OREANDA-NEWS. May 03, 2011. The Government of India have announced the sale (re-issue) of (i) “7.59 percent Government Stock 2016” for a notified amount of ` 4,000 crore (nominal), (ii) “8.13 percent Government Stock 2022” for a notified amount of ` 5,000 crore (nominal),and (iii) “8.26 percent Government Stock 2027” for a notified amount of ` 3,000 crore (nominal) through price based auctions. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on May 6, 2011 (Friday).

Up to 5% 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 May 6, 2011. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.30 p.m.

The result of the auctions will be announced on May 6, 2011 and payment by successful bidders will be on May 9, 2011 (Monday).

The stocks will qualify for the ready forward facility.

The underwriting of the Government Securities under auctions by the ‘Primary Dealers’ will be as per the “Revised Scheme of Underwriting Commitment and Liquidity Support” announced by the Reserve Bank vide circular RBI/2007-08/186 dated November 14, 2007. Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by ‘Primary Dealers’ up to 12.30 P.M. on May 5, 2011 (Thursday) on the Negotiated Dealing System (NDS).

The Stocks will be eligible for “When Issued” trading for a period commencing from May 3-6, 2011  in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI /2006-07/178 dated November 16, 2006 as amended from time to time.