RBI Notification - RBI - Reserve Bank of India
RBI Notification
Ref.No. IDMD /M-283 /08.02.33/2008-09 December 8, 2008 All Scheduled Commercial Banks excluding RRBs/ Dear Sirs, Auction of Government of India Dated Securities 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 December 12, 2008 in sealed covers superscribed “Tender for 7.27 per cent Government Stock 2013- Auction dated December 12, 2008 " or, "Tender for 7.50 per cent Government Stock 2034 -Auction dated December 12, 2008” (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 (2)-W&M/2008 and F. No.4 (2)-W&M/2008(i) both dated December 8, 2008). 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 December 12, 2008 in sealed covers superscribed “Non-competitive bid for 7.27 per cent Government Stock 2013- Auction dated December 12, 2008" or "Non-Competitive bid for 7.50 per cent Government Stock 2034-Auction dated December 12, 2008” (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 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 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. (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 September 3, 2013 and August 10, 2034, 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 December 10-12, 2008 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) |