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Date : Apr 09, 2015
Auction of Eight State Government Securities for ₹7,480 crore on April 13, 2015

The following eight State Governments have offered to sell  10 year securities by way of auction for an aggregate amount of ` 7,480  crore (Face Value). The State-wise break up is as follows:

Sr. No. State Amount to be raised
(` crore)
Tenure Years
1 Arunachal Pradesh 80 10
2 Assam 950 10
3 Himachal Pradesh 650 10
4 Kerala 1500 10
5 Punjab 1000 10
6 Rajasthan 500 10
7 Tamil Nadu* 1200 10
8 Uttar Pradesh* 1600 10
  Total 7,480  
* Tamil Nadu and Uttar Pradesh will have option to retain an additional amount of ` 300 cr and ` 400 cr respectively.

The auction will be conducted on the Reserve Bank of India Core banking Solution (E-Kuber) system on April 13, 2015 (Monday). 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 April 13, 2015 (Monday). The non-competitive bids should be submitted between 10.30 A.M. and 11.30 A.M. and the competitive bids should be submitted between 10.30 A.M. and 12.00 noon.

The yield percent per annum expected by the bidder should be expressed up to two decimal points. 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 for 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 ` 10,000.00 and multiples of ` 10,000.00 thereafter.

The results of the auction will be announced on April 13, 2015 (Monday) and payment by successful bidders will be made during banking hours on April 15, 2015 (Wednesday) at Mumbai and at respective Regional Offices of RBI.

The State Government Stocks will bear interest at the rates determined by RBI at the auctions. Interest will be paid half yearly on October 15 and April 15 of each year till maturity for all states. The Stocks will be governed by the provisions of the Government Securities Act, 2006 and Government Securities Regulations, 2007.

The investment in State Government Stocks will be reckoned as an eligible investment in Government Securities by banks for the purpose of Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The stocks will qualify for the read.

Ajit Prasad
Assistant General Manager

Press Release : 2014-2015/2132

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