Government to raise Rs13,000 crore more from market
30 Jan 2012
The Government of India today announced the sale bonds worth a total Rs13,000 crore taking the excess borrowing during the current fiscal to Rs1,05000 crore above the 4.6 per cent targeted in the budget.
The Reserve Bank of India (RBI) on behalf of the government will sell Rs3,000-crore 7.83 per cent 2018 stock through price based auction, Rs7,000 crore 8.79 per cent 2021 stock through price based auction and Rs3,000 crore 8.83 per cent 2041 stock through price based auction totaling Rs13,000 crore on Friday.
The RBI said it would conduct the auctions using uniform price method.
Up to 5 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.
The result of the auctions will be announced on February 3, 2012 and payment by successful bidders will be on February 6, 2012 (Monday).
The stocks, when issued, will qualify for the ready forward trading for a period commencing 31 January 2012 to 3 February 2012 in accordance with the guidelines, RBI said.
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