Description

RBI announces SDL securities auction on October 20, 2025 with non-competitive bidding facility through BSE's NCB-GSec module for state government securities from Chhattisgarh, Maharashtra, Rajasthan, Tamil Nadu, and Uttar Pradesh.

Summary

BSE notifies trading members about the non-competitive bidding facility for State Development Loans (SDL) auction scheduled for October 20, 2025, as announced by RBI on October 16, 2025. The auction covers 13 SDL securities from five states (Chhattisgarh, Maharashtra, Rajasthan, Tamil Nadu, and Uttar Pradesh) with a total issue size of Rs. 14,500 crore. Trading members can participate through BSE’s iBBS web-based NCB-GSec module.

Key Points

  • Total issue size of Rs. 14,500 crore across 13 SDL securities from 5 states
  • Bid collection starts October 17, 2025 at 10:00 AM with 24-hour availability
  • Direct investor bids close October 17, 2025 at 5:00 PM
  • Trading member bids close October 20, 2025 at 8:00 AM
  • Auction date: October 20, 2025; Settlement date: October 23, 2025
  • Minimum subscription unit: 100 units (Rs. 10,000)
  • Maximum investment limits vary by security (Rs. 10-20 crores)
  • Bidding through BSE’s iBBS web-based NCB-GSec module at https://ibbs.bseindia.com

Regulatory Changes

No new regulatory changes. This circular is in continuation of Exchange circular no. 20191122-28 dated November 22, 2019 regarding launch of non-competitive bidding facility for State Government Securities auctions conducted by RBI.

Compliance Requirements

  • Trading members must use BSE’s iBBS web-based system NCB-GSec module for bidding
  • Direct investors must submit bids by October 17, 2025 at 5:00 PM
  • Trading members must submit bids by October 20, 2025 at 8:00 AM
  • Minimum investment of Rs. 10,000 per security (100 units)
  • Maximum investment limits must be adhered to as per security specifications
  • Settlement obligations must be fulfilled by October 23, 2025

Important Dates

  • October 16, 2025: RBI press release announcing SDL auction
  • October 17, 2025, 10:00 AM: Bid collection starts
  • October 17, 2025, 5:00 PM: Bid collection ends for direct investors
  • October 20, 2025, 8:00 AM: Bid collection ends for trading members
  • October 20, 2025: Auction date
  • October 23, 2025: Settlement date

Impact Assessment

Market Impact: The Rs. 14,500 crore SDL auction provides investment opportunities in state government securities across five states with varying maturity profiles (2032-2055). The non-competitive bidding facility enables retail and institutional investors to participate without competing on yield.

Operational Impact: Trading members must coordinate bid collection from clients and submit through NCB-GSec module within specified timelines. The 24-hour bid collection window provides flexibility for participants.

Securities Breakdown:

  • Chhattisgarh: Rs. 3,000 crore (3 securities)
  • Maharashtra: Rs. 5,000 crore (4 securities)
  • Rajasthan: Rs. 5,000 crore (3 securities)
  • Tamil Nadu: Rs. 3,000 crore (3 securities)
  • Uttar Pradesh: Rs. 2,000 crore (1 security)

Yield Information: Some securities show indicative yields (7.14%-7.57% range for select issues), providing reference points for investors. Mix of new issues and re-issues offers varied liquidity profiles.

Impact Justification

Routine SDL auction notification affecting debt market participants and institutional investors; medium importance due to Rs. 14,500 crore total issue size across five states