The government announces the sale of floating rate securities and bonds

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The Union government has announced the sale of floating rate securities and bonds through price-based auctions using the uniform price method, according to an official statement.

“The Government of India (GoI) has announced the sale (issue/reissue) of (i) New Government Security, 2032′ for a notified amount of 13,000 crore (nominal) through price-based auction using the uniform price method; (ii) ”GoI Floating Rate Bonds, 2034′ for a notified amount of 4,000 crore (nominal) through price-based auction using the uniform price method; and (iii) ‘6.95% Government Security 2061’ for a notified amount of 7,000 crore (nominal) through price-based auction using multiple price method. GoI will have the option to maintain an additional subscription for up to 2,000 crores each against one or more securities,” the finance ministry said in a statement.

The auction will be conducted by the Reserve Bank of India (RBI) on Friday, January 14, 2022.

“Up to 5% of the notified amount of the sale of the securities will be allocated to eligible persons and institutions in accordance with the non-competitive bidding system during the public securities auction,” he added.

Competitive and non-competitive bids for the auction must be submitted in electronic format on the Reserve Bank’s Central Banking Solution (E-Kuber) system on January 14. Non-competitive bids must be submitted between 10:30 a.m. and 11:00 a.m. and competitive bids must be submitted between 10:30 a.m. and 11:30 a.m.

The result of the auction will be announced the same day and payment by the successful bidders will be made on January 17.

“The securities will be eligible for trading ‘on issue’ in accordance with the guidelines on ‘dealing on issue of central government securities’ issued by RBI Circular Void No. RBI/2018-19/25 of 24 July 2018, as amended from time to time,” the Department of Finance said.

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