Description

BSE announces non-competitive bidding facility for SDL auction on December 30, 2025, covering 29 state government securities across multiple states with total issue size of Rs. 37,450 crores.

Summary

BSE has announced the availability of non-competitive bidding (NCB) facility for the State Development Loans (SDL) auction scheduled for December 30, 2025. This follows the RBI press release dated December 26, 2025, and is in continuation of the NCB facility launched through circular no. 20191122-28. Trading members can participate in the auction through the NCB-GSec module of BSE’s iBBS web-based system. The auction covers 29 SDL securities across 16 states with a combined issue size of Rs. 37,450 crores, comprising 22 new issues and 7 re-issues.

Key Points

  • Total of 29 SDL securities available for non-competitive bidding across 16 states
  • Combined issue size: Rs. 37,450 crores
  • 22 new issues and 7 re-issues included in the auction
  • Bidding through NCB-GSec module on iBBS platform (https://ibbs.bseindia.com)
  • Minimum subscription unit: 100 (Rs. 10,000)
  • Maximum bid amount per security: Rs. 1.5 to Rs. 20 crores depending on issue size
  • States covered: Andhra Pradesh, Assam, Bihar, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Manipur, Rajasthan, Tamil Nadu, Telangana, Tripura, Uttarakhand, and West Bengal
  • Largest individual issues: Karnataka (2 securities at Rs. 2,000 crores each), Tamil Nadu, and West Bengal (2 securities at Rs. 2,000 crores each)

Regulatory Changes

No new regulatory changes. This circular implements the existing non-competitive bidding framework established by BSE circular no. 20191122-28 dated November 22, 2019, for participation in RBI-conducted SDL auctions.

Compliance Requirements

  • Trading members must use the NCB-GSec module of BSE’s iBBS web-based system for bid submission
  • Direct investors must submit bids by December 29, 2025
  • Trading members must submit bids by December 30, 2025 at 8:00 AM
  • Minimum bid amount: Rs. 10,000 (100 units)
  • Maximum bid amount varies by security (Rs. 1.5 crores to Rs. 20 crores)
  • Bids must be in multiples of 100 units
  • Members must ensure timely payment for obligations and pay-in requirements

Important Dates

  • December 26, 2025: RBI press release announcing SDL auction
  • December 29, 2025: Bid collection starts at 10:00 AM (24-hour availability)
  • December 29, 2025: Bid collection end date for direct investors
  • December 30, 2025, 8:00 AM: Bid collection end date for trading members
  • December 30, 2025: Auction date
  • December 31, 2025: Settlement date

Impact Assessment

Market Impact: Medium - The auction involves a substantial Rs. 37,450 crores across 29 securities, providing investment opportunities in state government debt instruments. The inclusion of multiple states and varying tenures (2029-2046) offers diversification options for debt market participants.

Operational Impact: Low to Medium - Trading members and direct investors need to ensure system access to the NCB-GSec module and meet the tight bidding timelines. The 24-hour window for direct investors and overnight deadline for members requires operational readiness.

Investor Impact: Medium - Retail and institutional investors gain access to SDL securities through the non-competitive route, avoiding competitive auction dynamics. The minimum investment of Rs. 10,000 makes these securities accessible to a broader investor base.

Contact Support: BSE has provided dedicated contact information for user ID creation, bidding queries, and settlement-related issues through Trading Operations and ICCL Operations teams.

Impact Justification

Routine SDL auction announcement affecting debt market participants. Medium impact due to large issue size (Rs. 37,450 crores) across 29 securities from 16 states, but follows established non-competitive bidding process.