Punjab govt issues Rs 500-crore paper
THE Punjab government today notified the sale of Punjab Government Stock (Securities) of 10-year tenure for an aggregate amount of Rs 500 crore. The loan is being revised to finance parts of capital expenditure of the Plan schemes and other development schemes under execution. Centre’s consent has been obtained for floating this loan as required by Article 293(3) of the Constitution. The government stock will be sold through RBI’s Mumbai office through auction in the manner as prescribed in paragraph 6.1 of the coupon rate to be determined by the central bank at the yield auction, under multiple price format. The auction will be conducted on August 16. The payment by successful bidders will be made the next day, before the close of banking hours by means of cash, banker's cheque/pay order/demand draft payable at Reserve Bank of India Mumbai/New Delhi, or a cheque drawn on their account. The tenure of the stock will start from August 17.