Government to Auction ₹34,000 Crore Dated Security via RBI on June 5

The Reserve Bank of India (RBI) is proceeding with the sale of the 6.94% GS 2036 security, a move that forms part of the central government’s broader borrowing program. Conducted via the e-Kuber system, this auction utilizes a multiple price-based format, meaning successful bidders receive allotments at the specific yield or price they bid. This differs from uniform price auctions where all successful participants pay the same cutoff rate.

Operational windows for the auction are tightly defined. Primary Dealers can submit underwriting bids for the Additional Competitive Underwriting (ACU) portion between 10:30 a.m. and 11:00 a.m. on the auction day. The main bidding window follows in the afternoon, with non-competitive bids closing at 1:00 p.m. and competitive bids at 1:30 p.m. To aid price discovery, 'When Issued' trading is permitted from June 2 until the auction date.

• Total Notified Amount: ₹34,000 crore (with ₹2,000 crore greenshoe option).
• Security Specifics: 6.94% GS 2036 maturing on May 11, 2036.
• Auction Mechanics: Price-based auction for re-issued securities via electronic bidding.
• Retail Access: Eligible individuals can participate through the Retail Direct portal under the non-competitive segment.

Glossary

e-Kuber: The RBI's proprietary Core Banking Solution (CBS) platform that facilitates various banking services, including the auctioning of government securities.

When Issued (WI) Trading: A conditional market for a security that has been authorized for issuance but not yet actually issued, allowing for price discovery ahead of the auction.