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EXTRAORDINARY
PART I —Section 1
PUBLISHED BY AUTHORITY
No. 305] NEW DELHI, MON DAY, DEC EMBER 11, 2023/AGRAHAYANA 20, 194 5
CG-DL-E-11122023-250562
MINISTRY OF FINANCE
(Department of Economic Affairs )
(BUDGET DIVISION )
New Delhi, the 11th December , 2023
NOTIFICATION
Auction for Sale (re -issue) of Government Security (GS)
F. No. 4(3)-B(W&M)/2023 .—Government of India (GoI) hereby notifies sale ( re-issue ) of the following
Government Securities
GoI will have the option to retain additional subscription up to ₹ 2,000 crore against each security mentioned above.
The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’). The
Securities will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai - 400 001 as per the terms and
conditions specifi ed in the General Notification F.No.4(2) –W&M/2018, dated March 27, 2018 issued by Government
of India.
Allotment to Non -competitive Bidders
2. The Government Security up to 5% of the notified amount of the sale will be allotted to eligible individuals and
institutions as per the enclosed Scheme for Non -competitive Bidding Facility in the Auctions of Government
Securities ( Annex ).
Place and date of auction
3. The auction will be conducted by Reserve Ban k of India, Mumbai Office, Fort, Mumbai -400 001 on
December 15, 2023 . Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core
Banking Solution (E -Kuber) system on December 15, 2023 . The non -competitive bids should be submitted between
10:30 a.m. and 11:00 a.m. and the competitive bi ds should be submitted between 10:30 a.m. and 11:30 a.m.
When Issued Trading
4. The Securities will be eligible for “When Issued” trading in accordance with the guidelines issued by the R eserve
Bank of India.
Date of issue and payment for the security
5. The result of the auction shall be placed by the Reserve Bank of India on its website (www.rbi.org.in) on
December 15, 2023 .The payment by successful bidders will be on December 18, 2023 i.e. the date of
re-issue . The payment for the securities will include accrued interest on the nominal value of the Securities allotted in
the auction from the date of original issue/last coupon payment date to the date upto which accrued interest is due as
mentioned in the table in para 6.
Payment of Interest and Re -payment of security
6. Interest will accrue on the nominal value of the Securities from the date of original issue / last coupon payment
and will be paid half yearly . The Securities will be r epaid at par on date of maturity.
Name of the
Security Coupon
rate (%) Date of Last Coupon
payment Date up to which accrued
interest is due Date of Coupon Payments
(month / date)
7.37% GS 2028 7.37 New Security Dec 17, 2023 Apr 23 and Oct 23
7.18% GS 2 033 7.18 New Security Dec 17, 2023 Feb 14 and Aug 14
7.46% GS 2073 7.46 New Security Dec 17, 2023 May 06 and Nov 06
By Order of the President of India ,
ASHISH VACHHANI , Addl. Secy.
Name of the
Security Date of Original
Issue Tenure
(yy-mm-dd) Date of
Maturity Base Method Notified Amount
(in ₹ Crore)
7.37% GS 2028 Oct 23 , 2023 05-00-00 Oct 23, 2028 Price Uniform 7,000
7.18% GS 2033 Aug 14, 2023 10-00-00 Aug 14, 2033 Price Uniform 16,000
7.46% GS 2073 Nov 06, 2023 50-00-00 Nov 06, 2073 Price Multiple 10,000
Annex
Scheme for Non -competitive Bidding Facility in the Auction of
Government of India Dated Securities and Treasury Bills
I. Scope : With a view to encouraging wider parti cipation and retail holding of Government securities, retail
investors are allowed participation on “non -competitive” basis in select auctions of dated Government of
India (GoI) securities and Treasury Bills.
II. Definitions : For the purpose of this scheme, the terms shall bear the meaning assigned to them as under:
a. Retail investor is any person, including individuals, firms, companies, corporate bodies, institutions,
provident funds, trusts, and any other entity as may be prescribed by RBI.
b. ‘Aggregator/Facil itator’ means a Scheduled Bank or Primary Dealer or Specified Stock Exchange or any
other entity approved by RBI, permitted to aggregate the bids received from the investors and submit a
single bid in the non -competitive segment of the primary auction.
c. ‘Specified stock exchange’ means SEBI recognized Stock Exchange, which have received No Objection
Certificate (NOC) from SEBI to act as aggregator/facilitator in the primary auction segment.
d. ‘Eligible Provident Funds’ are those non -government provident funds governed by the Provident Funds
Act, 1925 whose investment pattern is decided by the Government of India.
