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Auction
for Sale (Re-issue) of ‘7.02 percent Government Stock,
2016, auction for sale (Re-issue) of ‘6.35 percent
Government Stock 2020 and auction for sale (Re-issue) of
‘8.24 percent Government Stock 2027’
Review
of External Commercial Borrowing (ECB) policy
Report
of the Committee on Comprehensive Regulation for Credit
Rating Agencies (CRAs)
Auction
for Sale (Re-issue) of ‘Floating Rate Bonds, 2020,
auction for sale (Re-issue) of ‘7.32 percent Government
Stock 2014 and auction for sale (Re-issue) of ‘8.28
percent Government Stock 2032’
Auction
for Sale (Re-issue) of ‘7.02 percent Government Stock
2016, auction for sale (Re-issue) of ‘6.35 percent
Government Stock 2020 and auction for sale (Re-issue) of
‘8.24 percent Government Stock 2027’
Auction
for Sale (Re-issue) of ‘7.02 percent
Government Stock, 2016, auction for sale
(Re-issue) of ‘6.35 percent Government Stock
2020 and auction for sale (Re-issue) of ‘8.24
percent Government Stock 2027’
Government
of India have announced the sale (re-issue) of (i) “7.02
percent Government Stock 2016” for a notified amount of
Rs.3,000 crore (nominal) (ii) “6.35 percent Government
Stock 2020”
for a notified amount of Rs.3,000 crore (nominal) and
(iii) "8.24 percent Government Stock 2027" for a
notified amount of Rs.2,000 crore (nominal) through price
based auctions. The auctions will be conducted using uniform
price method. The auctions will be conducted by the
Reserve Bank of India, Mumbai Office, Fort, Mumbai on
February 5, 2010 (Friday).
2.
Up to 5% 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.
3.
Both competitive and non-competitive bids for the
auction should be submitted in electronic format on the
Negotiated Dealing System (NDS) on February 5, 2010. The
non-competitive bids should be submitted between 10.30
a.m. and 11.30 a.m.
and the competitive bids should be submitted between
10.30 a.m. and 12.30 p.m.
4.
The result of the auctions will be announced on
February 5, 2010 and payment by successful bidders will be
on February 8, 2010 (Monday).
5.
The Stocks will be eligible for “When Issued”
trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued
by the Reserve Bank of India vide circular No. RBI
/2006-07/178 dated November 16, 2006 as amended from time
to time.
6.
As per the indicative calendar,
the
Government of India was to raise funds amounting to
Rs. 8,000 crore during January 29-February 5, 2010 through
issuance of (a) 10-14 year security for Rs.5,000-6,000
crore and (b ) 15-19 year
security for Rs.2,000-3,000 crore. In a deviation
from the calendar, the
Government of India, in consultation with the Reserve Bank
of India, have decided to issue: (a) 5-9 year security for
Rs.3,000 crore, (b) 10-14 year security for Rs.3,000 crore
and (c) 20-year and above security for Rs.2,000 crore.
GOVERNMENT
OF INDIA
MINISTRY
OF FINANCE
DEPARTMENT
OF ECONOMIC AFFAIRS
NORTH
BLOCK, NEW DELHI-110001
DATED,
JANUARY 28, 2010
Review
of External Commercial Borrowing (ECB) policy
The
External Commercial Borrowing (ECB) policy is regularly
reviewed by the Government in consultation with Reserve
Bank of India (RBI) to keep it in tune with the evolving
macroeconomic situation, changing market conditions,
sectoral requirements, the external sector and lessons of
experience.
2.
Consequent upon such a review and in order to develop the
telecom sector in the country, the Government had earlier
permitted eligible
borrowers in the telecommunication sector to avail of ECB
for the purpose of payment for Spectrum allocation.
3.
In terms of the guidel
in
es issued by the Department of Telecommunication, the
successful bidders would be required to pay 25% of the bid
amount with
in
5 days of the close of the auction and the balance amount
within 15 days of the auction closure. Given the short
window available between the date of application for the
auction and the date of payment, the bidders find it
difficult to raise ECB to meet the payment obligation for
bidding.
