Description

BSE announces non-competitive bidding facility for 27 State Development Loans (SDL) totaling Rs. 37,800 crores to be auctioned on February 03, 2026 through RBI.

Summary

BSE has announced the availability of non-competitive bidding facility for the auction of 27 State Development Loan (SDL) securities 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 system. The total issue size across all securities is Rs. 37,800 crores, covering 15 states with tenures ranging from 2030 to 2056.

Key Points

  • 27 SDL securities available for non-competitive bidding with total issue size of Rs. 37,800 crores
  • States covered: Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Tamil Nadu, Uttar Pradesh, and West Bengal
  • Mix of new issues (23 securities) and re-issues (4 securities)
  • Minimum subscription unit: Rs. 10,000 (100 units at Rs. 100 each)
  • Maximum bid amounts range from Rs. 5 crores to Rs. 20 crores per security
  • Bidding through BSE’s iBBS platform NCB-GSec module at https://ibbs.bseindia.com

Regulatory Changes

No regulatory changes. This circular continues the existing non-competitive bidding facility for SDL auctions as per Exchange circular no. 20191122-28 dated November 22, 2019.

Compliance Requirements

  • Trading members must submit bids through BSE’s iBBS web-based NCB-GSec module
  • Direct investors must submit bids by February 02, 2026 till 5:00 PM
  • Members must submit bids by February 03, 2026 till 8:00 AM
  • Minimum bid amount: Rs. 10,000
  • Maximum bid amounts vary by security (Rs. 5-20 crores)
  • Settlement to be completed on February 04, 2026

Important Dates

  • January 30, 2026: RBI press release announcing SDL auction
  • February 01, 2026: BSE circular issued
  • February 02, 2026, 10:00 AM: Bid collection starts (24-hour availability)
  • February 02, 2026, 5:00 PM: Bid collection end for direct investors
  • February 03, 2026, 8:00 AM: Bid collection end for members
  • February 03, 2026: Auction date
  • February 04, 2026: Settlement date

Impact Assessment

Market Impact: Low - This is a routine debt market operational circular enabling participation in SDL auctions. Does not affect equity markets.

Operational Impact: Medium for debt market participants - Trading members and direct investors in government securities need to be aware of the auction schedule and bidding parameters for participating in SDL issuances.

Investor Impact: Low to Medium - Provides investment opportunity in state government securities across 15 states with varying tenures (5-30 years) and attractive yields (7.15%-7.53% for re-issues). Suitable for institutional and retail debt investors seeking sovereign-backed fixed income instruments.

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Impact Justification

Operational circular for debt market participants regarding SDL auction process. Medium importance for debt traders, low market-wide impact.