Auction of State Government Securities

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The following State Governments have offered to sell securities by way of an auction, for an aggregate amount of ₹23,906 Cr. (Face Value).

Sr. No. State Amount to be raised
(₹ Cr)
Additional Borrowing (Green shoe) Option
(₹ Cr)
Tenure
(Yrs)
Type of Auction
1. Andhra Pradesh 1314 16 Yield
2. Assam 500 6 Yield
1000 10 Yield
3. Chhattisgarh 1000 8 Yield
4. Goa 200 10 Yield
5. Gujarat 1000 10 Yield
6. Haryana 1000 20 Yield
7. Jharkhand 1000 400 14 Yield
8. Karnataka 1000 17 Yield
1000 18 Yield
1000 19 Yield
9. Madhya Pradesh 3000 Re-issue of 7.03% Madhya Pradesh SDL 2031 issued on February 17, 2021 Price
10. Maharashtra 1000 10 Yield
11. Puducherry 150 5 Yield
12. Punjab 500 Re-issue of 7.05% Punjab SDL 2031 issued on February 10, 2021 Price
13. Rajasthan 500 20 Yield
14. Sikkim 100 10 Yield
15. Tamil Nadu 2500 Re-issue of 6.95% Tamil Nadu SDL 2031 issued on February 17, 2021 Price
16. Tripura 142 15 Yield
17. Uttar Pradesh 4000 10 Yield
18. West Bengal 2000 20 Yield
Total 23906

The auction will be conducted on the Reserve Bank of India Core Banking Solution (E-Kuber) system on February 23, 2021 (Tuesday). The Government Stock up to 10% of the notified amount of the sale of each stock will be allotted to eligible individuals and institutions subject to a maximum limit of 1% of its notified amount for a single bid per stock as per the Scheme for Non-competitive Bidding Facility.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on February 23, 2021 (Tuesday). The non-competitive bids should be submitted between 10.30 A.M. and 11.00 A.M. and the competitive bids should be submitted between 10.30 A.M. and 11.30 A.M.

In case of technical difficulties, Core Banking Operations Team (email; Phone no: 022-27595666, 022-27595415, 022-27523516) may be contacted.

For other auction related difficulties, IDMD auction team can be contacted (email; Phone no: 022-22702431, 022-22705125).

Only in the event of system failure, physical bids would be accepted. Such physical bids should be submitted to the Public Debt Office (email; Phone no: 022-22632527, 022-22701299) in the prescribed form obtainable from RBI website (https://www.rbi.org.in/Scripts/BS_ViewForms.aspx) before the auction timing ends.

The yield percent per annum expected by the bidder should be expressed up to two decimal points. An investor can submit more than one competitive bid at same/different rates of yield or prices in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a bidder should not exceed the notified amount for each State.

The Reserve Bank of India will determine the maximum yield /minimum price at which bids will be accepted. Securities will be issued for a minimum nominal amount of ₹10,000.00 and multiples of ₹10,000.00 thereafter.

The results of the auction will be announced on February 23, 2021 (Tuesday) and payment by successful bidders will be made during banking hours on February 24, 2021 (Wednesday) at Mumbai and at respective Regional Offices of RBI.

The State Government Stocks will bear interest at the rates determined by RBI at the auctions. For the new securities, interest will be paid half yearly on August 24 and February 24 of each year till maturity. The Stocks will be governed by the provisions of the Government Securities Act, 2006 and Government Securities Regulations, 2007.

The investment in State Government Stocks will be reckoned as an eligible investment in Government Securities by banks for the purpose of Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The stocks will qualify for the ready forward facility.

Rupambara
Director

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