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Wednesday, Jan 16, 2002

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Money & Banking - Govt Bonds

Rs 5,000-cr Govt stock oversubscribed

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MUMBAI: The Rs 5,000-crore auction of the 15-year Government paper held on Monday was oversubscribed by over three times receiving a total of 435 competitive bids amounting Rs 16,056.504 crore.

Of these, 82 bids worth Rs 4,851.724 crore were accepted at the cut off rate of 8.07 per cent. This was the first auction in Government papers, which was open to non-competitive, i.e. retail participation. The total number of non-competitive bids received were 36 (274 applicants) amounting Rs 148.276 crore, all of which were accepted.

Bond dealers said, the auction results were satisfactory and in line with market expectations. "The non-competitive bids segment which comprised of co-operative banks, and provident funds, participated substantially,'' said a bond dealer.

``Since this is the first time that this segment has been opened, from next time onwards we are likely to see more non-competitive participation, with more awareness and publicity. This area has great potential for growth," he said.

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