Scheme for Non-competitive Bidding Facility in the Auction of Government of India Dated Securities and Treasury Bills

Posted on January 4, 2023 by Annu Priya

MINISTRY OF FINANCE

(Department of Economic Affairs) (BUDGET DIVISION)

NOTIFICATION

New Delhi, the 2nd January, 2023

Auction for Sale (re-issue) of Government Security (GS)

F. No. 4(3)-B(W&M)/2022.—Government of India (GoI) hereby notifies sale (re-issue) of the following Government Securities

Name of the Security	Date of Original Issue	Tenure (yy-mm-dd)	Date of Maturity	Base	Method	Notified Amount (in ₹ Crore)
7.38% GS 2027	Jun 20, 2022	05-00-00	Jun 20, 2027	Price	Uniform	7,000
7.26% GS 2032	Aug 22, 2022	10-00-00	Aug 22, 2032	Price	Uniform	12,000
7.36% GS 2052	Sep 12, 2022	30-00-00	Sep 12, 2052	Price	Multiple	9,000

GoI will have the option to retain additional subscription up to Rs. 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 specified in the General Notification F.No.4(2)–W&M/2018, dated March 27, 2018 issued by Government of India.

Scheme for Non-competitive Bidding Facility

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 Bank of India, Mumbai Office, Fort, Mumbai-400 001 on January 06, 2023. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 06, 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 Issued” 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 January 06, 2023.The payment by successful bidders will be on January 09, 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 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)
7.38% GS 2027	7.38	December 20, 2022	January 08, 2023	Jun 20 and Dec 20
7.26% GS 2032	7.26	New Security	January 08, 2023	Feb 22 and Aug 22
7.36% GS 2052	7.36	New Security	January 08, 2023	Mar 12 and Sep 12

By Order of the President of India,

ASHISH VACHHANI, Addl. Secy.

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, corporate 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 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. 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 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 would be required to maintain a depository account with any of the depositories or a gilt account under the constituent subsidiary general 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 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 extraordinary 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/Facilitator 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/Facilitator 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 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/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 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 relating 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 considered necessary, the Scheme will be modified.

Source: Click here to view/download PDF

नोट :- हमारे वेबसाइट www.indiangovtscheme.com पर ऐसी जानकारी रोजाना आती रहती है, तो आप ऐसी ही सरकारी योजनाओं की जानकारी पाने के लिए हमारे वेबसाइट www.indiangovtscheme.com से जुड़े रहे।

*****

लेटेस्‍ट अपडेट के लिए Facebook — Twitter — Telegram से अवश्‍य जुड़ें

Scheme for Non-competitive Bidding Facility in the Auction of Government of India Dated Securities and Treasury Bills

Posted on April 11, 2022 by Annu Priya

Scheme for Non-competitive Bidding Facility in the Auction of Government of India Dated Securities and Treasury Bills

MINISTRY OF FINANCE

(Department of Economic Affairs) (BUDGET DIVISION) NOTIFICATION

New Delhi, the 8th April, 2022

Auction for Sale (Issue/re-issue) of Government Securities (GS)

F. No. 4(3)-B(W&M)/2022.—Government of India hereby notifies sale (Issue/re-issue) of the following Government Securities:

Name of the Security	Date of Original Issue	Original/Tenure (yy-mm-dd)	Date of Maturity	Auction Basis	Auction Method	Notified Amount (in ` Crore)
4.56% GS 2023	Nov. 29, 2021	2-00-00	Nov. 29, 2023	Price	Uniform	4,000
New GS 2029	April 18, 2022	07-00-00	April 18, 2029	Yield	Uniform	7,000
6.54% GS 2032	Jan 17, 2022	10-00-00	Jan 17, 2032	Price	Uniform	13,000
6.95% GS 2061	Nov 22, 2021	40-00-24	Dec.16, 2061	Price	Multiple	9,000

GoI will have the option to retain additional subscription up to `2,000 crore against each of the securities 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 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 Securities 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 Bank of India, Mumbai Office, Fort, Mumbai-400 001 on April 13, 2022. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 13, 2022. 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 Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

Date of issue and payment for the Securities

5. The result of the auction shall be displayed by the Reserve Bank of India on its website (www.rbi.org.in) on April 13, 2022. The payment by successful bidders will be on April 18, 2022 i.e. the date of Issue/ 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 up to which accrued interest is due as mentioned in the table in para 6.

