Executive Summary:
The Reserve Bank of India (RBI) announced the auction of four Government of India dated securities for a total notified amount of ₹30,000 crore. The auction will be conducted on June 05, 2020, with settlement on June 08, 2020. Both competitive and non-competitive bids must be submitted electronically through the RBI's e-Kuber system.
Key Points / Main Content:
Auction Details:
* Four Government of India dated securities will be reissued via auction.
* The total notified amount is ₹30,000 crore.
* GoI has the option to retain additional subscription up to ₹2,000 crore against any one or more securities.
* The auction will be price-based using a multiple price method.
Bidding Process:
* Minimum bid amount is ₹10,000 nominal and in multiples thereof.
* Up to 5% of the notified amount is reserved for eligible individuals/institutions under the Non-Competitive Bidding Facility.
* Banks/Primary Dealers (PDs) must submit a single consolidated non-competitive bid electronically on the e-Kuber system.
* Both competitive and non-competitive bids must be submitted electronically on the e-Kuber system on June 05, 2020.
* Non-competitive bids: 10.30 a.m. and 11.00 a.m.
* Competitive bids: 10.30 a.m. and 11.30 a.m.
* Physical bids are accepted only in the event of system failure.
* The aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.
* RBI has the discretion to accept or reject bids.
Settlement and Other Details:
* Auction results will be announced on June 05, 2020.
* Payment by successful bidders is due on June 08, 2020.
* Government Stocks will be issued via Subsidiary General Ledger (SGL) account or Stock Certificate.
* Interest will be paid half-yearly.
* The stocks qualify for the ready forward facility.
* The Stocks will be eligible for When Issued trading during the period June 02 – June 05, 2020.
Impact Analysis:
Scheduled Commercial Banks/State Cooperative Banks/Scheduled Primary Urban Cooperative Banks/Financial Institutions/Primary Dealers:
* Impact: Must participate in the auction process if interested in acquiring the Government of India dated securities.
* Action Required: Submit competitive and/or non-competitive bids electronically through the e-Kuber system within the specified timeframes.
Investors (Individuals and Institutions):
* Impact: Opportunity to invest in Government of India dated securities through competitive or non-competitive bidding.
* Action Required: Submit bids through eligible banks or Primary Dealers (PDs) and adhere to the specified bidding procedures and timelines.
Key Entities Referenced
Reserve Bank of India: Central bank of India, responsible for conducting auctions of government securities.
Government of India: Issuer of the dated securities being auctioned.
All Scheduled Commercial Banks: Category of banks eligible to participate in the auction.
All State Cooperative Banks: Category of banks eligible to participate in the auction.
All Scheduled Primary Urban Cooperative Banks: Category of banks eligible to participate in the auction.
All Financial Institutions: Category of institutions eligible to participate in the auction.
All Primary Dealers: Entities eligible to participate in the auction.
Mumbai, Maharashtra: Location of the Reserve Bank of India office where the securities will be sold.
RBI/2019-20/249
Ref.No.IDMD/2981/08.02.032/2019-20 June 01, 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
`30,000 crore as per the following details:
Sr Notified Amount GoI Settlement
Security Auction Date
No (in ` crore) Notification Date
1 5.09% GS 2022 3,000
F.No.4(5)-B
2 5.79% GS 2030 18,000
(W&M)/2020 June 05, 2020 June 08, 2020
3 GOI FRB 2031 4,000 dated (Friday) (Monday)
June 01, 2020
4 7.19% GS 2060 5,000
Total 30,000
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.
The auction will be price based for all the 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 June 05, 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 (https://www.rbi.org.in/Scripts/BS_ViewForms.aspx)
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 June 05, 2020 (Friday) and payment by
successful bidders will be on June 08, 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; May 11, 2030; Dec 07, 2031
and 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 June 02 – June 05,
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