## Report on Government Securities Auction and Non-Competitive Bidding Facility
**1. Executive Summary:**
This report analyzes a notification from the Government of India regarding the sale/reissue of Government Securities (GS) through auctions, including a scheme for non-competitive bidding. The core purpose is to facilitate government borrowing and encourage wider participation, including retail investors, in the government securities market. Key findings include details on specific securities being auctioned, the auction process managed by the Reserve Bank of India (RBI), and eligibility criteria for non-competitive bidding aimed at smaller investors. This report details the auction framework and non-competitive bid scheme, providing specific information to prospective bidders in government securities, including investors who do not have direct accounts with the Reserve Bank of India.
**2. Introduction:**
The purpose of this report is to provide a comprehensive overview and analysis of the Government of India's notification regarding the sale and reissue of Government Securities, specifically focusing on the auction process and the non-competitive bidding facility. This analysis is based solely on the provided policy text.
**3. Policy Overview:**
This document outlines a *new* policy initiative regarding the sale/reissue of government securities through auction and details the introduction of a non-competitive bidding facility within these auctions.
* **Core Objective(s):** Based on the provided text, the core objectives are:
* To raise funds for the government through the sale/reissue of government securities.
* To broaden participation in the government securities market by allowing non-competitive bids, particularly from retail investors.
**4. Background and Rationale:**
* **Rationale:** The policy likely addresses the need for the government to efficiently manage its debt and the desire to attract a more diverse investor base into the government securities market. The non-competitive bidding facility suggests an effort to include smaller investors who may not have the resources or expertise to participate in competitive bidding. This broadens access to government debt instruments.
**5. Key Provisions / Changes:**
This is a new policy establishing a framework for government security auctions, with a specific carve-out for non-competitive bids.
* **Government Security Auction:** The document outlines auctions for three specific Government Securities:
* 4.26 GS 2023 maturing on May 17, 2023, with a notified amount of ₹3,000 crore (Uniform Price Auction).
* 6.10 GS 2031 maturing on July 12, 2031, with a notified amount of ₹14,000 crore (Uniform Price Auction).
* 6.76 GS 2061 maturing on February 22, 2061, with a notified amount of ₹9,000 crore (Multiple Price Auction).
* The Government retains the option to retain additional subscription up to ₹6,000 crore.
* **Non-Competitive Bidding Facility:**
* 5% of the notified amount is reserved for eligible individuals and institutions participating in non-competitive bidding.
* Eligible bidders *cannot* maintain a current account (CA) or Subsidiary General Ledger (SGL) account with the RBI (with exceptions for RRBs and Cooperative Banks).
* The maximum bid amount for non-competitive bids is ₹2 crore (face value). The minimum amount for bidding is ₹10,000 (face value) and thereafter in multiples of ₹10,000.
* Bids must be submitted through a bank or Primary Dealer (PD) offering this scheme, except RRBs and Cooperative Banks that maintain accounts with RBI can submit directly.
* Allotment to non-competitive bidders will be at the weighted average rate of yield/price from the competitive bidding process.
**6. Target Audience and Stakeholders:**
The primary target audience includes:
* Retail investors who do not maintain accounts with the RBI.
* Banks and Primary Dealers (PDs) who will act as intermediaries for non-competitive bidders.
* Regional Rural Banks (RRBs) and Cooperative Banks.
* The Reserve Bank of India, which is responsible for conducting the auctions.
* Government of India.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Reserve Bank of India (RBI) is responsible for conducting the auctions.
* **Timelines:**
* Auction date: September 17, 2021.
* Non-competitive bids submission: September 17, 2021, between 10:30 a.m. and 11:00 a.m.
* Competitive bids submission: September 17, 2021, between 10:30 a.m. and 11:30 a.m.
* Result display: September 17, 2021, on the RBI website.
* Payment date: September 20, 2021.
* **Procedure:** Bids must be submitted electronically through the RBI's Core Banking Solution (EKuber) system. Non-competitive bids in physical form will not be accepted unless there are extraordinary circumstances.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes are:
* Increased participation of retail investors in the government securities market.
* Diversification of the investor base for government debt.
* Potentially lower borrowing costs for the government due to increased demand.
**9. Conclusion:**
The Government Securities auction and non-competitive bidding facility notification represents a significant step towards broadening participation in the Indian government securities market. By allowing individuals and institutions without direct access to the RBI's systems to participate through banks and PDs, the policy aims to attract a more diverse investor base and ultimately facilitate more efficient government borrowing. The success of this initiative will depend on the effective implementation by the RBI and the active participation of banks and PDs in facilitating non-competitive bidding.
Key Entities Referenced
Government Securities: Securities issued by the Government of India.
Reserve Bank of India: The central bank of India, involved in conducting auctions and displaying results related to Government Securities.
