What changed
Government of India is re-issuing four dated securities: 8.35% GS 2022 (₹4,000 crore), 8.28% GS 2027 (₹7,000 crore), 9.20% GS 2030 (₹3,000 crore), and 9.23% GS 2043 (₹2,000 crore). The auction uses a price-based uniform price method. Non-competitive bidding is allowed up to 5% of notified amount for eligible individuals and institutions.
What it means for you
Banks and PDs must consolidate firm orders from constituents and submit a single non-competitive bid via E-Kuber. Allotment for non-competitive bids will be at the weighted average yield/price from competitive bidding. Securities qualify for ready forward and 'When Issued' trading from April 29 to May 2, 2014.
What you must do
- Submit competitive and non-competitive bids electronically on E-Kuber by May 2, 2014; competitive bids by 12:00 noon, non-competitive by 11:30 AM.
- Ensure each non-competitive bid is a single consolidated bid on behalf of all constituents with firm orders.
- Prepare for settlement on May 5, 2014; payment by successful bidders is due that day.
- Note that bids in physical form are not accepted except in extraordinary circumstances.
Who it affects
All Scheduled Commercial Banks, All State Co-operative Banks, All Scheduled Primary (Urban) Co-operative Banks, All Financial Institutions, All Primary Dealers
What is the minimum bid amount for these securities?
The minimum bid amount is ₹10,000 (nominal) and in multiples of ₹10,000 thereafter.
Can an investor submit multiple competitive bids?
Yes, an investor can submit more than one competitive bid at different prices, but the total amount of all bids by a person must not exceed the notified amount of the auction.
When will the auction results be announced?
The results will be announced on May 2, 2014, the same day as the auction.