The auction will be conducted by the Reserve Bank of India on April 22, 2025; The Bonds will be with a tenure of 15 years
FinTech BizNews Service
Mumbai, April 18, 2025: Bonds worth Rs 1,500 crore with a tenure of 15 years of the Maharashtra government will be sold subject to the terms and conditions of the revised notification of the government. The proceeds from the loan will be used to finance the government's development work, Finance Secretary Shyla A said in a statement.
As per the non-competitive auction system (amended), 10 per cent of the total notified government bond amount will be disbursed to eligible individual and institutional investors. However, an investor will be allotted up to a maximum of 1 per cent of the total notified amount.
The auction will be conducted by the Reserve Bank of India on April 22, 2025 at its Mumbai office. The bids for the auction are to be submitted on April 22, 2025, according to the computerized system, Reserve Bank of India, Core Banking Solution, (e-Kuber) system.
Competitive bids should be submitted through a computerized system from 10.30 am to 11.30 am according to the e-Kuber system. The non-competitive bids should be submitted from 10.30 am to 11.00 am as per the e-Kuber system. The result of the auction will be published on the reserve bank of India website on the same day. Payment of funds from the successful bidders will be made in cash, bankers' cheques/delivery orders, demand drafts or cheques payable to their account at Reserve Bank of India, Mumbai on April 23, 2025, preferably before the end of the bank's working hours.
The maturity of the bond is 15 years, the maturity of the bonds will start from April 23, 2025, while the bond will be repaid at full price on April 23, 2040. The interest rate will be equal to the coupon rate per year on the bonds sold at auction. The interest will be paid on a half-yearly basis on October 23 and April 23 every year at the original price from the original date of the bond.
Investment of banks in government bonds shall be deemed eligible for the purpose of Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. These debentures will be permissible for resale and purchase, the finance department said.
