Description

RBI announces auction of two dated government securities (6.68% GS 2040 and 6.90% GS 2065) through non-competitive bidding facility on December 12, 2025, with total issue size of Rs. 28,000 crores.

Summary

BSE notifies trading members about the upcoming auction of two Government of India (GoI) dated securities scheduled for December 12, 2025, following RBI’s press release dated December 08, 2025. The auction will be conducted through the non-competitive bidding (NCB) facility available on BSE’s iBBS web-based system. Two securities are being re-issued: 6.68% GS 2040 (Rs. 16,000 crores) and 6.90% GS 2065 (Rs. 12,000 crores), totaling Rs. 28,000 crores.

Key Points

  • Two dated government securities available for auction through non-competitive bidding
  • Security 1: 6.68% GS 2040 (Re-issue) - Issue size Rs. 16,000 crores
  • Security 2: 6.90% GS 2065 (Re-issue) - Issue size Rs. 12,000 crores
  • Minimum subscription units: 100 (Rs. 10,000 minimum amount)
  • Maximum bidding amount: Rs. 2 crores per security
  • Bidding through BSE’s NCB-GSec module on iBBS platform (https://ibbs.bseindia.com)
  • 24-hour bidding availability during collection period
  • Reference to earlier circular no. 20180423-42 dated April 23, 2018

Regulatory Changes

No new regulatory changes introduced. This circular operationalizes the existing non-competitive bidding facility established through Exchange circular no. 20180423-42 (April 23, 2018) for RBI-conducted government securities auctions.

Compliance Requirements

  • Trading members must use BSE’s iBBS web-based NCB-GSec module for bid submission
  • Members must adhere to specified bidding windows (different for members vs. direct investors)
  • Minimum bid amount: Rs. 10,000 (100 units)
  • Maximum bid amount per security: Rs. 2 crores
  • Bids must be submitted in multiples of 100 units
  • Members must ensure timely obligation fulfillment and pay-in as per settlement schedule

Important Dates

  • December 08, 2025: RBI press release announcement
  • December 09, 2025, 10:00 AM: Bid collection start date (24-hour availability begins)
  • December 11, 2025, 5:00 PM: Bid collection end for direct investors
  • December 12, 2025, 8:00 AM: Bid collection end for trading members
  • December 12, 2025: Auction date
  • December 15, 2025: Settlement date

Impact Assessment

Market Impact: Medium impact on debt market participants. The total auction size of Rs. 28,000 crores represents significant government borrowing activity. The re-issuance of existing securities (rather than new issuance) indicates continuation of government financing through established instruments.

Operational Impact: Trading members and direct investors participating in government securities market need to prepare bids within specified timelines. The staggered bid collection deadlines (direct investors by December 11, 5 PM; members by December 12, 8 AM) provide operational flexibility.

Liquidity Impact: The two securities offer different maturity profiles (2040 and 2065), catering to varied investment horizons. The maximum bid limit of Rs. 2 crores per security through non-competitive route ensures retail/smaller institutional participation alongside competitive bidding.

Contact Support: Multiple support channels provided for user ID creation, bidding queries, and settlement-related issues through BSE Trading Operations and ICCL Operations teams.

Impact Justification

Medium ranking as this is a routine government securities auction notification with standard non-competitive bidding facility, relevant primarily for debt market participants and institutional investors.