Upcoming Government Security Auction: Re-Issue of 6.79% GS 2031, 6.92% GS 2039, and 7.09% GS 2054
The Government of India (GoI) has announced the re-issue of three government securities (G-Secs) through a price-based auction using the multiple price method. This presents a significant investment opportunity for individuals and institutions looking to diversify their portfolios with secure, long-term assets.
Auction Details:
The securities being offered for re-issue include:
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6.79% Government Security 2031 – Notified amount: ₹10,000 crore (nominal)
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6.92% Government Security 2039 – Notified amount: ₹12,000 crore (nominal)
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7.09% Government Security 2054 – Notified amount: ₹10,000 crore (nominal)
The GoI reserves the right to retain additional subscriptions of up to ₹2,000 crore for each security beyond the notified amount.
Auction Date and Process:
The auctions will be conducted by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai on February 28, 2025 (Friday).
Bid Submission Timings:
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Non-Competitive Bidding: 10:30 a.m. – 11:00 a.m.
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Competitive Bidding: 10:30 a.m. – 11:30 a.m.
Bids must be submitted electronically through the Reserve Bank of India Core Banking Solution (E-Kuber) system.
Allotment & Payment:
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Up to 5% of the notified amount will be allotted to eligible individuals and institutions under the Non-Competitive Bidding Facility.
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Auction results will be announced on February 28, 2025.
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Payment by successful bidders is due on March 03, 2025 (Monday).
Trading Eligibility:
The securities will be eligible for “When Issued” trading, as per RBI guidelines on ‘When Issued transactions in Central Government Securities’ (Circular No. RBI/2018-19/25 dated July 24, 2018), subject to amendments from time to time.
Why Invest in Government Securities?
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Safe Investment: Backed by the Government of India, these securities are considered low-risk.
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Steady Returns: Fixed interest rates ensure predictable income.
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Portfolio Diversification: A great way to balance risk in an investment portfolio.
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Eligibility for Collateral: Can be used for pledging in financial transactions.
For investors looking for long-term stable returns, this auction presents a lucrative opportunity. Mark your calendar and ensure timely submission of bids!
Stay tuned for more updates and insights into government securities and investment opportunities.