Payment of Interest and Re-payment of Securities

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 repaid at par on date of maturity.

Name of the Security	Coupon rate (%)	Date of Last Coupon payment	Date upto which accrued interest is due	Date of Coupon payments (month/date)
4.56% GS 2023	4.56	New Security	April 17, 2022	May 29 and Nov 29
New GS 2029	Yield based*	New Security	New Security	Oct. 18 and Apr. 18

6.54% GS 2032	6.54	New Security	April 17, 2022	July 17 and Jan 17
6.95% GS 2061	6.95	Dec 16, 2021	April 17, 2022	Jun 16 and Dec 16

*The coupon rate for the security will be set at the cut-off yield to maturity rate decided in the auction. The interest will be payable half-yearly.

By Order of the President of India,

ASHISH VACHHANI, Jt. Secy.

Scheme for Non-competitive Bidding Facility in the Auction of Government of India Dated Securities and Treasury Bills

Annex

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, corporate 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 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. 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 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:

1. The minimum amount for bidding will be `10,000 (face value) and therefore in multiples in 10,000 as hitherto.
2. 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:

1. 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 account under the constituent subsidiary general ledger (CSGL) account of Aggregator/Facilitator or „Retail Direct Gilt Account‟ (RDG Account) with RBI.

Read also : Online Admission Open to B.Tech, MBBS, BBA/PGDM all private colleges in Delhi/NCR

2. 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:

3. 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 extraordinary 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:

4. Allotment under the non-competitive segment to the Aggregator/Facilitator will be at athe 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.

5. 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 clients in a transparent manner.

6. In case the aggregate amount of bids is less than the reserved amount, the shortfall will be taken to competitive portion.

Issue of Security:

7. 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.

8. Delivery in physical form from the Main SGL account is permissible at the instance of the investor subsequently.

9. 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:

10. 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.

11. 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.

12. 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 agreement with the client.

13. 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:

VIII. The aforesaid guidelines are subject to review by the Bank and accordingly, if and when considered necessary, the Scheme will be modified.

Source: Click here to view/download PDF

*****

Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities

Posted on August 14, 2021 by Annu Priya

Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities

MINISTRY OF FINANCE

(Department of Economic Affairs) (BUDGET DIVISION) NOTIFICATION

New Delhi, 13th August, 2021

Auction for Sale (re-issue) of Government Securities (GS)

F. No. 4(3)-B(W&M)/2021.—Government of India hereby notifies sale (re-issue) of the following Government Securities:

Name of the Security	Date of Original Issue	Tenure (yy-mm-dd)	Date of Maturity	Auction Basis	Auction Method	Notified Amount (in `Crore)
4.26% GS 2023	May 17, 2021	02-00-00	May 17, 2023	Price	Uniform	3,000
6.10% GS 2031	July 12, 2021	10-00-00	July 12, 2031	Price	Uniform	14,000
6.76% GS 2061	Feb.22, 2021	40-00-00	Feb.22, 2061	Price	Multiple	9,000

Government of India will have the option to retain additional subscription up to ` 6,000 crore against the above security/securities. 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 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

Place and date of auction

3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on August 20, 2021. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on August 20, 2021. 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 Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

Date of issue and payment for the Securities

5. The result of the auction shall be displayed by the Reserve Bank of India on its website (www.rbi.org.in) on August 20, 2021.The payment by successful bidders will be on August 23, 2021 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 Securities

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 repaid at par on date of maturity.

Name of the Security	Coupon rate (%)	Date of Last Coupon payment	Date upto which accrued interest is due	Date of Coupon payments (month/date)
4.26% GS 2023	4.26	New Security	August 22, 2021	Nov. 17 and May 17
6.10% GS 2031	6.10	New Security	August 22, 2021	Jan.12 and July 12
6.76% GS 2061	6.76	August 22, 2021	August 22, 2021	Feb. 22 and Aug. 22

By Order of the President of India,

ASHISH VACHHANI, Jt. Secy.

Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities

Annex

I. Scope : With a view to encouraging wider participation and retail holding of Government securities, it is proposed to allow participation on “non-competitive” basis in select auctions of dated Government of India (GoI)securities. Accordingly, non-competitive bids up to 5 percent of the notified amount will be accepted in the auctions of dated securities. The reserved amount will be within the notified amount.

II. Eligibility: Participation on a non-competitive basis in the auctions of dated GOI securities will be open to investors who satisfy the following:

1. do not maintain current account (CA) or Subsidiary General Ledger (SGL) account with the Reserve Bank of India. Exceptions: Regional Rural Banks (RRBs) and Cooperative Banks shall be covered under this Scheme in view of their statutory obligations.
2. make a single bid for an amount not more than ` two crore (face value) per auction
3. submit their bid indirectly through any one bank or PD offering this scheme.

Exceptions: Regional Rural Banks (RRBs) and Cooperative Banks that maintain SGL account and current account with the Reserve Bank of India shall be eligible to submit their non-competitive bids directly.

III. Coverage: Subject to the conditions mentioned above, participation on “non-competitive” basis is open to any person including firms, companies, corporate bodies, institutions, provident funds, trusts, and any other entity as may be prescribed by RBI. The minimum amount for bidding will be ` 10,000 (face value) and thereafter in multiples in ` 10,000 as hitherto for dated stocks.

IV. Other Operational Guidelines:

1. The retail investor desirous of participating in the auction under the Scheme would be required to maintain a constituent subsidiary general ledger (CSGL) account with the bank or PD through whom they wish to participate. Under the Scheme, an investor can make only a single bid in an auction of a dated security. An undertaking to the effect that the investor is making only a single bid will have to obtained and kept on record by the bank or PD.
2. Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents for each security 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 Bank of India Core Banking Solution (E-Kuber) System, non-competitive bid in physical form will not be accepted.
3. Allotment under the non-competitive segment to the bank or PD 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 bank or PD against payment on the date of issue irrespective of whether the bank or PD has received payment from their clients or not.
4. 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 bank or PD to appropriately allocate securities to their clients in a transparent manner.
5. In case the aggregate amount of bids is less than the reserved amount, the shortfall will be taken to competitive portion.
6. Security would be issued only in SGL form by RBI. RBI would credit either the main SGL account or the CSGL account of the bank or PD as indicated by them. The facility for affording credit to the main SGL account is for the sole purpose of servicing investors who are not their constituents. Therefore, the bank or PD would have to indicate clearly at the time of tendering the non-competitive bids the amounts (face value) to be credited to their SGL account and the CSGL account. Delivery in physical form from the main SGL account is permissible at the instance of the investor subsequently.
7. It will be the responsibility of the bank or the PD to pass on the securities to their clients. Except in extraordinary circumstances, the transfer of securities to the clients shall be completed within five working days from the date of issue.
8. The bank or PD can recover upto 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. In case the transfer of securities is effected subsequent to the issue date of the security, the consideration amount payable by the client to the bank or PD would also include accrued interest from the date of issue.
9. 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 bank or PD as per agreement with the client. It may be noted that no other costs such as funding costs should be built into the price or recovered from the client.

V. Banks and PDs will be required to furnish information relating 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.

VI. The aforesaid guidelines are subject to review by the Bank and accordingly, if and when considered necessary, the Scheme will be modified.

Source: Click here to view/download PDF

*****

Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities

Posted on June 8, 2021 by Annu Priya

Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities

MINISTRY OF FINANCE

(Department of Economic Affairs) (BUDGET DIVISION) NOTIFICATION

New Delhi, the 7th June, 2021

Auction for Sale (Re-issue) of Government Securities (GS)

