Description

BSE announces non-competitive bidding facility for SDL auction covering 28 state government securities worth Rs. 39,800 crores across multiple states.

Summary

BSE has announced the availability of non-competitive bidding facility for the auction of 28 State Government Securities (SDL) scheduled on January 27, 2026. The auction, conducted by RBI, covers securities from 17 states with a total issuance size of Rs. 39,800 crores. Trading members can participate through BSE’s iBBS web-based NCB-GSec module.

Key Points

  • 28 SDL securities available for non-competitive bidding across 17 states
  • Total auction size: Rs. 39,800 crores
  • Mix of new issuances and re-issuances of existing securities
  • Minimum subscription: Rs. 10,000 (100 units)
  • Maximum bid limit varies by security (Rs. 5 to 20 crores)
  • Bidding platform: BSE iBBS web-based system (NCB-GSec module)
  • Reference to earlier circular 20191122-28 dated November 22, 2019

Regulatory Changes

No new regulatory changes. This circular is a continuation of the existing non-competitive bidding facility framework established in November 2019.

Compliance Requirements

  • Trading members must use BSE’s iBBS NCB-GSec module at https://ibbs.bseindia.com
  • Direct investors must submit bids by January 26, 2026
  • Members must submit bids by January 27, 2026 till 8:00 AM
  • Minimum bid amount: Rs. 10,000 (100 units)
  • Bids must be in multiples of 100 units
  • Maximum bid limits range from Rs. 5 crores to Rs. 20 crores per security

Important Dates

  • Bid Collection Start: January 23, 2026 from 10:00 AM onwards (24-hour availability)
  • Bid Collection End (Direct Investors): January 26, 2026
  • Bid Collection End (Members): January 27, 2026 till 8:00 AM
  • Auction Date: January 27, 2026
  • Settlement Date: January 28, 2026

Impact Assessment

Market Impact: Medium - Provides liquidity and investment opportunities in state government debt securities across 17 states. The large auction size of Rs. 39,800 crores indicates significant state government borrowing requirements.

Operational Impact: Trading members and direct investors can participate in SDL auctions through non-competitive route, democratizing access to government securities. The 24-hour bidding window provides flexibility for participants.

States Covered: Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Karnataka, Kerala, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttarakhand, and West Bengal.

Maturity Range: Securities range from 2031 to 2056 maturity, with coupon rates on re-issuances ranging from 7.24% to 7.58%.

Impact Justification

Regular SDL auction notification for debt market participants. Medium impact as it provides retail/small investors access to state government securities through non-competitive bidding route.