Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India (RBI) Core Banking Solution (E-Kuber) system on September 17.
Ministry Of Finance
The Center also announced the sale of ‘6.10 per cent Government Security, 2031’ for a notified amount of Rs 14,000 crore through a price based auction using an equal value method. and also announced the sale of ‘6.76 percent Government Security 2061’ for a notified amount of Rs 9,000 crore through a price based auction using the multiple value method.
Government of India will have the option to maintain additional subscription up to Rs.6,000 crore against the above security/securities. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai on September 17. For non-competitive bidding facility in the auction of Government securities, up to 5 per cent of the notified amount of sale of securities will be allotted to eligible individuals and institutions as per the scheme.
Competitive and non-competitive bidding timings
Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India (RBI) Core Banking Solution (E-Kuber) system on September 17. The non-competitive bid should be submitted between 10.30 am to 11.00 am and the competitive bid should be submitted between 10.30 am to 11.30 am. The result of the auction will be announced on September 17 and payment will be made by the successful bidders on September 20. .
What is government security?
Government security is such an instrument, which is bought and sold. These are issued by the central and state governments. These are also called G-Secs. It is issued by the central or state governments to raise borrowings. A short-term security is called a Treasury Bill. Treasury bills are issued for a period of less than one year.
The central government issues both treasury bills and debt securities. State governments can issue only debt securities. It is also called State Development Loan. Since these securities are issued by the government, the risk in them is negligible.
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