The Business Bytes
NEW DELHI, APRIL 22, 2024 (TBB BUREAU): The Union Finance Ministry on Monday revealed plans for the sale of government bonds totaling Rs 32,000 crore, slated for Friday, April 26, 2024. Divided into two categories, the first offering comprises “7.1 per cent Government Security 2034” valued at Rs 20,000 crore, while the second includes “7.46 per cent Government Security 2073” with a worth of Rs 12,000 crore.
The Reserve Bank of India (RBI) in Mumbai will conduct the auctions through a price-based auction, utilizing the multiple price method. Additionally, the government retains the option to accept additional subscriptions of up to Rs 2,000 crore for each security.
Under the scheme for non-competitive bidding, up to 5 per cent of the notified sale amount will be allocated to eligible individuals and institutions. All bids, both competitive and non-competitive, must be submitted electronically via the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 26.
Non-competitive bids are scheduled between 10:30 a.m. and 11:00 a.m., while competitive bids are to be submitted between 10:30 a.m. and 11:30 a.m., according to the Finance Ministry’s statement. The auction results will be disclosed on April 26, with successful bidders expected to make payments on April 29 (Monday).
Furthermore, the securities will be eligible for “When Issued” trading, adhering to the RBI guidelines.
