Description
BSE announces non-competitive bidding facility for SDL auction of 11 state government securities worth Rs. 13,000 crores on January 20, 2026.
Summary
BSE has announced the availability of non-competitive bidding facility for the auction of State Government Securities (SDL) scheduled for January 20, 2026. The auction, conducted by RBI, will offer 11 SDL securities from 7 states (Assam, Jammu & Kashmir, Karnataka, Odisha, Tamil Nadu, and Uttarakhand) with a total issue size of Rs. 13,000 crores. Trading members can submit bids through BSE’s iBBS web-based NCB-GSec module.
Key Points
- Total of 11 SDL securities being auctioned across 7 states
- Total issue size: Rs. 13,000 crores
- Bidding available through BSE’s NCB-GSec module on iBBS platform
- Minimum subscription unit: 100 (Rs. 10,000)
- Maximum bid amount varies from Rs. 5 crores to Rs. 20 crores per security
- Karnataka has the largest allocation with Rs. 6,000 crores across 3 securities
- Mix of new issuances and one re-issuance (7.25% KA 2032)
- Maturity periods range from 2032 to 2056
Regulatory Changes
No new 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 SDL auctions.
Compliance Requirements
- Trading members must use the NCB-GSec module of BSE’s iBBS web-based system (https://ibbs.bseindia.com)
- Direct investors must submit bids by January 19, 2026
- Trading members must submit bids by January 20, 2026 till 8:00 am
- Minimum bid amount: Rs. 10,000 (100 units)
- Maximum bid limits specific to each security (Rs. 5-20 crores)
- Members must ensure timely obligation and pay-in compliance
Important Dates
- January 19, 2026 (10:00 am onwards): Bid collection starts (24-hour availability)
- January 19, 2026: Bid collection end date for direct investors
- January 20, 2026 (till 8:00 am): Bid collection end date for members
- January 20, 2026: Auction date
- January 21, 2026: Settlement date
Impact Assessment
Market Impact: Medium - The auction involves a substantial issuance of Rs. 13,000 crores in SDL securities, which will add to the supply of state government debt instruments in the market. Karnataka’s significant allocation (Rs. 6,000 crores) indicates substantial state borrowing requirements.
Operational Impact: Trading members and debt market participants can participate in the SDL auction through the established non-competitive bidding route, providing retail and institutional investors access to state government securities without competing in the primary auction process.
Liquidity Impact: The diverse maturity profile (2032 to 2056) provides investors with multiple duration options. The re-issuance of 7.25% KA 2032 may enhance liquidity in that existing security.
Securities Details
| State | Security | Type | Issue Size (Rs. Cr) | Max Bid (Rs. Cr) |
|---|---|---|---|---|
| Assam | AS SDL 2046 | New | 1,000 | 10 |
| Jammu & Kashmir | JK SDL 2041 | New | 500 | 5 |
| Karnataka | 7.25% KA 2032 | Re-issue | 2,000 | 20 |
| Karnataka | KA SDL 2034 | New | 2,000 | 20 |
| Karnataka | KA SDL 2038 | New | 2,000 | 20 |
| Odisha | OR SDL 2036 | New | 500 | 5 |
| Odisha | OR SDL 2046 | New | 500 | 5 |
| Tamil Nadu | TN SDL 2032 | New | 1,000 | 10 |
| Tamil Nadu | TN SDL 2033 | New | 1,000 | 10 |
| Tamil Nadu | TN SDL 2056 | New | 2,000 | 20 |
| Uttarakhand | UK SDL 2035 | New | 500 | 5 |
Contact Information
- New user ID/password reset: user.trdops@bseindia.com, 022-2272 8005/8215
- Bidding queries: trading.ops@bseindia.com, 022-2272 8376/5626/8226
- Obligation & pay-in queries: Collaterals@icclindia.com, settlements@icclindia.com, 022-2272 8468/5784/8264/8467/8223/8704/5163
Impact Justification
Routine SDL auction notification affecting debt market participants. Medium impact as it involves significant issuance size (Rs. 13,000 crores) across multiple states but follows established procedures.