Description

BSE announces non-competitive bidding facility for SDL auction covering 12 state government securities worth Rs. 13,300 crores scheduled for October 14, 2025.

Summary

BSE has announced the non-competitive bidding (NCB) facility for the auction of State Government Securities (SDL) scheduled for October 14, 2025. The auction covers 12 securities from 9 states with a total issue size of Rs. 13,300 crores. This follows RBI’s press release dated October 10, 2025, and is in continuation of BSE’s circular from November 22, 2019, regarding the launch of NCB facility for SDL auctions.

Key Points

  • Total of 12 SDL securities available for bidding worth Rs. 13,300 crores
  • States covered: Bihar, Gujarat, Jammu & Kashmir, Maharashtra, Odisha, Tamil Nadu, Telangana, and Uttar Pradesh
  • Mix of new issues and re-issues with maturity periods ranging from 2029 to 2055
  • Bidding through BSE’s iBBS web-based NCB-GSec module
  • Minimum subscription unit: 100 units (Rs. 10,000)
  • Maximum bid amount ranges from Rs. 3 crores to Rs. 20 crores per security
  • Maharashtra has highest allocation with 4 securities totaling Rs. 5,000 crores

Regulatory Changes

No new regulatory changes. This circular implements the existing non-competitive bidding framework established in November 2019 for the upcoming SDL auction announced by RBI.

Compliance Requirements

For Trading Members:

  • Submit bids through NCB-GSec module at https://ibbs.bseindia.com
  • Ensure bid submission by October 14, 2025, 8:00 AM
  • Adhere to minimum bid amount of Rs. 10,000 and maximum limits specified for each security
  • Maintain subscription units in multiples of 100

For Direct Investors:

  • Complete bid submission by October 13, 2025 (end of day)
  • Follow same minimum/maximum bid parameters as trading members

Important Dates

  • October 10, 2025: RBI press release announcing SDL auction
  • October 12, 2025: BSE circular date
  • October 13, 2025, 10:00 AM: Bid collection starts (24-hour availability)
  • October 13, 2025, EOD: Bid collection deadline for direct investors
  • October 14, 2025, 8:00 AM: Bid collection deadline for trading members
  • October 14, 2025: Auction date
  • October 15, 2025: Settlement date

Impact Assessment

Market Impact: Medium - The Rs. 13,300 crore SDL auction provides state governments with long-term borrowing opportunities while offering debt market participants investment options in state securities with varying maturity profiles from 4 to 30 years.

Operational Impact: Trading members and direct investors participating in debt markets need to prepare for the bidding window. The staggered deadlines (October 13 for direct investors, October 14 morning for members) require timely bid preparation and submission.

State-wise Impact: Maharashtra dominates with Rs. 5,000 crores across 4 securities, followed by Uttar Pradesh (Rs. 2,000 crores), and Bihar, Gujarat (Rs. 1,500 crores each). The securities offer diversification across different state credits and tenures.

Impact Justification

Routine SDL auction notification affecting debt market participants with standard bidding procedures for state government securities