RBI Announced Underwriting Auctions for Government Securities
OREANDA-NEWS. August 10, 2011. The Government of India have announced the sale (reissue) of "7.83 per cent Government Stock 2018" for a notified amount of 3,000 crore (nominal), "7.80 per cent Government Stock 2021" for a notified amount of 6,000 crore (nominal) and "8.30 per cent Government Stock 2040" for a notified amount of 3,000 crore (nominal) through auctions to be held on August 12, 2011. The underwriting auctions for the captioned securities will be conducted on August 11, 2011 (Thursday).
As per revised scheme of underwriting, dated November 14, 2007, the amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under Additional Competitive Underwriting (ACU) for the underwriting auctions, per Primary Dealer, are as under:
(in crore)
Nomenclature of the Security |
Notified Amount |
MUC amount per Primary Dealer |
Minimum bidding commitment per PD under ACU auction |
7.83 per cent GS 2018 |
3000 |
72 |
72 |
7.80 per cent GS 2021 |
6000 |
143 |
143 |
8.30 per cent GS 2040 |
3000 |
72 |
72 |
The underwriting auctions will be conducted using multiple price based auction method. Primary Dealers (PDs) may submit their bids for aCu auctions electronically through Negotiated Dealing System (NDS) between
The underwriting commission will be credited to the current account of the respective PDs at the RBI, Fort, Mumbai on the date of issue of securities.
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