F. No. 4(3)-B(W&M)/2021.—Government of India hereby notifies sale (Re-issue) of the following Government Securities:

Name of the Security	Date of Original Issue	Original Tenure (yy-mm-dd)	Date of Maturity	Auction Basis	Auction Method	Notified Amount (in ` Crore)
4.26% GS 2023	May 17, 2021	02-00-00	May 17, 2023	Price	Multiple	3,000
5.85% GS 2030	Dec.01, 2020	10-00-00	Dec.01, 2030	Price	Multiple	14,000
6.76% GS 2061	Feb.22, 2021	40-00-00	Feb.22, 2061	Price	Multiple	9,000

Government of India will have the option to retain additional subscription up to ` 6,000 crore against the above security/ securities. 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 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

Place and date of auction

3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on June 11, 2021. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on June 11, 2021. 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 Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

Date of issue and payment for the Securities

5. The result of the auction shall be displayed by the Reserve Bank of India on its website (www.rbi.org.in) on June 11, 2021. The payment by successful bidders will be on June 14, 2021 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 up to which accrued interest is due as mentioned in the table in para 6.

Payment of Interest and Re-payment of Securities

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 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)
4.26% GS 2023	4.26	New Security	June 13, 2021	Nov. 17 and May 17
5.85% GS 2030	5.85	June 01, 2021	June 13, 2021	Dec. 01 and June 01
6.76% GS 2061	6.76	New Security	June 13, 2021	Aug. 22 and Feb. 22

By Order of the President of India,

ASHISH VACHHANI, Jt. Secy.

Annex

Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities

II. Eligibility: Participation on a non-competitive basis in the auctions of dated GOI securities will be open to investors who satisfy the following:

do not maintain current account (CA) or Subsidiary General Ledger (SGL) account with the Reserve Bank of India. Exceptions: Regional Rural Banks (RRBs) and Cooperative Banks shall be covered under this Scheme in view of their statutory obligations.

make a single bid for an amount not more than ` two crore (face value) per auction

submit their bid indirectly through any one bank or PD offering this scheme.

Exceptions: Regional Rural Banks (RRBs) and Cooperative Banks that maintain SGL account and current account with the Reserve Bank of India shall be eligible to submit their non-competitive bids directly.

IV. Other Operational Guidelines:

The retail investor desirous of participating in the auction under the Scheme would be required to maintain a constituent subsidiary general ledger (CSGL) account with the bank or PD through whom they wish to participate. Under the Scheme, an investor can make only a single bid in an auction of a dated security. An undertaking to the effect that the investor is making only a single bid will have to obtained and kept on record by the bank or PD.

Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents for each security 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 Bank of India Core Banking Solution (E-Kuber) System, non-competitive bid in physical form will not be accepted.

Allotment under the non-competitive segment to the bank or PD 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 bank or PD against payment on the date of issue irrespective of whether the bank or PD has received payment from their clients or not.

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 bank or PD to appropriately allocate securities to their clients in a transparent manner.

In case the aggregate amount of bids is less than the reserved amount, the shortfall will be taken to competitive portion.

Security would be issued only in SGL form by RBI. RBI would credit either the main SGL account or the CSGL account of the bank or PD as indicated by them. The facility for affording credit to the main SGL account is for the sole purpose of servicing investors who are not their constituents. Therefore, the bank or PD would have to indicate clearly at the time of tendering the non-competitive bids the amounts (face value) to be credited to their SGL account and the CSGL account. Delivery in physical form from the main SGL account is permissible at the instance of the investor subsequently.

It will be the responsibility of the bank or the PD to pass on the securities to their clients. Except in extraordinary circumstances, the transfer of securities to the clients shall be completed within five working days from the date of issue.

The bank or PD can recover upto 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. In case the transfer of securities is effected subsequent to the issue date of the security, the consideration amount payable by the client to the bank or PD would also include accrued interest from the date of issue.

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 bank or PD as per agreement with the client. It may be noted that no other costs such as funding costs should be built into the price or recovered from the client.

VI. The aforesaid guidelines are subject to review by the Bank and accordingly, if and when considered necessary, the Scheme will be modified.

