Description

BSE announces non-competitive bidding facility for State Development Loans auction with 25 securities totaling Rs. 31,000 crores across multiple states.

Summary

BSE has announced the availability of non-competitive bidding facility for the auction of State Development Loans (SDL) scheduled for July 29, 2025. The auction includes 25 securities from 12 states with a total issue size of Rs. 31,000 crores, comprising both new issues and re-issues with varying tenors from 2028 to 2063.

Key Points

  • 25 SDL securities available for non-competitive bidding through NCB-GSec module
  • Total issue size of Rs. 31,000 crores across multiple state governments
  • Bid collection starts July 28, 2025 from 10:00 AM with 24-hour availability
  • Minimum subscription units of Rs. 100 with Rs. 10,000 minimum amount
  • Maximum bidding limits range from Rs. 5 crores to Rs. 25 crores per security
  • Settlement on July 30, 2025 (T+1)

Regulatory Changes

No new regulatory changes. This circular continues the existing non-competitive bidding facility launched in November 2019 for SDL auctions conducted by RBI.

Compliance Requirements

  • Trading members must use BSE’s iBBS web-based system NCB-GSec module
  • Direct investors must submit bids by July 28, 2025
  • Members must submit bids by July 29, 2025 till 8:00 AM
  • Adherence to minimum and maximum bidding limits for each security

Important Dates

  • Bid Collection Start: July 28, 2025 from 10:00 AM
  • Direct Investor Deadline: July 28, 2025
  • Member Deadline: July 29, 2025 till 8:00 AM
  • Auction Date: July 29, 2025
  • Settlement Date: July 30, 2025

Impact Assessment

Medium impact on debt market participants and state government financing. The large combined issue size of Rs. 31,000 crores provides significant investment opportunities for institutional and retail investors. The inclusion of multiple states (Assam, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttarakhand) diversifies credit exposure across different state economies.

Impact Justification

Regular SDL auction with significant volume but standard operational process for debt market participants