Government Announce Repurchase of Securities

The Government of India has announced the repurchase of its Securities through reverse auction for an aggregate amount of Rs. 20,000 crore (face value).

The security-wise details of the repurchase are given as under:

S. No. Nomenclature Date of maturity
1 8.07 % Government Stock 2017 15-Jan-2017
2 7.49 % Government Stock 2017 (con) 16-Apr-2017
3 8.07 % Government Stock 2017 – Jul 3-Jul-2017
4 7.99 % Government Stock 2017 9-Jul-2017
5 7.46 % Government Stock 2017 28-Aug-2017

The repurchase by the Government of India will be undertaken to redeem prematurely the Government Stocks by utilizing surplus cash balances.

The above repurchase of the Government Stocks is purely ad hoc in nature.

Auction for securities will be on price-based auction format. The auctions will be conducted using multiple price method.

Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

Government Securities:

A government security is a bond issued by a government authority with a promise of repayment upon maturity.

Government securities such as savings bonds, treasury bills and notes also promise periodic coupon or interest payments. These securities are considered low-risk, since they are backed by the taxing power of the government.