Here's a policy analysis report based on the provided text, following the requested structure.
**1. Executive Summary:**
This report analyzes a notification from the Ministry of Finance, Department of Economic Affairs, Budget Division, dated April 12, 2021, concerning the sale/reissue of Government Securities (GS). The notification outlines an auction for specified GS, including their dates of maturity, auction amounts, and coupon rates. A key component is the provision for non-competitive bidding to encourage wider participation, particularly from retail investors. The policy promotes retail holding of government securities through the mechanism of non-competitive bids and provides clear guidelines for institutions and banks involved. The report focuses on the auction details and the scheme for non-competitive bidding and its implications for stakeholders.
**2. Introduction:**
This report provides an analysis of the Government of India's notification regarding the auction for sale/reissue of specified Government Securities (GS) as detailed in the provided text. The report aims to inform the financial industry of the procedures for auction participation, eligibility criteria for non-competitive bidding, and the operational guidelines for banks and Primary Dealers (PDs) involved in the process.
**3. Policy Overview:**
This is a *new policy* related to the issuance of specific Government Securities.
* **Core Objective(s):** Based on the provided text, the core objectives are:
* To offer for sale/reissue specified Government Securities.
* To provide a mechanism for competitive and non-competitive bidding for these securities.
* To encourage wider participation, particularly from retail investors, in the Government securities market through a non-competitive bidding facility.
* To provide a transparent and structured method for the auction and allotment of these securities.
**4. Background and Rationale:**
As a *new policy* related to the issuance of specific government securities, the notification likely addresses the ongoing need for the government to raise funds through market borrowing. The provision for non-competitive bidding suggests a desire to broaden the investor base for government securities, potentially enhancing demand and reducing reliance on large institutional investors. The detailed procedures indicate an intention to create a clear and accessible framework for participation in government securities auctions.
**5. Key Provisions / Changes:**
This is a new policy, so the following details are the main components:
* **Auction Details:** The notification announces the auction for the sale/reissue of three Government Securities with varying maturity dates (2022, 2030, and 2061) and coupon rates (3.96%, 5.85%, and 6.76%, respectively). Specific amounts for each security are notified, with a provision for the government to retain additional subscription up to ₹6,000 crore. The auction will be conducted by the Reserve Bank of India (RBI).
* **Bidding Process:** The policy establishes a dual bidding system: competitive and non-competitive. Competitive bids are to be submitted electronically between 10:30 a.m. and 11:30 a.m. Non-competitive bids have a narrower window, from 10:30 a.m. to 11:00 a.m.
* **Non-Competitive Bidding Facility:** Up to 5% of the notified amount is reserved for non-competitive bids. This facility is primarily aimed at investors who do not maintain a current account or SGL account with the RBI (with exceptions for RRBs and Cooperative Banks under specific conditions). The minimum bid amount is ₹10,000, and the maximum is ₹2 crore per auction. Bids must be submitted through a bank or PD offering this scheme. Allotment to non-competitive bidders will be at the weighted average yield/price determined in the competitive bidding process.
* **Obligations for Banks and PDs:** Banks and PDs are responsible for submitting consolidated non-competitive bids on behalf of their constituents, maintaining CSGL accounts for retail investors, allocating securities transparently, and transferring securities to clients within five working days of the issue date. They can recover up to six paise per ₹100 as brokerage/commission.
* **Payment and Interest:** Successful bidders must make payment on April 19, 2021, including accrued interest. Interest will be paid semi-annually.
* **"When Issued" Trading:** The securities are eligible for "When Issued" trading, subject to RBI guidelines.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* **Retail Investors:** Individuals and entities (firms, companies, trusts, etc.) interested in investing in government securities but may lack direct access to the primary market.
* **Banks and Primary Dealers (PDs):** These institutions play a crucial role in facilitating non-competitive bidding for retail investors. They are responsible for submitting bids, managing CSGL accounts, and transferring securities.
* **Reserve Bank of India (RBI):** The RBI is responsible for conducting the auction and managing the issuance of securities.
