RBI announces the auction of two Government of India securities worth Rs 28,000 crore, scheduled for October 10, 2025, with settlement on October 13. Both competitive and non-competitive bids will be accepted, and securities will be eligible for “When Issued” trading from October 7-10
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The Reserve Bank of India (RBI) on Monday announced the auction of two Government of India (GoI) securities with a total notified amount of Rs 28,000 crore.
As per the notification released by the Reserve Bank, the auction will include the re-issue of 6.68 per cent GS 2040 worth Rs 16,000 crore and 6.90 per cent GS 2065 worth Rs 12,000 crore. The auction has been scheduled for Friday, October 10, and the settlement will take place on Monday, October 13, reported ANI.
According to the notification released by the government, the government will have the option of accepting further subscriptions of up to Rs 2,000 crore per security. The sale will take place through the Reserve Bank of India's Mumbai Office, using its Core Banking Solution e-Kuber system.
The auction will employ a multiple-price mechanism, allowing both competitive and non-competitive bids. Non-competitive bids will be accepted between 10:30 and 11:00 a.m. on October 10, while competitive bids will be handled between 10:30 and 11:30 a.m. on the same day. The results will be announced on the same day, and the winning bidder must pay by Monday, October 13.
Bids for underwriting the Additional Competitive Underwriting (ACU) portion can be submitted by Primary Dealers between 9:00 a.m. and 9:30 a.m. on the day of the auction, October 10.
The securities will also be eligible for "When Issued" trading between October 7 and October 10, 2025.
As reported by news agency ANI, for multiple price-based auctions, successful bids will get accepted at the respective quoted yield/price for the security. On the other hand, for a uniform price-based auction, bids will get accepted at the cutoff yield/price accepted in the auction.
As per the statement by the RBI, the auction will be yield-based for new securities and price-based for securities which are reissued. In the case of a Floating Rate Bond (FRB), the auction will be spread-based for new securities and price-based for reissued securities. At the time of placing bids for a new FRB, the spread should be quoted in percentage terms.
RBI, through its release, also explained that the stocks will be issued for a minimum amount of Rs 10,000 and in multiples of Rs 10,000 thereafter.
The auction will employ a multiple-price mechanism, allowing both competitive and non-competitive bids. Non-competitive bids will be accepted between 10:30 and 11:00 a.m. on October 10, while competitive bids will be handled between 10:30 and 11:30 a.m. on the same day. The results will be announced on the same day, and the winning bidder must pay by Monday, October 13.
Bids for underwriting the Additional Competitive Underwriting (ACU) portion can be submitted by Primary Dealers between 9:00 a.m. and 9:30 a.m. on the day of the auction, October 10.
However, the securities will also be eligible for "When Issued" trading between October 7 and October 10, 2025.
(With inputs from IANS)
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