Description

BSE announces non-competitive bidding facility for auction of 29 State Government Securities (SDLs) totaling Rs. 37,450 crores scheduled for December 30, 2025.

Summary

BSE has announced the availability of non-competitive bidding (NCB) facility for the auction of 29 State Government Securities (SDLs) scheduled for December 30, 2025, with a total issuance size of Rs. 37,450 crores. The auction is being conducted by RBI following the Government of India’s announcement on December 26, 2025. Trading members can participate through the NCB-GSec module of BSE’s iBBS web-based system. The securities cover 15 states including Andhra Pradesh, Karnataka, Tamil Nadu, West Bengal, and others, with maturities ranging from 2029 to 2046.

Key Points

  • 29 State Government Securities from 15 states available for non-competitive bidding
  • Total issuance size: Rs. 37,450 crores
  • Mix of 23 new issues and 6 re-issues
  • Bid collection starts December 29, 2025 at 10:00 AM (24-hour availability)
  • Direct investor bid deadline: December 29, 2025
  • Member bid deadline: December 30, 2025 at 8:00 AM
  • Auction date: December 30, 2025
  • Settlement date: December 31, 2025
  • Minimum subscription: Rs. 10,000 (100 units)
  • Maximum bid amount: Varies by security (Rs. 1.5 to 20 crores)
  • Bidding platform: BSE iBBS web-based system (https://ibbs.bseindia.com) » NCB-GSec module

Regulatory Changes

No new regulatory changes. This circular is issued in continuation of Exchange circular no. 20191122-28 dated November 22, 2019, which originally launched the non-competitive bidding facility for State Government Securities auctions.

Compliance Requirements

For Trading Members:

  • Access the NCB-GSec module through BSE’s iBBS web-based platform
  • Submit bids for clients and proprietary accounts within specified timelines
  • Ensure bids comply with minimum and maximum amount limits for each security
  • Meet settlement obligations on December 31, 2025

Bid Specifications:

  • Minimum subscription units: 100 units (multiples thereof)
  • Minimum amount: Rs. 10,000 per security
  • Maximum amount: Ranges from Rs. 1.5 crores (Manipur SDL) to Rs. 20 crores (Karnataka, Kerala, Tamil Nadu, West Bengal SDLs)

Contact Points:

Important Dates

  • December 26, 2025: RBI press release announcing SDL auction
  • December 29, 2025, 10:00 AM: Bid collection start time for all participants
  • December 29, 2025: Bid collection end date for direct investors
  • December 30, 2025, 8:00 AM: Bid collection end time for members
  • December 30, 2025: Auction date
  • December 31, 2025: Settlement date

Impact Assessment

Market Impact:

  • Significant state borrowing program totaling Rs. 37,450 crores across 15 states
  • Karnataka has the largest allocation (Rs. 6,000 crores across 4 securities)
  • West Bengal (Rs. 4,000 crores), Kerala (Rs. 2,000 crores), and Tamil Nadu (Rs. 6,000 crores) are other major issuers
  • Mix of new issues (23 securities) and re-issues (6 securities) provides both fresh issuances and liquidity enhancement

Investor Impact:

  • Non-competitive bidding facility provides retail and smaller institutional investors access to SDL primary market
  • Investors receive weighted average price of competitive auction, removing price discovery risk
  • Wide maturity spectrum (2029-2046) offers diverse investment options for asset-liability matching
  • Minimum investment of Rs. 10,000 makes these securities accessible to retail investors

Operational Impact:

  • Trading members must coordinate bid collection from clients within tight timelines
  • Settlement on December 31, 2025 (year-end) may require additional operational coordination
  • Members need to ensure adequate settlement funds/collateral with ICCL

Impact Justification

Routine SDL auction process with significant aggregate issuance size (Rs. 37,450 crores) across 29 securities from 15 states. Provides investment opportunity for debt market participants through non-competitive bidding facility. Medium impact due to substantial issuance volume affecting state debt markets.