* **Government of India:** The issuer of the securities, seeking to raise funds through the market.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Reserve Bank of India (RBI) is the primary implementing agency, responsible for conducting the auction. The Ministry of Finance is responsible for the policy.
* **Timelines and Procedures:**
* Auction Date: April 16, 2021.
* Bidding Windows: Non-competitive (10:30 a.m. - 11:00 a.m.), Competitive (10:30 a.m. - 11:30 a.m.) on April 16, 2021.
* Payment Date: April 19, 2021.
* Security Transfer: Banks/PDs must transfer securities to clients within five working days of the issue date.
* **Operational Framework:** The text specifies the use of the RBI's Core Banking Solution (EKuber) for electronic bid submission. Banks and PDs must establish CSGL accounts for their clients participating in non-competitive bidding.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes are:
* **Increased Retail Participation:** The non-competitive bidding facility is expected to broaden the investor base for government securities, making them more accessible to retail investors.
* **Enhanced Demand:** Wider participation could increase the overall demand for government securities, potentially leading to more favorable borrowing costs for the government.
* **Market Development:** Encouraging retail investment in government securities can contribute to the development of a more mature and diversified debt market.
* **Transparency and Efficiency:** The structured auction process and clear guidelines for banks and PDs are designed to ensure transparency and efficiency in the allocation of securities.
**9. Conclusion:**
The notification regarding the auction for sale/reissue of Government Securities, particularly the provision for non-competitive bidding, is a significant step toward promoting retail participation in the government securities market. The policy outlines a clear framework for the auction process and the roles of various stakeholders. By lowering barriers to entry for retail investors, this initiative is likely to contribute to a more diversified and resilient debt market, while also enabling the government to efficiently raise funds. The role of Banks and PDs is crucial in the operational success of this policy.
Key Entities Referenced
Government of India: The governing body of India, issuer of the securities and notifications mentioned in the document.
Ministry of Finance: A ministry of the Government of India.
Department of Economic Affairs: A department under the Ministry of Finance.
New Delhi: Capital of India, place of notification.
Government Securities: Debt instruments issued by the Government of India.
Reserve Bank of India: Central bank of India, responsible for conducting auctions and regulating government securities.
Mumbai: City in Maharashtra, location of the Reserve Bank of India office involved in the auction.
Fort, Mumbai: A business district in Mumbai, location of the Reserve Bank of India office.
3.96 GS 2022: Government Security with a coupon rate of 3.96% maturing in 2022.
5.85 GS 2030: Government Security with a coupon rate of 5.85% maturing in 2030.
6.76 GS 2061: Government Security with a coupon rate of 6.76% maturing in 2061.
Specific Notification: The notification containing the specific terms and conditions for the sale of government securities.
General Notification F.No.42 WM2018: A general notification issued by the Government of India on March 27, 2018, related to government securities.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to participate in government security auctions on a noncompetitive basis.
RBI Core Banking Solution EKuber system: The electronic platform used for submitting bids in the government security auctions.
When Issued Trading: Trading of securities before their actual issuance date.
President of India: The Head of State of India.
Rajat Kumar Mishra: Addl. Secy. issuing the order
Regional Rural Banks (RRBs): Financial institutions in India with specific statutory obligations.
Cooperative Banks: Financial institutions in India with specific statutory obligations.
Dte. of Printing: Directorate of Printing, Government of India.
Mayapuri, New Delhi: Location of the Government of India Press.
