**Executive Summary:**
The Reserve Bank of India (RBI) announces the auction of four Government of India dated securities for a notified amount of ₹30,000 crore. The auction will be price-based and conducted through the RBI's Core Banking Solution (E-Kuber) system on May 22, 2020. Payment by successful bidders is due on May 26, 2020. The securities are available for "When Issued" trading between May 19-22, 2020.
**Key Points / Main Content:**
* **Auction Details:**
* Four GoI dated securities will be auctioned.
* The total notified amount is ₹30,000 crore.
* GoI has the option to retain additional subscriptions up to ₹2,000 crore against any one or more securities.
* The auction is 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 non-competitive bidding by eligible individuals/institutions.
* Both competitive and non-competitive bids must be submitted electronically via the RBI's E-Kuber system on May 22, 2020. Physical bids are only accepted in extraordinary circumstances.
* Non-competitive bids: 10.30 a.m. and 11.00 a.m.
* Competitive bids: 10.30 a.m. and 11.30 a.m.
* 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 any bids.
* **Settlement and Issuance:**
* Auction results will be announced on May 22, 2020.
* Payment by successful bidders is due on May 26, 2020.
* Securities will be issued via credit to the Subsidiary General Ledger (SGL) account or in the form of a Stock Certificate.
* Interest will be paid half-yearly.
* The stocks will be repaid at par on April 13, 2022; May 11, 2030; Dec 07, 2031 and Sep 15, 2060 respectively.
* **Other Information:**
* The stocks qualify for the ready forward facility.
* The Stocks will be eligible for When Issued trading during the period May 19 May 22, 2020.
**Impact Analysis**
* **Scheduled Commercial Banks, State Cooperative Banks, Scheduled Primary Urban Cooperative Banks, Financial Institutions, and Primary Dealers:**
* *Impact:* These entities can participate in the auction of GoI dated securities. They need to manage their liquidity and investment portfolios, assess the market, and submit competitive bids through the E-Kuber system. They are also responsible for submitting consolidated non-competitive bids on behalf of their constituents.
* *Action Required:* Evaluate the terms of the securities, assess market conditions, submit bids electronically via E-Kuber within the specified timeframe, and ensure payment on the settlement date if the bids are successful.
* **Investors (Individuals and Institutions):**
* *Impact:* Investors have the opportunity to invest in GoI dated securities through competitive and non-competitive bidding.
* *Action Required:* Investors should contact their banks or Primary Dealers to place orders for non-competitive bids or submit competitive bids via the E-Kuber system if they have direct access.
Key Entities Referenced
Reserve Bank of India: Central bank of India, conducting the auction of Government of India dated securities.
Government of India: Issuer of dated securities being auctioned by the Reserve Bank of India.
Mumbai, Maharashtra: The city and state where the Reserve Bank of India's Mumbai Office is located, which is involved in the sale of stocks.
5.09 GS 2022: One of the Government of India dated securities being offered for sale.
5.79 GS 2030: One of the Government of India dated securities being offered for sale.
GOI FRB 2031: One of the Government of India dated securities being offered for sale.
7.19 GS 2060: One of the Government of India dated securities being offered for sale.
Arvind Kumar: General Manager at Reserve Bank of India, signatory of the notification.
भारतीय �रजव र् ब�क
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2019-20/234
Ref.No.IDMD/2888/08.02.032/2019-20 May 18, 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 (issue/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)
2 5.79% GS 2030 18,000
W&M/2020 May 22, 2020 May 26, 2020
dated (Friday) (Tuesday)
3 GOI FRB 2031 4,000
May 18, 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 May 22, 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 May 22, 2020 (Friday) and payment by
successful bidders will be on May 26, 2020 (Tuesday).
(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 May 19 May 22, 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, 20–18 as amended
from time to time.
Yours faithfully
(Arvind Kumar)
General Manager