Okay, I'm ready to analyze the provided policy text and generate the report. Based on the title "Auction for Sale / Reissue of Government Securities," and the fact it is published as a notification, this appears to be a **new policy** detailing the process for selling/reissuing government securities.
Here's the report:
**Report on Government of India Notification Regarding Auction for Sale/Reissue of Government Securities**
**1. Executive Summary:**
This report analyzes a notification from the Government of India regarding the sale/reissue of government securities (GS). The core purpose of this notification is to outline the framework, rules, and procedures for the auction of these securities, including specific details on the types of securities, auction dates, amounts, and participation guidelines, especially focusing on non-competitive bidding. Key findings indicate a focus on broader participation in government security auctions, especially for retail investors, through the non-competitive bidding scheme.
**2. Introduction:**
The purpose of this report is to provide a comprehensive overview and analysis of the Government of India's notification pertaining to the auction for the sale/reissue of government securities. The analysis is based solely on the provided text of the notification.
**3. Policy Overview:**
* **Core Objective(s):** Based on the provided text, the core objectives of this policy appear to be:
* To facilitate the sale/reissue of specific government securities.
* To establish a clear and transparent auction process for these securities.
* To encourage wider participation in the auctions, particularly through the non-competitive bidding facility aimed at retail investors.
**4. Background and Rationale:**
* **Likely Problem/Issue Addressed:** The policy likely addresses the need for the government to raise funds through the issuance of securities. It also appears to address a desire to broaden the investor base for government securities, making them more accessible to smaller, non-institutional investors (retail). The introduction of a non-competitive bidding scheme suggests a specific effort to encourage participation from individuals and entities who may not have the resources or expertise to engage in competitive bidding.
**5. Key Provisions / Changes:**
* This notification outlines the procedures for auctioning specific Government Securities (GS). Key provisions include:
* **Sale/Reissue of Specific Securities:** The notification details the sale/reissue of 4.26 GS 2023, 6.10 GS 2031, and 6.76 GS 2061. Specific details are provided for each, including:
* Date of original issue and maturity
* Auction date (August 20, 2021)
* Auction Method (Price Based - Uniform and Multiple)
* Notified Amount (in Crore)
* **Auction Mechanism:** The securities will be sold through the Reserve Bank of India (RBI) via an auction process.
* **Non-Competitive Bidding:** Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding scheme. This scheme is detailed in Annex I and aims to encourage wider participation. Key aspects of this scheme:
* Eligibility: Open to investors who don't maintain current/SGL accounts with RBI (with exceptions for RRBs and Cooperative Banks), make a single bid, and submit it through a bank or PD.
* Bidding Limits: Bids cannot exceed two crore face value. The minimum bid amount is 10,000 face value and multiples thereof.
* Allotment: Allotment is at the weighted average rate of yield/price from the competitive bidding.
* **Competitive Bidding:** The notification outlines the timelines for competitive bidding submissions (10:30 a.m. and 11:30 a.m. on August 20, 2021) through the RBI's e-Kuber system.
* **"When Issued" Trading:** The securities are eligible for "When Issued" trading.
* **Payment and Interest:** Successful bidders must make payments by August 23, 2021, including accrued interest. Interest will be paid half-yearly.
* **RBI Role:** The RBI is responsible for conducting the auction, displaying results, and crediting securities to SGL/CSGL accounts.
* **Brokerage/Commission:** Banks and PDs can recover up to six paise per 100 as brokerage/commission for non-competitive bidding services.
**6. Target Audience and Stakeholders:**
Based on the text, the target audience and stakeholders include:
* **Potential Investors:** Both individual and institutional investors interested in purchasing government securities.
* **Banks and Primary Dealers (PDs):** These entities act as intermediaries for non-competitive bidding and are responsible for submitting consolidated bids on behalf of their clients.
* **Reserve Bank of India (RBI):** The RBI is responsible for managing the auction process and related operations.
* **Regional Rural Banks (RRBs) and Cooperative Banks:** These entities have specific provisions within the non-competitive bidding scheme.
