In pursuance of the Scheme for auction of Central Government dated securities held by the Reserve Bank of India (Refer Circular No.IDMC.No.1931/03.02.00/94-95 dated March 20, 1995), the Reserve Bank of India has decided to offer 11.19 per cent Government Stock 2005 from its investment portfolio for sale through auction on November 16, 2000, for an aggregate amount of Rs.3500 crore..

All SGL and Current Account holders with RBI at Mumbai will be eligible to participate in the auction..

The auction will be held at Mumbai. The application form together with the terms and conditions of the auction may be obtained from the Chief General Manager, Internal Debt Management Cell, Reserve Bank of India, 16^th Floor, Central Office Building, Mumbai or from Public Debt Office, Reserve Bank of India, Mumbai Office.

The bids should be tendered on November 16, 2000 up to 2.30 p.m. and should be deposited in the tender box specially kept for the purpose at Reserve Bank of India, Fort, Mumbai.

The tenderer will have to indicate the face value of the security required and the intended purchase price (up to two decimal points per hundred of face value) of the stock offered for sale by auction. The purchase price indicated in the tender application should be exclusive of the broken period interest since last coupon date. The gross amount payable by the successful bidders for the security would however include the broken period interest up to November 16, 2000. Tenderer can submit multiple bids but a separate application form should be submitted as per the prescribed format. The auction will be conducted on multiple price basis. Minimum bid amount should be Rs. One crore (Face Value) and multiples of Rs. one crore thereafter.

On the basis of the tenders received, the RBI will determine the minimum price upto which tenders for purchase of Government securities will be accepted at the auction. The results of the auction will be displayed at Reserve Bank of India, Fort, Mumbai. The settlement will be on November 17, 2000. Reserve Bank has the right to accept or reject any or all the bids either wholly or partially if deemed fit without assigning any reason.