Description

BSE announces non-competitive bidding facility for SDL auction covering 26 state government securities across multiple states including AP, AS, CG, JK, KA, MP, RJ, TN, and WB with total issue size of Rs. 29,600 crores.

Summary

BSE has announced the non-competitive bidding facility for the auction of State Government Securities (SDL) scheduled for January 06, 2026, following RBI’s press release dated January 02, 2026. Trading members can participate in the auction through BSE’s NCB-GSec module on the iBBS web-based system. The auction covers 26 SDL securities across 9 states (Andhra Pradesh, Assam, Chhattisgarh, Jammu & Kashmir, Karnataka, Madhya Pradesh, Rajasthan, Tamil Nadu, and West Bengal) with a total issue size of Rs. 29,600 crores.

Key Points

  • 26 SDL securities available for auction across 9 states
  • Total issue size: Rs. 29,600 crores
  • 24 new issues and 2 re-issues (7.19% KA 2032 and 7.42% TN 2035)
  • Minimum subscription unit: Rs. 10,000 (100 units)
  • Maximum bid amount: Rs. 6-20 crores per security depending on issue size
  • Bidding platform: NCB-GSec module on iBBS system (https://ibbs.bseindia.com)
  • Maturity periods ranging from 2030 to 2056

Regulatory Changes

This circular continues the non-competitive bidding facility initially launched through Exchange circular no. 20191122-28 dated November 22, 2019. No new regulatory changes are introduced; this is a regular auction notification under existing framework.

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 January 05, 2026
  • Trading members must submit bids by January 06, 2026 at 8:00 AM
  • Minimum bid amount: Rs. 10,000 in multiples of Rs. 100
  • Maximum bid limits vary by security: Rs. 6-20 crores
  • Members requiring new user ID or password reset must contact Trading Operations

Important Dates

  • Bid Collection Start: January 05, 2026 from 10:00 AM onwards (24-hour availability)
  • Bid Collection End (Direct Investors): January 05, 2026
  • Bid Collection End (Members): January 06, 2026 at 8:00 AM
  • Auction Date: January 06, 2026
  • Settlement Date: January 07, 2026

Impact Assessment

Market Impact: Medium - The auction of Rs. 29,600 crores across 26 SDL securities represents significant borrowing activity by state governments, which will absorb liquidity from the debt market. The inclusion of multiple states and varying maturity profiles (2030-2056) provides investment options across the yield curve.

Operational Impact: Trading members and institutional investors participating in government securities market need to prepare bids within the specified timeline. The non-competitive bidding facility allows retail and smaller investors to participate without competing with institutional bidders on price.

State-wise Distribution: Karnataka has the largest allocation (Rs. 6,000 crores across 4 securities), followed by Tamil Nadu (Rs. 6,000 crores across 5 securities) and Andhra Pradesh (Rs. 6,500 crores across 6 securities), indicating higher borrowing requirements from these states.

Impact Justification

Regular SDL auction notice affecting debt market participants. Medium impact as it involves significant issue size (Rs. 29,600 crores) across 26 securities from 9 states, relevant for institutional investors and trading members participating in government securities market.