Description

BSE announces non-competitive bidding facility for 27 State Government Securities (SDL) auction scheduled for February 03, 2026, with aggregate issue size of Rs. 37,000 crores across multiple states.

Summary

BSE has announced the non-competitive bidding (NCB) facility for the auction of 27 State Government Securities (SDL) scheduled for February 03, 2026, as per RBI’s press release dated January 30, 2026. Trading members can participate through the NCB-GSec module of BSE’s iBBS web-based bidding platform. The total aggregate issue size is Rs. 37,000 crores covering securities from 15 states including Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Tamil Nadu, Uttar Pradesh, and West Bengal.

Key Points

  • 27 State Government Securities (SDL) available for auction on February 03, 2026
  • Total aggregate issue size: Rs. 37,000 crores
  • Mix of new issues (23 securities) and re-issues (4 securities)
  • Minimum subscription unit: 100 units (Rs. 10,000) for all securities
  • Bidding through BSE’s iBBS platform NCB-GSec module at https://ibbs.bseindia.com
  • Karnataka has the largest allocation with Rs. 6,000 crores across 3 securities
  • Madhya Pradesh, Maharashtra, Tamil Nadu, Uttar Pradesh, and West Bengal each have multiple securities on offer
  • Maturity periods range from 2030 to 2056 (4 to 30 years)
  • Re-issue securities include: 7.48% AP 2035, 7.19% CG 2035, 7.15% KA 2031, 7.50% TN 2036, and 7.53% TN 2037

Regulatory Changes

No new regulatory changes. This circular is in continuation of Exchange circular no. 20191122-28 dated November 22, 2019, regarding the launch of non-competitive bidding facility for State Government Securities auctions conducted by RBI.

Compliance Requirements

For Trading Members:

  • Submit bids through NCB-GSec module of iBBS platform
  • Ensure bid submission by February 03, 2026, 8:00 AM (final deadline for members)
  • Comply with minimum bid amount of Rs. 10,000 (100 units) per security
  • Adhere to maximum bid limits as specified per security (ranging from Rs. 5 crores to Rs. 20 crores)
  • Contact Trading Operations for user ID creation, password reset, or bidding queries
  • Coordinate with ICCL Operations for obligation and pay-in related matters

For Direct Investors:

  • Submit bids by February 02, 2026, 5:00 PM

Important Dates

  • January 30, 2026: RBI press release announcing SDL auction
  • February 02, 2026, 10:00 AM: Bid collection starts (24-hour availability)
  • February 02, 2026, 5:00 PM: Bid collection deadline for direct investors
  • February 03, 2026, 8:00 AM: Bid collection deadline for trading members
  • February 03, 2026: Auction date
  • February 04, 2026: Settlement date

Impact Assessment

Market Impact: Medium - The Rs. 37,000 crore SDL issuance represents routine state borrowing activity and provides investment opportunities in state government securities across 15 states. The offering includes a good mix of short-term (4-year) to long-term (30-year) securities, catering to different investor duration preferences.

Operational Impact: Low to Medium - Trading members need to process bids through the established NCB-GSec module. The staggered deadlines (direct investors vs. members) allow for orderly bid collection. Support infrastructure is in place with dedicated teams for technical, trading, and settlement queries.

Investor Impact: Medium - The non-competitive bidding facility allows retail and institutional investors to participate in SDL auctions without competing on yield, making it easier to invest in state government securities. The minimum investment of Rs. 10,000 makes these securities accessible to smaller investors.

Liquidity Impact: Positive - Addition of new SDL securities and re-issuance of existing ones enhances liquidity in the debt market and provides more investment options for fixed-income investors seeking state government exposure.

Impact Justification

Routine SDL auction notification with standard non-competitive bidding process for institutional investors and trading members. Affects debt market participants but is a regular scheduled activity with moderate issue size of Rs. 37,000 crores across 27 securities.