Ministry of Finance: The ministry under which the Department of Economic Affairs and Budget Division operate, responsible for the notification regarding the sale of Government Securities.
Department of Economic Affairs: A department under the Ministry of Finance.
Budget Division: A division under the Ministry of Finance.
New Delhi: The location where the notification was issued.
4.26 GS 2023: A specific Government Security with a coupon rate of 4.26, maturing in 2023.
6.10 GS 2031: A specific Government Security with a coupon rate of 6.10, maturing in 2031.
6.76 GS 2061: A specific Government Security with a coupon rate of 6.76, maturing in 2061.
Mumbai, Maharashtra: The location of the Reserve Bank of India office, where the securities will be sold through and auction will be conducted.
ASHISH VACHHANI: Jt. Secy. By Order of the President of India
Government of India: Issuer of the Government Securities.
General Notification F. No. 42WM2018: A general notification issued by the Government of India, dated March 27, 2018, specifying the terms and conditions for the sale of securities.
Noncompetitive Bidding Facility: A scheme allowing eligible individuals and institutions to bid for Government Securities up to 5% of the notified amount.
Regional Rural Banks RRBs: Banks that are covered under the Noncompetitive Bidding Facility Scheme.
Cooperative Banks: Banks that are covered under the Noncompetitive Bidding Facility Scheme.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-13092021-229577
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CG-DL-E-13092021-229577
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ऄसाधारण
EXTRAORDINARY
भाग I—खण्ड 1
PART I—Section 1
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 261] नइ ददल्ली, सोमिार, जसतम्ब र 13, 2021/भाद्र 22, 1943
No. 261] NEW DELHI, MONDAY, SEPTEMBER 13, 2021/BHADRA 22, 1943
जित्त मत्रं ालय
(अर्थथक काय यजिभाग)
(बजट प्रभाग)
ऄजधसचू ना
नइ ददल्ली, 13 जसतम्बर, 2021
सरकारी प्रजतभजू तयों )जीएस( की जबक्री (पनु र्थनगमय ) के जलए नीलामी
फा. स.ं 4(3)–बी(डब्ल् य एू ंडएम)/2021.—भारत सरकार एतदद्वारा नीचे ददए गए ऄनुसार सरकारी प्रजतभूजतयों की जबक्री
(पनु र्थनगमय ) ऄजधसूजचत करती है:
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 ₹ मे)
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 रखने का जिकल्प होगा।
यह जबक्री आस ऄजधसूचना (जजसे 'जिजिष् ट ऄजधसूचना' कहा गया ह)ै में ईजल्लजखत ितों के ऄधीन होगी। ईपयुयक् त सरकारी प्रजतभूजतया,ं
भारत सरकार द्वारा जारी सामान्य ऄजधसूचना एफ. संख्या. 4(2)-डब् ल् यूएंडएम/2018, ददनांक 27 माचय, 2018 में जनर्ददष्ट जनयमों
और ितों के ऄनुसार, भारतीय ररजिय बैंक, मुंबइ कायायलय, फोटय, मुंबइ -400001 के माध्यम से बेचा जाएगा।
5081 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
ऄप्रजतस्ट्पधी बोलीदाताओं को अबटं न
2. सरकारी प्रजतभजू तयों की नीलाजमयों में ऄप्रजतस्ट्पधी बोली देने की सुजिधा की संलग्न स्ट्कीम (ऄनबु धं ) के ऄनुसार, जबक्री की
ऄजधसूजचत राजि का 5 प्रजतित तक सरकारी प्रजतभूजतया ंपात्र व् यजक्तयों और संस्ट्थाओं को अबंरटत दकया जाएगा ।
नीलामी का स्ट्थान एि ंतारीख
3. यह नीलामी भारतीय ररजिय बैंक, मुंबइ कायायलय, फोटय, मुंबइ-400001 द्वारा 17 जसतम्बर, 2021 को संचाजलत की जाएगी।
नीलामी हते ु बोजलयां भारतीय ररजिय बैंक कोर बैंककग सोल्यूिन (इ-कुबेर) प्रणाली संबंधी आलेक्रॉजनक प्रपत्र में 17 जसतम्बर, 2021 को