Controller of Publications, Delhi: Publisher of the gazette.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एxलxx.-GअID.-E1x2x0x 42021-226532
CG-DL-E-12042021-226532
ऄसाधारण
EXTRAORDINARY
भाग I—खण्ड 1
PART I—Section 1
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 126] नइ ददल्ली, सोमिार, ऄप्रलै 12, 2021/चत्रै 22, 1943
No. 126] NEW DELHI, MONDAY, APRIL 12, 2021/CHAITRA 22, 1943
जित्त मत्रं ालय
(अर्थथक काय यजिभाग)
(बजट प्रभाग)
ऄजधसचू ना
नइ ददल्ली, 12 ऄप्रैल, 2021
सरकारी प्रजतभजूतयों (जीएस) की जबक्री (पनु र्थनगमय ) के जलए नीलामी
फा. स.ं 4(3)–बी(डब्ल् य एू डं एम)/2021.—भारत सरकार एतद्द्वारा नीचे ददए गए ऄनुसार सरकारी प्रजतभूजतयों की जबक्री
(पुनर्थनगयम) ऄजधसूजचत करती ह:ै
प्रजतभजूत का नाम मलू जनगमय की मलू ऄिजध पररपक्वता की नीलामी का नीलामी की ऄ ज ध सजूचत राजि
तारीख (िर्-यमाह-ददन) तारीख अधार जिजध (करोड़ ₹ म)ें
3.96% सरकारी प्रजतभूजत, 2022 09 निम् बर, 2020 02-00-00 09 निम्ब र, 2022 मूल्य जिजिध 3,000
5.85% सरकारी प्रजतभूजत, 2030 01 ददसम्बर, 2020 10-00-00 01 ददसम्बर, 2030 मूल्य जिजिध 14,000
6.76% सरकारी प्रजतभूजत, 2061 22 फरिरी, 2021 40-00-00 22 फरिरी, 2061 मूल्य जिजिध 9,000
भारत सरकार के पास ईपरोक्त प्रजतभूजत/प्रजतभूजतयों म ें6,000 करोड़ रुपए तक ऄजतररक्त ऄजभदान बनाए रखन ेका जिकल्प होगा। यह
जबक्री आस ऄजधसूचना (जजस े 'जिजिष् ट ऄजधसूचना' कहा गया ह)ै म ें ईजल्लजखत ितों के ऄधीन होगी। ईपयुयक्त सरकारी प्रजतभूजतयां,
भारत सरकार द्वारा जारी सामान्य ऄजधसूचना फा. सं. 4(2)-डब् ल् यएू ंडएम/2018, ददनांक 27 माच,य 2018 में जनर्ददष्ट जनयमों और ितों
के ऄनुसार, भारतीय ररजिय बैंक, मुंबइ कायायलय, फोटय, मुंबइ -400001 के माध्यम से बेचा जाएगा।
ऄप्रजतस्ट्पधी बोलीदाताओं को अबटं न
2. सरकारी प्रजतभूजतयों की नीलाजमयों म ें ऄप्रजतस्ट्पधी बोली दने े की सुजिधा की संलग्न स्ट्कीम (ऄनबु धं ) के ऄनुसार, जबक्री की
ऄजधसूजचत राजि का 5 प्रजतित तक सरकारी प्रजतभूजतया ंपात्र व्य जक्तयों और संस्ट्थाओं को अबंरटत दकया जाएगा ।
2216 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
नीलामी का स्ट्थान एि ंतारीख
3. यह नीलामी भारतीय ररजि य बैंक, मुंबइ कायायलय, फोटय, मुंबइ-400001 द्वारा 16 ऄप्रलै , 2021 को संचाजलत की जाएगी। नीलामी
हते ु बोजलया ं भारतीय ररजि य बैंक कोर बैंककग सोल्यूिन (इ-कुबेर) प्रणाली संबंधी आलेक्रॉजनक प्रपत्र म ें 16 ऄप्रलै , 2021 को प्रस्ट्तुत की
जानी चाजहए। ऄप्रजतस्ट्पधी बोजलया ं पिू ाह्य न 10.30 बज े स े पिू ाह्य न 11.00 बज े के बीच और प्रजतस्ट्पधी बोजलया ं पिू ाह्य न 10.30 बज े स े
पिू ाह्य न 11.30 बज ेके बीच प्रस्ट्तुत की जानी चाजहए।
कब जनगजय मत कारोबार
4. ये प्रजतभूजतयां, भारतीय ररजि यबैंक द्वारा जारी ददिाजनदिे ों के ऄनुसार, 'कब जनगयजमत’ कारोबार के जलए पात्र होगा।
