Auction of State Government Securities

The following State Governments have offered to sell following securities by way of auction for an aggregate amount of ₹11550 Cr. (Face Value). Sr. No. State Amount to be raised (₹ Cr) Tenure (Yrs) Type of Auction 1. Andhra Pradesh 1000 14 Yield 2. Chhattisgarh 500 3 Yield 3. Goa 200 10 Yield 4. Gujarat 2000 10 Yield 5. Karnataka 2000 7 Yield 6. Madhya Pradesh 600 Re-issue Re-issue of 8.36% MP GS 2021, issued on March 16, 2011 7. 500 25 Yield 8. Manipur 50 10 Yield 9. Punjab 600 Re-issue Re-issue of 8.56% Punjab SDL 2030, issued on August 29, 2018 10. Rajasthan 2000 10 Yield 11. Sikkim 100 10 Yield 12. Tamil Nadu 1000 Re-issue Re-issue of 8.05% Tamil Nadu SDL 2028, issued on April 18, 2018 13. Telangana 1000 25 Yield   Total 11550     * Gujarat will have an option to retain additional amount of up to ₹ 500 cr. The auction will be conducted on the Reserve Bank of India Core Banking Solution (E-Kuber) system on November 05, 2018 (Monday). The Government Stock up to 10% of the notified amount of the sale of each of the 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 (available on RBI website). 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 November 05, 2018 (Monday). 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 12.00 noon. 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 different 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 November 05, 2018 (Monday) and payment by successful bidders will be made during banking hours on November 06, 2018 (Tuesday) 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. Interest will be paid half yearly on May 06 and November 06 of each year till maturity for the new securities. 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. Ajit Prasad Assistant Adviser Press Release : 2018-2019/1026

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