Mumbai, May 22 : Six State governments have announced sale of 10-year State Development Loans (SDLs), for an aggregate amount of Rs 4,400.00 crore through yield based auction using multiple price auction method, to be conducted by the Reserve Bank of India on May 24.
The States raising SDL's were Andhra Pradesh Rs.1000 cr, Gujarat Rs.1000 crore, Haryana Rs.800 crore, Nagaland Rs.100 crore, Rajasthan Rs.500 crore, Uttar Pradesh and Rs.1000 crore.
Gujarat would have the option to retain an additional subscription upto a maximum of Rs.250 crore, a RBI release said today.
The Government Stocks upto 10 per cent of the notified amount of the sale of each of the stock will be allotted to eligible individuals and institutions subject to a maximum limit of one per cent of its notified amount for a single bid per stock as per the Scheme for Non-competitive Bidding Facility.
The RBI will determine the maximum yield at which bids will be accepted. Securities will be issued for a minimum nominal amount of Rs.10,000 and multiples of Rs.10,000 thereafter.
The investment in Government Stocks will be reckoned as an eligible investment in Government Securities by banks, RBI said.