Description

BSE announces non-competitive bidding facility for RBI's SDL auction on January 13, 2026, covering 21 state government securities across multiple states with total issuance of Rs. 28,815 crore.

Summary

BSE has announced the availability of non-competitive bidding facility for participating in the RBI’s auction of State Government Securities (SDL) scheduled for January 13, 2026. The auction covers 21 SDL securities from 13 states with a total issuance size of Rs. 28,815 crore. Trading members can submit bids through the NCB-GSec module of BSE’s iBBS web-based system. The facility allows retail and institutional investors to participate in SDL auctions without competing on price with primary dealers and banks.

Key Points

  • RBI announced SDL auction for January 13, 2026 through press release dated January 9, 2026
  • 21 SDL securities available for bidding: 13 new issues and 8 re-issues
  • Total issuance size: Rs. 28,815 crore across multiple state governments
  • States covered: Assam, Bihar, Chhattisgarh, Haryana, Karnataka, Mizoram, Punjab, Tamil Nadu, Telangana, Uttarakhand, and West Bengal
  • Minimum subscription units: 100 units with multiples of 100
  • Minimum bid amount: Rs. 10,000 per security
  • Maximum bid amount varies from Rs. 1.15 crore to Rs. 20 crore per security
  • Bidding through NCB-GSec module on iBBS platform at https://ibbs.bseindia.com
  • Direct investors can bid until January 12, 2026 end of day
  • Trading members can bid until January 13, 2026 at 8:00 AM

Regulatory Changes

No new regulatory changes. This circular is a routine implementation of the existing non-competitive bidding facility framework established through BSE circular no. 20191122-28 dated November 22, 2019.

Compliance Requirements

  • Trading members must collect bids from clients and submit through NCB-GSec module
  • Bid collection starts January 12, 2026 from 10:00 AM (24-hour availability)
  • Direct investor bids must be submitted by January 12, 2026
  • Member bids must be submitted by January 13, 2026 at 8:00 AM
  • Members must ensure compliance with minimum and maximum bid amounts per security
  • Settlement obligations must be fulfilled on T+1 basis (January 14, 2026)
  • Contact Trading Operations for user ID creation/password reset
  • Contact ICCL Operations for obligation and pay-in related matters

Important Dates

  • January 9, 2026: RBI press release announcing SDL auction
  • January 12, 2026: Bid collection starts at 10:00 AM; Direct investor bid deadline
  • January 13, 2026: Member bid deadline at 8:00 AM; Auction date
  • January 14, 2026: Settlement date (T+1)

Impact Assessment

Market Impact: Medium - The auction involves substantial issuance of Rs. 28,815 crore across 21 securities, which will add to the state government debt market liquidity. Karnataka has the highest exposure with Rs. 6,000 crore across three securities, followed by Tamil Nadu with Rs. 4,700 crore.

Operational Impact: Low - Routine auction process using existing NCB-GSec infrastructure. Trading members familiar with the process from previous SDL auctions.

Investor Impact: Medium - Provides retail and institutional investors opportunity to invest in state government securities without price competition. Individual securities range from relatively smaller issues like Mizoram SDL (Rs. 115 crore) to larger issues from major states like Karnataka and Tamil Nadu.

Liquidity Impact: The mix of new issues (13 securities) and re-issues (8 securities) provides both fresh investment opportunities and enhanced liquidity in existing SDL securities. Re-issues include securities maturing between 2031-2056 with coupon rates ranging from 6.74% to 7.58%.

Impact Justification

Routine SDL auction announcement affecting debt market participants. Medium impact due to significant issuance size of Rs. 28,815 crore across 21 securities. Important for fixed income investors and trading members participating in government securities market.