Description

BSE announces non-competitive bidding facility for SDL auction of 21 securities across multiple states with total issue size of Rs. 28,815 crores, to be conducted on January 13, 2026.

Summary

BSE has announced the availability of non-competitive bidding facility for the auction of State Government Securities (SDL) scheduled for January 13, 2026. The auction, announced by RBI on January 09, 2026, includes 21 SDL securities across 11 states with a combined issue size of Rs. 28,815 crores. Trading members can submit bids through the NCB-GSec module of BSE’s iBBS web-based system.

Key Points

  • 21 SDL securities to be auctioned across 11 states (Assam, Bihar, Chhattisgarh, Haryana, Karnataka, Mizoram, Punjab, Tamil Nadu, Telangana, Uttarakhand, West Bengal)
  • Total issue size: Rs. 28,815 crores
  • Mix of new issuances (15 securities) and re-issuances (6 securities)
  • Bidding available through iBBS platform at https://ibbs.bseindia.com
  • Minimum subscription: 100 units (Rs. 10,000)
  • Individual maximum amounts range from Rs. 1.15 crores to Rs. 20 crores per security
  • 24-hour bidding window available starting January 12, 2026

Regulatory Changes

No new regulatory changes. This circular follows the existing framework established by Exchange circular no. 20191122-28 dated November 22, 2019 regarding non-competitive bidding facility for State Government Securities auctions.

Compliance Requirements

  • Trading members must submit bids through the NCB-GSec module of BSE’s iBBS web-based system
  • Direct investors: Bids must be submitted by January 12, 2026
  • Trading members: Bids must be submitted by January 13, 2026 till 8:00 AM
  • Minimum subscription units: 100 units (Rs. 10,000) in multiples thereof
  • Maximum amount limits vary by security (as specified in the table)
  • Contact designated teams for user ID creation, password reset, bidding queries, or obligation/pay-in related queries

Important Dates

  • January 12, 2026 (10:00 AM onwards): Bid collection starts (24-hour availability)
  • January 12, 2026: Bid collection end date for direct investors
  • January 13, 2026 (8:00 AM): Bid collection end date for trading members
  • January 13, 2026: Auction date
  • January 14, 2026: Settlement date

Impact Assessment

This auction provides investment opportunities in state government debt securities across multiple states with varying maturities (2031-2056). The significant aggregate issuance size of Rs. 28,815 crores indicates substantial borrowing requirements by state governments. The non-competitive bidding facility enables retail and institutional investors to participate in SDL auctions without competing on yield, promoting wider participation in state government debt markets. Karnataka has the highest individual state issuance with three securities totaling Rs. 6,000 crores, while Mizoram has the smallest at Rs. 115 crores.

Impact Justification

Regular SDL auction notice for debt market participants. Medium impact as it involves significant issuance size (Rs. 28,815 crores) across 21 securities but is a routine market operation for debt segment.