RBI announces buyback of ₹25,000 crore worth of G-Securities through auction on this date; check details here

The Government of India announced the buyback of its bonds through auction for an aggregate amount of $$25,000 crore (face value), the Reserve Bank of India (RBI) announced on Friday. The G bonds with a coupon rate of 7.72% will mature on May 25 next year. Bonds with a coupon rate of 5.22% will mature on June 15 of next year.

Bonds with a coupon of 8.2 percent will mature in September next year and bonds with a coupon of 5.15 percent will mature on November 9, while bonds with a coupon of 7.59 percent will mature on January 11, 2026.

The table below lists the maturity date of all of these bonds that will be auctioned on Thursday.

In a notification, the Reserve Bank of India announced that the auction will be conducted using the multiple price method. Bids for the auction must be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on October 17, 2024, between 10:30 am and 11:30 am. The results of the auction will be announced on the same day and the settlement will take place on October 18th, according to the statement.

However, it is vital to note that the government reserves the right to decide on the quantum of buyback of individual securities, accept more or less than the notified amount of $$25,000 crore and accept or reject any or all of the offers, in whole or in part, without assigning any reason therefor.

Meanwhile, the Reserve Bank of India has also announced the auction of Government of India Treasury Bills (T-Bills) as per the following details:

The auction date for the above Treasury bill is October 16th and the settlement date is October 17th.

Investors who want to invest in government securities can invest through the RBI Retail Direct portal or app. You need to open an RBI Retail Direct account. And once registered, you will be able to log in to your account to invest in government securities, also known as G-Secs. Read this Living mint article for more details.