Auction of State Government Securities for Rs. 9,140 Crores on 20th November 2012.
With reference to the above subject we would like to inform you that, the following Twelve State Governments have announced the sale of dated State Development Loans (SDLs) for an aggregate amount of Rs. 9,140 Crores. The details are as follows:
The investment in Government Stocks will be reckoned as an eligible investment in Government Securities by Banks for the
purpose of Statutory Liquidity Ration (SLR) under Section 24 of the Banking
Regulation Act, 1949.
With reference to the above subject we would like to inform you that, the following Twelve State Governments have announced the sale of dated State Development Loans (SDLs) for an aggregate amount of Rs. 9,140 Crores. The details are as follows:
Sr.
No.
|
State
|
Notified
Amount
(` Crore) |
Tenor
of SDL
(in Years) |
Type
of Auction
|
1
|
Andhra Pradesh |
750.00
|
10
|
Yield
Based
|
2
|
Bihar
|
1250.00
|
10
|
Yield Based
|
3
|
Gujarat #
|
1000.00
|
4
|
Yield Based
|
4
|
Haryana
|
550.00
|
10
|
Yield Based
|
5
|
Karnataka # |
750.00
|
4
|
Yield
Based
|
6
|
Kerala |
1000.00
|
10
|
Yield
Based
|
7
|
Maharasthra |
1000.00
|
10
|
Yield
Based
|
8
|
Meghalaya |
50.00
|
10
|
Yield
Based
|
9
|
Nagaland |
200.00
|
10
|
Yield
Based
|
10
|
Rajasthan |
1000.00
|
10
|
Yield
Based
|
11
|
Tripura |
90.00
|
10
|
Yield
Based
|
12
|
West Bengal * |
1500.00
|
10
|
Yield
Based
|
| Total |
9140.00
|
# Govt. of Guj & Kar has
decided to issue 4 year new security while other SDLS will be for a tenor of 10
Years.
* Govt. of Kar & WB will have
an option to retain additional subscription up to a maximum of ` 250 & 500 Crs respectively.
The auction will be conducted on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on 20th November 2012 (Tuesday).
The Government Stock up to 10% of the notified amount of the sale of each of
the stock will be allotted to eligible individuals and institutions subject to
a maximum limit of 1% of its notified amount for a single bid per stock as per
the Scheme for Non-competitive Bidding Facility (available on RBI website).
Both competitive and non-competitive bids for the
auction should be submitted in electronic format on the Reserve Bank of India
Core Banking Solution (E-Kuber) system on 20th November 2012
(Tuesday). The Competitive and Non-Competitive bids should be submitted before
10.30 a.m. An investor can submit more than one competitive bid at different
prices in electronic format on the Reserve Bank of India Core Banking Solution
(E-Kuber) system. However, the aggregate
amount of bids submitted by a bidder should not exceed the notified amount of
each state.
The Reserve Bank of India will determine the maximum
yield/minimum price at which bids will be accepted. Securities will be issued
for a minimum nominal amount of Rs.10,000 and multiples of Rs.10,000
thereafter. The result of the auctions
will be announced on 20th November 2012 (Tuesday) and payment by
successful bidders will be on 21st November 2012 (Wednesday). The State
Government Stocks will bear interest at the rates determined by RBI at the
auction. Interest will be paid half yearly on 21st May and 21st
November of each year till maturity. The Stocks will be governed by the
provisions of the Government Securities Act, 2006 and Government Securities
Regulations, 2007.
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