जनगमय की तारीख और प्रजतभजू तयों के जलए भगु तान
5. नीलामी का पररणाम भारतीय ररजिय बैंक द्वारा ऄपने िबे साआट (www.rbi.org.in) पर 16 ऄप्रलै , 2021 को प्रदर्थित दकया जाएगा।
सफल बोलीदाताओं द्वारा भुगतान 19 ऄप्रलै , 2021 ऄथातय ् पनु र्थनगमय की तारीख को दकया जाएगा। प्रजतभूजतयों के जलए भुगतान म ें
नीलामी में अबंरटत प्रजतभूजतयों के ऄंदकत मूल्य पर, मलू जनगमय /ऄजं तम कूपन भुगतान की तारीख से प्रोद्भूत ब्याज दये होने की तारीख
तक, प्रोद्भूत ब्याज िाजमल होगा। जैसा दक पैरा 6 में ताजलका में ईजल्लजखत ह।ै
ब्याज का भगु तान और प्रजतभजू तयों का पनु भगुय तान
6. मलू र्थनगमय /ऄजं तम कूपन भगु तान की तारीख से प्रजतभूजतयों के ऄदं कत मूल्य पर ब्याज प्रोद्भूत होगा तथा आसका भुगतान ऄधयिार्थर्क
अधार पर दकया जाएगा। प्रजतभूजतयों का पुनभुयगतान पररपक्वता की तारीख पर सममल्ू य पर दकया जाएगा।
प्रजतभजू त का नाम कूपन दर ऄ जं तम कूपन दकस तारीख तक कूपन भगु तान की तारीख
(%) भगु तान की तारीख प्रोद्भतू ब्याज दये ह ै (तारीख/माह)
3.96% सरकारी प्रजतभूजत, 2022 3.96 नइ प्रजतभूजत 18 ऄप्रैल, 2021 09 मइ और 09 निम् बर
5.85% सरकारी प्रजतभूजत, 2030 5.85 नइ प्रजतभूजत 18 ऄप्रैल, 2021 01 जून और 01 ददसम्ब र
6.76% सरकारी प्रजतभूजत, 2061 6.76 नइ प्रजतभूजत 18 ऄप्रैल, 2021 22 ऄगस्ट्त और 22 फरिरी
भारत के राष्ट्रपजत के अदिे से,
रजत कुमार जमश्र, ऄपर सजचि
ऄनबु धं
सरकारी प्रजतभजूतयों की नीलामी म ेंऄप्रजतस्ट्पधी बोली सजु िधा स्ट्कीम
I. कायक्षय त्रे : सरकारी प्रजतभूजतयों की व्यापक भागीदारी और खुदरा धाररता को प्रोत्साहन दने े की दजृष्ट स ेभारत सरकार की ददनांदकत
प्रजतभूजतयों की चयजनत नीलाजमयों म ें "ऄप्रजतस्ट्पधी" अधार पर भागीदारी की ऄनुमजत दने े का प्रस्ट्ताि दकया गया ह।ै तद्नुसार,
ददनांदकत प्रजतभूजतयों की नीलाजमयों में ऄजधसूजचत राजि के 5 प्रजतित तक की ऄप्रजतस्ट्पधी बोजलया ं स्ट्िीकार की जाएंगी। प्रारजक्षत
राजि ऄजधसूजचत राजि के ऄन्तगतय होगी।
II. पात्रता : भारत सरकार की ददनांदकत प्रजतभूजतयों की नीलाजमयों म ें ऄप्रजतस्ट्पधी अधार पर ऐसे जनिेिकों के जलए भागीदारी
खुली होगी जो जनम्नजलजखत ितों को पूरा करते ह:ैं
1. जो भारतीय ररजि यबैंक के पास चाल ूखाता (सीए) ऄथिा सहायक सामान्य बही (एसजीएल) खाता नहीं रखते ह;ैं
ऄपिाद: क्षेत्रीय ग्रामीण बैंकों (अरअरबी) और सहकारी बैंकों को ईनके सांजिजधक दाजयत्िों के दजृष्टगत आस स्ट्कीम के ऄधीन
िाजमल दकया जाएगा।
2. जो प्रजत नीलामी दो करोड़ रुपए (ऄंदकत मूल्य) स ेऄनजधक राजि के जलए एक ही बोली लगात ेह;ैं
3. जो यह स्ट्कीम प्रदान करन े िाल े दकसी एक बकैं ऄथिा प्राथजमक डीलर के माध्यम से ऄपनी बोली ऄप्रत्यक्ष रूप से प्रस्ट्तुत
करते ह।ैं
ऄपिाद: ऐसे क्षत्रे ीय ग्रामीण बैंक (अरअरबी) तथा सहकारी बैंक जो भारतीय ररजि य बैंक म ें एस.जी.एल.खाता और चालू
खाता रखत ेह,ैं ऄपनी ऄप्रजतस्ट्पधी बोजलयों को प्रत्यक्ष रूप स ेप्रस्ट्तुत करने के जलए पात्र होंगे।[भाग I—खण् ड 1] भारत का राजपत्र : ऄसाधारण 3
