The Haryana government has notified the sale of Haryana government stock (securities) of 10-year tenure for an aggregate amount of Rs 800 crore (nominal). A notification to this effect has been issued by the finance department, Haryana.
As per the notification, 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, Mumbai on May 24, 2010. Bids for the auction should be submitted in electronic format, on the negotiated dealing system (NDS) on May 24, 2010.
The competitive bids should be submitted electronically on the NDS between 10.30 am and 12.30 pm and non competitive bids between 10.30 am. and 11.30 am.
The government stock upto 10% of the notified amount of the sale will be allotted to eligible individuals and institutions subject to a maximum limit of 1% of the notified amount for a single bid as per the revised scheme for non competitive bidding facility in the auctions of state government securities of the general notification.
The results of the auction shall be displayed by the Reserve Bank of India on its website on the same day. Successful bidders will make payments on May 25, 2010 before closing 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/New Delhi. Interest will be paid every half yearly on November 25 and May 25.
The stock will be of ten-year tenure and the tenure of stock will commence on May 25, 2010. The loan will be repaid at par on May 25, 2020.
