Auction for Sale (Re-Issue) of Government Stock



Auction for Sale (Re-Issue) of Government Stock 


Government of India have announced the Sale (re-issue) of (i) “8.27 per cent Government Stock 2027” for a notified amount of Rs. 3,000 crore (nominal) through price based auction, (ii) “8.60 per cent Government Stock 2028” for a notified amount of Rs. 6,000 crore (nominal) through price based auction, (iii) “8.24 per cent Government Stock  2033” for a notified amount of Rs. 2,000 crore (nominal) through price based auction,  and (iv) “8.17 per cent Government Stock 2044” for a notified amount of Rs. 3,000 crore (nominal) through price based auction. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on January 02, 2015 (Friday).


Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

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 January 02, 2015. 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 result of the auctions will be announced on January 02, 2015 and payment by successful bidders will be on January 05, 2015 (Monday).   

The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.

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Infusion of Rs. 60 crore in IFCI Ltd. to make it a Government Company 

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today approved the infusion of RS. 60 crore in Industrial Finance Corporation of India (IFCI) Ltd. to make it a Government company by way of acquisition of preference shares from existing share holder(s). 

Background 

Industrial Finance Corporation of India was set up in 1948 as a Statutory Corporation under the Industrial Finance Corporation Act, 1948. The Act has since been repealed by the Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993 and IFCI Ltd was registered under the Companies Act, 1956 on 31.03.1993. The current shareholding of Government of India in IFCI after inclusion of the preference Share capital is 47.93 percent. Therefore, IFCI is not a Government Company under section 2(45) of the Companies Act, 2013. A contribution of Rs. 60 crore to the capital of the company would raise the shareholding of the Government to 51 percent. 

Auction for Sale (Re-Issue) of Government Stock Auction for Sale (Re-Issue) of Government Stock Reviewed by Ajit Kumar on 7:09 AM Rating: 5

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