Description

BSE announces non-competitive bidding facility for SDL securities auction with 9 securities worth Rs. 8,450 crores available for bidding.

Summary

BSE announces non-competitive bidding facility for State Government Securities (SDL) auction scheduled for August 12, 2025. Nine securities with total issue size of Rs. 8,450 crores will be available through the NCB-GSec module of BSE’s iBBS platform. The auction includes both new issues and re-issues from various states including Bihar, Goa, Haryana, Jammu & Kashmir, Maharashtra, and Telangana.

Key Points

  • 9 SDL securities available with total issue size of Rs. 8,450 crores
  • Bidding through NCB-GSec module of iBBS web-based system
  • Minimum subscription units of 100 with Rs. 10,000 minimum amount
  • Settlement on August 13, 2025
  • Mix of new issues and re-issues from 6 different states
  • Coupon rates ranging from 7.14% to 8.62% for re-issues

Regulatory Changes

No new regulatory changes. This follows existing framework established by Exchange circular no. 20191122-28 dated November 22, 2019 for non-competitive bidding facility in RBI-conducted SDL auctions.

Compliance Requirements

  • Trading members must use NCB-GSec module of iBBS platform
  • Direct investors can bid until August 11, 2025
  • Trading members can bid until August 12, 2025 at 8:00 AM
  • Minimum investment of Rs. 10,000 with 100-unit multiples
  • Maximum investment limits vary by security (Rs. 1-20 crores)

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

Medium impact on debt market participants and institutional investors. Provides investment opportunities in state government securities with varying tenures (2028-2060) and coupon rates. The Rs. 8,450 crore total issue size represents significant liquidity injection. No immediate impact on equity markets, but strengthens government financing mechanisms and provides yield opportunities for debt investors.

Impact Justification

Regular SDL auction with established bidding process, affects debt market participants