Description

BSE announces non-competitive bidding facility for auction of 27 State Government Securities (SDL) totaling Rs. 36,000 crore on February 03, 2026, with bid collection starting February 02, 2026.

Summary

BSE announces non-competitive bidding facility for auction of 27 State Government Securities (SDL) scheduled for February 03, 2026. The auction encompasses 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. Total issue size is Rs. 36,000 crore with both new issues and re-issues. Bidding will be conducted through BSE’s NCB-GSec module on the iBBS platform.

Key Points

  • 27 SDL securities available for auction with total issue size of Rs. 36,000 crore
  • Mix of 23 new issues and 4 re-issues across 15 states
  • Bid collection for direct investors: February 02, 2026 (10:00 am to 5:00 pm)
  • Bid collection for members: February 02, 2026 10:00 am to February 03, 2026 8:00 am
  • Auction date: February 03, 2026
  • Settlement date: February 04, 2026
  • Minimum subscription: Rs. 10,000 in units of Rs. 100
  • Bidding platform: BSE iBBS NCB-GSec module (https://ibbs.bseindia.com)
  • Reference to RBI press release dated January 30, 2026 and BSE circular 20191122-28

Regulatory Changes

No new regulatory changes. This circular provides operational details for an SDL auction under the existing non-competitive bidding framework launched via BSE circular dated November 22, 2019.

Compliance Requirements

  • Trading members must submit bids through NCB-GSec module of BSE iBBS platform
  • Direct investors must complete bidding by February 02, 2026 at 5:00 pm
  • Members must complete bidding by February 03, 2026 at 8:00 am
  • Minimum investment: Rs. 10,000 per security
  • Subscription in multiples of Rs. 100
  • Maximum investment limits vary by security (Rs. 5 crore to Rs. 20 crore)
  • Members must ensure compliance with obligation and pay-in requirements post-auction

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 members
  • February 03, 2026: Auction date
  • February 04, 2026: Settlement date

Impact Assessment

This SDL auction provides investment opportunities in state government securities across 15 states with varying maturity profiles (2030-2056). The Rs. 36,000 crore total size represents significant borrowing by state governments. Karnataka has the largest allocation at Rs. 6,000 crore (3 securities), followed by Madhya Pradesh and Tamil Nadu at Rs. 5,200 crore each. The non-competitive bidding facility enables retail and smaller institutional investors to participate in SDL auctions without price discovery risk. Impact is moderate as this is a routine debt market operation, though the size and geographic diversity provide broad market participation opportunities.

Securities Details

Largest Issues:

  • Karnataka: Rs. 6,000 crore (KA071531 re-issue Rs. 2,000 cr, KANW2033 Rs. 2,000 cr, KANW2035 Rs. 2,000 cr)
  • Madhya Pradesh: Rs. 5,200 crore (MPNW2033 Rs. 1,200 cr, MPNW2043 Rs. 2,000 cr, MPNW2048 Rs. 2,000 cr)
  • Tamil Nadu: Rs. 4,000 crore (TN075036 Rs. 1,000 cr, TN075337 Rs. 1,000 cr, TNNW2056 Rs. 2,000 cr)
  • Maharashtra: Rs. 4,500 crore (3 new issues)
  • Uttar Pradesh: Rs. 3,000 crore (2 new issues)
  • West Bengal: Rs. 3,000 crore (2 new issues)

Re-Issues (4 securities):

  • 7.48% AP 2035 (AP074835): Rs. 1,000 crore
  • 7.19% CG 2035 (CG071935): Rs. 1,000 crore
  • 7.15% KA 2031 (KA071531): Rs. 2,000 crore
  • 7.50% TN 2036 (TN075036): Rs. 1,000 crore
  • 7.53% TN 2037 (TN075337): Rs. 1,000 crore

Contact Information

Impact Justification

Routine SDL auction notification for debt market participants with Rs. 36,000 crore total issue size across 27 securities from multiple states