National News (29 August 2026): Fifteen state governments are set to raise a combined ₹27,000 crore through an auction of State Government Securities (SGS) on September 1, 2026, according to a notification issued by the Reserve Bank of India (RBI). The auction will be conducted through the RBI’s Core Banking Solution (E-Kuber) platform. The securities being offered include both fresh issuances and re-issues of previously issued State Government Stocks, with maturities extending from the short-to-medium term to as long as 30 years.
Among the states participating in the auction, Tamil Nadu has planned the largest borrowing of ₹5,000 crore, comprising ₹1,000 crore through re-issue of its 7.49% SGS 2036, ₹2,000 crore through re-issue of 7.62% SGS 2041 and another ₹2,000 crore through re-issue of 7.70% SGS 2051.
West Bengal will raise ₹4,700 crore through three securities, including ₹1,000 crore of 7.07% SGS 2031, ₹1,500 crore of 7.64% SGS 2044 and ₹2,200 crore of 7.65% SGS 2052.
Madhya Pradesh has offered securities worth ₹3,600 crore, including a ₹1,600-crore re-issue of 7.61% SGS 2044 and a ₹2,000-crore security with a 30-year tenor through a yield-based auction.
Uttar Pradesh is scheduled to raise ₹2,000 crore through three re-issued securities. These include ₹500 crore of 7.14% Uttar Pradesh SGS 2032, ₹500 crore of 7.59% SGS 2042 and ₹1,000 crore of 7.79% SGS 2051.
Other states participating in the auction include Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Kerala, Manipur, Odisha, Sikkim, Telangana and Uttarakhand.
The securities will be auctioned through either price-based or yield-based bidding, depending on the individual issue. Investors will be required to quote the expected yield or price up to two decimal places.
Bidding Schedule
The RBI has set specific timings for submitting bids on September 1. Competitive bids will be accepted between 10:30 am and 11:30 am, while non-competitive bids can be submitted from 10:30 am to 11:00 am through the E-Kuber system.
The auction results will be declared on the same day. Successful bidders will be required to make payment during banking hours on September 2, 2026, at Mumbai and the respective regional offices of the RBI. In the event of technical difficulties, bidders can contact the RBI’s Core Banking Operations Team. Physical bids will be accepted only if there is a system failure and must be submitted to the Public Debt Office in the prescribed format before the bidding deadline.
Retail Investors Can Participate
Individual investors and eligible institutions can participate in the non-competitive bidding facility. Under the scheme, up to 10% of the notified amount of each security can be allotted to eligible non-competitive bidders, subject to the prescribed limit of 1% of the notified amount for a single bid in each stock.
Retail investors can submit their non-competitive bids through the RBI’s Retail Direct portal, providing individual investors with an avenue to invest directly in State Government Securities. An investor may also submit multiple competitive bids at the same or different yields or prices. However, the total value of bids submitted by a bidder cannot exceed the notified amount for the respective state.
Interest Payments and Minimum Investment
The RBI will determine the maximum accepted yield or minimum accepted price for each security during the auction. The securities will be issued with a minimum nominal value of ₹10,000, with additional investments allowed in multiples of ₹10,000. For newly issued State Government Stocks, interest will be paid at the rate determined during the auction. Interest payments will be made twice a year, on March 2 and September 2, until maturity.
For re-issued securities, interest will continue to be paid at the coupon rate fixed at the time of the original issue, with payments made on a half-yearly basis until maturity.
The State Government Stocks will be governed by the Government Securities Act, 2006 and the Government Securities Regulations, 2007. The securities will also qualify as eligible investments in Government Securities for banks for meeting their Statutory Liquidity Ratio (SLR) requirements under Section 24 of the Banking Regulation Act, 1949. They will also be eligible for the ready-forward facility.
The ₹27,000-crore auction comes as multiple state governments access the debt market to mobilise funds for their expenditure and financing requirements. The auction will provide investors with an opportunity to invest in sovereign-backed State Government Securities across a wide range of maturities.
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