Ref.No. IDMD /5624 /08.02.33/2008-09
2. We wish to draw your attention, in particular, to the following:
(i) The Stocks will be issued for a minimum amount of Rs.10,000/- (nominal) and in multiples of Rs.10,000/- thereafter.
(ii) The competitive bids should be submitted in the prescribed form of application given in Annexure I/II, before 12.30 P.M. on May 14, 2009 in sealed covers superscribed “Tender for a new Government Stock of 5 Years -Auction dated May 14, 2009” or “ Tender for 8.20 per cent Government Stock 2022”- Auction dated May 14, 2009 " or, (as the case may be) and deposited in the appropriate tender box kept for the purpose at Reserve Bank of India, Fort, Mumbai. The price percent expected by the bidder should be expressed up to two decimal points.
(iii) For both 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 (enclosed with the notifications F. No.4 (1)-W&M/2009 and F. No.4 (1)-W&M/2009(i) both dated May 8, 2009). The non competitive bids should be submitted in the prescribed form of application given in Annexure I (a)/ II (a) by 12.30 P.M. on May 14 , 2009 in sealed covers superscribed "Non-Competitive bid for a new Government Stock of 5 Years -Auction dated May 14, 2009” or “Non-competitive bid for 8.20 per cent Government Stock 2022- Auction dated May 14, 2009" (as the case may be) and deposited in the appropriate tender box kept for the purpose at Reserve Bank of India, Fort, Mumbai.
(iv) The NDS members should submit competitive as well as non-competitive bids in electronic format using Primary Market Operation (PMO) module of NDS. All bids should be submitted by 12.30 P.M.
(v) An investor can submit more than one bid at different yields/ prices but a separate application should be submitted for each bid. 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 cut-off yield/price (as the case may be) up to which tenders for purchase of Government Stock will be accepted at the auctions. Bids quoted at rates higher/lower (as the case may be) than the cut-off yield/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 displayed at Reserve Bank of India, Mumbai Office, Fort, Mumbai on May 14, 2009. Successful bidders will be required to deposit with the Reserve Bank of India, Public Debt Office, Fort, Mumbai, the amount payable for the Government Stock allotted to them in cash or by cheque on their account with Reserve Bank of India, Mumbai or by Banker’s pay order payable at Mumbai, along with a covering letter on May 15, 2009 before 3.00 P.M. In case of current account holders, the amount payable will be debited to their respective current accounts maintained with the Reserve Bank of India.
(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 May 15, 2014 and February 15, 2022 respectively.
(x) The Stocks will qualify for the ready forward facility.
(xi) The Stock will be eligible for “When Issued” trading for a period commencing from May 11-14, 2009 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.
Yours faithfully,
(R Subramanian)
Deputy General Manager
Encls: As above
