Government of India to auction dated securities worth ₹28,000 crore

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Auction of ₹28,000 crore securities

Highlights

RBI will auction dated securities worth ₹28,000 crore on July 24, 2026, including ₹17,000 crore for GS 2041 and ₹11,000 crore for 7.43% GS 2076.
The auction for the new security will be yield-based and for the re-issue will be price-based, with the minimum bid size set at ₹10,000 face value.
5% of each security will be allocated to eligible individuals/institutions under the non-competitive bidding facility, and retail investors can participate via the Retail Direct portal.

This article was translated from the original. Read the original version by our correspondent here.

Auction Structure and Timeline

According to the Reserve Bank of India, the sale of these securities will be conducted through its Mumbai office and will be subject to the terms of the relevant specific notification and the general notification dated March 26, 2025. The notified amount for the new GS 2041 is ₹17,000 crore with a maturity date of July 27, 2041, while ₹11,000 crore is notified for the 7.43% GS 2076, maturing on January 19, 2076.

The auction will follow a multiple price method. Both competitive and non-competitive bids must be submitted electronically on the RBI's e-Kuber system on July 24, 2026, with the window for non-competitive bids from 10:30 AM to 11:00 AM and for competitive bids from 10:30 AM to 11:30 AM.

The results will be announced the same day, and successful bidders must make payment on July 27, 2026. For the additional competitive underwriting portion, primary dealers can submit bids on July 24, 2026, from 09:00 AM to 09:30 AM, while these securities will be eligible for 'When Issued' trading from July 21, 2026, to July 24, 2026.

Market Participation and Impact on Investors

The auction for the new security will be yield-based, while the re-issue will be price-based. The minimum bid size is set at ₹10,000 face value, and investments can be made in multiples of ₹10,000 thereafter.

Up to 5% of the notified sale amount of each individual security will be allocated to eligible individuals and institutions under the non-competitive bidding facility. Retail investors can also participate in the non-competitive category through the Retail Direct portal, while banks and primary dealers will submit consolidated bids on behalf of their clients.

The RBI has stated that, under normal circumstances, only electronic bids will be accepted, and physical bids will be valid only in exceptional cases of system failure. These securities will also be eligible for repo transactions, 'When Issued' trading, and investment by non-residents under applicable guidelines, ensuring broad participation in the government securities market.

In our previous report, we explained the redemption price and its calculation basis for Sovereign Gold Bond (SGB) 2020-21 Series X and SGB 2021-22 Series IV set for July 2026. It was explained that the redemption price is based on the simple average of the closing price of 999 purity gold per gram as published by IBJA, providing investors with greater clarity on cash flows and settlement before maturity.

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