Reserve Bank of India to Auction 4 Year Assam Government Stock (Securities)

GOVERNMENT OF ASSAM

FINANCE (BUDGET) DEPARTMENT

WAYS & MEANS BRANCH

PRESS COMMUNIQUE

BW.02/2020/138 Dated Dispur, the 7th January, 2021

Auction of 4 year Assam

Government Stock (Securities)

1. Government of Assam has offered to sale the dated Securities for an amount of Rs. 500.00 Crore with 4 (four) year tenure by auction. The auction will be conducted by the Reserve Bankof India, at Mumbai Office, Fort, Mumbai-400001 on January 12, 2021.

2. The procedure of auction of the State Development Loan as under:

(a) Competitive Bids

All competitive bids shall be submitted electronically on the Reserve Bank of India Core Banking Solution (E-Kuber) System. Perhaps, other than CBS members, shall route their competitive bids through a CBS member. Competitive bids may be submitted between 10:30 A.M. and 11.30 A.M.on the day of the auction, as hitherto.

(b) Non-Competitive Bids

Under the Scheme, an investor can submit a single bid only in the auction of a State Development Loan, subject to a maximum of 1% of the notified amount, through a bank or a Primary Dealer.Non-Competitive Bids may be submitted only electronically on the CBS between 10:30 A.M. and 11.00 AM. on the day of auction. No bids under the Non-Competitive Bidding Scheme shall be accepted after 11.00 A.M.

(c) Bids in Physical format

No bids shall, henceforth, be accepted in physical format in the auctions of State Development Loans, except in extra-ordinary situations as may be specified by the Reserve Bank of India.

3. The bids may be submitted electronically to the Regional Director, Reserve Bank of India, Mumbai Office, Fort, Mumbai-400001

4. The result of auction shall be displayed by the Reserve Bank of India on its website on the same day of auction. The payment by successful bidders will be on January 13, 2021.

5. The rate of Interest, i.e. the cut-off yield determined at the auction will be the coupon rate percent per annum on the stock sold at the auction. The interest will be paid on July 13 and January 13.

6. The investment in Government Stock 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 ready forward facility.

7. For other details, please see the Notification of the Government of Assam No. BW.02/2020/ 137, dated 7th January, 2021.

 Sd/-

(Samir K. Sinha, IAS)

Principal Secretary to the Government of Assam

Finance Department

Also read: DIET, Bongaigaon extended timing for submission of tender