* **Government of India:** As the issuer of the securities, the government is a key stakeholder.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Reserve Bank of India (RBI) is the primary body responsible for implementing the auction process. Banks and Primary Dealers (PDs) play a crucial role in facilitating non-competitive bidding. The Ministry of Finance, Department of Economic Affairs, Budget Division, is the issuing authority.
* **Timelines/Procedures:**
* Auction Date: August 20, 2021
* Bidding Submission: Non-competitive bids (10:30 a.m. - 11:00 a.m.), Competitive bids (10:30 a.m. - 11:30 a.m.) on August 20, 2021.
* Payment Date: August 23, 2021
* Result Display: August 20, 2021 on www.rbi.org.in
* Transfer of securities to clients (for non-competitive bids): Within five working days from the date of issue.
**8. Expected Outcomes / Impact of Changes:**
* The likely intended outcomes based on the policy's stated provisions include:
* Successful sale/reissue of the government securities, raising funds for the government.
* Increased participation in government security auctions, particularly from retail investors, due to the non-competitive bidding scheme.
* A more diversified investor base for government securities.
* Enhanced transparency and efficiency in the auction process through electronic bidding.
**9. Conclusion:**
The Government of India's notification outlines a clear framework for the auction of government securities. The inclusion of a non-competitive bidding scheme is a significant element, potentially broadening participation and democratizing access to government debt instruments. This policy is significant because it not only facilitates government borrowing but also aims to foster a more inclusive and diverse investor base in the government securities market.
Key Entities Referenced
Ministry of Finance: The Indian governmental ministry responsible for finance and economy.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
Budget Division: A division within the Department of Economic Affairs, Ministry of Finance.
Government Securities: Debt instruments issued by the Government of India.
Reserve Bank of India: The central bank of India, responsible for regulating the Indian financial system.
Mumbai: A city in Maharashtra, location of the Reserve Bank of India office.
General Notification F. No. 42WM2018: A notification issued by the Government of India related to government securities.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme to encourage wider participation and retail holding of Government securities.
Regional Rural Banks: Financial institutions in India with a mandate to provide credit and other financial services to rural populations
New Delhi: The capital of India.
ASHISH VACHHANI: Jt. Secy. I, signatory of the notification.
Government of India: The governing authority of the Republic of India.
EKuber: Reserve Bank of India Core Banking Solution.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एxलx.x-GअID.-E1x4xx0 82021-228996
CG-DL-E-14082021-228996
ऄसाधारण
EXTRAORDINARY
भाग II—खण्ड 1
PART I—Section 1
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 227] नइ ददल्ली, िक्रु िार, ऄगस्ट्त 13, 2021/श्रािण 22, 1943
