The government has decided to sell 8-year dated securities in the form of stock to the public to raise ₹100 crore. The auction will be conducted by the Reserve Bank of India, Mumbai Office (Fort) on February 11.
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The government, in a notification on Friday, said the securities would be issued for a minimal amount of ₹10,000 and in multiples of ₹10,000 thereafter. Interested persons, firms, companies, corporate bodies, institutions, provident fund trusts, regional rural banks or co-operative banks can submit a single consolidated non-competitive bid on behalf of all their constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) available on the website www.rbi.org on February 11 between 10. 30 a.m. and 11. 30 a.m. The competitive bids shall be submitted electronically on the same day between 10. 30 a.m. and 12 p.m, a notification signed by Secretary Finance Ashok Kumar said.
The result of the auction will be displayed on RBI’s website on the same day. Successful bidders should deposit the price amount of the stock covered by their bids by means of a Banker’s Cheque or Demand Draft payable at the RBI officer, Mumbai or Chennai on February 12 before the closing of banking hours, the notification said.
The government stock would bear interest at the rate determined by RBI at the auction. Interest would be paid on August 12 and February 12 of every financial year until repayment. The stocks would qualify for Ready Forward Facility, the notification said.
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