Seven state governments have offered to raise an aggregate amount of Rs 20,100 crore through the auction of State Government Securities (SGS). The financial exercise is scheduled to take place on August 25, 2026, utilizing the core banking solution platform of the central banking institution.

Participating States and Allocation Structure

The borrowing program involves distinct capital requirements across various participating regions. Andhra Pradesh, Gujarat, Haryana, Maharashtra, Punjab, Rajasthan, and Tamil Nadu are putting up securities comprising both fresh issuances and re-issues of existing stock across different tenors and pricing structures. Maharashtra leads the total requisition with multiple tenors ranging from five to twenty-three years, followed by allocations from Rajasthan, Haryana, Tamil Nadu, Andhra Pradesh, Gujarat, and Punjab.

Auction Timings and Bidding Guidelines

The Reserve Bank of India will conduct the electronic auction process through the E-Kuber system. Market participants must submit their electronic bids within designated morning hours on the auction date. Competitive bidding is structured between 10:30 AM and 11:30 AM, while non-competitive bids must be placed from 10:30 AM to 11:00 AM. Eligible individuals and institutional investors can secure up to ten per cent of the notified amount for each stock under the non-competitive facility, subject to individual caps. Retail investors can utilize the dedicated online retail direct portal for placing their applications.

The regulatory framework allows eligible investors to submit multiple competitive bids at varying rates expressed up to two decimal points, provided the aggregate amount does not exceed the notified threshold for each state. Minimum investments begin at Rs 10,000 with additional multiples of the same amount.

Settlement and Regulatory Status

• Auction results will be made public on August 25, 2026.
• Successful bidders must complete their payments during banking hours on August 27, 2026.
• Interest on newly issued stocks will be disbursed semi-annually on February 27 and August 27 until maturity.
• Investments in these securities qualify for the Statutory Liquidity Ratio requirements for commercial banks.

The entire issuance process operates under the provisions of the Government Securities Act of 2006 and its corresponding regulations. Furthermore, the allocated instruments will remain eligible for ready forward facility transactions.

Primary source: This independent news summary is based on official information from Reserve Bank of India. Read the original document for complete details.