III. व्यापकता: ईपयुयक्त ितों के ऄधीन "ऄप्रजतस्ट्पधी" अधार पर फमों, कंपजनयों, जनगजमत जनकायों, संस्ट्थाओं, भजिष्य जनजधयों, न्यासों
और भारतीय ररजि य बैंक द्वारा यथा-जनधायररत दकसी ऄन्य कंपनी सजहत दकसी भी व्यजक्त के जलए भागीदारी खुली ह।ै बोली दने े की
न्यूनतम राजि 10,000 रुपए (ऄंदकत मूल्य) और ईसके बाद 10,000 रुपए के गुणजों में होगी जैसा ऄब तक ददनांदकत स्ट्टॉक के
जलए ह।ै
IV. ऄन्य प्रचालनात्मक ददिाजनदिे :
1. खुदरा जनििे क के जलए ईस बैंक ऄथिा प्राथजमक डीलर, जजनके माध्यम स े ि े भाग लेना चाहत े ह,ैं के पास एक संघटक
सहायक सामान्य बही (सीएसजीएल) खाता रखना ऄजनिाय य होगा। कोइ भी जनिेिक आस स्ट्कीम के ऄधीन ददनांदकत प्रजतभूजत
की दकसी नीलामी में केिल एक बोली म ें भाग ल े सकता ह।ै आस अिय का िचन दक जनिेिक केिल एक बोली द े रहा ह,ै बैंक
ऄथिा प्राथजमक डीलर द्वारा प्राप्त दकया जाना और ररकाडय में रखा जाना होगा।
2. ऄपने ग्राहकों से प्राप्त पक्के अडरय के अधार पर प्रत्येक बैंक ऄथिा प्राथजमक डीलर भारतीय ररजि य बैंक कोर बैंककग
सोल्यूिन (इ-कुबेर) प्रणाली संबंधी आलेक्रॉजनक प्रपत्र में ऄपन ेग्राहकों की ओर स ेएक एकल समेदकत ऄप्रजतस्ट्पधी बोली प्रस्ट्तुत
करेगा। ऄसाधारण पररजस्ट्थजतयों, जैस े भारतीय ररजि य बैंक कोर बैंककग सोल्यूिन (इ-कुबेर) प्रणाली में सामान्य गड़बड़ी को
छोड़कर, भौजतक रूप म ेंऄप्रजतस्ट्पधी बोली स्ट्िीकार नहीं की जाएगी।
3. बैंक ऄथिा प्राथजमक डीलर को ऄप्रजतस्ट्पधी खंड के ऄधीन अबटं न प्रजतलाभ/कीमत की ईस भारांजित औसत दर पर
होगा, जो प्रजतस्ट्पधी बोली दने े के अधार पर नीलामी में सामन े अएगी। आस बात पर ध्यान ददए जबना दक बैंक ऄथिा
प्राथजमक डीलर ने ऄपन े ग्राहकों से भुगतान प्राप्त कर जलया ह ै या नहीं, जनगयम की तारीख को भुगतान प्राप्त करके बैंक या
प्राथजमक डीलर को प्रजतभूजतया ंजारी की जाएंगी।
4. ऐसे मामल े म,ें जहा ं बोली की राजि प्रारजक्षत राजि (ऄजधसूजचत राजि के 5 प्रजतित) से ऄजधक ह ै यथानुपात अबंटन
दकया जाएगा। अंजिक अबंटनों के मामल े में, यह बैंक ऄथिा प्राथजमक डीलरों का दाजयत्ि होगा दक िह ऄपन े ग्राहकों को
प्रजतभूजतयों का ईजचत अबंटन एक पारदिी तरीके स ेकरें।
5. ऐसे मामल ेम ेंजहा ंबोली राजि प्रारजक्षत राजि से कम हो, कमी को प्रजतस्ट्पधी भाग में िाजमल दकया जाएगा।
6. प्रजतभूजत को भारतीय ररजि य बैंक द्वारा केिल एसजीएल रूप म ें जारी दकया जाएगा। भारतीय ररजि य बैंक आस े या तो
बैंक ऄथिा प्राथजमक डीलर के मुख्य एसजीएल खाते ऄथिा सीएसजीएल खाते में जमा करेगा, जैसादक ईनके द्वारा जनदिे ददया
गया ह।ै मुख्य एसजीएल खाते म ें जमा करन े की सुजिधा एकमात्र ईन जनिेिकों की सेिा के प्रयोजनाथ य ह ै जो ईनके घटक नहीं
ह।ैं ऄतः बैंक ऄथिा प्राथजमक डीलरों को ऄप्रजतस्ट्पधी बोजलयों की जनजिदा दते े समय ईनके एसजीएल खाते और सीएसजीएल
