Government to mop up Rs12,000 crore through securities sale on 28 May

The Reserve Bank of India (RBI) will sell (re-issue) Government of India stock for a total of Rs12,000 crore through auction on 28 May.

The government has announced the sale (re-issue) of (i) `7.38 per cent 2015 stock' for a notified amount of Rs4,000 crore through a price-based auction; `7.80 per cent 2020 stock' for a notified amount of Rs5,000 crore through price-based auction and "8.32 per cent 2032 stock' for a notified amount of Rs3,000 crore through a price-based auction.

All the auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, using uniform price method, an RBI release said.

Up to 5.0 per cent of the notified amount of the sale of the stocks will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the negotiated dealing system (NDS) on 28 May 2010. The non-competitive bids should be submitted between 10.30 am and 11.30 am and the competitive bids should be submitted between 10.30 am and 12.30 pm.

The result of the auctions will be announced on the same day and payment by successful bidders will be received on 31 May 2010.