RBI to conduct OMO auction sale on September 8, 2003

The Reserve Bank of India has decided to conduct Open Market Operations sale through an auction of Government of India security 6.05% GS 2019 for a maximum amount of Rs. 5,000 crore (face value) on September 8, 2003.

All SGL and Current Account holders with the RBI at Mumbai will be eligible to participate in the auction. The auction will be held at Mumbai. The bids may be tendered in electronic format using the Negotiated Dealing System (NDS) or may be deposited in the tender box specially kept for the purpose at Reserve Bank of India, Fort, Mumbai on September 8, 2003 up to 12.30 pm. The application form together with the terms and conditions of the auction may be obtained from the Chief General Manager, Internal Debt Management Department, Reserve Bank of India, 16^th Floor, Central Office Building, Mumbai or from the Public Debt Office, Reserve Bank of India, Mumbai Office.

The tenderer will have to indicate the face value of the security offered for purchase and the intended purchase price (up to two decimal points per hundred of face value). The purchase price indicated in the tender application should be exclusive of the broken period interest since the last coupon date. The gross amount payable by the successful bidders for the security would include the broken period interest up to September 8, 2003. Tenderer can submit multiple bids but a separate application form should be submitted as per the prescribed format for each bid. The auction will be conducted on multiple price basis. The bid amount should be for a minimum of Rs.1 crore (face value) and multiples of Rs.1 crore thereafter.

On the basis of the tenders received, the Reserve Bank will determine the minimum price up to which tenders for sale of the Government security will be accepted. The results of the auction will be displayed at Reserve Bank of India, Fort, Mumbai. The settlement will be on September 9, 2003. The Reserve Bank has the right to accept or reject any or all the bids, either wholly or partially, if deemed fit without assigning any reason.