Home India Reserve Bank of India Auction of State Government Securities...
Date: 2026-02-06 Category: Not Applicable State: Union Government Country: India

Auction of State Government Securities

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document is a press release from the Reserve Bank of India (RBI) announcing an auction of State Government Securities, scheduled for February 10, 2026. It specifies the amounts to be raised by each state, along with details on tenor and type of auction (yield-based or price-based). The results of the auction will be announced on February 10, 2026, and payment by successful bidders is due on February 11, 2026. **Key Points / Main Content** * **Auction Details:** * Auction will be conducted on the RBI's E-Kuber system on February 10, 2026. * The aggregate amount to be raised is ₹48,615 Crore. * Competitive bids must be submitted between 10:30 A.M. and 11:30 A.M. on February 10, 2026. * Non-competitive bids must be submitted between 10:30 A.M. and 11:00 A.M. on February 10, 2026. * **State Government Securities:** * Eleven state governments are participating in the auction, including Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Mizoram, Punjab, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal. * Each state has a specified amount to be raised, tenor of security, and type of auction (yield or price-based). * Some states are re-issuing existing securities. * **Bidding Process:** * Government Stock up to 10% of the notified amount will be allotted to eligible individuals and institutions. * Individual investors can place bids through the Retail Direct portal. * The aggregate amount of bids submitted by a bidder should not exceed the notified amount for each State. * Yield per cent or the price should be expressed up to two decimal points. * **Post-Auction:** * The results of the auction will be announced on February 10, 2026. * Payment by successful bidders will be made on February 11, 2026. * Stock will be issued for a minimum nominal amount of ₹10,000.00 and in multiples thereof. * **Interest Payments:** * Interest on the new State Government Stocks will be paid half-yearly on August 11 and February 11. * For re-issued Government Stock, interest will be paid at the rate determined on the date of original issue. * **Regulatory Aspects:** * The stocks qualify for the ready forward facility. * The investment is reckoned as an eligible investment for banks for Statutory Liquidity Ratio (SLR) purposes. **Impact Analysis** **State Governments** * **Impact:** Opportunity to raise funds by selling stock. * **Action Required:** Participate in the auction process to secure funding. **Banks and Financial Institutions** * **Impact:** Opportunity to invest in State Government Securities for SLR compliance. * **Action Required:** Participate in the auction with competitive bids. **Individual Investors** * **Impact:** Opportunity to invest in State Government Securities. * **Action Required:** Place bids through the Retail Direct portal or as per the non-competitive bidding facility. **Reserve Bank of India** * **Impact:** Facilitating the auction process. * **Action Required:** Conduct the auction, determine the maximum yield/minimum price, and announce the results.