No. 227] NEW DELHI, FRIDAY, AUGUST 13, 2021/SRAVANA 22, 1943
जित्त मत्रं ालय
(अर्थथक काय यजिभाग)
(बजट प्रभाग)
ऄजधसचू ना
नइ ददल्ली, 13 ऄगस्ट्त, 2021
सरकारी प्रजतभजू तयों )जीएस( की जबक्री (पनु र्थनगमय ) के जलए नीलामी
फा. स.ं 4(3)–बी(डब्ल् य एू ंडएम)/2021.—भारत सरकार एतद्द्वारा नीचे ददए गए ऄनुसार सरकारी प्रजतभूजतयों की जबक्री
(पनु र्थनगमय ) ऄजधसूजचत करती ह:ै
प्रजतभूजत का नाम मूल जनगयम की ऄिजध पररपक्वता की नीलामी का नीलामी की ऄ ज ध सूजचत राजि
तारीख (िर्य-माह-ददन) तारीख अधार जिजध (करोड़ ₹ म)े
4.26% सरकारी प्रजतभूजत, 2023 17 मइ, 2021 02-00-00 17 मइ, 2023 मूल्य समान 3,000
6.10% सरकारी प्रजतभूजत, 2031 12 जुलाइ, 2021 10-00-00 12 जुलाइ, 2031 मूल्य समान 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 में 6,000 करोड़ ोपए 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 एफ. संख्या. 4(2)-डब् ल् यूएंडएम/2018, ददनांक 27 माच,य 2018 में जनर्ददष्ट जनयमों और
ितों के ऄनुसार, भारतीय ररजि यबैंक, मुंबइ कायायलय, फोटय, मुंबइ -400001 के माध्यम स ेबेचा जाएगा।
ऄप्रजतस्ट्पधी बोलीदाताओं को अबटं न
4527 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]
2. सरकारी प्रजतभूजतयों की नीलाजमयों में 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 ।
नीलामी का स्ट्थान एि ंतारीख
3. यह नीलामी भारतीय ररजि य बैंक, मुंबइ कायायलय, फोटय, मबुं इ-400001 द्वारा 20 ऄगस्ट्त, 2021 को सचं ाजलत की जाएगी।
नीलामी हते ु बोजलया ं भारतीय ररजिय बैंक कोर बैंककग सोल्यूिन )इ-कुबेर( प्रणाली संबंधी आलेक्रॉजनक प्रपत्र में 20 ऄगस्ट्त, 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 बजे 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 ररजि य बैंक द्वारा ऄपने िेबसाआट )www.rbi.org.in) पर 20 ऄगस्ट्त, 2021 को प्रदर्थित दकया
जाएगा। सफल बोलीदाताओं द्वारा भुगतान 23 ऄगस्ट्त, 2021 ऄथायत् पनु र्थनगमय की तारीख को दकया जाएगा। प्रजतभूजतयों के जलए
भुगतान में नीलामी में अबंरटत प्रजतभूजतयों के ऄंदकत मूल्य पर, मलू जनगमय /ऄंजतम कूपन भुगतान की तारीख से प्रोद्भूत ब्याज दये होन े
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 ीभगु तान
6. मलू र्थनगमय /ऄजं तम कूपन भगु तान की तारीख से स्ट्टॉक के ऄंदकत मूल्य पर ब्याज प्रोद्भूत होगा तथा आसका भुगतान ऄधिय ार्थर्क
अधार पर दकया जाएगा। प्रजतभूजतयों का पुनभुयगतान पररपक्वता की तारीख पर सममल्ू य पर दकया जाएगा।
प्रजतभूजत का नाम कूपन दर ऄ ंजतम कूपन दकस तारीख तक प्रोद्भतू कूपन भगु तान की तारीख
(%) भगु तान की तारीख ब्याज दये ह ै (तारीख/माह)
4.26% सरकारी प्रजतभूजत, 2023 4.26 नइ प्रजतभूजत 22 ऄगस्ट्त, 2021 17 निंबर और 17 मइ
6.10% सरकारी प्रजतभूजत, 2031 6.10 नइ प्रजतभूजत 22 ऄगस्ट्त, 2021 12 जनिरी और 12 जुलाइ
6.76% सरकारी प्रजतभूजत, 2061 6.76 22 ऄगस्ट्त, 2021 22 ऄगस्ट्त, 2021 22 फरिरी और 22 ऄगस्ट्त
भारत के राष्ट्रपजत के अदिे से,
अिीर् िच्छानी, संयुक्त सजचि
ऄनबु धं
सरकारी प्रजतभजू तयों 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 ोपए (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 क्षेत्रीय ग्रामीण बैंक (अरअरबी) तथा सहकारी बैंक जो भारतीय ररजिय बैंक में एस.जी.एल.खाता और चाल ू खाता
रखते ह,ैं ऄपनी ऄप्रजतस्ट्पधी बोजलयों को प्रत्यक्ष रूप से प्रस्ट्तुत करने के जलए पात्र होंग।े[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 ोपए (ऄंदकत मूल्य) और ईसके बाद 10,000 ोपए के गुणजों में होगी जैसा ऄब तक ददनांदकत स्ट्टॉक के
जलए ह।ै
IV. ऄन्य प्रचालनात्मक ददिाजनदिे :
