Government will sell bonds worth Rs 38,000 crore through RBI’s multi-value auction method.

Government will sell bonds worth Rs 38,000 crore through RBI’s multi-value auction method.

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New Delhi (Uttam Hindu News): The Finance Ministry on Monday announced the sale of government bonds worth Rs 38,000 crore through the new multiple price auction method of the Reserve Bank of India. According to a statement by the Finance Ministry, these include (i) sale of “7.33 per cent Government Securities 2026” for a notified amount of Rs 6,000 crore through price-based auction using multiple price method, (ii) multiple price method. and (iii) sale of “New Government Securities 2034” for a notified amount of Rs 20,000 crore through yield-based auction using the multi-value method and (iii) sale of “7.25 per cent” for a notified amount of Rs 12,000 crore through price-based auction using multiplex method. Sale of Government Securities 2063”.

The government will have the option to retain additional subscription up to Rs 2,000 crore against each security, the statement said. The auction will be conducted by the Mumbai office of RBI on April 5 (Friday). Up to 5 per cent of the notified amount of sale of securities will be allotted to eligible individuals and institutions as per the Non-Competitive Bidding Facility Scheme in the auction of government securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on RBI’s Core Banking Solution (e-Kuber) system on April 5. Non-competitive bids should be submitted between 12:30 pm to 1 pm, while competitive bids should be submitted between 12:30 pm to 1:30 pm.

The results of the auction will be announced on the same day and payments to successful bidders will be made on April 8. The RBI, on its part, announced on Monday that it has decided in a review of market conditions in consultation with the Government of India that all securities under the government’s market borrowing program will henceforth be auctioned using the price method.

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