Government Announces Conversion Of Rs 30,000-Crore G-Secs Via Sept 23. Auction

The central government on Tuesday announced the conversion, or switch, of government securities with a combined face value of Rs 30,000 crore through an e-auction to be conducted on Sept. 23.

A total of eight G-Secs, maturing between 2025 and 2027, are to be converted into eight securities as per a release issued by the Reserve Bank of India.

There are two G-secs worth Rs 6,000 crore each, which are maturing in 2025 and 2027. Three other G-Secs are worth Rs 2,000 crore each, maturing in 2025, 2026 and 2027. One G-sec each is valued at Rs 4,000 crore and Rs 5,000 crore, with both maturing in 2027.

After conversion into securities, seven out of eight among them will mature in 2035, whereas one would mature in 2061.

The participants in the e-auction are required to place their bids on the RBI's e-Kuber portal, "giving the amount of the source security and the price of the source and destination security expressed in Indian Rupees up to two decimal places", the release said.

The minimum bid size would be Rs 10,000 and in multiples of Rs 10,000 thereafter.

"The auction will be a multiple-price based auction, i.e., successful bids will get accepted at their respective quoted prices for the source and destination securities," the RBI added. The results of the auction will be will be declared on Sept. 23 — the same day — and the settlement will take place on Sept. 24.