Mumbai: The Reserve Bank of India (RBI) will be selling dated government securities worth Rs 13,000 crore on Friday.
Dated government securities are long term securities carrying a fixed or floating coupon or interest rate paid on the face value. It is payable at fixed time periods, usually half-yearly. The tenor of dated securities can be up to 30 years.
In a price based auction to be held on February 13, RBI will sell 8.27 per cent government stock 2020 for Rs 3,000 crore, 8.60 per cent government stock 2028 for Rs 5,000 crore, 8.24 per cent government stock 2033 for Rs 2,000 crore and 8.17 per cent government stock 2044 for Rs 3,000 crore.
"Up to 5 per cent of the notified amount of the sale of the stocks will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities," RBI said.
The result of the auctions will be announced on the same day, RBI said, adding the stocks will qualify for the ready forward facility.
Government securities are mainly used to raise funds to pay for government's various expenses, including related to infrastructure development projects.
