Description

BSE announces non-competitive bidding facility for SDL auction featuring 9 securities worth Rs. 8,450 crores with bid collection starting August 11, 2025.

Summary

BSE announces non-competitive bidding facility for State Development Loan (SDL) securities auction scheduled for August 12, 2025. The auction includes 9 securities from various states (Bihar, Goa, Haryana, Jammu & Kashmir, Maharashtra, 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 SDL securities available for auction totaling Rs. 8,450 crores
  • Mix of new issues and re-issues from 6 different states
  • Non-competitive bidding facility available through iBBS platform
  • Minimum subscription units: 100 (Rs. 10,000 minimum amount)
  • 24-hour bid collection window starting August 11, 2025 at 10:00 AM
  • Different bid collection end times for direct investors vs members

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 NCB-GSec module of iBBS system for bidding
  • Adherence to minimum subscription amounts and multiples
  • Compliance with specified bid collection timelines
  • Settlement obligations as per standard T+1 cycle

Important Dates

  • Bid Collection Start: August 11, 2025, 10:00 AM onwards
  • Bid Collection End (Direct Investors): August 11, 2025
  • Bid Collection End (Members): August 12, 2025, 8:00 AM
  • Auction Date: August 12, 2025
  • Settlement Date: August 13, 2025

Impact Assessment

Moderate impact on debt market participants and institutional investors. The large issue size of Rs. 8,450 crores provides significant investment opportunities in state government securities. The non-competitive bidding facility enables broader participation from retail and institutional investors who may not participate in competitive auctions. Settlement and operational teams need to prepare for T+1 settlement cycle.

Impact Justification

Regular SDL auction announcement affecting debt market participants with moderate trading impact