Assam government has offered to sell dated securities for Rs 500 crore with 10-year tenure by auction, an official release said here today.
Under the scheme, an investor can submit a single bid only in the auction of a State Development Loan, subject to a maximum of one per cent of the notified amount, through a bank or a primary dealer.
It may be mentioned that no bids will, henceforth, be accepted in physical format in the auctions of State Development Loans, except in extra-ordinary situations as may be specified by the Reserve Bank of India.
The bids may be submitted electronically to the Regional Director, Reserve Bank of India, Mumbai.
The result of auction will be displayed by the Reserve Bank of India on its website on the same day of auction.
The payment by successful bidders will be made on February 14, 2018.
The rate of interest, i.e. the cut-off yield determined at the auction will be the coupon rate percent per annum on the stock sold at the auction.
The interest will be paid on August 14 and February 14.
The investment in Government Stock will be reckoned as an eligible investment in Government Securities by banks for the purpose of Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949, the release added.
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