RBI To Sell Government Securities Worth Rs 17,000 Crore On Friday
The Reserve Bank of India will sell five government securities worth Rs 17,000 crore on Friday, the central bank said in a statement.
The move will suck out liquidity from the financial system.
“Subject to the limit of Rs 17,000 crore being total notified amount, Government of India will have the option to retain additional subscription up to Rs 1,000 crore each against any one or more of the above securities,” the RBI said.
The auction will be price-based using multiple price method. Up to 5 percent of the notified amount of the sale of the stocks will be allotted to eligible individuals and institutions.
The RBI further said 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 Aug. 23.
With a view to encourage wider participation and retail holding of government securities, retail investors are allowed participation on “non-competitive” basis in select auctions of dated Government of India securities and Treasury Bills.
In the auctions of Government of India dated securities, the retail investors can make a single bid for an amount not more than Rs 2 crore (face value) per security per auction.