Axis Bank offers the facility of non-competitive bidding for dated Government Securities, through which investors can buy Government Securities directly from the RBI.
The participation in the retailing of government securities is open to individuals, HUFs, firms, companies, corporate bodies, institutions, provident funds, trusts and any other entity prescribed by the RBI. The investors can either bid
for the rate of interest (coupon) for new government securities, or for the price of an existing government security which is being reissued. All the information about the retailing of government securities such as maturity date of
the paper, the size of the auction and the type of auction (price based or yield based) will be available at the branches.
The auctions are of two types:
Price based auctions
Are auctions where bids are evaluated on basis of the price of the bond and the cut off is given in Rs or paise
Yield based auction where the cut off is given on the basis of the yield
You can participate in the Non-competitive Bidding by filling the application form, which is available at our branches. Also an undertaking from the investor that he is making a single bid only is necessary as per RBI guideline. You can download the application form by clicking here . Axis Bank will take a nominal charge of 6 paise per Rs 100 as commission for rendering the service to the investors. The commission will be built into the price of the security.
After successful acquisition of the security, the customer can
Keep the security in his name in the CSGL account of Axis Bank in RBI, or,
Get his security credited to his existing demat account with a depository participant.
This facility in presently offered only to existing customers so that the funds can be debited from the account of the investor. The customer (investor) has to have sufficient balance in the account. Click here to know more about our savings bank account.
Axis Bank is a registered member (Depository Participant) of NSDL. Click here to know more about our depository services.
For a detailed understanding of the bidding for Government Securities Click here for FAQs. For any queries, please contact our treasury or the branch in your area.
Click here to apply for a Retailing of Government Securities.