खाते म ेंजमा होन ेिाली राजियों (ऄंदकत मूल्य) को स्ट्पष् ट रूप स ेदिायना होगा। बाद म ेंजनिेिक के ऄनुरोध पर मुख्य एसजीएल
खाते से िास्ट्तजिक रूप म ेंकी गइ सुपुदगय ी स्ट्िीकायय ह।ै
7. यह बैंक ऄथिा प्राथजमक डीलर का दाजयत्ि ह ैदक िह ग्राहक को प्रजतभूजतया ंहस्ट्तांतररत करे। ऄसाधारण पररजस्ट्थजतयों को
छोड़कर, ग्राहकों को प्रजतभूजतयों का ऄंतरण जनगयम की जतजथ स ेपांच काय यददिसों के भीतर पूरा दकया जाएगा।
8. बैंक ऄथिा प्राथजमक डीलर ऄपन ेग्राहकों को यह सेिा दने े के जलए छह पैस ेप्रजत सौ रुपए तक दलाली/कमीिन/सेिा प्रभार
के रूप में िसलू कर सकते ह।ैं ऐसी कीमत जबक्री मल्ू य में िाजमल की जा सकती ह ै या ग्राहकों स े ऄलग से िसलू की जा सकती
ह।ै ऐसे मामल े म ें जहा ं प्रजतभूजतयों का ऄंतरण प्रजतभूजत की जनगयम जतजथ के बाद प्रभािी होता हो, बैंक या प्राथजमक डीलर को
ग्राहक द्वारा दये प्रजतफल राजि म ेंजनगयम जतजथ से ईपजचत ब्याज िाजमल होगा।
9. प्रजतभूजतयों की लागत, ईपजचत ब्याज जहा ं भी लाग ू हो, तथा दलाली/कमीिन/सेिा प्रभारों के जलए ग्राहकों से भुगतान
प्राप्त करने की काय-य प्रणाली,बैंक या प्राथजमक डीलर द्वारा ग्राहक के साथ की गइ सहमजत के ऄनुसार तैयार की जाएगी। यह
ईल्लेखनीय ह ैदक दकसी ऄन्य लागत, जैस े जनजधकरण लागत को मूल्य में िाजमल नहीं दकया जाना चाजहए या ग्राहकों से िसूल
नहीं दकया जाना चाजहए।
V. बैंकों और प्राथजमक डीलरों को भारतीय ररजि य बैंक (बैंक) द्वारा समय-समय पर मांगी गइ योजना के तहत सचं ालनों स े संबंजधत
सूचना जनधायररत समय सीमा के ऄतं गयत बैंक को प्रस्ट्तुत करनी होगी।
VI. उपर ईजल्लजखत ददिाजनदिे बैंक द्वारा समीक्षा के ऄधीन ह ैऔर तद्नसु ार, जब भी अिश्यकता होगी, योजना को संिोजधत दकया
जाएगा।4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
MINISTRY OF FINANCE
(Department of Economic Affairs)
(BUDGET DIVISION)
NOTIFICATION
New Delhi, the 12th April, 2021
Auction for Sale (Re-issue) of Government Securities (GS)
F. No. 4(3)-B(W&M)/2021.—Government of India hereby notifies sale (Re-issue) of the following
Government Securities:
Name of the Date of Original Tenure Date of Auction Auction Notified
Security Original Issue (yy-mm-dd) Maturity Basis Method Amount
(in ₹ Crore)
3.96% GS 2022 Nov.09, 2020 02-00-00 Nov.09, 2022 Price Multiple 3,000
5.85% GS 2030 Dec.01, 2020 10-00-00 Dec.01, 2030 Price Multiple 14,000
6.76% GS 2061 Feb.22, 2021 40-00-00 Feb.22, 2061 Price Multiple 9,000
Government of India will have the option to retain additional subscription up to ₹6,000 crore against the
above security/securities. The sale will be subject to the terms and conditions spelt out in this notification
(called „Specific Notification‟). The Securities will be sold through Reserve Bank of India, Mumbai Office,