Source: Click here to view/download PDF

*****

Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities : Scope, Eligibility and Coverage

Posted on May 4, 2021 by Annu Priya

Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities : Scope, Eligibility and Coverage

MINISTRY OF FINANCE

(Department of Economic Affairs) (BUDGET DIVISION)

NOTIFICATION

New Delhi, the 3rd May, 2021

Auction for Sale (Re-issue) of Government Securities (GS)

F. No. 4(3)-B(W&M)/2021.—Government of India hereby notifies sale (Re-issue) of the following Government Securities:

Name of the Security	Date of Original Issue	Original Tenure (yy-mm-dd)	Date of Maturity	Auction Basis	Auction Method	Notified Amount (in ` Crore)
5.63% GS 2026	April 12, 2021	05-00-00	April 12, 2026	Price	Multiple	11,000
GoI FRB 2033	June 22, 2020	13-03-00	Sep. 22, 2033	Price	Multiple	4,000
6.64% GS 2035	April 12, 2021	14-02-04	June 16, 2035	Price	Multiple	10,000
6.67% GS 2050	Nov. 02, 2020	30-01-15	Dec. 17, 2050	Price	Multiple	7,000

Government of India will have the option to retain additional subscription up to ` 8,000 crore against the above security/ securities. 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 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

Place and date of auction

3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on May 07, 2021. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on May 07, 2021. 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 Issued‖ trading in accordance with the guidelines issued by the Reserve Bank of India.

Date of issue and payment for the Securities

5. The result of the auction shall be displayed by the Reserve Bank of India on its website (www.rbi.org.in) on May 07, 2021. The payment by successful bidders will be on May 10, 2021 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 up to which accrued interest is due as mentioned in the table in para 6.

Payment of Interest and Re-payment of Securities

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 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)
5.63% GS 2026	5.63	New Security	May 09, 2021	Oct. 12 and April 12
GoI FRB 2033	Variable#	March 22, 2021	May 09, 2021	Sep.22 and Mar.22
6.64% GS 2035	6.64	New Security	May 09, 2021	June 16 and Dec.16
6.67% GS 2050	6.67	Dec. 17, 2020	May 09, 2021	June 17 and Dec.17

#:GoI FRB 2033:

(i) The interest at a variable rate will be paid half-yearly.

(ii) The Floating Rate Bond will carry the coupon, which will have a base rate, equivalent to the average of the Weighted Average Yield (WAY) of last 3 auctions (from the rate fixing day) of 182 Day T-Bills, plus a fixed spread of 122 basis points. The spread will be fixed throughout the tenure of the bond. The implicit yields will be computed by reckoning 365 days in a year.

(iii) In the event of Government of India 182-day Treasury Bill auctions being discontinued during the currency of the Bonds, the base rate of the coupon will be the average of Yield to Maturity (YTM) rates prevailing for six month Government of India Security/ies as on the last three non-reporting Fridays prior to the commencement of the semi-annual coupon period. In case particular Friday/s is/are holiday/s, the yield to maturity rates as on the previous working day shall be taken.

(iv) The base rate for the coupon period March 22, 2021 to September 21, 2021 shall be 3.48 per cent per annum. Accordingly, the rate of interest on FRB 2033 for this period shall be 4.70 per cent per annum. The rate of interest payable half yearly on the Bonds during the subsequent years shall be announced by the Reserve Bank of India before the commencement of the relative semi-annual coupon period.

By Order of the President of India,

Dr. SHASHANK SAKSENA, Senior Economic Adviser

Annex

Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities

I. Scope: With a view to encouraging wider participation and retail holding of Government securities, it is proposed to allow participation on ―non-competitive‖ basis in select auctions of dated Government of India (GoI)securities. Accordingly, non-competitive bids up to 5 percent of the notified amount will be accepted in the auctions of dated securities. The reserved amount will be within the notified amount.

II. Eligibility: Participation on a non-competitive basis in the auctions of dated GOI securities will be open to investors who satisfy the following:

do not maintain current account (CA) or Subsidiary General Ledger (SGL) account with the Reserve Bank of India. Exceptions: Regional Rural Banks (RRBs) and Cooperative Banks shall be covered under this Scheme in view of their statutory obligations.

make a single bid for an amount not more than ` two crore (face value) per auction

submit their bid indirectly through any one bank or PD offering this Scheme.

