Description

BSE announces non-competitive bidding facility for SDL auction covering 29 state government securities totaling Rs. 39,950 crores scheduled for December 30, 2025.

Summary

BSE has announced the availability of non-competitive bidding facility for the auction of 29 State Government Securities (SDLs) scheduled for December 30, 2025, as per RBI’s press release dated December 26, 2025. The total auction size is Rs. 39,950 crores covering securities from 15 states including Andhra Pradesh, Assam, Bihar, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Manipur, Rajasthan, Tamil Nadu, Telangana, Tripura, Uttarakhand, and West Bengal. Trading members can participate through BSE’s iBBS web-based NCB-GSec module.

Key Points

  • 29 SDL securities available for non-competitive bidding totaling Rs. 39,950 crores
  • Mix of new issuances (23 securities) and re-issuances (6 securities)
  • Bid collection starts December 29, 2025 at 10:00 AM with 24-hour availability
  • Direct investors can bid until December 29, 2025; members until December 30, 2025 at 8:00 AM
  • Minimum subscription units: 100 (Rs. 10,000)
  • Maximum bid amount ranges from Rs. 1.5 crores to Rs. 20 crores per security
  • Settlement date: December 31, 2025
  • Karnataka has largest allocation with Rs. 6,000 crores (4 securities)
  • Tamil Nadu and West Bengal each have Rs. 6,000 crores (4 securities each)
  • Manipur has smallest allocation at Rs. 150 crores

Regulatory Changes

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

Compliance Requirements

  • Trading members must use BSE’s iBBS web-based system NCB-GSec module at https://ibbs.bseindia.com
  • Bids must be submitted within specified timelines:
    • Direct investors: By end of December 29, 2025
    • Trading members: By December 30, 2025, 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 pay-in for obligations

Important Dates

  • December 29, 2025, 10:00 AM: Bid collection starts (24-hour availability)
  • December 29, 2025: Bid collection end date for direct investors
  • December 30, 2025, 8:00 AM: Bid collection end date for members
  • December 30, 2025: Auction date
  • December 31, 2025: Settlement date

Impact Assessment

Market Impact: Medium - The Rs. 39,950 crore SDL auction represents significant state government borrowing activity. The non-competitive bidding facility provides retail and smaller institutional investors access to state government securities alongside competitive bidders. This auction will impact state government debt markets and liquidity in the secondary SDL market.

Operational Impact: Trading members participating in debt markets need to coordinate bid submissions through the NCB-GSec module. The tight timeline between bid closure (December 30, 8:00 AM) and auction (December 30) requires operational readiness. Year-end settlement on December 31, 2025 may require additional coordination for fund management.

Investor Impact: The facility allows investors to participate in SDL auctions without competing on yield, ensuring allocation at the auction-determined rate. The wide range of maturities (2029-2046) and diverse state issuers provides portfolio diversification opportunities for debt investors.

Impact Justification

Routine SDL auction notification affecting debt market participants. Significant total issue size but standard operational procedure for institutional investors.