Description

BSE announces non-competitive bidding facility for State Government Securities auction with 9 securities totaling Rs. 8,450 crores.

Summary

BSE has announced the availability of non-competitive bidding facility for the auction of State Government Securities (SDL) scheduled for August 12, 2025. The auction includes 9 securities from various states (Bihar, Gujarat, Haryana, Jammu & Kashmir, Maharashtra, and Telangana) with a total issue size of Rs. 8,450 crores. Trading members can participate through BSE’s iBBS web-based NCB-GSec module.

Key Points

  • 9 State Government Securities available for auction totaling Rs. 8,450 crores
  • Mix of new issues and re-issues from 6 different states
  • Non-competitive bidding through BSE’s iBBS platform NCB-GSec module
  • Minimum subscription unit of Rs. 10,000 with varying maximum limits
  • 24-hour bid collection window starting August 11, 2025

Regulatory Changes

This circular continues the existing non-competitive bidding facility launched via Exchange circular no. 20191122-28 dated November 22, 2019, with no new regulatory changes announced.

Compliance Requirements

  • Trading members must use iBBS web-based system NCB-GSec module for bidding
  • Minimum bid amount: Rs. 10,000
  • Bids must be in multiples of 100 units
  • Direct investors must submit bids by August 11, 2025
  • Members have extended deadline until August 12, 2025 at 8:00 AM

Important Dates

  • Bid Collection Start: August 11, 2025 from 10:00 AM (24-hour availability)
  • Bid Collection End (Direct Investors): August 11, 2025
  • Bid Collection End (Members): August 12, 2025 till 8:00 AM
  • Auction Date: August 12, 2025
  • Settlement Date: August 13, 2025

Impact Assessment

This auction represents significant state government borrowing activity worth Rs. 8,450 crores, providing investment opportunities in state government securities. The extended bidding window for members and inclusion of both new issues and re-issues from multiple states indicates robust demand for state government debt. The facility enhances market participation in government securities trading and supports state government financing needs.

Impact Justification

Significant debt market activity affecting multiple state securities worth Rs. 8,450 crores with clear bidding timelines