प्रस्ट्तुत की जानी चाजहए। ऄप्रजतस्ट्पधी बोजलयां पूिाह्य न 10.30 बज े स े पूिाह्य न 11.00 बज े के बीच और प्रजतस्ट्पधी बोजलयां पिू ायह्न
10.30 बज ेस ेपिू ायह्न 11.30 बज ेके बीच प्रस्ट्तुत की जानी चाजहए।
कब जनगजय मत कारोबार
4. ये प्रजतभूजतया,ं भारतीय ररजिय बैंक 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 िेबसाआट (www.rbi.org.in) पर 17 जसतम्बर, 2021 को प्रदर्थित दकया
जाएगा। सफल बोलीदाताओं द्वारा भुगतान 20 जसतम्बर, 2021 ऄथायत् पनु र्थनगमय की तारीख को दकया जाएगा। प्रजतभूजतयों के जलए
भुगतान में नीलामी में अबंरटत प्रजतभूजतयों के ऄंदकत मूल्य पर, मूलजनगयम/ऄंजतम कूपन भुगतान की तारीख से प्रोद्भूत ब्याज दये होने
की तारीख तक, प्रोद्भूत ब्याज िाजमल होगा। जैसा दक पैरा 6 में ताजलका में ईजल्लजखत है।
ब्याज का भगु तान और प्रजतभजू तयों का पनु भुयगतान
6. मलू र्थनगमय /ऄजं तम कूपन भुगतान 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।
प्रजतभजूत का नाम कूपन दर ऄ जं त म कूपन भगु तान दकस तारीख तक प्रोद्भतू कूपन भुगतान की तारीख
(%) की तारीख ब्याज देय ह ै (तारीख/माह)
4.26% सरकारी प्रजतभूजत, 2023 4.26 नइ प्रजतभूजत 19 जसतम्बर, 2021 17 निंबर और 17 मइ
6.10% सरकारी प्रजतभूजत, 2031 6.10 नइ प्रजतभूजत 19 जसतम्बर, 2021 12 जनिरी और 12 जुलाइ
6.76% सरकारी प्रजतभूजत, 2061 6.76 22 ऄगस्ट्त, 2021 19 जसतम्बर, 2021 22 फरिरी और 22 ऄगस्ट्त
भारत के राष्ट्रपजत के अदेि 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 से भारत सरकार की
ददनांदकत प्रजतभूजतयों की चयजनत नीलाजमयों में "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 बोजलयां 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 ररजिय बैंक के पास चालू खाता (सीए) ऄथिा सहायक सामान्य बही (एसजीएल) खाता नहीं रखते हैं;
ऄपिाद: क्षेत्रीय ग्रामीण बैंकों (अरअरबी) और सहकारी बैंकों को ईनके सांजिजधक दाजयत्िों के दजृष्टगत आस स्ट्कीम के ऄधीन
िाजमल दकया जाएगा।[भाग I—खण् ड 1] भारत का राजपत्र : ऄसाधारण 3
2. जो प्रजत नीलामी दो करोड़ ोपए (ऄंदकत मूल्य) से ऄनजधक राजि के जलए एक ही बोली लगाते ह;ैं
3. जो यह स्ट्कीम प्रदान करने िाले दकसी एक बैंक 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 चालू
खाता रखते ह,ैं ऄपनी ऄप्रजतस्ट्पधी बोजलयों को प्रत्यक्ष रूप से प्रस्ट्तुत करने के जलए पात्र होंगे।
III. व्यापकता: ईपयुयक्त ितों के ऄधीन "ऄप्रजतस्ट्पधी" अधार पर फमों, कंपजनयों, जनगजमत जनकायों, संस्ट्थाओं, भजिष् य जनजधयों,
न्यासों और भारतीय ररजिय 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 है।
IV. ऄन्य प्रचालनात्मक ददिाजनदिे :
1. खुदरा जनिेिक के जलए ईस बैंक ऄथिा प्राथजमक डीलर, जजनके माध्यम से ि े भाग लेना चाहते 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 म ें भाग ले सकता ह।ै आस अिय का िचन दक जनिेिक केिल एक बोली
द ेरहा है, बैंक ऄथिा प्राथजमक डीलर द्वारा प्राप्त दकया जाना और ररकाडय में रखा जाना होगा।
2. ऄपन े ग्राहकों से प्राप्त पक्के अडयर के अधार पर प्रत्येक बैंक ऄथिा प्राथजमक डीलर भारतीय ररजिय बैंक कोर बैंककग
सोल्यूिन (इ-कुबेर) प्रणाली संबंधी आलेक्रॉजनक प्रपत्र म ें ऄपने ग्राहकों की ओर से एक एकल समेदकत ऄप्रजतस्ट्पधी बोली
प्रस्ट्तुत करेगा। ऄसाधारण पररजस्ट्थजतयों, जैसे भारतीय ररजिय बैंक कोर बैंककग सोल्यूिन (इ-कुबेर) प्रणाली में सामान्य
गड़बड़ी को छोड़कर, भौजतक रूप में ऄप्रजतस्ट्पधी बोली स्ट्िीकार नहीं की जाएगी।
3. बैंक ऄथिा प्राथजमक डीलर को ऄप्रजतस्ट्पधी खडं के ऄधीन अबंटन 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 ऄपने ग्राहकों से भुगतान प्राप्त कर जलया है या नहीं, जनगयम की तारीख को भुगतान प्राप्त करके बैंक या
प्राथजमक डीलर को प्रजतभूजतया ंजारी की जाएंगी।
