Buyback of inflation indexed bonds announced

New Delhi, Jan 11 (IANS) The government on Monday announced the buyback of its inflation indexed bonds (IIBs) linked to the wholesale price index (WPI).

The government will repurchase “1.44 percent Inflation Indexed Government Stock-2023″ through reverse auction for an aggregate amount of Rs.6,500 crore (face value),” a finance ministry statement said here.

“The repurchase of the government stocks is purely ad hoc in nature.”

“Auction for securities will be on price-based auction format. The auctions will be conducted using multiple price method,” the statement said.

The Reserve Bank of India (RBI) has adopted the consumer price index (CPI) as the key measure of inflation in April 2014, while WPI-based securities have not been reissued since then.

Though WPI-based inflation has been in the negative for the last 13 months, the rate has been rising for three months in succession and was minus 1.99 percent in November.

As per market data, IIBs worth Rs.6,500 crore have been issued since 2013, while major holders of the WPI-linked inflation bonds include mutual funds like ICICI Prudential, HDFC, SBI, Kotak Mahindra, Reliance and Deutsche.

Bids for the auction should be submitted in electronic format on the RBI’s Core Banking Solution (E-Kuber) system on January 12 between 10.30 a.m. and 12.00 noon. The result of the auctions will be announced on the same day, the statement said.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of or any employee thereof. is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here