Media Release
Non-Competitive Bidding of GOI securities was Auction today on BSE online bidding platform “NCB-GSec”
Mumbai: 26 April 2018: BSE Asia’s first stock exchange and now world’s fastest stock exchange with the speed of 6 microseconds has allowed retail Investors to invest directly into Government Securities via Non –Competitive Bidding auction mechanism of Reserve Bank of India.
The First Auction of Government of India Dated Securities for Non-Competitive bidding was conducted successfully today on BSE online bidding platform “NCB-GSec” This was in reference to Reserve Bank of India vide notification No.IDMD/2710/08.02.032/2017-18. GOI offered to sell (re-issue) four dated securities for notified amount of Rs.12, 000/- crore as per the following details.
|
Sr No
|
Security
|
Notified Amount
(in Rs crore)
|
GoI Notification
|
Auction Date
|
Settlement date
|
|
1
|
7.37% GS 2023
|
3,000
|
F.No.4(6) W&M/2018 dated
April 23, 2018
|
April 26, 2018
(Thursday)
|
April 27, 2018
(Friday)
|
|
2
|
6.68% GS 2031
|
4,000
|
|
3
|
7.40% GS 2035
|
2,000
|
|
4
|
6.62% GS 2051
|
3,000
|
|
|
Total
|
12,000
|
|
|
|
5% of the Notified amount was reserved for Non-Competitive bidding by Reserve Bank of India . Eligible participants were allowed to bid through their Trading members on the BSE State of the art “NCB-Gsec” online Platform for the amount reserved by Reserve Bank of India for Non-Competitive bidding. BSE received bids in all the four dated securities announced by Reserve Bank of India for the Bidding. The auction was held seamlessly and all the eligible participants will be allotted the securities by BSE as per transparent mechanism on T+1 Basis.
NCB-GSec online bidding platform of BSE is for collecting bids from members on behalf of their clients. This bidding platform is part of the existing Internet-based Book Building System (iBBS) - Exchange’s existing web-based online bidding platform for IPO, Offer for Sale (OFS), Offer to buy (OTB) issues and Sovereign Gold Bond (SGB) issues. This platform has been made available to all the trading members of the exchange at no additional cost.
As part of the overall strategy of diversifying the investor base for government securities, the Government of India and Reserve Bank of India have been taking various measures to encourage participation of retail investors in G-Sec market including introduction of non-competitive bidding in primary auctions on Recognized stock exchanges.
BSE has approval from the Reserve Bank of India and Securities Exchange Board of India (SEBI) for acting as facilitator for non-competitive bidding (NCB) under RBI Auction in Government Securities (G-Sec) and Treasury Bills (T-Bills)
About BSE
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
Media Contact
Yatin Padia / Rahul Vyas
022 2272 8516 / 2272 8472
Yatin.padia@bseindia.com/ Rahul.vyas@bseindia.com