Description

BSE announces non-competitive bidding facility for SDL auction of 21 state government securities totaling Rs. 27,815 crores on January 13, 2026.

Summary

BSE has announced non-competitive bidding facility for the auction of 21 State Government Securities (SDL) scheduled for January 13, 2026, following RBI’s press release dated January 9, 2026. The auction comprises 21 securities from 12 states with a total issue size of Rs. 27,815 crores. Trading members can participate through the NCB-GSec module of BSE’s iBBS web-based system.

Key Points

  • Total auction size: Rs. 27,815 crores across 21 SDL securities
  • States covered: Assam, Bihar, Chhattisgarh, Haryana, Karnataka, Mizoram, Punjab, Tamil Nadu, Telangana, Uttarakhand, and West Bengal
  • Mix of new issues (15 securities) and re-issues (6 securities)
  • Minimum subscription: Rs. 10,000 (100 units)
  • Maximum amount per security: Rs. 1.15 crores to Rs. 20 crores depending on issue size
  • Bidding platform: NCB-GSec module on https://ibbs.bseindia.com
  • 24-hour bid collection window available

Regulatory Changes

No regulatory changes. This circular is issued in continuation of Exchange circular no. 20191122-28 dated November 22, 2019, which launched the non-competitive bidding facility for state government securities.

Compliance Requirements

  • Trading members must submit bids through the NCB-GSec module of BSE’s iBBS system
  • Direct investors must complete bidding by January 12, 2026
  • Members must complete bidding by January 13, 2026 at 8:00 AM
  • Minimum subscription units: 100 units (Rs. 10,000)
  • Bids must be in multiples of 100 units
  • Maximum bidding limits vary by security (Rs. 1.15 crores to Rs. 20 crores)

Important Dates

  • January 12, 2026, 10:00 AM: 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 members
  • January 13, 2026: Auction date
  • January 14, 2026: Settlement date

Impact Assessment

Market Impact: Medium - The auction of Rs. 27,815 crores in SDL securities represents routine debt market operations. Karnataka has the highest allocation with Rs. 6,000 crores across three securities, followed by Bihar and Tamil Nadu with Rs. 4,500 crores each.

Operational Impact: Low - This is a standard non-competitive bidding process following established procedures. Trading members familiar with the NCB-GSec module can participate seamlessly.

Investor Impact: Medium - The auction provides investment opportunities across various state securities with different maturity profiles (ranging from 2031 to 2056). The non-competitive bidding facility allows retail and institutional investors to participate without competing on price.

Securities Details

Largest Issues (Rs. 2,000 crores each):

  • Karnataka: KA SDL 2033, 7.16% KA 2031, 7.51% KA 2036
  • Tamil Nadu: 7.58% TN 2056
  • Punjab: PB SDL 2031

Re-issue Securities (6):

  • 7.16% KA 2031, 7.51% KA 2036
  • 7.50% TN 2037, 7.58% TN 2056
  • 6.74% UK 2035

Smallest Issue:

  • Mizoram: MZ SDL 2041 (Rs. 115 crores, max limit Rs. 1.15 crores)

Contact Information

For queries:

Impact Justification

Operational circular for debt market participants regarding SDL auction process. Significant auction size but routine market operation with established procedures.