining such account with Reserve Bank of India or in the form of Stock Certificate. Interest on the Government Stock will be paid half-yearly.

(ix) The Government Stocks will be repaid at par on April 13, 2022; Oct 7, 2029, Dec 7, 2031and Sep 15, 2060 respectively.

(x) The Stocks will qualify for the ready forward facility.

(xi) The Stocks will be eligible for “When Issued” trading during the period April 21 - April 24, 2020 in accordance with guidelines on ‘When Issued’ transactions in Central Government Securities issued by Reserve Bank of India vide circular No. RBI/2018-19/25 dated July 24, 2018 as amended from time to time.

Yours faithfully

(Arvind Kumar)
General Manager