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EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 220] NEW DELHI, TUES DAY , SEPTEMBER 19, 2023/ BHADRA 28, 1945
CG-DL-E-19092023-248831
MINISTRY OF FINANCE
(Department of Economic Affairs )
(BUDGET DIVISION)
NOTIFICATION
New Delhi, the 18th September , 2023
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 s old through Reserve Bank of India, Mumbai Office, Fort,
Mumbai - 400 001 as per the terms and conditions specified 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 da te of auction
3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai -400 001 on
September 22, 2023 . Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E -Kuber) s ystem on September 22, 2023 . The non -competitive bids should
be submitted between 10:30 a.m. and 11:00 a.m. and the competitive bids should be submitted between
10:30 a.m. and 11:30 a.m.
When Issued Trading
4. The Securities will be eligible for “When Iss ued” trading in accordance with the guidelines issued by the
Reserve 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
September 22, 2023 .The payment by successful bidders will be on September 25, 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 c oupon 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 cou pon
payment and will be paid half yearly . The Securities will be repaid 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)
7.06% GS 2028 7.06 New Security Sep 24, 2023 Oct 10 and Apr 10
7.18% GS 2033 7.18 New Security Sep 24, 2023 Feb 14 and Aug 14
7.30% GS 2053 7.30 New Security Sep 24, 2023 Dec 19 and Jun 19
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)
7.06% GS 2028 Apr 10, 2023 05-00-00 Apr 10, 2028 Price Uniform 8,000
7.18% GS 2033 Aug 14, 2023 10-00-00 Aug 14, 2033 Price Uniform 14,000
7.30% GS 2053 June 19, 2023 30-00-00 June 19, 2053 Price Multiple 11,000
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 participation 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, co rporate bodies,
institutions, provident funds, trusts, and any other entity as may be prescribed by RBI.
b. ‘Aggregator/Facilitator’ means a Scheduled Bank or Primary Dealer or Specified Stock
Exchange or any other entity approved by RBI, permitted to aggrega te 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 a ggregator/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. Participatio n 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/Facil itator permitted under the scheme; or
3. Maintains the ‘Retail Direct Gilt Account’ (RDG Account) with RBI
Exceptions :
a. Regional 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 current account with the Reserve Bank of
India, they shall be eligible to submit their non -competitive bids directly.
b. State Governme nts, 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 cover ed 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 investo rs 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 am ount 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 would be required
to maintain a depository account with any of the depositories or a gilt accoun5 under the
constituent subsidiary ge neral ledger (CSGL) account of Aggregator/Facilitator or ‘Retail Direct
Gilt Account’ (RDG Account) with RBI.
b. Under the Scheme, 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 wi th
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
extraordinary circumstances such as general failure of the Reserve Ban k 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/Facilitator will be at the
weighted average rate of yield/pri ce 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/Facilitator to appropriately allocate securities to their cl ients 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 issued 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 is 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
completed 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 costs 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/Facilitat or 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/Faci litator as per agreement 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 re lating to operations 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 consider ed
necessary, the Scheme will be modified.
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and Published by the Controller of Publications, Delhi -110054.
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