Description
BSE announces non-competitive bidding facility for State Development Loan (SDL) securities auction covering 28 state securities worth Rs. 30,950 crores.
Summary
BSE announces non-competitive bidding facility for auction of State Development Loan (SDL) securities on August 26, 2025. The auction covers 28 state government securities across 18 states with total issue size of Rs. 30,950 crores, including both new issues and re-issues.
Key Points
- 28 SDL securities from 18 states available for auction
- Total issue size: Rs. 30,950 crores
- Bidding through NCB-GSec module of iBBS system
- Minimum subscription: 100 units (Rs. 10,000)
- Maximum amount varies by state (Rs. 1-25 crores)
- 24-hour bid collection window for direct investors
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 in SDL auctions.
Compliance Requirements
- Trading members must use iBBS web-based system NCB-GSec module
- Adherence to minimum subscription units and maximum amount limits
- Compliance with bid collection timelines
- Settlement obligations as per standard T+2 cycle
Important Dates
- Bid Collection Start: August 25, 2025 from 10:00 AM (24 hours availability)
- Bid Collection End (Direct Investors): August 25, 2025
- Bid Collection End (Members): August 26, 2025 till 8:00 AM
- Auction Date: August 26, 2025
- Settlement Date: August 28, 2025
Impact Assessment
Medium impact on debt market participants and state financing. The auction provides liquidity injection of Rs. 30,950 crores across multiple states. Non-competitive bidding facility enables broader participation from retail and institutional investors in state government securities market.
Impact Justification
Regular SDL auction with standard bidding process affecting debt market participants