The government will auction four dated securities worth Rs 17,000 crore on Friday in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) platform, a move that will suck out liquidity from the financial system.
"Subject to the limit of Rs 17,000 crore, being total notified amount, Government of India will have the option to retain additional subscription up to Rs 1,000 crore each against any one or more of the (four) security," the RBI said in a statement.
The auction will be price-based using multiple price method.
The RBI said both competitive and non-competitive bids for the auction should be submitted in electronic format on E-Kuber system on August 2, 2019.
Up to 5 per cent of the notified amount of the sale of the stocks will be allotted to eligible individuals and institutions.
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