1. खुदरा जनिेिक के जलए ईस बैंक ऄथिा प्राथजमक डीलर, जजनके माध्यम से िे 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 म ें केिल एक बोली में 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 म ेंरखा जाना होगा।
2. ऄपन ेग्राहकों स ेप्राप्त पक्के अडरय के अधार पर प्रत्येक बैंक ऄथिा प्राथजमक डीलर भारतीय ररजि यबैंक कोर बैंककग सोल्यूिन
(इ-कुबेर) प्रणाली संबंधी आलेक्रॉजनक प्रपत्र म ें ऄपने ग्राहकों की ओर स े एक एकल समेदकत ऄप्रजतस्ट्पधी बोली प्रस्ट्तुत
करेगा। ऄसाधारण पररजस्ट्थजतयों, जैस ेभारतीय ररजि य बैंक कोर बैंककग सोल्यूिन (इ-कुबेर) प्रणाली म ें सामान्य गड़बड़ी को
छोड़कर, भौजतक रूप म ेंऄप्रजतस्ट्पधी बोली स्ट्िीकार नहीं की जाएगी।
3. बैंक ऄथिा प्राथजमक डीलर को ऄप्रजतस्ट्पधी खंड के ऄधीन अबंटन प्रजतलाभ/कीमत की ईस भारांजित औसत दर पर होगा,
जो प्रजतस्ट्पधी बोली दने े के अधार पर नीलामी म ें सामन े अएगी। आस बात पर ध्यान ददए जबना दक बैंक ऄथिा प्राथजमक
डीलर ने ऄपने 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 ेमें, जहा ं बोली की राजि प्रारजक्षत राजि (ऄजधसूजचत राजि के 5 प्रजतित) स ेऄजधक ह ैयथानुपात अबंटन दकया
जाएगा। अंजिक अबंटनों के मामल े म,ें यह बैंक ऄथिा प्राथजमक डीलरों का दाजयत्ि होगा दक िह ऄपन े ग्राहकों को
प्रजतभूजतयों का ईजचत अबंटन एक पारदिी तरीके से करें।
5. ऐसे मामल ेम ेंजहा ंबोली राजि प्रारजक्षत राजि स ेकम हो, कमी को प्रजतस्ट्पधी भाग म ेंिाजमल दकया जाएगा।
6. प्रजतभूजत को भारतीय ररजि य बैंक द्वारा केिल एसजीएल रूप में जारी दकया जाएगा। भारतीय ररजिय 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 बकैं 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 से दिायना होगा। बाद में जनिेिक के ऄनुरोध
पर मुख्य एसजीएल खाते स ेिास्ट्तजिक रूप में की गइ सुपुदगय ी स्ट्िीकाय यह।ै
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 ोपए तक दलाली/कमीिन/सेिा प्रभार
के रूप में िसूल कर सकत े ह।ैं ऐसी कीमत जबक्री मूल्य म ें िाजमल की जा सकती ह ै या ग्राहकों स े ऄलग स े िसूल की जा
सकती ह।ै ऐस े 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 में 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 म ेंिाजमल नहीं दकया जाना चाजहए या ग्राहकों स े
ि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 संचालनों से 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, 13th August, 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 Tenure Date of Auction Auction Notified Amount
Security Original Issue (yy-mm-dd) Maturity Basis Method (in `Crore)
4.26% GS 2023 May 17, 2021 02-00-00 May 17, 2023 Price Uniform 3,000
6.10% GS 2031 July 12, 2021 10-00-00 July 12, 2031 Price Uniform 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
August 20, 2021. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on August 20, 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 August 20, 2021.The payment by successful bidders will be on August 23, 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 upto
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 rate Date of Last Coupon Date upto which Date of Coupon payments
Security (%) payment accrued interest is due (month/date)
4.26% GS 2023 4.26 New Security August 22, 2021 Nov. 17 and May 17
6.10% GS 2031 6.10 New Security August 22, 2021 Jan.12 and July 12
6.76% GS 2061 6.76 August 22, 2021 August 22, 2021 Feb. 22 and Aug. 22
By Order of the President of India,
ASHISH VACHHANI, Jt. 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.