Overview of the State Government Securities Auction

The Reserve Bank of India has scheduled an auction to sell stock on behalf of various state governments and union territories, aiming to raise an aggregate face value amount of Rs 20,200 crore. Twelve regional administrations are participating in this round of borrowing, offering a mix of fresh issuances and re-issued government stocks spanning different tenors.

Participating state entities include Assam, Bihar, Delhi, Jammu and Kashmir, Kerala, Madhya Pradesh, Mizoram, Odisha, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal. The upcoming financial exercise will be conducted electronically through the central bank’s Core Banking Solution, known as E-Kuber, providing a structured mechanism for institutional and retail participants.

Bidding Timelines and Investor Participation Rules

The auction process is scheduled to take place on August 18, 2026. Investors can participate through both competitive and non-competitive bidding structures, subject to specific operational guidelines set by regulatory authorities.

• Competitive bids must be submitted electronically between 10:30 AM and 11:30 AM on August 18, 2026.
• Non-competitive bids are to be placed between 10:30 AM and 11:00 AM on the same day.
• Eligible individuals can also place non-competitive bids through the dedicated Retail Direct online portal.
• Stocks will be issued for a minimum nominal value of Rs 10,000 and in multiples of Rs 10,000 thereafter.

Under the established non-competitive facility framework, eligible individuals and institutions can secure up to ten percent of the notified sale amount for each specific stock, with a strict ceiling of one percent for any single bid per stock.

Settlement, Yields, and Regulatory Status

The central bank will evaluate all submissions to determine the final accepted prices or maximum yields, with results slated for announcement on August 18, 2026. Successful participants are required to complete their payments during normal banking hours on August 19, 2026, at Mumbai or respective regional offices.

Interest on the newly issued securities will be disbursed on a half-yearly basis on February 19 and August 19 until the final maturity date. Furthermore, investments made in these state government stocks qualify as eligible holdings for commercial banks attempting to maintain their Statutory Liquidity Ratio under the Banking Regulation Act, 1949, and the securities will also qualify for the ready forward facility.

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