Haryana govt to sell securities worth Rs 1,200 cr

The Haryana government has notified the sale of Haryana government stock (Securities) of 10-year tenure for an aggregate amount of Rs 1,200 crore (nominal).

A  notification to this effect has been issued by the Finance Department, Haryana states that the proceeds of the loan will be utilised for financing capital expenditure in connection with the development programmes of the state government.

The auction of the government stock will be conducted by the Reserve Bank of India, at its Mumbai Office, Fort, Mumbai on September 22, 2009. Bids for the auction should be submitted in electronic format, on the Negotiated Dealing System (NDS) on September 22, 2009. The competitive bids should be submitted between 10.30 am and 12.30 pm and non competitive bids between 10.30 am and 11.30 am.

Participation on 'non competitive' basis is open to  any person including firms, companies, corporate bodies, institutions, provident funds, trusts and any other entity as may be prescribed by RBI. The minimum amount for bidding would be Rs 10,000 (face value) and
thereafter in multiples in Rs 10,000 as hitherto for investment in state government securities.

The government stock up to 10 per cent of the notified amount of the sale will be allotted to eligible individuals and institutions subject to a maximum limit of 1 per cent of the notified amount for a single bid as per the revised scheme for non competitive biding facility in
the auctions of state sovernment securities of the general notification.

Successful bidders will make payments on September 23, 2009 before close of banking hours by means of cash, banker’s cheque/pay order/demand draft payable at Reserve Bank of India, Mumbai/New Delhi or a cheque drawn on their account with Reserve Bank of India, Mumbai (Fort)/New Delhi.  Interest will be paid every half yearly on March 23 and September 23.

The stock will be of ten-year tenure and the tenure of stock will commence on September 23, 2009. The loan will be repaid at par on September 23, 2019.