III. Coverage: Subject to the conditions mentioned above, participation on ―non-competitive‖ basis is open to any person including firms, companies, corporate bodies, institutions, provident funds, trusts, and any other entity as may be prescribed by RBI. The minimum amount for bidding will be ` 10,000 (face value) and thereafter in multiples in ` 10,000 as hitherto for dated stocks.

IV. Other Operational Guidelines:

The retail investor desirous of participating in the auction under the Scheme would be required to maintain a constituent subsidiary general ledger (CSGL) account with the bank or PD through whom they wish to participate. Under the Scheme, an investor can make only a single bid in an auction of a dated security. An undertaking to the effect that the investor is making only a single bid will have to obtained and kept on record by the bank or PD.

Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents for each security 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 Bank of India Core Banking Solution (E-Kuber) System, non-competitive bid in physical form will not be accepted.

Allotment under the non-competitive segment to the bank or PD 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 bank or PD against payment on the date of issue irrespective of whether the bank or PD has received payment from their clients or not.

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 bank or PD to appropriately allocate securities to their clients in a transparent manner.

In case the aggregate amount of bids is less than the reserved amount, the shortfall will be taken to competitive portion.

Security would be issued only in SGL form by RBI. RBI would credit either the main SGL account or the CSGL account of the bank or PD as indicated by them. The facility for affording credit to the main SGL account is for the sole purpose of servicing investors who are not their constituents. Therefore, the bank or PD would have to indicate clearly at the time of tendering the non-competitive bids the amounts (face value) to be credited to their SGL account and the CSGL account. Delivery in physical form from the main SGL account is permissible at the instance of the investor subsequently.

It will be the responsibility of the bank or the PD to pass on the securities to their clients. Except in extraordinary circumstances, the transfer of securities to the clients shall be completed within five working days from the date of issue.

The bank or PD can recover upto 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. In case the transfer of securities is effected subsequent to the issue date of the security, the consideration amount payable by the client to the bank or PD would also include accrued interest from the date of issue.

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 bank or PD as per agreement with the client. It may be noted that no other costs such as funding costs should be built into the price or recovered from the client.

VI. The aforesaid guidelines are subject to review by the Bank and accordingly, if and when considered necessary, the Scheme will be modified.

Source: Click here to view/download PDF

*****

Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities

Posted on December 28, 2020 by Annu Priya

Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities

MINISTRY OF FINANCE

(Department of Economic Affairs) (BUDGET DIVISION)
NOTIFICATION

New Delhi, 28th December, 2020

Auction for Sale (Re-issue) of Government Securities (GS)

F. No. 4(5)-B(W&M)/2020.—Government of India hereby notifies sale (Re-issue) of the following Government Securities:

Name of the Security	Date of Original Issue	Original Tenure (yy-mm-dd)	Date of Maturity	Auction Basis	Auction Method	Notified Amount (in ` Crore)
4.48% GS 2023	Nov. 02, 2020	03-00-00	Nov. 02, 2023	Price	Multiple	6,000
GoI FRB 2033	Jun. 22, 2020	13-03-00	Sep. 22, 2033	Price	Multiple	2,000
6.22% GS 2035	Nov. 02, 2020	14-04-14	Mar.16, 2035	Price	Multiple	9,000
6.67% GS 2050	Nov. 02, 2020	30-01-15	Dec. 17, 2050	Price	Multiple	5,000

Government of India will have the option to retain additional subscription up to ` 2,000 crore against each of the above securities. 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 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

Place and date of auction

3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on January 01, 2021. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on January 01, 2021. 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.

[post_ads]

When Issued Trading

4. The Securities will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

Date of issue and payment for the Securities

5. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on January 01, 2021. The payment by successful bidders will be on January 04, 2021 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 up to which accrued interest is due as mentioned in the table in para 6.

Payment of Interest and Re-payment of Securities

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 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)
4.48% GS 2023	4.48	New Security	Jan. 03, 2021	May 02 and Nov. 02
GoI FRB 2033	Variable#	Sep. 22, 2020	Jan. 03, 2021	Mar. 22 and Sep. 22
6.22% GS 2035	6.22	New Security	Jan. 03, 2021	Mar. 16 and Sep.16
6.67% GS 2050	6.67	Dec. 17, 2020	Jan. 03, 2021	Jun.17 and Dec.17

#: GoI FRB 2033:

(i) The interest at a variable rate will be paid half-yearly.