Fort, Mumbai- 400 001 as per the terms and conditions specified in the General Notification F.No.4(2)–
W&M/2018, dated March 27, 2018 issued by Government of India.
Allotment to Non-competitive Bidders
2. The Government Securities up to 5% of the notified amount of the sale will be allotted to eligible
individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions
of Government Securities (Annex).
Place and date of auction
3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on April
16, 2021. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core
Banking Solution (E-Kuber) system on April 16, 2021. 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.
When Issued Trading
4. The Securities will be eligible for “When Issued” trading in accordance with the guidelines issued by the
Reserve Bank of India.
Date of issue and payment for the Securities
5. The result of the auction shall be displayed by the Reserve Bank of India on its website (www.rbi.org.in)
on April 16, 2021. The payment by successful bidders will be on April 19, 2021 i.e. the date of re-issue.
The payment for the Securities will include accrued interest on the nominal value of the Securities allotted in
the auction from the date of original issue/last coupon payment date to the date up to which accrued interest
is due as mentioned in the table in para 6.
Payment of Interest and Re-payment of Securities
6. Interest will accrue on the nominal value of the Securities from the date of original issue/last coupon
payment and will be paid half yearly. The Securities will be repaid at par on date of maturity.
Name of the Coupon Date of Last Coupon Date up to which Date of Coupon
Security rate (%) payment accrued interest is due payments (month/date)
3.96% GS 2022 3.96 New Security April 18, 2021 May 09 and Nov. 09
5.85% GS 2030 5.85 New Security April 18, 2021 June 01 and Dec. 01
6.76% GS 2061 6.76 New Security April 18, 2021 Aug. 22 and Feb. 22
By Order of the President of India,
RAJAT KUMAR MISHRA, Addl. Secy.[भाग I—खण् ड 1] भारत का राजपत्र : ऄसाधारण 5
Annex
Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities
I. Scope : With a view to encouraging wider participation and retail holding of Government securities,
it is proposed to allow participation on “non-competitive” basis in select auctions of dated Government of
India (GoI) securities. Accordingly, non-competitive bids up to 5 percent of the notified amount will be
accepted in the auctions of dated securities. The reserved amount will be within the notified amount.
