These are going to be price based auctions and there will be uniform pricing. The individuals and institutions fulfilling the requirements will be eligible to get approximately 5% of the notified amount of the sale of the stocks. This will be according to the scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.
The bids have to be submitted in the electronic format on the Negotiated Dealing System (NDS) on the due date. There is difference in time allotted for different types of bidding like 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 final results of the auction will be declared on Aug 5, 2011 itself and the successful bidders will have to make the payments on Aug 8, 2011. Bids for underwriting of the Additional Competitive Underwriting (ACU) portion for this issue are to be submitted by Primary Dealers on Aug 4, 2011 on the Negotiated Dealing System.