Government will sell four dated securities for Rs 15,000 crore on November 11, of which up to 5 per cent will be allotted to individuals and institutions. The auctions will be conducted using multiple price method, the Reserve Bank of India said in a statement. The stocks will qualify for the ready forward facility.
“Up to 5 per cent 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,” RBI said. Rating agency Ind-Ra said the Government’s upcoming repurchase auction (Rs 150 billion) will alleviate some pressure on demand-supply dynamics in the debt market – as a combined gross supply of over Rs 1,000 crore is scheduled this week in the form of both Central and State Government borrowings.