4.
As the amount involved will be huge and has to be raised
with in a limited period of time and payable directly to
the Government, it
has now been decided that the fee for spectrum allocation
may be met out of Rupee resources by successful bidders,
to be refinanced with a long –term ECB, under the
approval route, subject to the following conditions:
i.
The
ECB should be raised within 12 months from the date of
payment of the final instalment to the
Government;
ii.
The
Authorised Dealers should monitor the end-use of funds;
iii.
Domestic
banks will not be permitted to provide any guarantee; and
iv.
All
other conditions of ECB, such as eligible borrower,
recognized lender, all-in-cost, average maturity, etc.
should be complied with.
5.
The above amendments in ECB policy will come into
force on the date of Notification of Regulations /
directions issued by the Reserve Bank in this regard under
the Foreign Exchange Management Act, 1999.
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F.No.6/19/2009-ECB
dated
25th January,
2010.
The
Press Information Bureau is requested to give wide
publicity to this Press Release.
(Dr.
K. P. Krishnan)
Joint
Secretary to the Government of India
Press
Information Officer
Press Information Bureau
Shastri Bhawan
New Delhi
Report
of the Committee on Comprehensive Regulation for
Credit Rating Agencies (CRAs)
The
High Level Coordination Committee on Financial Markets (HLCCFM)
in its
meeting held on 11th January 2008,
inter alia, decided that “the legal and policy
framework for regulating the activities
of CRAs should
be revisited in
order to take a larger view
of the entire
policy with respect
to banking , insurance and securities market.” Accordingly,
the
Department of Economic Affairs, Ministry of Finance set up
a committee under the Chairmanship of Dr.
K.P. Krishnan, Joint Secretary (Capital Markets) with
representatives from all the financial sector REGULATORS.
This committee submitted
its report
on 21st
December, 2009 to the HLCCFM .
2.
The Report covers issues relating to the usage of credit
rating services by different stakeholders in the present multi-regulatory
environment. Further,
the Report has
also examined issues relating to the issuer – pays model
and potential conflict of interest of CRAs in terms of
their business model.
Separately, an
assessment of the long term performance of the CRAs in
India was also undertaken by the National Institute of
Securities Markets (NISM) on the request of this
Committee.
3.
The Committee felt that prima
facie there is no immediate concern about the operations
and activities of CRAs in India even in the context of the
recent financial crisis. However there is a need to
strengthen the existing regulations by learning the
appropriate lessons from the current crisis.
The committee took note of international action in
this regard and inter alia recommended that there may be
enhanced disclosures, continuation of the issuer-pays
model, strengthened process and compliance audit,
reporting of ownership changes, disclosure of default and
transition statistics and strengthening the CRA Regulation
in tune with these suggestions.
4.
The Long Term Assessment Report by NISM brought
out the strengths and weaknesses
in the credit rating model, noted that there is
considerable rating migration and emphasized the need for
improving the disclosures and governance norms of CRAs.
5.
Both the Reports are hosted on the website of the Ministry
of Finance, http://finmin.nic.in
and are under examination in the respective
agencies.
_____________________________________________________________
F.No.12/11/2007-PM
Dated:
January 25,
2010
The
Press Information Bureau is requested to give wide
publicity to this Press Release.
(Dr.
K.P. Krishnan)
Joint
Secretary to the Government of India
Press
Information Officer
Press Information Bureau
Shastri Bhawan
New Delhi-110001.
