The government will sell four dated securities amounting to Rs 11,000 crore on January 6, the Reserve Bank said. The auctions will be conducted using multiple price method. The stocks will be issued for a minimum amount of Rs 10,000 and in multiples of Rs 10,000 thereafter, the RBI said in a statement, PTI reports.
Up to 5 per cent of the amount of the sale of the stocks will be allotted to 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 RBI Core Banking Solution (E-Kuber) system on January 06, RBI said. The result of the auctions will be announced on the same day, the central bank said, and added that the stocks will qualify for the ready forward facility.
Meanwhile, the RBI has released the Issuance Calendar for Marketable Dated Securities during January-February 2017 amounting to Rs 66,000 crore. "After reviewing the cash position of the Central Government, the RBI in consultation with the Government of India has revised the auction calendar for the issuance of Government dated securities for the remaining part of H2 of 2016-17," PTI reports.
The central bank further said that like in the past, the RBI/Government will continue to have the flexibility to bring about modifications in the calendar in terms of notified amount, issuance period, and maturities, and to issue different types of instruments.