NewKerala.com

Key Points

The Reserve Bank of India has announced a major government securities auction totaling Rs 28,000 crore. This includes the re-issue of two long-term bonds with different maturity dates and interest rates. Investors can participate through both competitive and non-competitive bidding processes via the RBI's e-Kuber system. The auction features specific timing windows for different types of bids and allows for additional subscriptions if the government chooses to accept them.

Key Points: RBI Auctions Rs 28,000 Crore Government Securities October 10

  • Auction includes Rs 16,000 crore of 6.68% GS 2040 and Rs 12,000 crore of 6.90% GS 2065
  • Both competitive and non-competitive bids accepted via multiple-price method
  • Individual investors can participate through RBI Retail Direct portal
  • Settlement scheduled for October 13 with payment deadline same day
2 min read

RBI announces auction of Rs 28,000 crore government securities

RBI announces auction of 6.68% GS 2040 and 6.90% GS 2065 totaling Rs 28,000 crore with settlement on October 13 via e-Kuber system

"The Government will have the option to accept additional subscriptions of up to Rs 2,000 crore for each security - RBI Notification"

Mumbai October 7

The Reserve Bank of India (RBI) on Monday announced the auction of two Government of India (GoI) securities with a total notified amount of Rs 28,000 crore.

According to the RBI notification, the auction will include the re-issue of 6.68 per cent GS 2040 worth Rs 16,000 crore and 6.90 per cent GS 2065 worth Rs 12,000 crore. The auction is scheduled for Friday, October 10, and the settlement will take place on Monday, October 13.

As per the notification, the Government will have the option to accept additional subscriptions of up to Rs 2,000 crore for each security. The sale will be conducted through the Reserve Bank of India's Mumbai Office via its Core Banking Solution e-Kuber system.

The auction will employ a multiple-price method, allowing both competitive and non-competitive bids. Non-competitive bids will be accepted between 10:30 a.m. and 11:00 a.m. on October 10, while competitive bids will be received between 10:30 a.m. and 11:30 a.m. the same day. Results will also be announced the same day, and successful bidders will have to make payments by October 13, Monday.

Bids for underwriting the Additional Competitive Underwriting (ACU) portion can be submitted by Primary Dealers between 9:00 a.m. and 9:30 a.m. on the day of the auction, i.e October 10

The securities will also be eligible for "When Issued" trading from October 7 to October 10, 2025.

For multiple price-based auctions, successful bids will get accepted at the respective quoted yield/price for the security. For a uniform price-based auction, bids will get accepted at the cutoff yield/price accepted in the auction.

The auction will be yield-based for new securities and price-based for securities which are reissued. In the case of a Floating Rate Bond (FRB), the auction will be spread-based for new securities and price-based for reissued securities. At the time of placing bids for a new FRB, the spread should be quoted in percentage terms.

The Stocks will be issued for a minimum amount of Rs 10,000 and in multiples of Rs 10,000 thereafter.

Individual investors can also place bids as per the non-competitive scheme through the Retail Direct portal of the central bank.

An investor can submit more than one competitive bid; however, the aggregate amount of bids submitted by an investor in an auction should not exceed the notified amount of the auction. RBI will have the full discretion to accept or reject any or all bids, either wholly or partially, without assigning any reason.

- ANI

Share this article:

Reader Comments

P
Priya S
As a retired person, government securities provide much-needed stability in my portfolio. The non-competitive bidding option is great for retail investors who don't want to deal with complex bidding processes.
A
Arjun K
₹28,000 crore is a significant amount. This shows the government's borrowing needs are still high. While the yields are decent, I hope this doesn't lead to crowding out private investment in the long run.
S
Sarah B
The multiple-price auction method is quite complex for ordinary investors. RBI should simplify the process further or provide more educational resources. Many people miss out on these opportunities due to lack of understanding.
V
Vikram M
The 2065 security is interesting - that's a very long-term bond! Good for pension funds and insurance companies looking for long-duration assets. Retail investors should stick to shorter tenures though.
A
Ananya R
Appreciate the transparency in the auction process and the clear timeline provided. The e-Kuber system has made government securities more accessible to common investors. Great initiative by RBI! 🇮🇳

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50