Auction
for Sale (Re-issue) of ‘Floating Rate Bonds,
2020, auction for sale (Re-issue) of ‘7.32
percent Government Stock 2014 and auction for
sale (Re-issue) of ‘8.28 percent Government
Stock 2032’
Government
of India have announced sale (re-issue) of Floating Rate
Bonds, 2020 (FRB) for a notified amount of Rs 3,000 crore
(nominal) through price based auction using uniform
price method. The coupon rate of the FRB for payment
of interest for the first half year ending June 20, 2010
will be 3.79 per cent. For the subsequent periods,
the interest will be paid at a variable rate on a
semi-annual basis. The
variable interest rate for payment of interest will be the
average of the implicit yields at cut-off prices of last
three auctions of Government of India 182 day Treasury
Bills. The reset of variable interest rates will be made
semi-annually and will be announced by the Reserve Bank of
India on or before the commencement of the respective
coupon periods.
2.
Government of India have also announced the sale
(re-issue) of “7.32 per cent Government Stock 2014”
for a notified amount of Rs. 2,000 crore (nominal) and
“8.28 per cent Government Stock 2032” for a
notified amount of Rs. 2,000 crore (nominal) through price
based auctions using uniform price method.
3.
The auctions will be conducted by the Reserve Bank of
India, Mumbai Office, Fort, Mumbai on January 22, 2010
(Friday). The result of the auctions will be announced on
January 22, 2010 and payment by successful bidders will be
on January 25, 2010 (Monday).
4.
Up to 5% of the notified amount of the sale of all 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.
5.
Both competitive and non-competitive bids for the
auctions should be submitted in electronic format on the
Negotiated Dealing System (NDS) on January 22, 2010. The
non-competitive bids should be submitted between 10.30
a.m. and 11.30 a.m.
and the competitive bids should be submitted between
10.30 a.m. and 12.30 p.m.
6.
The Stocks will be eligible for “When Issued”
trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued
by the Reserve Bank of India vide circular No. RBI
/2006-07/178 dated November 16, 2006 as amended from time
to time.
7.
As per the indicative calendar,
the
Government of India was to raise funds amounting to
Rs. 7,000 crore during January 15-22, 2010 through
issuance of (a) 10-14 year security for Rs.4,000-5,000
crore and (b ) 20-years and above
security for Rs.2,000-3,000 crore. In a deviation
from the calendar, the
Government of India,in consultation with the Reserve Bank
of India, have decided to auction securities through
issuance of (a) 5-9 year security for Rs.2,000 crore, (b)
10-14 year security for Rs.3,000 crore and (c) 20-year and
above security for Rs.2,000 crore.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
NORTH BLOCK, NEW DELHI-110001
Dated,
the January 15, 2010
Auction
for Sale (Re-issue) of ‘7.02 percent
Government Stock 2016, auction for sale
(Re-issue) of ‘6.35 percent Government Stock
2020 and auction for sale (Re-issue) of ‘8.24
percent Government Stock 2027’
Government
of India have announced the sale (re-issue) of (i) “7.02
percent Government Stock 2016” for a notified amount of
Rs.3,000 crore (nominal) (ii) “6.35 percent Government
Stock 2020” for a notified amount of Rs.4,000 crore
(nominal) and (iii) "8.24 percent Government Stock
2027" for a notified amount of Rs.3,000 crore
(nominal) through price based auctions. The auctions will
be conducted using uniform price method. The
auctions will be conducted by the Reserve Bank of India,
Mumbai Office, Fort, Mumbai on January 15, 2010 (Friday).
2.
Up to 5% 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.
3.
Both competitive and non-competitive bids for the
auction should be submitted in electronic format on the
Negotiated Dealing System (NDS) on January 15, 2010. The
non-competitive bids should be submitted between 10.30
a.m. and 11.30 a.m.
and the competitive bids should be submitted between
10.30 a.m. and 12.30 p.m.
4.
The result of the auctions will be announced on
January 15, 2010 and payment by successful bidders will be
on January 18, 2010 (Monday).
5.
The Stocks will be eligible for “When Issued”
trading in accordance with the guidelines on ‘When
Issued transactions in Central Government Securities’ issued
by the Reserve Bank of India vide circular No. RBI
/2006-07/178 dated November 16, 2006 as amended from time
to time.
GOVERNMENT
OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
NEW DELHI-110001
Dated,
the January 8, 2010
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