4. ऐसे मामले म,ें जहां बोली की राजि प्रारजक्षत राजि (ऄजधसूजचत राजि के 5 प्रजतित) से ऄजधक ह ै यथानुपात अबंटन
दकया जाएगा। अंजिक अबंटनों के मामले में, यह बैंक ऄथिा प्राथजमक डीलरों का दाजयत्ि होगा दक िह ऄपन ेग्राहकों को
प्रजतभूजतयों का ईजचत अबंटन एक पारदिी तरीके से करें।
5. ऐसे मामले में जहां बोली राजि प्रारजक्षत राजि से कम हो, कमी को प्रजतस्ट्पधी भाग में िाजमल दकया जाएगा।
6. प्रजतभूजत को भारतीय ररजिय बैंक द्वारा केिल एसजीएल रूप में जारी दकया जाएगा। भारतीय ररजिय बैंक आसे या तो बैंक
ऄथिा प्राथजमक डीलर के मुख्य एसजीएल खात े ऄथिा सीएसजीएल खाते में जमा करेगा, जैसादक ईनके द्वारा जनदिे
ददया गया ह।ै मुख्य एसजीएल खाते में जमा करने की सुजिधा एकमात्र ईन जनिेिकों की सेिा के प्रयोजनाथय ह ै जो ईनके
घटक नहीं ह।ैं ऄतः बैंक ऄथिा प्राथजमक डीलरों को ऄप्रजतस्ट्पधी बोजलयों की जनजिदा दते े समय ईनके एसजीएल खाते
और सीएसजीएल खाते में जमा होन े िाली राजियों (ऄंदकत मूल्य) को स्ट्पष् ट रूप से दिायना होगा। बाद म ें जनिेिक के
ऄनुरोध पर मुख्य एसजीएल खात ेसे िास्ट्तजिक रूप में 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 से पांच कायय ददिसों के भीतर पूरा दकया जाएगा।
8. बैंक ऄथिा प्राथजमक डीलर ऄपने ग्राहकों को यह सेिा दने े के जलए छह पैसे प्रजत सौ ोपए तक दलाली/कमीिन/सेिा
प्रभार के रूप में िसूल कर सकते ह।ैं ऐसी कीमत जबक्री मूल्य म ेंिाजमल की जा सकती है या ग्राहकों से ऄलग से िसूल की
जा सकती ह।ै ऐसे मामले में जहां 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 स ेईपजचत ब्याज िाजमल होगा।
9. प्रजतभूजतयों की लागत, ईपजचत ब्याज जहां भी लाग ू हो, तथा दलाली/कमीिन/सेिा प्रभारों के जलए ग्राहकों से भगु तान
प्राप्त करने की कायय-प्रणाली, बैंक या प्राथजमक डीलर द्वारा ग्राहक के साथ की गइ सहमजत के ऄनुसार तैयार की जाएगी।
यह ईल्लेखनीय ह ैदक दकसी ऄन्य लागत, जैसे जनजधकरण लागत को मूल्य म ेंिाजमल नहीं दकया जाना चाजहए या ग्राहकों
से िसूल नहीं दकया जाना चाजहए।4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
V. बैंकों और प्राथजमक डीलरों को भारतीय ररजिय बैंक (बैंक) द्वारा समय-समय पर मांगी गइ योजना के तहत संचालनों से
संबंजधत सूचना जनधायररत समय सीमा के ऄंतगयत बैंक को प्रस्ट्तुत करनी होगी।
VI. उपर ईजल्लजखत ददिाजनदिे बैंक द्वारा समीक्षा के ऄधीन ह ै और तद्नुसार, जब भी अिश्यकता होगी, योजना को संिोजधत
दकया जाएगा।
MINISTRY OF FINANCE
(Department of Economic Affairs)
(BUDGET DIVISION)
NOTIFICATION
New Delhi, the 13th September, 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-400001
on September 17, 2021. Bids for the auction should be submitted in electronic format on the
Reserve Bank of India Core Banking Solution (E-Kuber) system on September 17, 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 September 17, 2021.The payment by successful bidders will be on
September 20, 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.[भाग I—खण् ड 1] भारत का राजपत्र : ऄसाधारण 5
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 September 19, 2021 Nov. 17 and May 17
6.10% GS 2031 6.10 New Security September 19, 2021 Jan.12 and July 12
6.76% GS 2061 6.76 August 22, 2021 September 19, 2021 Feb. 22 and Aug. 22
By Order of the President of India,
ASHISH VACHHANI, Jt. Secy.
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 per cent 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.6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1]
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.
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.