Description

BSE announces non-competitive bidding facility for SDL auction on October 20, 2025, covering securities from Chhattisgarh, Maharashtra, Rajasthan, Tamil Nadu, and Uttar Pradesh totaling Rs. 17,000 crore.

Summary

BSE has announced the non-competitive bidding facility for the auction of State Government Securities (SDL) scheduled for October 20, 2025, as per RBI’s press release dated October 16, 2025. The auction will cover 13 SDL securities from five states (Chhattisgarh, Maharashtra, Rajasthan, Tamil Nadu, and Uttar Pradesh) with a total issue size of Rs. 17,000 crore. Trading members can submit bids through the NCB-GSec module of BSE’s iBBS web-based system.

Key Points

  • Total issue size: Rs. 17,000 crore across 13 SDL securities
  • Five states participating: Chhattisgarh (Rs. 3,000 cr), Maharashtra (Rs. 5,000 cr), Rajasthan (Rs. 5,000 cr), Tamil Nadu (Rs. 3,000 cr), and Uttar Pradesh (Rs. 2,000 cr)
  • Bid collection starts October 17, 2025 at 10:00 AM with 24-hour availability
  • Direct investors must submit bids by October 17, 2025 at 5:00 PM
  • Trading members can submit bids until October 20, 2025 at 8:00 AM
  • Auction date: October 20, 2025
  • Settlement date: October 23, 2025
  • Minimum subscription: 100 units (Rs. 10,000)
  • Bidding platform: NCB-GSec module at https://ibbs.bseindia.com

Regulatory Changes

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

Compliance Requirements

For Trading Members:

  • Access the NCB-GSec module of BSE’s iBBS web-based system for bid submission
  • Submit bids for direct investors by October 17, 2025 at 5:00 PM
  • Submit own bids by October 20, 2025 at 8:00 AM
  • Adhere to minimum subscription units of 100 (Rs. 10,000) and specified maximum amounts per security
  • Contact designated teams for user ID creation, password reset, bidding queries, or obligation/pay-in related issues

Securities Details:

  • Chhattisgarh: CG SDL 2040 (New, Rs. 1,000 cr, max Rs. 10 cr), 7.14% CG 2032 (Re-issue, Rs. 1,000 cr, max Rs. 10 cr)
  • Maharashtra: MH SDL 2036 (New, Rs. 1,500 cr, max Rs. 15 cr), MH SDL 2050 (New, Rs. 1,000 cr, max Rs. 10 cr), 7.24% MH 2034 (Re-issue, Rs. 1,000 cr, max Rs. 10 cr), 7.26% MH 2041 (Re-issue, Rs. 1,500 cr, max Rs. 15 cr)
  • Rajasthan: RJ SDL 2035 (New, Rs. 2,000 cr, max Rs. 20 cr), RJ SDL 2051 (New, Rs. 1,500 cr, max Rs. 15 cr), 7.57% RJ 2043 (Re-issue, Rs. 1,500 cr, max Rs. 15 cr)
  • Tamil Nadu: TN SDL 2035 (New, Rs. 1,000 cr, max Rs. 10 cr), TN SDL 2032 (New, Rs. 1,000 cr, max Rs. 10 cr), 7.44% TN 2055 (Re-issue, Rs. 1,000 cr, max Rs. 10 cr)
  • Uttar Pradesh: UP SDL 2035 (New, Rs. 2,000 cr, max Rs. 20 cr)

Important Dates

  • October 16, 2025: RBI press release announcing SDL auction
  • October 17, 2025, 10:00 AM: Bid collection starts (24-hour availability)
  • October 17, 2025, 5:00 PM: Bid collection deadline for direct investors
  • October 20, 2025, 8:00 AM: Bid collection deadline for trading members
  • October 20, 2025: Auction date
  • October 23, 2025: Settlement date

Impact Assessment

Market Impact: Medium. The auction involves a substantial Rs. 17,000 crore across multiple state securities, providing investment opportunities in government debt instruments. The participation of five states with varying tenures (2032-2055) offers diversification options for debt market participants.

Operational Impact: Trading members and institutional investors participating in government securities market will need to coordinate bid submissions within specified timelines. The non-competitive bidding facility simplifies participation for retail and small institutional investors who cannot participate in competitive auctions.

Liquidity Impact: The auction will add fresh supply of SDL securities across multiple states and tenures, potentially affecting yields in the state government securities market segment. The mix of new issuances and re-issuances provides both fresh paper and additional liquidity in existing securities.

Impact Justification

Routine SDL auction notification affecting debt market participants. Medium impact due to significant issue size (Rs. 17,000 crore) but low severity as it's a regular market operation with established procedures.