Key Entities Referenced

Reserve Bank of India (RBI): Central bank of India, responsible for conducting the auction of State Government Securities. State Government Securities (SGS): Debt instruments issued by State Governments to raise funds through auction. E-Kuber: The Reserve Bank of India Core Banking Solution system used for conducting the auction. Government Securities Act, 2006: Law governing the stocks being auctioned. Banking Regulation Act, 1949: Act that relates to the Statutory Liquidity Ratio (SLR) for banks, and the investment in state government stocks.
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प्रेस प्रकाशनी PRESS RELEASE भारतीय �रज़वर् बैंक RESERVE BANK OF INDIA वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, केंद्रीय कायार्लय, शहीद भगत िसंह मागर्, फोटर्, मुंबई - 400 001 Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502 February 06, 2026 Auction of State Government Securities The following State Governments have offered to sell stock by way of auction, for an aggregate amount of ₹48,615 Crore (Face Value). Additional Amount to Borrowing Sr. Type of State be raised (Greenshoe) Tenor (Year) No . Auction (₹ Crore) Option (₹ Crore) 1. Assam 1000 - 20 Yield 1500 - 13 Yield 2. Bihar 1500 - 26 Yield Re-issue of 7.49% 1000 - Chhattisgarh SGS 2035, Price 3. Chhattisgarh issued on March 27, 2024 1000 - 10 Yield 4. Gujarat 1000 500 05 Yield 1500 - 14 Yield 5. Haryana 1500 - 17 Yield 2000 - 06 year and 06 months Yield Re-issue of 7.49% 2000 - Karnataka SGS 2035, issued Price 6. Karnataka on February 04, 2026 2000 - 09 year and 06 months Yield 1000 - 10 Yield 1000 - 08 Yield Madhya 7. 2000 - 16 Yield Pradesh 2000 - 21 Yield Re-issue of 6.90% 1500 350 Maharashtra SGS 2030, Price issued on February 04, 2026 8. Maharashtra Re-issue of 7.44% 1500 350 Maharashtra SGS 2034, Price issued on February 04, 2026 1500 350 23 Yield 9. Mizoram 115 - 16 Yield 10. Punjab 2000 - 12 Yield 1000 - 07 Yield 1000 - 10 Yield 1000 - 11 Yield 11. Tamil Nadu Re-issue of 7.61% Tamil 2000 - Nadu SGS 2056, issued on Price February 04, 20262 2000 - 13 Yield 2000 - 16 Yield 12. Telangana 2500 - 21 Yield 2500 - 27 Yield Re-issue of 7.60% Uttar 1500 - Pradesh SGS 2037, issued Price 13. Uttar Pradesh on February 04, 2026 1500 - 15 Yield 1500 - 19 Yield 14. West Bengal 1500 - 21 Yield Total 48615 The auction will be conducted on the Reserve Bank of India Core Banking Solution (E-Kuber) system on February 10, 2026 (Tuesday). The Government Stock up to ten per cent of the notified amount of the sale of each stock will be allotted to eligible individuals and institutions, subject to a maximum limit of one per cent of its notified amount for a single bid per stock as per the ‘Scheme for Non-competitive Bidding Facility’. Individual investors can also place bids as per the non- competitive scheme through the Retail Direct portal (https://rbiretaildirect.org.in). Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on February 10, 2026 (Tuesday). The competitive bids should be submitted between 10:30 A.M. and 11:30 A.M. and non-competitive bids should be submitted between 10:30 A.M. and 11:00 A.M. In case of technical difficulties, Core Banking Operations Team may be contacted (email; Phone no: 022-69870466, 022-69870415). For other auction related difficulties, IDMD Auction Team can be contacted (email; Phone no: 022-22702431, 022-22705125). Only in the event of system failure, physical bids would be accepted. Such physical bids should be submitted to the Public Debt Office (email; Phone no: 022-22603456, 022-22603457,022- 22603190) in the prescribed form obtainable from RBI website (https://rbi.org.in/en/web/rbi/forms) before the auction timing ends. The yield per cent per annum or the price as the case may be, expected by the bidder should be expressed up to two decimal points. An investor can submit more than one competitive bid at same/different rates of yield or prices in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a bidder should not exceed the notified amount for each State. The Reserve Bank of India will determine the maximum yield / minimum price at which bids will be accepted. Stock will be issued for a minimum nominal amount of ₹10,000.00 and in multiples of ₹10,000.00 thereafter. The results of the auction will be announced on February 10, 2026 (Tuesday) and payment by successful bidders will be made during banking hours on February 11, 2026 (Wednesday) at Mumbai and at respective Regional Offices of RBI. The new State Government Stocks will bear interest at the rates determined by RBI at the auctions. For the new stock, interest will be paid half yearly on August 11 and February 11 of each3 year till maturity. For the re-issued Government Stock, interest will be paid at the rate as determined on the date of original issue of Government Stock and will be paid on half yearly basis till maturity. The Stocks will be governed by the provisions of the Government Securities Act, 2006 and the Government Securities Regulations, 2007. The investment in State Government Stocks will be reckoned as an eligible investment in Government Securities by banks for the purpose of Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949. The stocks will qualify for the ready forward facility. Ajit Prasad Press Release: 2025-2026/2069 Deputy General Manager (Communications)

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