III. Eligibility :
a. Participation on a non -competitive basis in the auctions will be open to a retail investor who:
1. Does not maintain current account (CA) or subsidiary General Ledger (SGL) account with the
Reserve Bank of India; and
2. Submits the bid indirectly through an Aggregator/Facilitator permitted under the scheme; or
3. Maintains the ‘Retail Direct Gilt Account’ (RDG Account) with RBI
Exceptions :
a. Region al Rural Banks (RRBs) and Cooperative Banks:
i. Regional Rural Banks (RRBs) and Cooperative Banks shall be covered under this Scheme only in
the auctions of dated securities in view of their statutory obligations.
ii. Since these banks maintain SGL account and cu rrent account with the Reserve Bank of India, they
shall be eligible to submit their non -competitive bids directly.
b. State Governments, eligible provident funds and Others:
i. State Governments, eligible provident funds in India, the Nepal Rashtra Bank, Royal Monetary
Authority of Bhutan and any Person or Institution, specified by the Bank, with the approval of
Government, shall be covered under this scheme only in the auctions of Treasury Bills.
ii. These bids will be outside the notified amount.
iii. There will not be any restriction on the maximum amount of bid for these entities.
IV. Quantum : Allocation of non -competitive bids from retail investors will be restricted to a maximum of five
percent of the aggregate nominal amount of the issue within the notified amount as specified by the
Government of India, or any other percentage determined by Reserve Bank of India.
V. Amount of Bid :
a. The minimum amount for bidding will be ₹10,000 (face value) and therefore in multiples in ₹10,000 as
hitherto.
b. In the auctions of GoI dated securities, the retail investors can make a single bid for an amount not more
than Rupees Two crore (face value) per security per auction.
VI. Other Operational Guidelines :
a. The retail investor desirous of participating in the auction under the Scheme wou ld be required to
maintain a depository account with any of the depositories or a gilt accoun5 under the constituent
subsidiary general ledger (CSGL) account of Aggregator/Facilitator or ‘Retail Direct Gilt Account’
(RDG Account) with RBI.
b. Under the Sc heme, an investor can make only a single bid in an auction. An undertaking to the effect
that the investor is making only a single bid will have to obtained and kept on record by the
Aggregator/Facilitator.
Submission of Bids:
c. Each Aggregator/Facilitator on the basis of firm orders received from their constituents with submit a
single consolidated non -competitive bid on behalf of all its constituents in electronic format on the
Reserve Bank of India Core Banking Solution (E -Kuber) system. Except in extraor dinary circumstances
such as general failure of the Reserve Bank of India Core Banking Solution (E -Kuber) system, non -
competitive bid in physical form will not be accepted.
Allotment of Bids:
d. Allotment under the non -competitive segment to the Aggregator/F acilitator will be at the weighted
average rate of yield/price that will emerge in the auction on the basis of the competitive bidding. The
securities will be issued to the Aggregator/Facilitator against payment on the date of issue irrespective of
whether they have received payment from their clients.
e. In case the aggregate amount of bid is more than the reserved amount (5% of notified amount), pro rata
allotment would be made. In case of partial allotments, it will be the responsibility of the
Aggregator/F acilitator to appropriately allocate securities to their clients in a transparent manner.
f. In case the aggregate amount of bids is less than the reserved amount, the shortfall will be taken to
competitive portion.
Issue of Security:
g. Security would be issue d only in SGL form by RBI. The Aggregator/Facilitator has to clearly indicate at
the time of tendering the non -competitive bids the amounts (face value) to be credited to their main SGL
or CSGL account.
h. Delivery in physical form from the Main SGL account i s permissible at the instance of the investor
subsequently.
i. It will be the responsibility of the Aggregator/Facilitator to pass on the securities to their clients. Except
in extraordinary circumstances, the transfer of securities to the client should b com pleted within five
working days from the date of issue.
Commission/Brokerage charged to Clients:
j. The Aggregator/Facilitator can recover up to six paise per ₹ 100 as brokerage /commission/ service
charges for rendering this service to their clients. Such c osts may be built into the sale price or recovered
separately from the clients.
k. In case, the securities are transferred subsequent to the issue date of the security, the consideration
amount payable by the client to the Aggregator/Facilitator will include accrued interest from the date of
issue.
l. Modalities for obtaining payment from clients towards cost of the securities, accrued interest, wherever
applicable, and brokerage/commission/service charges may be worked out by the Aggregator/Facilitator
as per ag reement with the client.
m. It may be noted that no other costs, such as funding costs, should be built into the price or recovered
from the client.
VII. Reporting Requirements :
Aggregators/Facilitators will be required to furnish information relating to operatio ns under the Scheme to
the Reserve Bank of India (Bank) as may be called for from time to time within the time frame prescribed by
the Bank.
VIII. The aforesaid guidelines are subject to review by the Bank and accordingly, if and when considered
necessary, the S cheme will be modified.
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