Royal Bank of India auctions bonds for Rs 100 bn on Aug 3
Published July 27th, 2007
In an attempt to drain excess liquidity from the banking system, the central bank will conduct bonds auction under market stabilisation scheme. It will sell (re-issued) `7.99% Government Stock 2017` for Rs 60 billion method on August 3.
On the same day, it will also sell `7.95% Government Stock 2032` for Rs 40 billion. Both the auctions will be conducted through a price based auction using multiple price.
Up to 5% of the notified amount of the sale of the stock will be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.
The bonds will be qualified for the ready forward facility and are eligible for `When Issued` trading for a period commencing from Jul. 30, 2007 to Aug. 3, 2007.
The result of the auction will be announced on Aug. 3, 2007 and payment by successful bidders will be accepted during banking hours on Aug. 6, 2007.
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