II. Eligibility: Participation on a non-competitive basis in the auctions of dated GOI securities will be
open to investors who satisfy the following:
1. do not maintain current account (CA) or Subsidiary General Ledger (SGL) account with the
Reserve Bank of India. Exceptions: Regional Rural Banks (RRBs) and Cooperative Banks shall be covered
under this Scheme in view of their statutory obligations.
2. make a single bid for an amount not more than ` two crore (face value) per auction
3. submit their bid indirectly through any one bank or PD offering this scheme.
Exceptions: Regional Rural Banks (RRBs) and Cooperative Banks that maintain SGL account and current
account with the Reserve Bank of India shall be eligible to submit their non-competitive bids directly.
III. Coverage: Subject to the conditions mentioned above, participation on “non-competitive” basis is open
to any person including firms, companies, corporate bodies, institutions, provident funds, trusts, and any
other entity as may be prescribed by RBI. The minimum amount for bidding will be ` 10,000 (face value)
and thereafter in multiples in ` 10,000 as hitherto for dated stocks.
IV. Other Operational Guidelines:
1. The retail investor desirous of participating in the auction under the Scheme would be
required to maintain a constituent subsidiary general ledger (CSGL) account with the bank or PD
through whom they wish to participate. Under the Scheme, an investor can make only a single bid
in an auction of a dated security. An undertaking to the effect that the investor is making only a
single bid will have to obtained and kept on record by the bank or PD.
2. 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 for each security in
electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) System. Except in
extraordinary circumstances such as general failure of the Reserve Bank of India Core Banking
Solution (E-Kuber) System, non-competitive bid in physical form will not be accepted.
3. 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.
The securities will be issued to the bank or PD against payment on the date of issue irrespective of
whether the bank or PD has received payment from their clients or not.
4. In case the aggregate amount of bid is more than the reserved amount (5% of notified
amount), pro rata allotment would be made. In case of partial allotments, it will be the responsibility
of the bank or PD to appropriately allocate securities to their clients in a transparent manner.
5. In case the aggregate amount of bids is less than the reserved amount, the shortfall will be
taken to competitive portion.
6. Security would be issued only in SGL form by RBI. RBI would credit either the main SGL
account or the CSGL account of the bank or PD as indicated by them. The facility for affording
credit to the main SGL account is for the sole purpose of servicing investors who are not their
constituents. Therefore, the bank or PD would have to indicate clearly at the time of tendering the
non-competitive bids the amounts (face value) to be credited to their SGL account and the CSGL
account. Delivery in physical form from the main SGL account is permissible at the instance of the
investor subsequently.
7. It will be the responsibility of the bank or the PD to pass on the securities to their clients.
Except in extraordinary circumstances, the transfer of securities to the clients shall be completed
within five working days from the date of issue.6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
8. The bank or PD can recover upto six paise per ` 100 as brokerage/commission/service
charges for rendering this service to their clients. Such costs may be built into the sale price or
recovered separately from the clients. In case the transfer of securities is effected subsequent to
the issue date of the security, the consideration amount payable by the client to the bank or PD
would also include accrued interest from the date of issue.
9. Modalities for obtaining payment from clients towards cost of the securities, accrued
interest wherever applicable and brokerage/commission/service charges may be worked out by the
bank or PD as per agreement with the client. It may be noted that no other costs such as funding
costs should be built into the price or recovered from the client.
V. Banks and PDs will be required to furnish information relating to operations under the Scheme to the
Reserve Bank of India (Bank) as may be called for from time to time within the time frame prescribed by the
Bank.
VI. The aforesaid guidelines are subject to review by the Bank and accordingly, if and when considered
necessary, the Scheme will be modified.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.