Reserve Bank of India – Press Releases

Government of India publicizes the conversion/swap of its securities by means of public sale for an mixture quantity of ₹15,000 crore (face worth). The safety-clever particulars of the conversion/swap are given as beneath:

The market contributors are required to position their bids in e-Kuber giving the quantity of the supply safety and the worth of the supply and vacation spot safety expressed in Indian Rupees as much as two decimal locations.

The public sale can be a a number of-value based mostly public sale, i.e., profitable bids will get accepted at their respective quoted costs for the supply and vacation spot securities.

Bids for the public sale must be submitted in digital format on the Reserve Bank of India Core Banking Solution (e-Kuber) system on October 17, 2022 (Monday) between 10:30 AM and 11:30 AM. The outcome of the public sale can be introduced on the identical day and settlement will happen on October 18, 2022 (Tuesday).

Government of India reserves the suitable to:

• Accept provides for lower than the notified quantity.

• Purchase marginally increased than the notified quantity as a consequence of rounding-off impact.

• Accept or reject all or any the provides both wholly or partially with out assigning any motive.

Operational tips for swap transactions and different particulars are given within the Annex.

Rupambara           
Director (Communications)

Press Release: 2022-2023/1034

Annex

Operational Guidelines for Switch/Conversion Transactions with the Government of India

Switch module on e-Kuber

1. The market contributors can bid within the swap public sale by means of the Switch Transaction module supplied within the e-Kuber portal.

Bidding in a swap transaction

2. Bidding within the public sale implies that the market contributors conform to promote the supply safety/ies to the Government of India (GoI) and concurrently agree to purchase the vacation spot safety from the GoI at their respective quoted costs.

Placing of bids

3. Each bid ought to specify the next particulars:

1. Amount of the supply safety (Face Value) that the contributors are keen to promote.

2. Price of the supply safety (expressed as much as two decimal locations).

3. Choice of vacation spot safety and the worth of the vacation spot safety (expressed as much as two decimal locations), at which the contributors are keen to purchase the vacation spot safety.

4. The contributors can select to bid for any/all of the vacation spot safety/ies, however the mixture quantity of bids for the supply safety shouldn’t exceed their holdings of the supply safety in face worth phrases.

Minimum Bid dimension

5. Minimum bid dimension can be ₹10,000 and in multiples of ₹10,000 thereafter. The contributors are allowed to submit a number of bids. However, the combination quantity of bids submitted shouldn’t exceed the notified quantity of supply safety/basket of supply securities within the public sale.

Price of supply safety

6. The value of the supply safety quoted should be equal to the FBIL closing value of the supply safety as on the earlier working day.

7. Bids for supply safety not as per the worth talked about above can be rejected.

Price of vacation spot safety

8. Bids for the vacation spot safety could also be positioned after considering the worth of supply safety as talked about above.

Method of public sale

9. The public sale can be a a number of-value based mostly public sale, i.e. profitable bids will get accepted at their respective quoted costs for the supply and vacation spot securities.

Auction resolution

10. The public sale reduce-off can be determined based mostly on the worth of the vacation spot safety/ies.

11. Successful bidders are those that have positioned their bids at or above the reduce-off value. All bids decrease than the reduce-off value can be rejected.

12. There can be provision of professional-rata allotment, ought to there be multiple profitable bid on the reduce-off value.

Amount of vacation spot safety and dealing in odd quantities throughout swap public sale

13. The swap ratio, which is the ratio of the worth of the supply safety to the worth of the vacation spot safety, can be rounded off at 8 decimal locations.

14. The quantity of vacation spot safety to be issued for every profitable bid can be computed by multiplying the allotted quantity (FV) of the supply safety with the rounded-off swap ratio. The quantity of vacation spot safety (FV) can be rounded-off to the closest decrease worth in multiples of ₹10,000.

15. The odd quantity of vacation spot securities (lower than ₹10,000) which has been rounded-off, can be notionally allotted and acquired again from the bidders on the quoted bid value of the vacation spot safety. The web money consideration to be paid to the bidder for such odd quantities can be the clear value of these securities (because the accrued curiosity obtained throughout notional allotment and paid throughout notional buyback offset one another).

Fund settlement

16. Though the conversion can be broadly money impartial, there can be fund settlement for the web accrued curiosity (accrued curiosity for the supply safety FV – accrued curiosity for the vacation spot safety FV) for every bid. Cash consideration (as a consequence of rounding-off of face worth of vacation spot safety) computed for every bid can be added to the web accrued curiosity. Accordingly, fund settlement can be executed for the ultimate quantity (Net accrued curiosity + money consideration) for every bid.

Note: An illustration for the calculation of money consideration as a consequence of rounding-off of vacation spot safety face worth is as given beneath:

17. The settlement of the public sale can be held on T+1 foundation.

Help Desk

18. In case of technical difficulties, Core Banking Operations Team must be contacted (electronic mail; Phone no: 022-27595415, 27595666, 27523516). For different public sale associated difficulties, IDMD public sale workforce may be contacted (electronic mail; Phone no: 022-22702431, 22705125).