(ii) The Floating Rate Bond will carry the coupon, which will have a base rate, equivalent to the average of the Weighted Average Yield (WAY) of last 3 auctions (from the rate fixing day) of 182 Day T-Bills, plus a fixed spread of 122 basis points. The spread will be fixed throughout the tenure of the bond. The implicit yields will be computed by reckoning 365 days in a year.

(iii) In the event of Government of India 182-day Treasury Bill auctions being discontinued during the currency of the Bonds, the base rate of the coupon will be the average of Yield to Maturity (YTM) rates prevailing for six month Government of India Security/ies as on the last three non-reporting Fridays prior to the commencement of the semi-annual coupon period. In case particular Friday/s is/are holiday/s, the yield to maturity rates as on the previous working day shall be taken.

(iv) The base rate for the coupon period September 22, 2020 to March 21, 2021 shall be 3.48 per cent per annum. Accordingly, the rate of interest on FRB 2033 for this period shall be 4.70 per cent per annum. The rate of interest payable half yearly on the Bonds during the subsequent years shall be announced by the Reserve Bank of India before the commencement of the relative semi-annual coupon period.

By Order of the President of India,

RAJAT KUMAR MISHRA, Addl. Secy.

Annex

Scheme for Non-competitive Bidding Facility in the

Auctions of Government Securities

[post_ads_2]

II. Eligibility: Participation on a non-competitive basis in the auctions of dated GOI securities will be open to investors who satisfy the following:

1. do not maintain current account (CA) or Subsidiary General Ledger (SGL) account with the Reserve Bank of India. Exceptions: Regional Rural Banks (RRBs) and Cooperative Banks shall be covered under this Scheme in view of their statutory obligations.

2. make a single bid for an amount not more than ` two crore (face value) per auction

3. submit their bid indirectly through any one bank or PD offering this scheme.

IV. Other Operational Guidelines:

The retail investor desirous of participating in the auction under the Scheme would be required to maintain a constituent subsidiary general ledger (CSGL) account with the bank or PD through whom they wish to participate. Under the Scheme, an investor can make only a single bid in an auction of a dated security. An undertaking to the effect that the investor is making only a single bid will have to obtained and kept on record by the bank or PD.

Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents for each security 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 Bank of India Core Banking Solution (E-Kuber) System, non-competitive bid in physical form will not be accepted.

Allotment under the non-competitive segment to the bank or PD 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 bank or PD against payment on the date of issue irrespective of whether the bank or PD has received payment from their clients or not.

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 bank or PD to appropriately allocate securities to their clients in a transparent manner.

In case the aggregate amount of bids is less than the reserved amount, the shortfall will be taken to competitive portion.

Security would be issued only in SGL form by RBI. RBI would credit either the main SGL account or the CSGL account of the bank or PD as indicated by them. The facility for affording credit to the main SGL account is for the sole purpose of servicing investors who are not their constituents. Therefore, the bank or PD would have to indicate clearly at the time of tendering the non-competitive bids the amounts (face value) to be credited to their SGL account and the CSGL account. Delivery in physical form from the main SGL account is permissible at the instance of the investor subsequently.

It will be the responsibility of the bank or the PD to pass on the securities to their clients. Except in extraordinary circumstances, the transfer of securities to the clients shall be completed within five working days from the date of issue.

The bank or PD can recover upto 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. In case the transfer of securities is effected subsequent to the issue date of the security, the consideration amount payable by the client to the bank or PD would also include accrued interest from the date of issue.

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 bank or PD as per agreement with the client. It may be noted that no other costs such as funding costs should be built into the price or recovered from the client.

VI. The aforesaid guidelines are subject to review by the Bank and accordingly, if and when considered necessary, the Scheme will be modified.

Source: http://egazette.nic.in/WriteReadData/2020/223968.pdf

*****

Related Posts

Related Posts

Related Posts

Related Posts

Related Posts

Related Posts